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Energy - Industry - Europe Market, Share and Trends 2023-2028

Report ID:

ENIND1E

|

Industry:

Summary of Energy

Europe is currently undertaking a major transition towards establishing a more sustainable and greener energy future. Traditional fossil fuels like natural gas and coal still dominate the primary energy mix, accounting for over half of total consumption.

However— renewable sources such as solar, wind and hydropower have expanded rapidly in recent years and now generate over 30% of electricity in several countries. Nuclear power also contributes significantly to baseload needs, primarily through France. Energy demand is projected to rise further due to population and economic growth, placing additional burden on infrastructure while accelerating the shift away from carbon-intensive sources. Based on our estimates, we project that Europe’s regional energy industry is growing with a CAGR of 6.39 % from $483 billion in 2023 to $703.93 in 2029.

The European Union has articulated ambitious climate targets through its Green Deal to reduce emissions by 55% by 2030— applying to sectors like transportation, buildings, industry and power. Realizing this vision will require mobilizing huge investments in new technologies, infrastructure and reskilling across the energy value chain over the coming decade, representing a substantial market opportunity.

Diversifying energy supplies also remains a strategic priority for Europe to enhance energy security as over half of total needs are currently met through imports, mainly of oil and gas. Established oil and gas majors are concurrently transforming their business models to align with a lower-carbon future, changing the competitive dynamics. Overall, Europe’s transition to cleaner energy sources presents both challenges and opportunities running into several hundred billion dollars over the next decade.

Recent Trends and Insights

The European Union has set highly ambitious climate targets, aiming for a 55% reduction in emissions by 2030 and achieving climate neutrality by 2050. Natural gas will continue playing an important balancing role alongside intermittent renewable sources like wind and solar power during the energy transition.

In 2022— wind and solar power together generated 22% of Europe’s electricity, surpassing natural gas generation for the first time ever. The share of renewable sources in the overall electricity mix has increased significantly over the past decade to nearly 40% currently from just 25% earlier. Several EU member states have already sourced over half of their electricity requirements from renewable energy sources such as hydropower, wind and solar. Countries like: Denmark, Ireland and Portugal generate over 30% of their annual power from variable renewable sources on average.

European nations and Nordic countries are heavily investing in large-scale offshore wind projects with some like Dogger Bank in the UK and Kriegers Flak in Denmark slated to become among the largest in the world. Offshore wind is seen as a key replacement for retiring coal and nuclear power plants. Sweden has emerged as the EU leader in renewable energy adoption, meeting over 62.6% of its gross final energy consumption through renewable sources in 2021, well ahead of the second-placed Finland.

Sweden’s success is powered by its abundant hydro resources as well as growing wind and biomass industries. Overall renewable energy deployment continues accelerating across Europe to achieve climate targets.

Product Insights

Renewable energy technologies across Europe continue advancing rapidly, with significant cost reductions over the past decade that have greatly improved their competitiveness against fossil fuel-based generation. Intelligence reports now suggest that solar PV and onshore wind power have become the lowest cost sources of new electricity in most European nations. The cost of solar panels and wind turbines has declined by over 60% and 30% respectively since 2010, driven by economies of scale, technological improvements and fierce competition between manufacturers.

Energy storage solutions are also seeing wider adoption across the region to help further integrate renewable energy sources onto power grids. In particular, lithium-ion battery technology is expanding as a means to store excess solar and wind power generation for later use and thereby addressing the intermittency challenge of these variable energy sources. Major European battery manufacturers like— Tesla, LG Energy Solution and CATL are establishing large “gigafactactactories” to mass produce battery packs for electric vehicles, residential storage systems and large-scale grid-connected installations.

Other emerging technologies gaining traction include floating offshore wind platforms, high-capacity undersea transmission cables and renewable hydrogen production using electrolyzers powered by surplus renewable electricity. Innovation hubs centered around these technologies have sprouted up across Europe. Overall— the rapid cost declines and performance improvements seen in renewable energy and storage products have strengthened Europe’s transition to a more sustainable electricity system and net-zero emissions by 2050.

Key Companies

Some major players within this vast domain of industry are

  • Shell
  • bp
  • TotalEnergies
  • Eni
  • Engie
  • EDF
  • ON
  • Ørsted
  • Iberdrola
  • Vestas Wind Systems

Regional Analysis

The energy market across Europe is sizable and growing rapidly as countries invest heavily in transitioning to cleaner sources of power. The total market value is projected to increase from $483 billion in 2023 to $784.59 billion by 2029 which is representing a compound annual growth rate of 6.39% over the forecast period. Germany currently accounts for the single largest share of the overall European energy market at approximately 21% of the total value. The United Kingdom follows in second place with a 16% market share.

