Market Overview

The Europe renewable energy market size reached USD 241.9 Billion in 2024 and is expected to reach USD 445.0 Billion by 2033, growing at a CAGR of 7.01% during 2025-2033. Advances in technology and economies of scale have reduced renewable energy costs, making them competitive against fossil fuels. The European Union aims to increase renewable energy consumption share to 42.5% by 2030, with an aspirational target of 45%, accelerating 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

  • The renewable energy market in Europe reached USD 241.9 Billion in 2024.
  • The market is projected to exhibit a CAGR of 7.01% during 2025-2033.
  • The forecast period for the market is 2025-2033.
  • Renewables accounted for 24.5% of the EU’s energy consumption in 2023, up from 23.0% in 2022.
  • The EU targets 42.5% of gross final energy consumption from renewables by 2030, with an aspirational goal of reaching 45%.
  • Falling costs of renewable technologies, including wind and solar, are increasing competitiveness against fossil fuels.
  • Strong government policies and climate goals drive investment and deployment in solar, wind, and bioenergy.

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

Market Growth Factors

The expansion of green hydrogen projects is a significant growth factor for the Europe renewable energy market. Green hydrogen is positioned as essential for sectors where direct electrification is difficult. Countries such as Germany, Spain, and the Netherlands are investing heavily in electrolysis facilities powered by wind and solar energy. Large-scale pilot projects and cross-border hydrogen corridors are planned to connect production and demand centers. Supported by the EU Hydrogen Strategy, the market is expected to scale rapidly by 2030. Reduced costs of electrolysis and increased renewable generation will facilitate green hydrogen's role in emission reductions within steelmaking, transport, and chemical production.

European governments' strong policy commitments and ambitious climate goals also drive the market. The European Green Deal, “Fit for 55” package, and national energy strategies create binding targets for renewable energy shares and emission reductions. Supportive financial instruments such as subsidies and carbon pricing enhance the investment climate. This policy framework encourages the expansion of solar, wind, and bioenergy sectors, fostering private and utility commitments to long-term renewable procurement. These well-defined policy signals boost investor confidence and accelerate the deployment of renewable energy across Europe.

Falling costs of renewable technologies significantly reshape the market, making clean energy more competitive than fossil fuels. Onshore and offshore wind, utility-scale solar, and energy storage solutions are often cheaper than conventional generation. Technological advancements in turbine design, larger solar modules, and better supply chains have improved efficiency and lowered capital costs. New projects often achieve record-low auction prices, driving utilities and investors toward renewables. Rising carbon prices for fossil fuels accelerate the retirement of coal and gas plants, reinforcing renewables as the backbone of Europe’s future electricity generation.

Market Segmentation

Type Insights:

  • Hydro Power: Includes energy generated by harnessing flowing or falling water.
  • Wind Power: Captures kinetic energy of moving air to generate electricity.
  • Solar Power: Utilizes photovoltaic cells to convert sunlight into electrical energy.
  • Bioenergy: Converts organic materials into usable fuel and energy.
  • Others: Comprises additional renewable energy sources beyond the main categories.

End User Insights:

  • Industrial: Renewable energy usage in manufacturing and production industries.
  • Residential: Utilization of renewable energy sources in household settings.
  • Commercial: Renewable energy consumption within business and service sectors.

Country Insights:

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

Regional Insights

Germany, United Kingdom, France, Italy, Russia, Spain, Netherlands, Switzerland, Poland, and other European countries constitute the major regional markets for renewable energy in Europe. The market is driven by strong policy support across these regions and is expected to grow robustly during 2025-2033, supported by technological advancement and rising renewable energy adoption.

Recent Developments & News

In August 2025, UK-based Mitie Group secured a GBP 71.5 Million (EUR 83 Million) contract to build one of Europe’s largest battery energy storage systems (BESS), scheduled for mid-2027 operation. The project includes a 400-kV substation, supports 60 construction jobs, and promises a 25.7% biodiversity net gain with 12 acres of woodland and wildflower meadows.

Also in August 2025, UK-based Enviromena acquired the 40-MW Rock Farm solar project in Shropshire, UK, from Anglo Renewables. The fully consented project, with potential for co-located battery storage, secured a Contract for Difference (CfD) in Allocation Round 6 and is set to start in 2026. It is expected to power over 16,000 homes annually, enhancing the UK’s renewable energy pipeline.

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.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.