The global power sector is undergoing a seismic shift, with renewable energy sources — particularly solar photovoltaic (PV) and wind — poised to dominate electricity generation in the coming decade.
According to a new report from GlobalData, worldwide installed renewable power capacity is projected to surge from 3.42 terawatts (TW) in 2024 to an astonishing 11.2 TW by 2035.
This remarkable growth is attributed to rapid technological progress, strong policy incentives, and an urgent global focus on sustainable energy solutions.
The report, Renewable Energy: Strategic Intelligence, reveals that the renewables market has already expanded at a compound annual growth rate (CAGR) of 16 per cent from 2015 to 2024, and is expected to continue growing at 11 per cent annually through 2035.
Solar PV and wind power are the clear frontrunners, accounting for 56 per cent and 33 per cent of total installed renewable capacity in 2024, respectively.
The Asia Pacific (APAC) region has emerged as the largest market, boasting 1.18 TW of solar PV and 0.67 TW of wind capacity.
“As the costs of solar photovoltaic (PV) and wind technologies continue to decline, these renewable energy sources are increasingly appealing to investors,” said Rehaan Shiledar, Senior Power Analyst at GlobalData.
“Also, energy transition strategies, coupled with a rising demand for electricity — partly fuelled by the emergence of hydrogen energy and the advent of artificial intelligence — will propel the market growth for renewable energy sources.”
Artificial intelligence (AI) is also revolutionising the renewable energy landscape.
AI-driven algorithms are now optimising generation, managing grids in real time, and refining energy storage strategies — making renewables more reliable and cost-effective.
Offshore wind developers such as TotalEnergies, Corio Generation, EnBW, RWE, and Statkraft are leveraging digital platforms to streamline project development.
Solar power giants like NextEra Energy, EDF, and ENGIE are using machine learning models to boost the efficiency of solar PV facilities.
Solar PV continues to attract the lion’s share of investment, with US$329.1 billion invested in 2024 — more than double the US$151.2 billion for onshore wind and nearly five times the US$69.6 billion for offshore wind.
By 2030, onshore wind investment is forecast to reach US$186.9 billion, while offshore wind is expected to more than double to US$150.4 billion, reflecting a robust CAGR of 14 per cent for offshore wind.
Shiledar said: “The renewable energy sector stands on the cusp of substantial growth, with the solar PV and wind power industries at the forefront.
“Moreover, the worldwide pledge to curtail carbon emissions has cultivated a regulatory landscape conducive to investments in these sustainable energy alternatives.”
Despite global momentum, the report notes that the United States is showing signs of slowing renewable growth in favour of fossil fuels, citing restrictive tariffs and offshore wind lease policies under the Trump administration.
Shiledar concludes: “Solar and wind power stand at the vanguard of the renewable segment, rapidly becoming cost-competitive with traditional fossil fuels.
“They are anticipated to dominate electricity generation in the near future.
“While the global community is committing to the expansion of renewable energy sources, the US appears to be slowing the pace of renewables growth in favour of prioritising fossil fuels.
“Tariffs and offshore wind lease restrictions policy by the Trump administration are significantly impacting the renewable energy industry.
“Nonetheless, the global commitment to reduce carbon emissions, technological advancements, and demand for cleaner energy solutions will accelerate the adoption of renewable energy across the globe.”
As the world races toward a cleaner energy future, the next decade promises unprecedented growth and transformation for the renewable sector, with solar and wind leading the way.
