The global wind energy market size was valued at USD 126 billion in 2020 and expected to reach USD 190 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) 4.9% during the forecast period 2021 to 2030.
The electricity is generated from kinetic energy by using wind energy. The wind turbine turns wind energy into mechanical energy, which is then transformed into electrical energy via the generator. The offshore and onshore wind energy is connected with land-based turbines, whereas offshore wind turbines are positioned in the sea or ocean. Offshore wind turbines, on the other hand, are more efficient than onshore wind turbines due to the steady wind flow.
The factors such as increased investments in renewable energy generation, combined with the initiatives to reduce carbon emissions, will raise the demand for wind energy technologies. Wind energy market growth is predicted to be fueled by a significant increase in demand for renewable energy sources. Governments all around the world are encouraging sustainable energy sources, which, unlike conventional power sources, may cut carbon emissions. Moreover, the offshore wind turbine technology removes the barrier of sea dept, allowing for the finest feasible power producing site to be selected.
The COVID-19 pandemic had a significant impact on wind turbine production nations such as Germany and China. Additionally, a major issue limiting market expansion is the scarcity of spare parts and maintenance staff. Due to a shortage of personnel and social distancing conventions, planned maintenance became a big challenge for industrial players during the high wind season. Furthermore, project delays and order cancellations impacted the primary markets for blade manufacturing and wind turbine installation.
Scope of the Wind Energy Market
|Market Size||USD 190 Billion by 2030|
|Growth Rate||CAGR 4.9% From 2021 to 2030|
|Fastest Growing Market||Europe|
|Largest Market||Asia Pacific|
|Forecast Period||2021 to 2030|
|Companies Mentioned||Suzlon Energy Limited, Prysmian Group, Sinovel Wind Energy Group Co. Ltd., Doosan Heavy Industries & Construction, Siemens and MHI Vestas|
Surge in demand for electricity
According to International Energy Agency (IEA), the demand for electricity has increased with 5% in 2020. This results into surge in demand for renewable energy sources. The solar energy, wind energy, geothermal energy, hydropower, tidal energy, and solar thermal energy are some of the types of renewable energies. The electricity is generated by converting wind energy into electrical energy with the help of wind turbines. A wind turbine has a capacity to produce 250 watts to 7 megawatts of electricity. The production number is high as compared to other types of renewable energies except hydropower. The rise in urbanization and industrialization has also resulted in increased in demand for electricity. The global population is around 7.9 billion. It means the population is growing rapidly all around the world. Thus, the growing population, rise in industrialization and urbanization, and rise in disposable income is giving rise to demand for electricity in the market. As a result, surge in demand for electricity will propel the growth of wind energy market.
Increase in government initiatives and investments in R&D
The government of developed and developing nations is taking constant initiatives for the improvement of wind energy resources. Also, number of wind energy polices have been designed to improve the condition of wind power generators. Several energy policies have aided in the scaling up of wind deployment and boosting its economic viability, all while serving country-specific economic, social, and environmental development goals. The countries such as Chile, India, Nicaragua, Thailand, the UK, the U.S., Germany, and Denmark have implemented variety of energy policies for the development and deployment of wind energy. Also, the government of various nations has also started working on research and development on renewable energy sources. Thus, the increase in government initiatives and investments in R&D will drive the wind energy market growth.
High capital cost
The application of wind power turbines requires huge amount of capital investments. In many regions, the company needs to fulfil various processes and steps of government for the installation of turbines, which also requires high investment. The huge costs are required not only for turbine installation but also for foundation, grid connection, control systems, land, road construction, electric installation, and other financial costs. Thus, the high capital costs are hindering the growth of wind energy market.
