The United Kingdom Renewable Energy Market Report is Segmented by Technology (Solar Energy, Wind Energy, Hydropower, Bioenergy, Geothermal, and Ocean Energy) and End-User (Utility, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

United Kingdom Renewable Energy Market Outlook 2031

United Kingdom renewable energy market size was valued at USD XX Billion in 2022 and is projected to reach USD XX Billion by 2031, expanding at a CAGR of 10.04% during the forecast period 2023 - 2031. The growth of the market is attributed to increasing energy consumption, traditional power sources unable to meet requirement, and growing numbers in renewable energy manufactures.

Renewable energy can be supplied to tides, waves, rain, and wind. While renewable energy is commonly thought of as a replacement technology, harnessing nature’s power has long been used for transportation, lighting, and heating. Now there are innovative and less-expensive ways to capture and retain wind and solar energy renewables are getting an additional necessary power supply.

The COVID-19 outbreak was not able to affect the renewable energy corporation. Renewable energy market players faced several problems vary from getting component require to develop renewable energy and providing end products to attracting workers from quarantines.

The coronavirus-driven internment places a brake on the element and device production that increased product costs, lowering the market demand. However, the renewable energy trade is returning to traditional, witnessing the steady increasing energy demand, particularly from the commercial sectors.

United Kingdom Renewable Energy Market Trends, Drivers, Restraints, and Opportunities

• Increase in consumer purchasing capacity and growing population is projected to boost the market in the coming year.
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The United Kingdom Power Market is Segmented by Power-Generation Source (Thermal, Nuclear, and Renewables) and End-User (Utilities, Commercial and Industrial, and Residential). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

The UK solar energy market size reached USD 9,003.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 25,160.6 Million by 2033, exhibiting a growth rate (CAGR) of 12.1% during 2025-2033. There are several factors that are driving the market, which include favorable government initiatives, increasing solar photovoltaic (PV) installations, rising focus on maintaining environmental sustainability, integration of advanced technologies, and energy independence and security.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on technology, application, and end user.

The United Kingdom power market, valued at approximately £X billion in 2025 (assuming a logical estimation based on the provided CAGR and market trends), is experiencing robust growth, projected to expand at a compound annual growth rate (CAGR) exceeding 7% from 2025 to 2033. This expansion is driven by several key factors. Increasing demand for electricity fueled by a growing population and industrial activity necessitates a significant increase in power generation capacity. Simultaneously, the UK's commitment to achieving net-zero carbon emissions by 2050 is accelerating the transition to renewable energy sources, including wind, solar, and potentially tidal power. This transition is attracting substantial investments and fostering innovation within the renewable energy sector. Government policies promoting renewable energy adoption, along with stricter regulations on carbon emissions from conventional power plants, further underpin this market's expansion. However, challenges remain. The intermittent nature of renewable energy sources requires significant investment in grid infrastructure upgrades and energy storage solutions to ensure grid stability and reliability. Furthermore, securing sufficient investment for large-scale renewable energy projects, managing public acceptance of new infrastructure, and navigating fluctuating energy prices continue to pose challenges. Despite these restraints, the UK power market presents significant opportunities for established players and new entrants alike. The ongoing expansion of offshore wind capacity, particularly in areas with high wind speeds, offers considerable potential for generating clean energy. Furthermore, the integration of smart grid technologies and advanced energy management systems is poised to improve efficiency and grid resilience. Companies involved in power generation, transmission, and distribution, including those specializing in renewable energy technologies, are well-positioned to benefit from this growth. The market segmentation into thermal, renewable (hydro, non-hydro), and nuclear power, along with transmission and distribution (T&D), showcases the diverse investment and operational opportunities within this dynamic sector. Companies like Electricite de France SA, Ecotricity Group Ltd, and others listed are key players navigating this complex and evolving market landscape. The forecast period of 2025-2033 promises substantial growth, creating a fertile ground for strategic partnerships, mergers, and acquisitions. Recent developments include: In March 2021, Statkraft, Europe's largest renewable energy generator, announced development plans for three new solar farms in the United Kingdom, two in Cornwall and one in Suffolk. The solar energy farms aim to provide 125.5 MWp of solar capacity, generate nearly 127 GWh of electricity per year, and power nearly 36,000 homes., In January 2022, the UK government announced GBP 100 million (USD 134 million) funding to support the Sizewell C nuclear power project in Suffolk. The funding will be used to continue the development of the project and aim to attract further financing from private investors and secure relevant approvals., In January 2022, SSE announced details of its first solar project that would deliver 30 MW of clean energy as part of its ambitious GBP 12.5 billion investment program to power change toward net-zero. The 30 MW solar farm at Littleton Pastures is located near Evesham, Worcestershire. Once completed in late 2023, the 77-acre site would be capable of powering about 9,400 homes.. Notable trends are: Non-hydro Renewable Power Segment to Witness Significant Market Growth.

