French energy sector market dropped 4.3% in 2025, but company morale and innovation confidence rose as investments increased.
French energy market declines
In 2025, the overall French energy sector market dropped by 4.3 percent, reaching 314 billion euros, reflecting a downturn in the industry.Energy suppliers remain stable
Despite the decline, French companies that supply the energy industry kept their market stable at 46 billion euros, maintaining a workforce of 108,000 jobs without significant changes.Company morale improves
According to the 2026 panorama by EY and EVOLEN, the morale of energy companies is improving, with seven out of ten respondents expressing confidence in their future prospects, a nine-point increase from 2025.Confidence in innovation grows
Eighty-nine percent of the surveyed companies declared confidence in their ability to innovate, up seven points from the previous year, indicating a growing belief in their capacity to develop new technologies.Investments in energy services rise
French companies increased their investments in energy services by 14 percent, from 1.48 billion euros in 2024 to 1.69 billion euros in 2025, showing a commitment to expanding their operations.Research and development spending increases
Research and development spending in the energy sector reached 37.7 million euros in 2025, up from 35 million euros in 2024, highlighting a focus on innovation and new technologies.Growth expected in new energy sources
More than a third of the surveyed companies anticipate growth of more than 10 percent in their activities related to new energy sources over the next five years, signaling optimism about renewable energy.Workforce challenges persist
Human capital remains the main operational challenge, with 92 percent of companies planning to maintain or increase their workforce in the next six months, despite difficulties in recruitment.Recruitment confidence improves
Confidence in the ability to recruit is also improving, with 88 percent of companies expressing optimism, a 17-point increase from the previous year, though challenges in specific job categories remain.Operational job shortages
More than half of the surveyed companies (52 percent) report tensions in operational and maintenance jobs, while 38 percent face difficulties in engineering and industrial projects, primarily due to a lack of qualified candidates.Competitiveness perceptions vary
Seventy-two percent of respondents judge France competitive compared to other European Union countries, but only 26 percent consider the French energy value chain competitive on a global scale.Funding and market access challenges
Seventy-one percent of companies encounter difficulties in raising funds, up from 55 percent in 2025, with obstacles including long sales cycles, difficulty in contacting major buyers, and inadequate tender procedures.