Other major country-level energy markets in the region include— France, Italy, Russia, Spain and the Netherlands. France generates Europe’s highest nuclear power capacity and has a well-developed electricity grid. Italy relies heavily on imported fossil fuels but is making progress adopting renewables, particularly solar. Spain has emerged as a global leader in wind and solar power, with over 50GW of installed renewable capacity. Russia remains a key supplier of natural gas and oil to Europe but faces pressure to decarbonize its own energy sector and economy.

At a sub-regional level, Northern European nations have invested heavily in offshore wind farms while countries like— Austria, Switzerland and Norway benefit from hydropower resources. Southeast European markets are growing rapidly from a lower base through retiring coal plants and building new renewables. Overall, the transformation of Europe’s energy landscape presents sizable commercial opportunities across national and local electricity, heating and transportation networks.

Market Segmentation

By Type:

  • Oil & Gas
  • Coal
  • Nuclear
  • Hydroelectric
  • Wind
  • Solar
  • Other Renewables

By End User:

  • Residential
  • Commercial
  • Industrial
  • Transportation

By Enterprise Size:

  • Large Enterprises
  • Small & Medium Enterprises

By Country:

  • Germany
  • United Kingdom
  • France
  • Italy
  • Russia
  • Netherlands
  • Switzerland

Our Methodology

We have offered a well-founded review of the Europe’s regional Energy market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Europe Size of the Energy Industry is USD 483 Billion in 2023 and is expected to grow to USD 703.93 Billion by 2029

The CAGR of the Energy Industry Market in Europe is 6.39%

The Germany region accounts for 21% of the total market share of the Energy Industry Market

The key players in the Energy Industry Market in Europe are Royal Dutch Shell PLC, Engie, EDF, E.ON and Vestas. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Energy Industry Market in Europe are Renewable Energy Transition, Energy Efficiency, Regulatory Framework, Technological Innovation and Energy Security . These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

Summary of Energy

Europe is currently undertaking a major transition towards establishing a more sustainable and greener energy future. Traditional fossil fuels like natural gas and coal still dominate the primary energy mix, accounting for over half of total consumption.

However— renewable sources such as solar, wind and hydropower have expanded rapidly in recent years and now generate over 30% of electricity in several countries. Nuclear power also contributes significantly to baseload needs, primarily through France. Energy demand is projected to rise further due to population and economic growth, placing additional burden on infrastructure while accelerating the shift away from carbon-intensive sources. Based on our estimates, we project that Europe’s regional energy industry is growing with a CAGR of 6.39 % from $483 billion in 2023 to $703.93 in 2029.

The European Union has articulated ambitious climate targets through its Green Deal to reduce emissions by 55% by 2030— applying to sectors like transportation, buildings, industry and power. Realizing this vision will require mobilizing huge investments in new technologies, infrastructure and reskilling across the energy value chain over the coming decade, representing a substantial market opportunity.

Diversifying energy supplies also remains a strategic priority for Europe to enhance energy security as over half of total needs are currently met through imports, mainly of oil and gas. Established oil and gas majors are concurrently transforming their business models to align with a lower-carbon future, changing the competitive dynamics. Overall, Europe’s transition to cleaner energy sources presents both challenges and opportunities running into several hundred billion dollars over the next decade.

Recent Trends and Insights

The European Union has set highly ambitious climate targets, aiming for a 55% reduction in emissions by 2030 and achieving climate neutrality by 2050. Natural gas will continue playing an important balancing role alongside intermittent renewable sources like wind and solar power during the energy transition.

In 2022— wind and solar power together generated 22% of Europe’s electricity, surpassing natural gas generation for the first time ever. The share of renewable sources in the overall electricity mix has increased significantly over the past decade to nearly 40% currently from just 25% earlier. Several EU member states have already sourced over half of their electricity requirements from renewable energy sources such as hydropower, wind and solar. Countries like: Denmark, Ireland and Portugal generate over 30% of their annual power from variable renewable sources on average.

European nations and Nordic countries are heavily investing in large-scale offshore wind projects with some like Dogger Bank in the UK and Kriegers Flak in Denmark slated to become among the largest in the world. Offshore wind is seen as a key replacement for retiring coal and nuclear power plants. Sweden has emerged as the EU leader in renewable energy adoption, meeting over 62.6% of its gross final energy consumption through renewable sources in 2021, well ahead of the second-placed Finland.

Sweden’s success is powered by its abundant hydro resources as well as growing wind and biomass industries. Overall renewable energy deployment continues accelerating across Europe to achieve climate targets.

