Renewable Energy - United States

The Renewable Energy market in the United States is experiencing considerable growth, influenced by factors such as regulatory changes, fluctuating fossil fuel prices, and the ongoing transition to cleaner energy sources, despite challenges in investment and infrastructure development.

Customer preferences: Consumers in the United States are increasingly prioritizing sustainability in their energy choices, leading to a growing demand for renewable energy solutions such as solar panels and wind energy systems. This shift is influenced by a younger, environmentally-conscious demographic that values eco-friendly living and seeks to reduce their carbon footprint. Additionally, community-driven initiatives, like local solar co-ops, are gaining traction, reflecting a cultural shift towards collective action in addressing climate change and promoting renewable energy adoption.

Trends in the market: In the United States, the Renewable Energy market is experiencing a surge in residential solar installations, driven by declining costs and favorable policies, enabling homeowners to adopt clean energy solutions more easily. Concurrently, utility-scale wind projects are expanding, as states set ambitious renewable energy targets. The rise of energy storage technologies is also notable, enhancing the reliability of renewables. These trends signify a shift toward decentralized energy systems, prompting stakeholders, including utilities and investors, to adapt their strategies in response to increased competition and evolving consumer preferences.

Local special circumstances: In the United States, the Renewable Energy market is shaped by diverse local factors that influence its dynamics. Geographic variations, such as abundant sunlight in the Southwest and strong winds in the Midwest, dictate the feasibility of solar and wind projects, respectively. Culturally, there is a growing environmental consciousness among consumers, prompting demand for sustainable energy solutions. Additionally, state-specific regulations and incentives, like California's ambitious climate goals, foster innovation and competition, differentiating the U.S. market from others globally.

Underlying macroeconomic factors: The performance of the Renewable Energy market in the United States is significantly influenced by overarching macroeconomic factors, including national economic health, global energy trends, and fiscal policies. Economic expansion can lead to increased investments in renewable projects, while downturns may hinder funding availability. Additionally, federal tax incentives and state subsidies play a crucial role in attracting investment and promoting innovation in clean energy technologies. Global trends, such as rising fossil fuel prices and international climate agreements, also impact domestic policies and consumer demand for renewable energy, further shaping market dynamics across the country.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

Additional notes:

The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.