Market Overview
The Europe renewable energy market size was valued at USD 258.8 Billion in 2025 and is expected to reach USD 465.1 Billion by 2034, growing at a compound annual growth rate (CAGR) of 6.73% during the forecast period from 2026 to 2034. The market growth is supported by ambitious European Green Deal decarbonization commitments, favorable regulatory frameworks, decreasing renewable technology costs, and heightened energy security concerns following geopolitical disruptions. Accelerated electrification in industrial and transport sectors and diverse renewable resources across regions sustain increasing market demand.
Study Assumption Years
- Base Year: 2025
- Historical Period: 2020-2025
- Forecast Period: 2026-2034
Europe Renewable Energy Market Key Takeaways
- The Europe renewable energy market size was USD 258.8 Billion in 2025, with a CAGR of 6.73% from 2026 to 2034.
- Wind power held the largest market share of 33.12% in 2025, driven by extensive onshore installations in northern coastal areas and expanding offshore projects using advanced turbines and floating platforms.
- The industrial sector was the leading end user segment with 47.08% market share in 2025, motivated by decarbonization mandates and clean energy integration.
- Germany led the geographical market with a 24% share in 2025 due to strong wind and solar capacity expansion, policy support, and grid modernization investments.
- Europe’s energy transition is shaped by strict climate commitments, industrial electrification, and growing renewable integration aided by energy storage systems.
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Market Growth Factors
Stringent Climate Policy Frameworks and Decarbonization Commitments
The EU adopted one of the world's most ambitious renewables policies, requiring swift changes to existing plans. In November 2025, the European Union reduced GHGs as much as 72.5% by 2035, compared to 1990 levels, beyond existing decarbonization and renewable energy targets. European Green Deal has the goal of legally binding net-zero emissions by mid-century setting clean energy quotas. Emissions trading systems increase expenses on carbon-intensive products, and emissions targets for renewable energy cause greater renewable use.
Technological Innovation and Cost Competitiveness Achievements
The European Commission's Innovation Fund provided 02.9 Billion in Dec 2025 for 61 net-zero projects like renewables and storage. These projects are cost-competitive to fossil fuels. Subsidies are no longer required, and markets are opening. Wind power uses larger rotors. Wind power uses improved aerodynamics. Wind power increasingly captures more power at lower cost. In solar photovoltaic cells, each generation captures solar energy with increased efficiency and installs at a reduced cost.
Energy Security Imperatives and Supply Diversification Strategies
Geopolitical events showed Europe relied on fossil fuel imports, with that reliance triggering the energy sovereignty policy to switch to domestically produced renewables. In December 2025, the EU planned in order to phase out Russian natural gas imports by 2026-2027 and to strengthen calculated sovereignty. If supplies disrupt, costs rise extremely. Renewables make prices less volatile. Renewables cause less import expenditure. These actions lower economic dependence on exporting countries and strengthen energy security.
Market Segmentation
By Type:
- Wind Power: Holding 33.12% share in 2025, wind power benefits from decades of deployments with favorable resources along Atlantic coasts and the North Sea. Advances include recyclable turbine blades at offshore farms like RWE’s Sofia project in the UK and floating offshore platforms unlocking deeper waters. Winter capacity advantages and mature supply chains support sustained growth.
By End User:
- Industrial: Accounting for 47.08% in 2025, industrial usage is driven by high electricity needs, decarbonization mandates, and renewable power purchase agreements. Energy-intensive sectors such as steel, chemicals, cement, and automotive accelerate renewable procurement for emissions reductions and cost stability.
By Country:
- Germany: Leading with 24% market share in 2025, Germany’s market is propelled by aggressive wind and solar expansion, feed-in tariffs, contract-for-difference schemes, and grid upgrades. The industrial heartland leverages renewable procurement amid strong policy continuity and technology leadership in storage.
Regional Insights
Germany dominates the Europe renewable energy market with a 24% share in 2025. Supported by its Energiewende strategy, Germany enforces ambitious renewable deployment milestones, substantial grid modernization investments, and innovative manufacturing capabilities. Industrial demand centers foster decarbonization pathways, while political consensus ensures investment certainty, attracting domestic and international capital flows toward renewable infrastructure expansion.
Recent Developments & News
In October 2025, Apple expanded its renewable energy portfolio in Europe by launching large-scale solar and wind farms across Greece, Italy, Latvia, Poland, Romania, and Spain. This expansion adds 650 MW capacity, generating over 1 million MWh of clean electricity by 2030. Apple aims to match 100% of electricity used by its European customers through these renewable projects.
Key Players
- RWE
- ENGIE
- Sungrow
- AGCO
- BRUC
- Apple
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