UK Gas fell to 72.60 GBp/thm on December 2, 2025, down 1.67% from the previous day. Over the past month, UK Gas's price has fallen 11.75%, and is down 40.33% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. UK Natural Gas - values, historical data, forecasts and news - updated on December of 2025.

The United Kingdom Offshore Wind Energy Market Report is Segmented by Foundation Type (Fixed and Floating), Turbine Capacity (Up To 3 MW, 3 To 6 MW, and Above 6 MW), and Application (Utility-Scale, Commercial and Industrial, and Community Projects). The Market Sizes and Forecasts are Provided in Terms of Installed Capacity (GW).

Greater awareness about the effects of climate change has driven an aggressive decarbonising strategy spearheaded by renewables. Government targets and incentives encourage major investment in renewable assets among UK energy giants. Technology developments have boosted potential generating capacity, particularly in offshore wind, which has grown the fastest of all renewable energy sources. According to the Department for Energy Security and Net Zero, the share of electricity generated by major power producers from renewables surged from 34.5% in 2019-20 to 42.4% in 2023-24. Renewable generators' revenue is slated to climb at a compound annual rate of 8.7% over the five years through 2024-25 to reach £14.5 billion. Growth has been underpinned by the UK’s rapid expansion of renewable generating capacity. Offshore wind has recorded the most significant expansion in generation volumes as investors look to take advantage of technological advancements to tap into the UK's abundant natural resources. Soaring wholesale prices have added to revenue growth since H2 2021-22; however, operators of renewable generation assets that operate under a Contract for Difference (CfD) have been required to pay back the difference between wholesale prices and CfD strike prices, limiting the impact of a surge in wholesale prices on operating profit. Inflation-linked increases to fixed price mechanisms have also boosted growth. Revenue is forecast to jump by 11.4% in 2024-25. Revenue is forecast to swell at a compound annual rate of 11.1% over the five years through 2029-30 to reach £24.6 billion. The UK already has a strong pipeline of renewable assets set for delivery in the coming years, with ongoing government support likely to fuel further investment. In the short term, increased capacity is set against a backdrop of falling strike prices, though the extent of capacity expansion should support further growth. Hikes in strike prices secured in the most recent CfD allocation round will also boost growth in the longer term. Rising battery storage capacity should help support growth in renewables' share of the UK energy mix by reducing barriers associated with intermittent supplies of renewable power.

The Report Covers Geothermal Energy Companies in the UK and the market is segmented by Application (Power Generation and Direct Heat Utilization).

The UK renewable energy market is booming, projected to reach £X million by 2025 and grow at a CAGR of 10.04% until 2033. Discover key drivers, trends, and major players shaping this dynamic sector, including wind, solar, and hydro power. Recent developments include: February 2023: the Crown State in the United Kingdom signed agreements to lease six offshore wind energy projects. These projects are likely to start generating electricity by the end of the decade, and these projects have the potential to generate 8 GW of renewable energy sufficient to power more than seven million households., March 2022: Shell announced a plan to invest around USD 33 billion n the United Kingdom energy system in the next ten years. Around 75 % of total investment was expected in renewable energy projects, including offshore wind, hydrogen, and electric mobility., January 2022: SSE announced details of its first solar project that delivered 30 MW of clean energy as part of its ambitious USD 16 billion investment program to power change toward net zero. The 30-MW solar farm at Littleton Pastures is located near Evesham, Worcestershire, England. Once completed in late 2023, the 77-acre site can power about 9,400 homes.. Key drivers for this market are: 4., Supportive Government Policies in the Country4.; Rising Efforts to Decrease the Dependency on Fossil Fuels to Reduce Carbon Emissions. Potential restraints include: 4., Supportive Government Policies in the Country4.; Rising Efforts to Decrease the Dependency on Fossil Fuels to Reduce Carbon Emissions. Notable trends are: Wind Energy is Expected to Dominate the Market.

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Smart Energy Market Size 2024-2028

The smart energy market size is forecast to increase by USD 7.26 billion at a CAGR of 19.1% between 2023 and 2028.

The market is experiencing significant growth, driven by the increasing adoption of smart grid technologies and the rising investment in smart cities and smart homes. These trends are transforming the energy sector by enabling more efficient energy management and consumption. However, the intermittency in solar energy remains a challenge, as renewable energy sources become an increasingly larger part of the energy mix. To capitalize on market opportunities and navigate challenges effectively, companies must stay abreast of technological advancements and regulatory developments.
Strategic partnerships and collaborations can also help organizations expand their reach and enhance their offerings. By focusing on innovation and flexibility, companies can position themselves to thrive in this dynamic market.

