Europe Renewable Energy Market Growth Forecast, Share Analysis, and Outlook to 2034

Market Overview

The Europe renewable energy market was valued at USD 258.8 Billion in 2025 and is forecasted to reach USD 465.1 Billion by 2034, growing at a CAGR of 6.73% during 2026-2034. This growth is propelled by the European Green Deal’s decarbonization goals, favorable regulations, decreasing renewable technology costs, and heightened energy security concerns. The diverse renewable resource base supports strategic regional deployment alongside expanding industrial electrification demands.

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% expected over 2026-2034.
• Wind power leads the market accounting for 33.12% share in 2025, driven by onshore sites in northern coastal regions and offshore projects with advanced turbines and floating platforms.
• Industrial sector dominates end users with a 47.08% share in 2025, supported by manufacturing decarbonization efforts, electrification mandates, and renewable power agreements.
• Germany is the leading country market with 24% share in 2025, propelled by policies like feed-in tariffs, energy storage leadership, and grid modernization investments.
• The market features competitive dynamics with European utilities leveraging infrastructure scale and renewable developers focusing on project expertise and innovative financing.

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Market Growth Factors

The Europe renewable energy market is driven by climate policy and decarbonization commitments such as the European Green Deal․ In November 2025, the EU submitted an updated NDC with a greenhouse gas emissions reduction pledge of up to 72․5% by 2035 compared to 1990 levels, in addition to long-term net-zero emission targets․ Carbon markets (emission trading systems) and binding renewable energy minimums further expand the potential clean power market․

Declining technology costs mean renewables are becoming even more cost-competitive and in December 2025 the European Commission's Innovation Fund awarded €2․9 Billion for net-zero technology projects, particularly for renewables and storage․ Improvements in turbine rotor diameter and aerodynamics, and photovoltaic power generation efficiency and costs, have eliminated the need for subsidies and created a market․

Energy security concerns aggravated by geopolitical crises make diversification of imports of fossil fuels necessary․ In December 2025 a historic agreement was signed to end Russian natural gas imports by 2026-2027․ It also highlights the need for domestic renewable energy, to address both the cost of supply interruptions and price volatility in fossil fuels, supported by a more strategically deployed renewables sector across Europe․

Market Segmentation

By Type:

• Wind Power: Wind power held the largest share of 33.12% in 2025 due to abundant Atlantic coastal and North Sea offshore wind resources. Technological advances include recyclable turbine blades, floating offshore platforms, and higher capacity turbines, improving efficiency and expanding resource accessibility.

By End User:

• Industrial: Constitutes 47.08% of market share in 2025, driven by high electric demand in manufacturing sectors pursuing decarbonization via electrification, renewable procurement agreements, and operational integration of clean energy to reduce costs and emissions.

By Country:

• Germany: Leading country with a 24% share in 2025, powered by aggressive wind and solar expansion, robust renewable policies such as feed-in tariffs, leadership in energy storage solutions, grid modernization, and concentrated industrial demand in regions like North Rhine-Westphalia.

Regional Insights

Germany dominates the Europe renewable energy market with a 24% share as of 2025. The country’s aggressive renewable expansion targets, comprehensive support policies including feed-in tariffs and contract-for-difference schemes, and technological leadership particularly in energy storage, underlie its market leadership. Investments in grid infrastructure and political consensus ensure a stable investment environment, strengthening Germany’s role as innovation leader and largest market contributor in Europe.

Recent Developments & News

In October 2025, Apple announced the expansion of renewable energy projects across Europe, including new large-scale solar and wind farms in Greece, Italy, Latvia, Poland, Romania, and Spain. These projects add 650 MW capacity and aim to generate over 1 million MWh of clean electricity by 2030, supporting Apple’s objective of matching 100% of its European customer electricity usage.

Key Players

• RWE
• ENGIE
• Sungrow
• AGCO
• BRUC
• Apple

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