Market Overview

The Europe renewable energy market reached a size of USD 241.9 Billion in 2024 and is projected to grow at a CAGR of 7.01% during the forecast period of 2025-2033, reaching USD 445.0 Billion by 2033. This growth is driven by advances in technology and economies of scale that have lowered costs, increased competitiveness against fossil fuels, and supported stronger policy commitments within the EU. Learn more at Europe Renewable Energy Market (

Study Assumption Years

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

Europe Renewable Energy Market Key Takeaways

  • The Europe renewable energy market size reached USD 241.9 Billion in 2024.
  • The market is projected to grow at a CAGR of 7.01% during 2025-2033.
  • The market value is expected to reach USD 445.0 Billion by 2033.
  • In 2023, renewables accounted for 24.5% of the EU's energy consumption, up from 23.0% in 2022.
  • The EU aims to achieve 42.5% gross final energy consumption from renewables by 2030, with a goal of reaching 45%.
  • Falling renewable energy costs and stronger policy frameworks are boosting market growth.
  • Advances in technology and strong investor interest drive faster adoption.

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Market Growth Factors

European green hydrogen projects drive its renewable energy market forward. Germany, Spain, and the Netherlands have invested a lot in big electrolysis facilities. These facilities use wind and solar energy all over the region. By 2030, they aim toward a rapid bringing of green hydrogen capacity online for use in decarbonizing industries that are more difficult to electrify like steelmaking, transportation, and chemicals production. This aim is supported under the EU Hydrogen Strategy.

Strong policy commitments and climate targets drive this, including the European Green Deal and the "Fit for 55" climate and energy package, as well as climate policy strategies of national governments: legally binding targets, subsidies, and carbon pricing. This has provided an attractive investment environment, strengthened long-term purchasing by utilities, public and private entities and accelerated the deployment of renewable technologies and investor confidence.

Renewable technologies' falling costs drive this market growth. Fossil fuels generate more costs than onshore wind, offshore wind, utility-scale solar PV, and energy storage do. Turbine scaling and larger solar panel sizes help reduce capital costs and improve efficiencies. These reduce, combined with carbon prices that rise, cause coal and gas plants to close, and renewables to dominate as a source of electricity in Europe.

Market Segmentation

Type Insights:

  • Hydro Power: Utilizes the force of flowing water to generate energy, a key renewable source in Europe.
  • Wind Power: Captures kinetic energy from moving air, contributing significantly to Europe's renewable mix.
  • Solar Power: Harnesses sunlight through photovoltaic cells, playing a growing role in clean energy.
  • Bioenergy: Converts organic materials into usable fuel, supporting sustainable energy production.
  • Others: Includes additional renewable sources contributing to Europe’s energy transition.

End User Insights:

  • Industrial: Industrial segment uses renewable energy for operational needs, contributing to decarbonization.
  • Residential: Homes and households adopting renewables for power and heating needs.
  • Commercial: Businesses integrating renewable solutions for energy efficiency and sustainability.

Country Insights:

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

The report analyzes major European regional markets, highlighting country-specific developments and contributions to the renewable energy market.

Regional Insights

Germany, United Kingdom, France, Italy, Russia, Spain, Netherlands, Switzerland, and Poland are the key regional markets. Europe saw renewables account for 24.5% of energy consumption in 2023, with an EU target to increase this to 42.5% by 2030, reflecting strong growth across these regions. The overall market is forecast to grow at a CAGR of 7.01% from 2025 to 2033.

Recent Developments & News

In August 2025, the 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, expected to begin operation by mid-2027. The project includes a 400-kV substation, supports 60 construction jobs, and has a 40-year design lifespan. It promises a 25.7% biodiversity net gain by creating 12 acres of woodland and wildflower meadows.

Also in August 2025, UK-based Enviromena acquired the 40-MW Rock Farm solar project in Shropshire from Anglo Renewables. Fully consented and potentially equipped with co-located battery storage, the project secured a Contract for Difference (CfD) in Allocation Round 6 and is scheduled to become operational in 2026, expected to power over 16,000 homes annually.

Key Players

  • Mitie Group
  • Enviromena
  • Anglo Renewables

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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 provide 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.