Europe Smart Solar Market Overview
Europe Smart Solar Market Size was valued at USD 2.6 Billion in 2022. The Smart Solar market industry is projected to grow from USD 2.8 Billion in 2023 to USD 5.6 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.0% during the forecast period (2024 - 2032). The surge in green energy adoption and smart city initiatives have led to a substantial increase in demand for intelligent solar solutions worldwide, which are the main market drivers anticipated to propel the Smart Solar market in Europe.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Smart Solar Market Trends
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Growing installation of solar energy grids and high demand for smart solar technology are driving the market growth.
Stringent environmental regulations worldwide are driving power generation firms towards cleaner and more eco-friendly energy sources. Many countries in the region are intensifying efforts to boost renewable energy generation, aiming to reduce reliance on fossil fuels. Solar energy stands out as a key renewable resource capable of addressing numerous global challenges, driving the market CAGR. In 2022, renewable energy accounted for 23.0% of the EU's energy consumption, up from 21.9% in 2021. According to SolarPower Europe's annual report, the EU installed 41.4 GW of solar capacity in 2022, marking a 47% increase from the previous year. Germany leads in annual solar installations within the EU, adding 7.9 GW in 2022, followed by Spain (7.5 GW), Poland (4.9 GW), the Netherlands (4.0 GW), and France (2.7 GW). Over one year, the EU's total solar power generation capacity surged by 25% to reach 208.9 GW, up from 167.5 GW in 2021.
Smart solar technology represents an evolution of conventional solar systems, integrating enhanced functionality and seamless compatibility with existing infrastructure. These systems offer improved operational efficiency, performance optimization, and reduced maintenance requirements. By enabling real-time monitoring, analytics, and enhanced communication capabilities, they enhance operational performance and control. Consequently, the rising demand for efficient non-conventional energy management solutions worldwide presents abundant opportunities for smart solar solution providers and service providers. Thus, driving the Smart Solar market revenue.
Europe Smart Solar Market Segment Insights
Smart Solar Device Insights
The Europe Smart Solar market segmentation, based on Device, includes Smart Solar Meters, IntelliGrid, and RFID. The IntelliGrid segment dominated the market. The Intelligent Grid, also referred to as the Smart Grid, is a transformative concept aimed at modernizing the electric power grid through the utilization of advanced automatic control, communication techniques, and various information technologies. It incorporates cutting-edge tools and technologies across the entire spectrum of power generation, transmission, distribution, and consumer appliances. The prevalence of aging power transmission infrastructure in developed nations, coupled with the rising demand for Intelligent Grid solutions in developing countries seeking to build smart cities, will propel the demand for Intelligent Grid solutions within the smart solar power market.
Figure 1: Europe Smart Solar Market, by Device, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Smart Solar Solutions Insights
The Europe Smart Solar market segmentation, based on Solutions, includes Asset Management, Network Monitoring, Meter Data Management, Analytics, SCADA, Remote Metering, and Outage Management. The meter data management segment dominated the market. As smart meters and smart grids continue to proliferate, Meter Data Management (MDM) is expected to experience significant expansion. MDM refers to software designed to store and manage the vast volumes of data generated by smart metering systems over time. This data typically encompasses user statistics and events imported from head-end servers in advanced metering infrastructure (AMI) or automatic meter reading (AMR) systems responsible for data collection. MDM serves as a vital component of utility companies' smart grid technology. It may also encompass meter data analytics, which involves analyzing data from electric smart meters that track energy consumption. Technological advancements have bolstered the capabilities of Meter Data Management, enabling it to support various business operations across the utility value chain, including customer billing, credit management, and meter asset management, thereby driving the growth of Meter Data Management solutions.
Smart Solar Services Insights
The Europe Smart Solar market segmentation, based on Services, includes Consulting, System Integration and Deployment, Support and Maintenance, and Demand Response. The consulting category generated the most income. The segment's expansion is propelled by the growing preference for alternative and renewable energy sources, along with the emergence of smart cities in developed nations. Additionally, the proliferation of solar energy projects worldwide is further bolstering the growth of the smart solar market.
Smart Solar Application Insights
The Europe Smart Solar market segmentation, based on Application, includes Commercial & Industrial and Residential. The commercial & industrial category generated the most income. Commercial entities are poised to dominate the Smart Solar market, driven by the increasing necessity for renewable energy solutions in commercial establishments. With their substantial energy consumption, there is a heightened demand for Smart Solar systems to diminish reliance on fossil fuels and enhance environmental sustainability. The declining cost of solar panels has rendered solar energy more economically viable for businesses, further propelling this expansion. According to the Institute for Energy Economics & Financial Analysis, fiscal year (FY) 2024 is anticipated to witness the largest rooftop solar installations to date, estimated at approximately 4 gigawatts (GW). Of this, 2 GW has already been installed between April and July 2023.
