Energy companies and new market entrants could capture potential value in energy services and supply in Europe. The value of the European Union’s B2B energy supply and services is projected to double in size by 2035, reaching €8.3 billion. Partner Bruno Esgalhado and coauthors explain that this growth may be propelled by a shift in their customers’ demand for off-site to on-site solutions. On-site solutions in particular, such as electric vehicle charging and energy management software, are expected to experience the most substantial growth.
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A stacked bar graph shows the breakdown of the EU-4 (France, Germany, Italy, and Spain) B2B energy supply and services value pool in billions of euros for 2024 and estimates for 2030 and 2035. The total value pool is projected to double, increasing from €4.1 billion in 2024 to €8.3 billion by 2035. This growth shows a CAGR of 6% between 2024 and 2035. The data is further segmented into off-site and on-site solutions. The growth in demand for on-site solutions is evidenced by high CAGRs for categories such as electric vehicle charging (21%), energy management software (20%), and solar photovoltaic (2%). Off-site solutions show more moderate CAGRs, such as power purchase agreements (21%) and demand-side response (7%).
Note: This image description was completed with the assistance of Writer, a gen AI tool.
Source: Global Energy Perspective, McKinsey, September 17, 2024; McKinsey Center for Future Mobility; Battery Storage insights; Solar DG insights; McKinsey analysis.
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To read the article, see “Improving B2B energy propositions: Four trends reshaping the industry,” January 27, 2025.