Europe Renewable Energy Market Research Report Information By Type (Hydropower, Solar, Wind, and Others)–and Europe Market Forecast Till 2032
ID: MRFR/E&P/20042-HCR | 128 Pages | Author: Chitranshi Jaiswal| April 2024
Europe Renewable Energy Market Overview
The Renewable Energy market industry is projected to grow from Significant Value in 2023 to Significant Value by 2032, exhibiting a compound annual growth rate (CAGR) of 8.00% during the forecast period (2024 - 2032). The rise in environmental consciousness and regulatory measures, coupled with the declining cost per kilowatt of electricity generated from renewable sources, are the main market drivers anticipated to propel the Renewable Energy market in Europe.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Renewable Energy Market Trends
- Growing adoption of green energy and rising public and private efforts to curb carbon emissions are driving the market growth
Various renewable energy sources, including wind, hydropower, solar, geothermal, and bioenergy, contribute to fulfilling approximately 7% of the global energy demand at present. This proportion is anticipated to witness significant growth shortly and drive the market CAGR. In 2022, the European Union achieved a 23.0% share of its gross final energy consumption from renewable sources, marking a 1.1 percentage point increase from the previous year. Directive 2023/2413 of the EU, aimed at promoting the utilization of energy from renewable sources, has raised the EU's renewable energy target for 2030 to 42.5%, with a future goal of reaching 45%. Additionally, the EU has set a common target of 29% for the use of renewable energy in the transport sector by 2030, encompassing various sources such as liquid biofuels, hydrogen, biomethane, and green electricity.
Furthermore, the European Union witnessed a reduction of 2.5% or 70 million tonnes in CO2 emissions. In the third quarter of 2023, greenhouse gas emissions in the EU economy were estimated at 787 million tonnes of CO2-equivalents, reflecting a 7.1% decrease compared to the same quarter in 2022. The European Climate Law has established a legally binding target of achieving net-zero greenhouse gas emissions by 2050. Additionally, the law includes an intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, relative to 1990 levels. Thus, driving the Renewable Energy market revenue.
Europe Renewable Energy Market Segment Insights
Renewable Energy Type Insights
The Europe Renewable Energy market segmentation, based on Type, includes Hydropower, Solar, Wind, and Others. The Wind Energy segment dominated the market. As the demand for dependable, cost-effective, environmentally friendly, and diversified electricity supply rises, governments and utilities nationwide are increasingly turning to wind power as a viable solution. Germany, Spain, and the United Kingdom lead the European region in installed wind power capacity, collectively reaching 63.760 GW in 2021. This capacity is sufficient to power approximately 3.4 million households in these countries. Additionally, the cumulative wind power capacity across the European Union reached 235.950 GW as of 2021. In May 2021, RWE and BASF announced plans to invest USD 4.9 billion in offshore wind power projects. As part of this initiative, RWE aims to construct a 2 GW offshore wind park by 2030 to supply energy to BASF's Ludwigshafen chemical complex.
Figure 1: Europe Renewable Energy Market, by Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Renewable Energy Country Insights
The German government has enacted several laws to promote the development of renewable energy sources in the country, resulting in a significant contribution from solar technology to the power generation mix. In July 2021, the European Union introduced new legislation aimed at achieving a 55% reduction in emissions of greenhouse gases over the next decade, including measures to levy taxes on foreign companies for their environmental impact. The plan also entails the expansion of solar and wind power in the North Sea region to decrease greenhouse gas emissions in the power sector. Furthermore, as of 2021, Germany's cumulative solar photovoltaic capacity stands at 58.728 GW, marking an increase of approximately 5 GW compared to the previous year. In 2022, Germany's domestic greenhouse gas emissions were estimated at 745.6 MtCO2-eq, representing a 1.9% decrease compared to 2021 and a 6.2% decline from pre-pandemic levels. Germany reported 136 single policies and measures (PaMs) in 2023, a 74% increase from 2021. Through the implementation of these PaMs, Germany anticipates emission reductions of 104.7 MtCO2-eq by 2030 and 180.0 MtCO2-eq by 2040.
Figure 2: EUROPE RENEWABLE ENERGY MARKET SHARE BY COUNTRY 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Renewable Energy Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Renewable Energy market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Renewable Energy industry must offer cost-effective items.
Major players in the Renewable Energy market are attempting to increase market demand by investing in research and development operations, including Enel Green Power S.p.A., ContourGlobal PLC, Acciona S.A., Abengoa SA, Électricité de France S.A., Andritz AG, Hanwha Q Cells Co., Ltd., Repsol S.A.
Key Companies in the Renewable Energy market include
- Enel Green Power S.p.A.
- ContourGlobal PLC
- Acciona S.A.
- Abengoa SA
- Électricité de France S.A.
- Andritz AG
- Hanwha Q Cells Co., Ltd.
- Repsol S.A.
Europe Renewable Energy Industry Developments
September 2022: Orsted AS forged an agreement with Ostwind, a developer specializing in wind and solar PV projects across Germany and France, to acquire full ownership of OSTWIND Erneuerbare Energien GmbH, OSTWINDpark Rotmainquelle GmbH & Co. K.G., OSTWIND International S.A.S., and OSTWIND Engineering S.A.S.
September 2022: Mercedes-Benz, a renowned German luxury and commercial vehicle manufacturer, announced plans to construct a wind farm in Lower Saxony, Germany, by 2025. The facility is projected to generate 100 megawatts of electricity, meeting over 15% of the automaker's annual energy requirements in Germany.
Europe Renewable Energy Market Segmentation
Renewable Energy Type Outlook
- Hydropower
- Solar
- Wind
- Others
Renewable Energy Regional Outlook
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Sweden
- Denmark
- Luxembourg
- Norway
- Austria
- Rest of Europe
| Report Attribute/Metric | Details |
| Market Size 2022 | Significant Value |
| Market Size 2023 | Significant Value |
| Market Size 2032 | Significant Value |
| Compound Annual Growth Rate (CAGR) | 8.00% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, Rest of Europe |
| Key Companies Profiled | Enel Green Power S.p.A., ContourGlobal PLC, Acciona S.A., Abengoa SA, Électricité de France S.A., Andritz AG, Hanwha Q Cells Co., Ltd., Repsol S.A. |
| Key Market Opportunities | ·        Initiatives by government and companies to reduce carbon emissions |
| Key Market Dynamics | ·        Increase in energy demand in the residential sector owing to a rise in population ·        Growing adoption of green energy among consumers |
Frequently Asked Questions (FAQ) :
The Europe Renewable Energy market size was valued at USD Europe Renewable Energy Market Size was valued at Significant Value in 2022. in 2023.
The market is projected to grow at a CAGR of 8.00% during the forecast period, 2024-2032
The key players in the market are Enel Green Power S.p.A., ContourGlobal PLC, Acciona S.A., Abengoa SA, Électricité de France S.A., Andritz AG, Hanwha Q Cells Co., Ltd., Repsol S.A.
The Wind Energy category dominated the market in 2023.
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