Smart Solar Industry Sectors Insights
The Europe Smart Solar market segmentation, based on Industry Sectors, includes Government, Utilities, Healthcare, Construction, Education, Agriculture, and Others. The agriculture category generated the most income. The EU Solar Energy Strategy urges EU member states to advance agrivoltaics, integrating them into their agricultural policy frameworks. Italy allocates €1.1 billion to foster agri-PV development and €1.5 billion for agrisolar initiatives, with a target of exceeding 1GW in capacity. Germany is poised to deploy as much as 1 GW of agri-PV installations by 2025. This emphasis on agrivoltaics is expected to stimulate the smart solar market by encouraging the integration of solar technologies into agricultural landscapes, thereby maximizing land use efficiency and enhancing renewable energy generation.
Europe Smart Solar Country Insights
The rise in solar system installations is impacting the market significantly. According to data from the Federal Statistical Office (Destatis), there has been a 10.1% increase in the number of solar photovoltaic power stations compared to the same month in 2021. As of 2022, Germany boasted a cumulative solar photovoltaic capacity of over 67 gigawatts. During the period under review, Germany's solar PV capacity saw an increase of 25 gigawatts. In 2022 alone, Germany added over seven gigawatts to its solar PV network. Moreover, there was a year-on-year growth rate of 9.7% in installed capacity between 2021 and 2022. The Germany Solar Package, introduced by the government, aims to install 215 GW of solar by 2030. Additionally, for residential areas, the Government of Germany raised the feed-in tariff for solar energy power plants to 750 kW in June 2022, incentivizing end-consumers to install solar PV rooftop power plants and generate revenue by supplying electricity to the conventional grid.
Figure 2: EUROPE SMART SOLAR MARKET SHARE BY COUNTRY 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Smart Solar Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development to expand their product lines, which will help the Smart Solar 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 Smart Solar industry must offer cost-effective items.
Major players in the Smart Solar market are attempting to increase market demand by investing in research and development operations, including ABB Group, GE Power, Itron Inc., Schneider Electric, Siemens AG, Echelon Corporation, Landis+GYR AG, Sensus USA Inc., Silver Spring Networks Inc., and Urban Green Energy International.
Key Companies in the Smart Solar market include.
- ABB Group
- GE Power
- Itron Inc
- Schneider Electric
- Siemens AG
- Echelon Corporation
- Landis+GYR AG
- Sensus USA Inc
- Silver Spring Networks Inc
- Urban Green Energy International.
Europe Smart Solar Industry Developments
November 2020: Statkraft, Europe's largest renewable energy producer, entered into an agreement to acquire Solarcentury, a pioneer in solar energy. This acquisition aligns with Statkraft's strategy to bolster its presence as a developer of both wind and solar projects, positioning itself as one of the leading renewable energy companies globally.
January 2023: The European Investment Bank (EIB) and Iberdrola forged a new agreement aimed at expediting Portugal's energy transition through the development of additional renewable energy facilities. These solar projects are anticipated to attract a total investment exceeding USD 162 million. The EIB will provide financing for approximately five solar photovoltaic (PV) plants across various regions in Portugal.
Europe Smart Solar Market Segmentation
Smart Solar Device Outlook
- Smart Solar Meters
- IntelliGrid
- RFID
Smart Solar Solutions Outlook
- Asset Management
- Network Monitoring
- Meter Data Management
- Analytics
- SCADA
- Remote Metering
- Outage Management
Smart Solar Services Outlook
- Consulting
- System Integration and Deployment
- Support and Maintenance
- Demand Response
Smart Solar Application Outlook
- Commercial & Industrial
- Residential
Smart Solar Industrial Sector Outlook
- Government
- Utilities
- Healthcare
- Construction
- Education
- Agriculture
- Others
Smart Solar Regional Outlook
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Sweden
- Denmark
- Luxembourg
- Norway
- Austria
- Rest of Europe
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 2.6 Billion |
| Market Size 2023 |
USD 2.8 Billion |
| Market Size 2032 |
USD 5.6 Billion |
| Compound Annual Growth Rate (CAGR) |
9.0% (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 |
Device, Solutions, Services, Application, Industry Sector, and Region |
| Region Covered |
Europe |
| Countries Covered |
Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, Rest of Europe |
| Key Companies Profiled |
ABB Group, GE Power, Itron Inc., Schneider Electric, Siemens AG, Echelon Corporation, Landis+GYR AG, Sensus USA Inc., Silver Spring Networks Inc., and Urban Green Energy International |
| Key Market Opportunities |
·        Evolving renewable energy industry all over the sectors ·        Increasing environmental awareness and technological evolution |
| Key Market Dynamics |
·        Increase in the adoption of green power over the globe |
Frequently Asked Questions (FAQ) :
The Europe Smart Solar market size was valued at USD 2.8 Billion in 2023
The market is projected to grow at a CAGR of 9.0% during the forecast period, 2024-2032
The key players in the market are ABB Group, GE Power, Itron Inc., Schneider Electric, Siemens AG, Echelon Corporation, Landis+GYR AG, Sensus USA Inc., Silver Spring Networks Inc., and Urban Green Energy International.
The agriculture category dominated the market in 2023.
The IntelliGrid category dominated the market in 2023.
