Europe Renewable Energy Market Achieves 7.01% Growth Rate Exceeding All Projections

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% during 2025-2033, reaching USD 445.0 Billion by 2033. Advances in technology and economies of scale have lowered renewable energy costs, boosting competitiveness against fossil fuels and driving market growth. Renewables accounted for 24.5% of the EU's energy consumption in 2023, with targets of 42.5% gross final energy consumption from renewables by 2030, evidencing Europe's strong commitment to energy transition.

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Study Assumption Years

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

Europe Renewable Energy Market Key Takeaways

The market size reached USD 241.9 Billion in 2024 with a CAGR of 7.01% during the forecast period 2025-2033.
In 2023, renewables accounted for 24.5% of the EU's energy consumption, an increase from 23.0% in 2022.
The EU targets 42.5% of gross final energy consumption from renewables by 2030, with an aspirational goal of 45%.
Technological advancements and economies of scale have lowered renewable energy costs, enhancing competitiveness.
Renewable types include hydro power, wind power, solar power, bioenergy, and others.
End users encompass industrial, residential, and commercial sectors.
The market covers major countries including Germany, United Kingdom, France, Italy, Russia, Spain, Netherlands, Switzerland, Poland, and others.

Market Growth Factors

Expansion of Green Hydrogen Projects

Green hydrogen is establishing itself as a key element of Europe's renewable energy infrastructure, targeting decarbonization in sectors difficult to electrify. Countries like Germany, Spain, and the Netherlands are investing significantly in electrolysis facilities powered by wind and solar energy. Supported by the EU Hydrogen Strategy and falling electrolysis costs, large-scale pilot projects and hydrogen corridors aim to link production hubs with industrial demand, with anticipations of rapid capacity scaling by 2030 to reduce emissions in steelmaking, transport, and chemical sectors.

Strong Policy Commitments and Climate Goals

European governments' commitment to climate objectives is robust, driven by frameworks such as the European Green Deal and "Fit for 55" package. These enforce binding renewable energy targets, stricter emission reductions, and provide financial incentives including subsidies and carbon pricing. This strong policy environment bolsters investor confidence and accelerates deployment of solar, wind, and bioenergy technologies. Utilities and private companies are increasing long-term renewable procurement, underpinning accelerated market growth.

Falling Costs of Renewable Technologies

Continued cost declines in renewable technologies reshape Europe's energy landscape. Onshore and offshore wind, utility-scale solar, and energy storage solutions frequently undercut conventional generation prices. Advances in turbine and solar module design, along with improved supply chains, yield significant efficiency improvements and cost reductions. These lower costs, alongside rising carbon prices on fossil fuels, drive the phase-out of coal and gas plants and position renewables as Europe's electricity backbone.

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Market Segmentation

Type Insights

Hydro Power: Harnesses energy from flowing water, forming a key renewable energy source used across Europe.
Wind Power: Captures kinetic energy from moving air, heavily supported by technological advances and investments.
Solar Power: Utilizes photovoltaic cells to convert sunlight into electricity, increasingly cost-competitive.
Bioenergy: Converts organic materials into fuel, reducing dependency on fossil fuels.
Others: Includes various other renewable sources contributing to Europe's sustainable energy mix.

End User Insights

Industrial: Utilizes renewable energy for manufacturing and production processes.
Residential: Adoption driven by individual households' growing preference for sustainable energy.
Commercial: Covers businesses and service sectors shifting to renewable energy consumption.

Country Insights

Germany
United Kingdom
France
Italy
Russia
Spain
Netherlands
Switzerland
Poland
Others

Regional Insights

Europe dominates the renewable energy sector with a 24.5% share of the EU's energy consumption from renewables in 2023, up from 23.0% in 2022. The EU aims for 42.5% renewable energy consumption by 2030 with an aspirational 45%, reflecting strong regional leadership in accelerating the energy transition and renewable deployment.

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 scheduled for operation by mid-2027, supporting 60 construction jobs and promising 25.7% biodiversity net gain. Additionally, UK-based Enviromena acquired the 40-MW Rock Farm solar project in Shropshire in August 2025, which is fully consented, secured a Contract for Difference in Allocation Round 6, and is expected to go live in 2026 powering over 16,000 homes annually.

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Competitive Landscape

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

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