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Electric Power in Germany - Market Research Report (2014-2029)

Melanie Katz Melanie Katz Frankfurt, Germany Last Updated: August 2024 WZ D35.10DE

Revenue

€753.8bn

2024

€753.8bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

224k

Businesses

836

Wages

€XX.Xbn

Electric Power in Germany industry analysis

Against the backdrop of climate change, continuously increasing environmental awareness among consumers and strict guidelines regarding environmental protection, energy suppliers are being forced to implement capital-intensive, technologically complex restructuring measures as part of the energy transition. This is particularly the case at the production level, but also with regard to the expansion of transmission and distribution networks. Industry revenue generated by the generation, transmission, distribution and trading of electricity grew by an average of 4.6% per year in the period from 2019 to 2024. In the current year, turnover is expected to fall by 6% to 753.8 billion euros.With Germany set to phase out nuclear power in April 2023 and coal-fired power generation by 2038, industry players have already invested continuously in the construction of wind and solar power plants and other technologies for environmentally friendly power generation in recent years. The growth in industry turnover in recent years is partly due to the rising electricity price and partly to the temporary increase in electricity consumption. In 2020, the increase in electricity consumption by private households was unable to offset the lower electricity demand from industry due to the pandemic. The coronavirus pandemic disrupted supply chains and production in some manufacturing industries was at least temporarily curtailed or stopped completely. This in turn led to lower production volumes and a decline in electricity consumption. In 2022, the war in Ukraine contributed to an increase in electricity generation costs, which were passed on to the consumer markets. < />For the period from 2024 to 2029, IBISWorld anticipates an average decline in turnover of 2.3% per year to 670.8 billion euros. In order to remain competitive, industry players will have to invest in innovative technologies in the future - including smart devices or applications that use intelligent data collection and analysis methods to ensure the most efficient energy supply possible.

Trends and Insights

  • The traditional generation business of maximum electricity production is changing. Capacities must be available in order to be able to hedge against fluctuations in renewable energy generation, such as solar and wind power feed-ins.
  • Despite the energy transition, lignite is still an important raw material for power generation. However, as lignite is the most climate-damaging energy source, a significant reduction in the use of this fuel is essential as part of the energy transition.
  • The type of energy sources used depends heavily on their availability in the various regions. In regions where coal is mined, there tend to be more coal-fired power plants than in other areas.
  • The electricity supply industry shows a moderate level of competition overall. However, this is likely to increase in the future as new companies enter the market, particularly in the field of renewable energies.

Access hundreds of analysis and data

  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 4.6 % over the past five years, to reach an estimated €753.8bn in 2024.

Trends and Insights

The share of electricity from renewable energies is increasing

  • In 2022 and 2023, net electricity consumption in Germany fell, while energy generated from renewable sources increased. As a result, the share of renewable energies in electricity consumption rose to over 50% for the first time in 2023.
  • Additional trends and insights available with purchase
Electric Power in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to decline over the next five years.

Trends and Insights

The coal phase-out is putting pressure on the energy transition

  • Germany aims to cover at least 80% of German gross electricity consumption with renewable energies by 2030.

Biggest companies in the Electric Power in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
E.on SE
27,551.0
RWE AG
22,239.0
EnBW AG
13,188.2

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Electric Power in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Renewable energy sources, Lignite and Natural gas. Renewable energy sources is the largest segment of the Electric Power in Germany.

Trends and Insights

Renewable energy sources are gaining in importance with the energy transition

  • Renewable energy sources include wind power, photovoltaics, biomass and hydropower.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The electricity supply sector regulates the supply of electricity to residential buildings, public facilities and industrial and commercial areas via a permanently installed electricity grid. This sector covers the entire value chain from electricity generation, transmission and distribution to electricity trading.

What's included in this industry?

Renewable energy sourcesLigniteNatural gas

Companies

E.on SERWE AGEnBW AG

Purchase this report to view all 4 major companies in this industry.

Related Terms

RENEWABLE/REGENERATIVE ENERGIESRENEWABLE ENERGIES ACT (EEG)EU EMISSIONS TRADING SCHEME (EU-ETS)COGENERATIONPHOTOVOLTAICSSMART METERELECTROLYSEUR

Industry Code

WZ 2008

WZ 35.1 - Electric Power in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The traditional generation business of maximum electricity production is changing. Capacities must be available in order to be able to hedge against fluctuations in renewable...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Despite the energy transition, lignite is still an important raw material for power generation. However, as lignite is the most climate-damaging energy source, a significant ...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The type of energy sources used depends heavily on their availability in the various regions. In regions where coal is mined, there tend to be more coal-fired power plants th...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The electricity supply industry shows a moderate level of competition overall. However, this is likely to increase in the future as new companies enter the market, particular...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the industry. The industry is highly fragmented due to the different areas of activity in electricity supply.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of E.on SE's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of RWE AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of EnBW AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for E.on SE, and factors influencing its performance in the industry
  • Description and key data for RWE AG, and factors influencing its performance in the industry
  • Description and key data for EnBW AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

In the electricity sector, the Renewable Energy Sources Act is the most important funding instrument. It regulates the production, distribution and trading of green electrici...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profitability of industry players is subject to some fluctuations. These are caused by changes in the commodity prices of the input factors for electricity generation as ...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Electric Power industry in Germany in 2024?

The market size of the Electric Power industry in Germany is €753.8bn in 2024.

How many businesses are there in the Electric Power in Germany industry in 2024?

There are 836 businesses in the Electric Power industry in Germany, which has declined at a CAGR of 0.4 % between 2019 and 2024.

Has the Electric Power industry in Germany grown or declined over the past 5 years?

The market size of the Electric Power industry in Germany has been growing at a CAGR of 4.6 % between 2019 and 2024.

What is the forecast growth of the Electric Power industry in Germany over the next 5 years?

Over the next five years, the Electric Power industry in Germany is expected to decline.

What are the biggest companies in the Electric Power market in Germany?

The biggest companies operating in the Electric Power market in Germany are E.on SE, RWE AG and EnBW AG

What does the Electric Power in Germany include?

Renewable energy sources and Lignite are part of the Electric Power industry.

Which companies have the highest market share in the Electric Power in Germany?

The company holding the most market share in Germany is E.on SE.

How competitive is the Electric Power industry in Germany?

The level of competition is moderate and increasing in the Electric Power industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • Renewable Energy Generation in Germany

Complementors

  • Gas Manufacturing & Distribution in Germany
  • Steam & Air Conditioning Supply in Germany
  • Water Collection, Treatment & Supply in Germany

International industries

  • Electricity Transmission in Australia
  • Electricity Retailing in Australia
  • Fossil Fuel Electricity Generation in Australia
  • Electricity Transmission in the UK
  • Electricity Supply in the UK

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.