Product Insights

Renewable energy technologies across Europe continue advancing rapidly, with significant cost reductions over the past decade that have greatly improved their competitiveness against fossil fuel-based generation. Intelligence reports now suggest that solar PV and onshore wind power have become the lowest cost sources of new electricity in most European nations. The cost of solar panels and wind turbines has declined by over 60% and 30% respectively since 2010, driven by economies of scale, technological improvements and fierce competition between manufacturers.

Energy storage solutions are also seeing wider adoption across the region to help further integrate renewable energy sources onto power grids. In particular, lithium-ion battery technology is expanding as a means to store excess solar and wind power generation for later use and thereby addressing the intermittency challenge of these variable energy sources. Major European battery manufacturers like— Tesla, LG Energy Solution and CATL are establishing large “gigafactactactories” to mass produce battery packs for electric vehicles, residential storage systems and large-scale grid-connected installations.

Other emerging technologies gaining traction include floating offshore wind platforms, high-capacity undersea transmission cables and renewable hydrogen production using electrolyzers powered by surplus renewable electricity. Innovation hubs centered around these technologies have sprouted up across Europe. Overall— the rapid cost declines and performance improvements seen in renewable energy and storage products have strengthened Europe’s transition to a more sustainable electricity system and net-zero emissions by 2050.

Key Companies

Some major players within this vast domain of industry are

  • Shell
  • bp
  • TotalEnergies
  • Eni
  • Engie
  • EDF
  • ON
  • Ørsted
  • Iberdrola
  • Vestas Wind Systems

Regional Analysis

The energy market across Europe is sizable and growing rapidly as countries invest heavily in transitioning to cleaner sources of power. The total market value is projected to increase from $483 billion in 2023 to $784.59 billion by 2029 which is representing a compound annual growth rate of 6.39% over the forecast period. Germany currently accounts for the single largest share of the overall European energy market at approximately 21% of the total value. The United Kingdom follows in second place with a 16% market share.

Other major country-level energy markets in the region include— France, Italy, Russia, Spain and the Netherlands. France generates Europe’s highest nuclear power capacity and has a well-developed electricity grid. Italy relies heavily on imported fossil fuels but is making progress adopting renewables, particularly solar. Spain has emerged as a global leader in wind and solar power, with over 50GW of installed renewable capacity. Russia remains a key supplier of natural gas and oil to Europe but faces pressure to decarbonize its own energy sector and economy.

At a sub-regional level, Northern European nations have invested heavily in offshore wind farms while countries like— Austria, Switzerland and Norway benefit from hydropower resources. Southeast European markets are growing rapidly from a lower base through retiring coal plants and building new renewables. Overall, the transformation of Europe’s energy landscape presents sizable commercial opportunities across national and local electricity, heating and transportation networks.

Market Segmentation

By Type:

  • Oil & Gas
  • Coal
  • Nuclear
  • Hydroelectric
  • Wind
  • Solar
  • Other Renewables

By End User:

  • Residential
  • Commercial
  • Industrial
  • Transportation

By Enterprise Size:

  • Large Enterprises
  • Small & Medium Enterprises

By Country:

  • Germany
  • United Kingdom
  • France
  • Italy
  • Russia
  • Netherlands
  • Switzerland

Our Methodology

We have offered a well-founded review of the Europe’s regional Energy market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.

We value your investment and offer free customization with every report to fulfil your research needs.

Frequently Asked Questions

The Europe Size of the Energy Industry is USD 483 Billion in 2023 and is expected to grow to USD 703.93 Billion by 2029

The CAGR of the Energy Industry Market in Europe is 6.39%

The Germany region accounts for 21% of the total market share of the Energy Industry Market

The key players in the Energy Industry Market in Europe are Royal Dutch Shell PLC, Engie, EDF, E.ON and Vestas. These industry leaders collectively contribute to shaping the landscape of this market and driving growth within the industry.

The factors driving the Energy Industry Market in Europe are Renewable Energy Transition, Energy Efficiency, Regulatory Framework, Technological Innovation and Energy Security . These factors contribute to the overall growth of this industry, establishing it as a key player in the interconnected global economy.

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Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.

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Featured Reports

Understand the macroeconomic situations that affect the global positioning of countries.

Businesses can better understand how chatbots can advocate their vision.

DeFi helps reduce dependency on traditional methods of transactions.

Creating a sustainable environment for driving multiple countries into a better tomorrow.

Understand how the U.S. discrepancy in accordance to their debt creates a havoc. 

Sustainable blockchain technology has immense benefit for the environment which cannot go unnoticed.