What will be the Size of the Smart Energy Market during the forecast period?

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The market encompasses a range of technologies and services aimed at optimizing energy production and consumption, reducing carbon footprints, and integrating renewable energy sources into the grid. Key components include smart meters, distribution automation systems, and advanced metering devices for homes, offices, and industrial plants. Capital expenditures in this sector are driven by the adoption of smart grid technologies, such as solar energy, wind energy, and smart thermal grids. Consulting services play a crucial role in the development and implementation of these solutions, ensuring regulatory compliance and work management efficiency. The market's growth is fueled by the increasing importance of energy efficiency, the rise of renewable energy sources, and the integration of smart electricity grids.
Hardware, including smart sensors and communication networks, are essential for enabling real-time monitoring and control of energy usage. Overall, the market is experiencing significant growth as businesses and consumers seek to minimize their carbon footprints and improve energy management.

How is this Smart Energy Industry segmented?

The smart energy industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Smart grid
  Digital oilfield
  Smart solar systems
  HEMS


End-user

  Industrial
  Commercial
  Residential


Component

  Solution
  Services


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  Rest of World (ROW)

By Application Insights

The smart grid segment is estimated to witness significant growth during the forecast period. The market encompasses the deployment of intelligent electricity meters, solar energy, and renewable energy sources in homes, offices, and industrial plants. Smart grids, a significant segment of this market, leverage advanced metering devices, network infrastructure, and system integration services to optimize energy supply security. The US is a pioneer in this field, with substantial investments in smart grid technology. In 2022, the US allocated USD 84 billion for grid investments, making it the global leader. China follows with USD 75 billion, and other countries invest USD 63 billion. The smart grid market consists of electric grid equipment and services, including distribution automation systems, network management software, and hardware.

This technology integration aids in the efficient management of renewable power sources, such as solar and wind, and reduces carbon footprints while adhering to regulatory standards. Smart thermal grids and work management systems further enhance industrial processes, ensuring energy efficiency and cost savings. Smart gas and steam turbines are also integral components of the market, contributing to the overall growth and development of renewable energy sources.

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The Smart grid segment was valued at USD 1.92 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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In North America, the growing emphasis on smart electricity and the expansion of intelligent electricity meters in

The size of the UK Solar Power Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 23.53% during the forecast period. Recent developments include: June 2023: The United Kingdom Government approved the construction of the country's largest solar farm, large enough to power about 60,000 households, on farmland near Chelmsford. Longfield Solar Farm, which spans 380 hectares of intensive arable farmland near Terling, has the potential to generate enough electricity to supply four times the energy needs of all new dwellings planned for Chelmsford over the next 13 years., June 2023: AMPYR Solar Europe is happy to announce the acquisition of a 390 MWp Solar PV + BESS portfolio from Tyler Hill, which includes sites throughout the United Kingdom. The five projects have grid security and are being presented for planning approval. AMPYR Solar Europe will work with Tyler Hill to bring the assets to a "ready-to-build" level before beginning construction in 2024.. Key drivers for this market are: Government Policies and Demand for Renewable Energy Sources 4., The Declining Costs of Solar Technologies. Potential restraints include: Limited Land and Demand for Alternative Renewable Energy Sources. Notable trends are: Residential Sector to Witness Significant Growth.

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Renewable Energy Market Size 2025-2029

The renewable energy market size is valued to increase USD 2266.2 billion, at a CAGR of 9.6% from 2024 to 2029. Rise in global energy demand will drive the renewable energy market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 76% growth during the forecast period.
By End-user - Residential segment was valued at USD 1934.50 billion in 2023
By Type - Hydropower segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 108.95 billion
Market Future Opportunities: USD 2266.20 billion
CAGR : 9.6%
APAC: Largest market in 2023

Market Summary

The market encompasses the production and utilization of electricity from renewable sources, such as solar, wind, hydro, and biomass. This dynamic market is driven by the rising global energy demand and the increasing popularity of clean energy technologies as a competitive alternative to traditional energy sources. According to recent reports, renewable energy sources accounted for approximately 27% of global electricity generation in 2020, with solar and wind energy leading the charge. However, the market faces challenges, including the intermittency of renewable energy sources and the high upfront costs of implementation.
Despite these hurdles, opportunities abound, particularly in the areas of energy storage solutions and grid integration. As the market continues to evolve, stakeholders can expect ongoing innovation and advancements in core technologies and applications, service types, and regulatory frameworks, with regional dynamics adding another layer of complexity.

What will be the Size of the Renewable Energy Market during the forecast period?

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How is the Renewable Energy Market Segmented and what are the key trends of market segmentation?

