The global wind turbine market was valued at US$98.630 billion in 2020 and is expected to grow at a CAGR of 5.57% over the forecast period to reach a total market size of US$144.141 billion in 2027. Wind power technologies transform the kinetic energy of the wind into mechanical power. The wind is used to generate electricity using the kinetic energy created by air in motion, which is then transformed into electrical energy using wind turbines or wind energy conversion systems. The amount of energy that can be harvested from wind depends on the size of the wind turbine and the length of its blades. As such, the total energy output is proportional to the dimensions of the rotor and to the cube of the wind speed.
Renewable power generation can help nations meet their sustainable development goals and targets through the provision of access to clean, reliable, secure, and affordable energy. The growing focus on environmental sustainability across the globe is the major driver of the global wind turbine market. Governments of different nations, as well as global organizations, are continuously trying to achieve their set targets of reducing carbon footprints/greenhouse gas (GHG) emissions. The increasingly pronounced effects of climate change, coupled with the finite nature of non-renewable energy sources, have made it necessary for the world to secure alternative power sources. The government of Denmark has set a target of 50 percent wind energy in its total electricity consumption by 2020 as part of its long-term strategy to achieve a 100 percent renewable energy mix in the country’s electricity and heat sectors by 2035, and in all sectors by 2050. Virginia recently enacted a mandatory 100% renewables target for Phase I and Phase II utilities by 2025. Phase I utilities are required to achieve the renewables target of 14 percent by 2025 and 100 percent by 2050. During Phase II, utilities must meet a renewables target of 26 percent by 2025 and 100 percent by 2045. The law also requires utilities to procure a certain amount of renewable energy from solar and onshore wind sources that are located within the state by a specific date. As such, tens of gigawatts of wind, solar photovoltaic, and hydropower capacity are installed globally every year in the global renewable energy market. Moreover, recent years have witnessed a dramatic reduction in the cost of renewable energy technologies as a result of increased R&D and accelerated deployment.
With the rapid shift away from climate-damaging, non-renewable fossil fuels toward clean, renewable energy sources, the demand for wind turbines is accelerating at a fast pace. Rising prices of electricity are also driving the demand for affordable energy access via renewable energy sources, thereby driving the wind turbine market growth. According to the IRENA (International Renewable Energy Agency), the global wind energy installed capacity has surged from 180,846 MW in 2010 to 622,408 MW in 2019. Wind electricity production accounted for 6% of total electricity generated by renewable energy sources in 2016. According to the “Future of Wind” report published by IRENA, global wind power is projected to rise tenfold, reaching over 6,000 GW by 2050. To meet this target, onshore and offshore wind capacity must increase fourfold and tenfold, respectively, annually when compared to 2018. However, higher initial investment costs, challenges related to noise caused by wind turbines, and the remoteness of wind farms compared to the need for energy are some of the factors that are still restraining the growth of the wind turbine market.
However, Asia Pacific (APAC) is projected to experience a substantial compound annual growth rate between 2020 and 2025. According to the IRENA report, by 2050, Asia would account for more than 50 percent of the global onshore wind power installations, while for offshore, Asia would cover more than 60 percent of the global installations. Within the region, China, India, South Korea, and South-East Asia will witness noteworthy growth during the forecast period. Recently, the President of South Korea has announced plans to expand the country’s offshore wind power capacity a hundredfold by 2030 in order to accelerate the nation’s transition to renewable energy. The South Korean government had already announced at the beginning of 2020 that it would invest US$789.6 million in energy-related R&D projects this year. Vestas has received a 55 MW order in China that includes a 2-year Active Output Management 4000 (AOM 4000) service agreement and the supply of 25 V120-2.2 MW. In July 2018, the Indonesian President inaugurated the country’s first wind turbine power plant, with a total capacity of 75 MW and consisting of 30 wind turbine generators, in Sidrap, South Sulawesi. The Government of Japan passed a bill in November 2018 that allows wind farms to operate in the country’s territorial waters for up to 30 years. As a result of this law, the Japanese offshore wind farm market has been set in motion, with Japanese leasing companies Orix and Tokyo Electric Power Co. Holdings, and Germany’s largest power provider E.ON planning to establish offshore wind farms in the country.
