PVTIME – GlobalData predicts that the global installed capacity of renewable energy will surge to 8.4TW by 2031, which is more than double the level of 4.1TW predicted for 2025. This expansion will deliver a compound annual growth rate (CAGR) of 13%, driven by the rapid global deployment of solar PV and wind power technologies.
The research firm identifies three key factors driving this growth: the high scalability of solar PV, its declining costs, and robust policy support. By 2025, solar PV had become the world’s leading source of renewable power capacity, accounting for 56.1% of the global total. This was ahead of wind energy at 33.5% and biomass at 5.3%. GlobalData estimated PV generation at 2,800TWh that year, just ahead of wind power’s 2,770TWh.
China led global PV output in 2025, with its systems producing around 1,150TWh, which equivalent to 41% of the world’s total. The United States and India followed with 486TWh and 189TWh, respectively. GlobalData anticipates a ‘two-speed’ expansion of renewables due to diverging policies: in the United States, for example, policy shifts under Donald Trump could reduce federal support for renewables, which could slow deployment. Conversely, China’s clean energy sector is growing rapidly, accounting for over 90% of incremental investment growth in 2025 and contributing more than a third of the country’s economic expansion.
Rising electricity demand, driven by hydrogen production, AI, data centre development, and accelerated electrification, is prompting tech firms to increase investment in clean energy. Companies including Meta, Amazon and Google are investing to support their data centre operations and meet their decarbonisation commitments.
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