Market Overview

The Europe renewable energy market reached USD 241.9 Billion in 2024 and is projected to grow at a CAGR of 7.01% to reach USD 445.0 Billion by 2033. The market growth is driven by advances in technology and economies of scale that have lowered renewable energy costs, increasing competitiveness against fossil fuels. Renewables accounted for 24.5% of the EU's energy consumption in 2023, with the EU targeting 42.5% by 2030, aiming to accelerate the energy transition.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

Europe Renewable Energy Market Key Takeaways

  • Current Market Size: USD 241.9 Billion in 2024
  • CAGR: 7.01% (2025-2033)
  • Forecast Period: 2025-2033
  • Renewables made up 24.5% of the EU’s energy consumption in 2023, up from 23.0% in 2022.
  • The EU aims for 42.5% of gross final energy consumption from renewables by 2030, with an aspirational goal of 45%.
  • Green hydrogen projects are expanding in countries like Germany, Spain, and the Netherlands, supported by the EU Hydrogen Strategy.
  • Falling renewable technology costs and strong policy commitments are accelerating renewables adoption and fossil fuel phase-out.
  • The European Green Deal and "Fit for 55" package are pivotal policy frameworks driving market growth.

Sample Request Link: https://www.imarcgroup.com/Europe-Renewable-Energy-Market/requestsample

Market Growth Factors

Government de-carbonization policies and EU climate goals drive the European renewable energy market by imposing mandatory renewable energy share and emissions reduction targets, and supporting policies such as renewable energy subsidies and carbon pricing. The environment has fostered greater investment, longer contracts and greater investor confidence, driving renewables deployment throughout Europe.

Improvements in wind and solar technology and economies of scale have seen prices fall greatly, to such an extent that renewables are already cheaper than fossil fuels for many utilities and investors in many locations. Rising carbon prices within the European Union and concerns over energy security, particularly since the Russia-Ukraine War, have helped to further this trend.

Germany, Spain, the Netherlands and other countries are developing numerous green hydrogen projects. There are meaningful investments in wind and solar powered electrolysis plants. The EU Hydrogen Strategy seeks to rapidly scale up production to 2030. Green hydrogen is expected to decarbonize some sectors in which electrifying is less feasible, such as when they make steel and when they produce chemicals.

Market Segmentation

Type Insights:

  • Hydro Power: Energy generated using the force of flowing water, a key renewable resource in Europe.
  • Wind Power: Captures kinetic energy from moving air to produce electricity; a rapidly growing segment.
  • Solar Power: Harnesses sunlight using photovoltaic cells; costs have fallen significantly, boosting adoption.
  • Bioenergy: Energy produced from organic materials, contributing to cleaner fuel alternatives.
  • Others: Includes other renewable energy sources not categorized above.

End User Insights:

  • Industrial: Renewable energy applications serving manufacturing and production sectors.
  • Residential: Renewable energy use within homes and private dwellings.
  • Commercial: Renewables used in commercial buildings and enterprises.

Country Insights:

  • Germany
  • United Kingdom
  • France
  • Italy
  • Russia
  • Spain
  • Netherlands
  • Switzerland
  • Poland
  • Others

Regional Insights

Germany, United Kingdom, France, Italy, Russia, Spain, Netherlands, Switzerland, and Poland are the key regional markets driving Europe’s renewable energy sector. The EU’s renewable share increased to 24.5% in 2023, with ambitious targets to reach 42.5% by 2030. Policy backing and cost declines in renewables are helping these regions lead in market growth, reinforcing Europe’s transition to clean energy.

Recent Developments & News

In August 2025, UK-based Mitie Group secured a GBP 71.5 Million (EUR 83 Million) contract to construct one of Europe's largest battery energy storage systems (BESS), operational by mid-2027. The project includes a 400-kV substation, supports 60 construction jobs, and features a 40-year life span with 25.7% biodiversity net gain.

In August 2025, UK-based Enviromena acquired the 40-MW Rock Farm solar project in Shropshire from Anglo Renewables. Fully consented and with potential battery storage, it secured a Contract for Difference (CfD) in Allocation Round 6. The site, going live in 2026, will produce enough clean electricity to power over 16,000 homes annually.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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