Rising deployment of renewable energy sources
Currently, renewable energy sources provide nearly 80% of global energy and 66% of electrical generation. This has increased the importance of renewable energy sources around the globe. The renewable energy is regarded as clean energy with zero emissions that do not pollute the atmosphere. Thus, many countries have shifted to cleaner sources of energy such as wind energy. The government has started to provide subsidies for the wind energy turbines in various regions. The renewable energy technologies are deployed more quickly as energy policies and regulations are making renewable energy projects more financially feasible. Thus, the rising deployment of renewable energy sources is providing lucrative opportunities for the growth and development of wind energy market.
Unpredictable climate conditions
The biggest challenge that wind energy market players face is the uncertainty of climate and weather conditions. Climate plays a significant role in the management and maintenance of offshore wind farms, particularly in determining when to access the turbines, therefore reliable, continuous weather data and information will be required from all sides of the operation. The output of the turbines is also influenced by the weather. It gets higher energy output when there is a lot of wind than when there isn’t much wind, thus it’s more likely to undertake maintenance when the winds are low to avoid downtime. This is also the most convenient and safest time to visit the turbines. Thus, the unpredictable climate conditions acts as a hurdle for the growth of wind energy market.
By Rating Type, > 12 MW systems segment of the wind energy market is anticipated to register over 1.3% CAGR through 2030. These units are primarily utilized to fulfil the electricity demand from large scale industries and utility sector. Introduction of renewable energy certificates and carbon credit schemes are some of the key factors which will positively impact the >12 MW wind energy industry trends. Moreover, the governments across the globe are extensively investing in replacement of the traditional power plants with clean energy sources, which in turn will boost the market size of these units in the coming years.
>5≤ 8 MW wind farms are traditionally deployed across mid-scale industries, large commercial centers and utilities Rapid industrialization across developing economies has increased the investments across development of new manufacturing centers and expansion of existing industrial infrastructure.
The onshore wind energy market share is set to witness a substantial growth in the coming years on account of technological advancements toward higher capacity & availability factors coupled with the electricity generation capability in low-wind-speed sites. The onshore wind energy installed capacity has noted a gradual rise by 25% since 2000 owing to the favorable policies for renewable energy sources coupled with increasing energy demand across the globe.
The offshore wind energy technologies are gaining significant traction owing to its high-power generation capability when compared to available alternatives. High and steady wind flows, vast availability of areas for wind farms and surging energy requirements at the coastal areas are few of the key factors that will enhance the market share for offshore wind energy technology over the forecast timeframe.
Turbines segment accounted 61% revenue share in 2021. Easier availability of raw materials, ongoing advancements in the turbine technology, reduction in operational costs are few of the noteworthy factors boosting the product deployment over the last few years. In addition, turbine manufacturers are increasingly investing in R&D activities to increase the efficiency of the turbines and reduce the noise pollution generated by the product, which will drive the wind energy market statistics.
The electrical infrastructure accounted for over 10% of the global wind energy market share in 2020. Electrical infrastructure primarily includes wires, cables, and substations amongst other electrical components. The expansion of microgrid networks has led to the influx of high investments by the global cable manufacturers across the industry.
The utility segment accounted revenue share of over 96% across the global wind energy market in 2021. Over the years, growing population across developing nations and increasing investment toward industrial infrastructural development has surged the electricity requirement.
On other hand, the industrial sector has witnessed a significant growth rate on account of soaring population coupled with growing preference for consumer goods. Increasing industrial buildings have propelled the energy demand from various operations, which in turn favors the wing energy market penetration. Wind energy technology find its application across industries including chemical, food & beverage, and manufacturing amongst others for fulfilling their energy demands.
Asia pacific hit largest revenue share of over 51% in 2021, on account of rapid industrialization across developing countries and soaring population growth throughout the region. China wind energy market holds the majority of the shares in the region on account of its extensive development plan, primarily focusing on the effective utilization of sustainable energy to achieve its set targets.
Europe wind energy market is projected to reach over 5.2% CAGR through 2030 on account of growing penetration of onshore wind farms. Various nations across the region are engaged in developing sustainable technologies in order to curb the use of fossil fuels for power generation. The rapid advances in wind industry is anticipated across Russia and Turkey as the regulatory bodies are constantly focusing on the execution of auctions and tenders.