Renewable power generation can help nations meet their sustainable development goals and targets through the provision of access to clean, reliable, secure, and affordable energy. The growing focus on environmental sustainability across the globe is the major driver of the global wind turbine market. Governments of different nations, as well as global organizations, are continuously trying to achieve their set targets of reducing carbon footprints/greenhouse gas (GHG) emissions. The increasingly pronounced effects of climate change, coupled with the finite nature of non-renewable energy sources, have made it necessary for the world to secure alternative power sources. The government of Denmark has set a target of 50 percent wind energy in its total electricity consumption by 2020 as part of its long-term strategy to achieve a 100 percent renewable energy mix in the country’s electricity and heat sectors by 2035, and in all sectors by 2050. Virginia recently enacted a mandatory 100% renewables target for Phase I and Phase II utilities by 2025. Phase I utilities are required to achieve the renewables target of 14 percent by 2025 and 100 percent by 2050. During Phase II, utilities must meet a renewables target of 26 percent by 2025 and 100 percent by 2045. The law also requires utilities to procure a certain amount of renewable energy from solar and onshore wind sources that are located within the state by a specific date. As such, tens of gigawatts of wind, solar photovoltaic, and hydropower capacity are installed globally every year in the global renewable energy market. Moreover, recent years have witnessed a dramatic reduction in the cost of renewable energy technologies as a result of increased R&D and accelerated deployment.
With the rapid shift away from climate-damaging, non-renewable fossil fuels toward clean, renewable energy sources, the demand for wind turbines is accelerating at a fast pace. Rising prices of electricity are also driving the demand for affordable energy access via renewable energy sources, thereby driving the wind turbine market growth. According to the IRENA (International Renewable Energy Agency), the global wind energy installed capacity has surged from 180,846 MW in 2010 to 622,408 MW in 2019. Wind electricity production accounted for 6% of total electricity generated by renewable energy sources in 2016. According to the “Future of Wind” report published by IRENA, global wind power is projected to rise tenfold, reaching over 6,000 GW by 2050. To meet this target, onshore and offshore wind capacity must increase fourfold and tenfold, respectively, annually when compared to 2018. However, higher initial investment costs, challenges related to noise caused by wind turbines, and the remoteness of wind farms compared to the need for energy are some of the factors that are still restraining the growth of the wind turbine market.
Onshore dominates the global wind turbine market
By location, the global turbine market has been segmented as onshore and offshore. The onshore wind turbine market accounted for the majority of the market share in 2019. According to the IRENA statistics, the onshore wind energy installed capacity has increased from 177,790 MW in 2010 to 594,253 MW in 2019. The infrastructure of onshore wind farms necessary to transmit electricity is relatively less expensive than that of offshore wind farms. Moreover, onshore wind energy is currently the cheapest form of energy in the global renewable industry. The offshore wind energy installed capacity, according to IRENA statistics, has grown from 3,056 MW in 2010 to 28,155 MW in 2019. Many parts of the world have strong wind speeds, but remote locations are the best ones for producing wind power. As such, offshore wind power locations offer tremendous potential and the segment is projected to witness a substantial CAGR during the forecast period.Europe is one of the major wind turbine regional markets
By geography, the global wind turbine market has been segmented into five major regional markets- North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). Europe accounted for a significant market share in 2019 on account of the high level of wind turbine installations in the region. High concerns regarding environmental sustainability across the EU (European Union) member states with set targets to reduce the reliance on non-renewable energy sources are further boosting the installation of wind turbines across the region, thus positively impacting the European wind turbine market growth. For instance, it has been recently announced by the sustainable energy company Vattenfall that a 50-turbine wind farm in southern Scotland will be set up and running by 2023 which will power approximately 170,000 homes in the United Kingdom. Also, ecoJoule construct GmbH has recently provided a 28 MW re-powering order to Vestas for the wind project Brest in northern Germany.However, Asia Pacific (APAC) is projected to experience a substantial compound annual growth rate between 2020 and 2025. According to the IRENA report, by 2050, Asia would account for more than 50 percent of the global onshore wind power installations, while for offshore, Asia would cover more than 60 percent of the global installations. Within the region, China, India, South Korea, and South-East Asia will witness noteworthy growth during the forecast period. Recently, the President of South Korea has announced plans to expand the country’s offshore wind power capacity a hundredfold by 2030 in order to accelerate the nation’s transition to renewable energy. The South Korean government had already announced at the beginning of 2020 that it would invest US$789.6 million in energy-related R&D projects this year. Vestas has received a 55 MW order in China that includes a 2-year Active Output Management 4000 (AOM 4000) service agreement and the supply of 25 V120-2.2 MW. In July 2018, the Indonesian President inaugurated the country’s first wind turbine power plant, with a total capacity of 75 MW and consisting of 30 wind turbine generators, in Sidrap, South Sulawesi. The Government of Japan passed a bill in November 2018 that allows wind farms to operate in the country’s territorial waters for up to 30 years. As a result of this law, the Japanese offshore wind farm market has been set in motion, with Japanese leasing companies Orix and Tokyo Electric Power Co. Holdings, and Germany’s largest power provider E.ON planning to establish offshore wind farms in the country.
