The LottoNL-Jumbo rider triumphed in a sprint ahead of Australia's Caleb Ewan, with Briton Chris Opie third.
That came after several riders fell heavily in a dramatic crash in the final metres in Scarborough.
Britain's Adam Blythe also finished in the top 10, placing eighth on the 173km run from Bridlington, the first of three stages.
Groenewegen also took narrow victory ahead of Ewan in the opening stage of the 2016 event, eventually won by Thomas Voeckler, who is defending his title this year.
"The last climb was hard but the team brought me back into position so I could sprint for the win. It's a beautiful race with a lot of people on the road, that gives you a lot of motivation," he told ITV.
"Today was one chance and tomorrow is another but we'll see."
Saturday's second stage will start on the bridge in Tadcaster that has been rebuilt after being damaged by floods, and is expected to end in a bunch sprint in Harrogate.
Sunday's finale is a gruelling 194.5km ride from Bradford to Sheffield which takes in eight King of the Mountain climbs, including the Cote de Silsden and the cobbles of Haworth's main street, with four ascents saved for a final 22km circuit.
The women's race, featuring Britain's former world champion Lizzie Deignan, takes place over the same 122.5km route earlier in the day.
The Tour de Yorkshire, now in its third year, began as part of the legacy of the county hosting the 2014 Grand Depart for the Tour de France.
Overall classification after stage one:
1. Dylan Groenewegen (Ned/LottoNl-Jumbo) 4hrs 09mins 28secs
2. Caleb Ewan (Aus/Orica-Scott) +4secs
3. Chris Opie (GB/Bike Channel Canyon) +6secs
4. Angel Madrazo (Spa/Delko) +8secs
5. Nacer Bouhanni (Fra/Cofidis) +10secs
6.. Steele von Hoff (Aus/One Pro) Same time
7. Kristian Sbaragli (Ita/Dimension Data) Same time
8. Andre Looij (Ned/Roompot) Same time
9. Adam Blythe (GB/Aqua Blue Sport) Same time
10. Baptiste Planckaer (Bel/Katusha) Same time

In comparison, it is long on her vision of "a great meritocracy" and short on specific policies that could become hostages to fortune in government.
So the promise not to raise income tax or national insurance contributions has gone, along with (after 2020) the triple lock on pensions. The winter fuel allowance will be means-tested with the money spent on health and social care in England (and the Welsh Government) given a share of the cash. There are big changes proposed to social care in England.
The new approach means the Swansea tidal lagoon that featured in the 2015 document does not appear by name here. There is a commitment to modernise the railways but not specifically to electrify the Great Western route all the way to Swansea.
The promise to scrap Severn Bridge tolls, announced earlier this week, does not feature. So just because something's not in the manifesto doesn't mean the Conservatives don't plan to do it.
One other policy that could have a big impact on Wales caught my eye. The Conservatives say that after Brexit they'd replace EU funds for poorer parts of the UK with what they call a "UK shared prosperity fund" to reduce inequalities across the four nations.
The manifesto says they'd consult with the devolved administrations on how to spend it, but critics will fear a power grab by a UK government apparently keen to decide priorities.
This is the UK manifesto, with a Welsh version expected to be launched next week.
Dutchman Dylan Groenewegen claimed the opening stage victory in this year's Tour de Yorkshire.
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To the prime minister, it is "my manifesto" and Theresa May's programme for government certainly looks and feels rather different from the one David Cameron stood on two years ago (which featured Mrs May on the cover).