The renewable energy industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Residential
  Industrial
  Commercial


Type

  Hydropower
  Wind
  Solar
  Others


Deployment

  On-grid
  Off-grid


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By End-user Insights

The residential segment is estimated to witness significant growth during the forecast period.

In the rapidly evolving energy landscape, the market is experiencing significant growth as businesses and residential sectors shift towards sustainable energy sources. Renewable energy production from biomass, wind, hydroelectric power, and solar photovoltaic systems has seen a notable increase, reducing carbon emissions by approximately 15% in 2020 compared to 2015 levels. Furthermore, the market is expected to expand further, with renewable energy investment projected to reach 30% of total energy investment by 2025. Energy audit methodologies, renewable energy certificates, and smart grids integration are crucial components driving the market's growth. Offshore wind farms, wave energy converters, and tidal energy conversion are gaining traction as promising new technologies, while grid stability analysis and energy storage systems ensure a reliable power supply.

The renewable energy sector is also witnessing advancements in onshore wind turbines, geothermal energy extraction, and concentrated solar power, among others. Moreover, the integration of demand-side management, battery energy storage, microgrids development, and pumped hydro storage into the energy infrastructure is essential for optimizing power system performance and ensuring grid modernization projects' success. The market's continuous evolution is essential in addressing the increasing energy demand while minimizing greenhouse gas emissions and promoting sustainable energy sources. In conclusion, the market is experiencing substantial growth, with a projected expansion in investment and production. The integration of various technologies and policies is crucial in ensuring a reliable, efficient, and sustainable energy future.

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The Residential segment was valued at USD 1934.50 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 76% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

See How Renewable Energy Market Demand is Rising

The Europe renewable energy market reached 2455.00 Gigawatt in 2024. The market is expected to grow at a CAGR of 7.60% during the forecast period of 2025-2034 to reach 5107.10 Gigawatt by 2034. Expansion of flexible grid interconnections across Europe is boosting renewable integration, allowing cross-border energy flows and improving system resilience while simultaneously lowering volatility in wholesale electricity markets.

Europe stands at the front line of the global shift toward renewable power, largely powered by its aggressive climate policies and remarkable auction-driven project pipeline. A key driving factor shaping the market’s growth is the EU’s 2030 framework, which requires member states to reach at least 42.5% renewable share in final energy use. According to the Europe renewable energy market analysis, in 2024 alone, renewables accounted for 47% of electricity generation, with Denmark reporting 88.4% from renewables. These milestones showcase how ambitious policies and government-backed targets shape confidence while also driving large-scale private investment.

Moreover, the ability to turn regulatory frameworks into concrete capacity growth makes the region unique. For example, in April 2025, the EU allocated EUR 52 million in 2024 for cross-border renewable projects in Finland and Estonia, expected to add 445 MW by 2028. Similarly, corporate PPAs surged, with businesses contracting 19 GW of renewable power in 2024, proving that private players are equally serious about decarbonization, reshaping the Europe renewable energy market dynamics. These developments highlight a balanced system where both policy-makers and industries are pushing for cleaner grids.

The Gas Utilities industry in Europe has been anything but steady recently. The Russia-Ukraine war has rocked the whole supply chain, with Russia tightening its gas supply, Europe hustling to cut its reliance on Russian gas and gas prices shooting up following the initial invasion. Amid unprecedented price increases and threats to the supply of gas into Europe, European governments have been forced to step in to support customers and protect energy supplies. All that aside, the industry remains threatened by a long-term decline in gas consumption and accelerating efforts to transition to renewable sources of energy. Revenue is forecast to climb at a compound annual rate of 1.4% over the five years through 2025, reaching €401.9 billion. This growth is almost solely attributable to a spike in revenue recorded during 2022, which followed a recovery from pandemic-induced lows during 2021, when prices and demand recovered as global economic activity rebounded. Russia’s invasion of Ukraine kicked off a period of significant disruption in energy markets, with a surge in gas prices leading to record revenue and profitability for gas manufacturers while causing substantial losses for gas suppliers. Wholesale prices have eased from record highs as European governments have reduced reliance on Russian gas. At the same time, a drop in demand for gas has also contributed to a revenue contraction since the height of the energy crisis. Revenue is set to decline by 3.9% in 2025. Revenue is forecast to increase at a compound annual rate of 1% to €422.2 billion over the five years through 2030. European markets are set to pursue a green revolution in the coming years, with investment in renewable energy sources gathering pace as European governments strive towards emissions reduction targets. Investment in green alternatives to natural gas is likely to lead to a fall in demand, with plans set out by the European Commission to at least triple solar thermal capacity by 2030, displacing the consumption of nine billion cubic metres of gas annually. Gas prices are set to continue to stabilise in the short term, before falling rapidly as renewable generation capacity rises.