This section of the report identifies various key manufacturers of the market. It helps the reader understand the strategies and collaborations that players are focusing on combat competition in the market. The comprehensive report provides a significant microscopic look at the market. The reader can identify the footprints of the manufacturers by knowing about the global revenue of manufacturers, the global price of manufacturers, and sales by manufacturers during the forecast period of 2017 to 2019.
The analysts have provided a comprehensive analysis of the competitive landscape of the global wind energy market with the company market structure and market share analysis of the top players. The innovative trends and developments, mergers and acquisitions, product portfolio, and new product innovation expected to provide a dashboard view of the market, ultimately providing the readers accurate measure of the current market developments, business strategies, and key financials.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users) and other segments.
This report focuses on wind energy market includes crucial information on market share, market size, and growth rate for the forecast period 2021 to 2030 at the global level, regional level and company level. From a global perspective, this report represents overall wind energy market size by analyzing historical data and future prospect. The study highlights deep analysis on the major drivers of the market, restraints, and challenges to help the business owners, suppliers, and marketing personnel in planning effective strategies for the forecast period. This will help the business and manufacturers to lead the market and gain prominent position in future. The report also presents vital information through graphical representation on factors like table, charts, and statistics. The study includes drivers and restraints of the global wind energy market.
The research not only conducts forecasts in terms of value, but also evaluates the market on the basis of essential parameters, such as Year-on-Year (Y-o-Y) growth. This helps providers to recognize the future opportunities as well predictability of the market.
In order to understand and assess opportunities in this market, the report is categorically divided into five key sections on the basis of segments. The report analyzes the global market in terms of value (US$ dollers) and volume (Million Units).
The research report includes specific segments by region (country), by company, by all segments. This study provides information about the growth and revenue during the historic and forecasted period of 2017 to 2030. Every segment is further sub-segmented into several sub-segmented that are deeply analyzed by experts to offer valuable information to the buyers and market players. Understanding the segments helps in identifying the importance of different factors that aid the market growth.
Major Key Points Covered in Report:
Executive Summary: It includes key trends of the wind energy market related to products, applications, and other crucial factors. It also provides analysis of the competitive landscape and CAGR and market size of the wind energy market based on production and revenue.
Production and Consumption by Region: It covers all regional markets to which the research study relates. Prices and key players in addition to production and consumption in each regional market are discussed.
Key Players: Here, the report throws light on financial ratios, pricing structure, production cost, gross profit, sales volume, revenue, and gross margin of leading and prominent companies competing in the Wind energy market.
Market Segments: This part of the report discusses about product, application and other segments of the wind energy market based on market share, CAGR, market size, and various other factors.
Research Methodology: This section discusses about the research methodology and approach used to prepare the report. It covers data triangulation, market breakdown, market size estimation, and research design and/or programs.
The research report includes a detailed study of regions of North America, Europe, China, Japan and Rest of the World. The report has been curated after observing and studying various factors that determine regional growth such as economic, environmental, social, technological, and political status of the particular region. Analysts have studied the data of revenue and manufacturers of each region. This section analyses region-wise revenue and volume for the forecast period of 2017 to 2030. These analyses will help the reader to understand the potential worth of investment in a particular region.
The report provides in-depth segment analysis of the global wind energy market, thereby providing valuable insights at macro as well as micro levels. Analysis of major countries, which hold growth opportunities or account for significant share has also been included as part of geographic analysis of the wind energy market.
The report includes country-wise and region-wise market size for the period 2017-2030. It also includes market size and forecast by segments in terms of production capacity, price and revenue for the period 2017-2030.
The research methodology adopted by analysts for compiling the global wind energy market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts for the global market.
During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global market.
For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global wind energy market.
The study objectives of this report are:
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