The Impact of COVID-19 on the global wind energy industry
The wind energy industry’s supply chain slowed in the first quarter, particularly in the manufacturing and assembly of wind turbines, due to the ongoing COVID-19 pandemic outbreak. Major wind energy equipment suppliers such as Siemens and General Electric, among others, have faced production shutdowns, which have resulted in a huge backlog and delays in fulfilling orders. This drastic supply chain disruption has caused firms to shut factories while making them unable to ship their products to construction sites. Moreover, due to social distancing orders, the projects have been temporarily halted, which has further slowed the demand for wind turbines.Competitive Insights
GENERAL ELECTRIC, Siemens Gamesa Renewable Energy, S.A., Vestas, Senvion S.A., NORDEX SE, Suzlon Energy Limited, goldwind.com.cn, ENVISION GROUP, Renewables First, Bergey Windpower Co., ENESSERE S.r.l., IMPSA, VENSYS Energy AG, and Sinovel Wind Group Co., Ltd. are among the prominent key market players in the global wind These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global wind turbine market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.Key Developments in the Market
- In May 2022, Stora Enso and Wood Technology entered into a partnership to develop wood as the material choice in wind turbine towers. This partnership is expected to illustrate the wide array of possibilities in utilizing wood in construction.
- In February 2021, the V236-15.0 MW offshore wind turbine was introduced by Vestas, a Danish wind turbine manufacturer. The V236-15.0 MW, which has the world's largest swept area of almost 43,000 m2, delivers industry-leading performance and boosts wind energy production to over 80 GWh/year, enough to power around 20,000 European households according to Vestas. Vestas' aim to become the leading offshore wind turbine producer includes the deployment of the V236-15.0 MW type.
- In July 2021, Alfanar, based in Saudi Arabia, finalized a 100% acquisition of wind turbine manufacturer Senvion India for an undisclosed sum. This is a game-changing arrangement for Alfanar, allowing it to expand offerings in the fields of renewable energy and grid transmission while also allowing Senvion India to continue operating as a full-fledged OEM in the Indian market.
Segmentation
By Type
- Horizontal-axis Wind Turbine
- Vertical-axis Wind turbine
By Size
- Small
- Medium
- Large
By Location
- Onshore
- Offshore
By Application
- Utility
- Non-Utility
By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Chile
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Netherlands
- Denmark
- Sweden
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- South Africa
- Asia Pacific
- Japan
- China
- India
- South Korea
- Australia
- Indonesia
Frequently Asked Questions about the Global Wind Turbine Market
What is the estimated value of the Global Wind Turbine Market?
What is the growth rate of the Global Wind Turbine Market?
What is the forecasted size of the Global Wind Turbine Market?
Who are the key companies in the Global Wind Turbine Market?
Report Attribute | Details |
---|---|
No. of Pages | 147 |
Published | August 2022 |
Forecast Period | 2020 - 2027 |
Estimated Market Value ( USD | $ 98.63 billion |
Forecasted Market Value ( USD | $ 144.14 billion |
Compound Annual Growth Rate | 5.5% |
Regions Covered | Global |
No. of Companies Mentioned | 11 |
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Global Wind Turbine Market Analysis, By Type
6. Global Wind Turbine Market Analysis, By Size
7. Global Wind Turbine Market Analysis, By Location
8. Global Wind Turbine Market Analysis, By Application
9. Global Wind Turbine Market Analysis, By Geography
10. Competitive Environment and Analysis
11. Companies Profiles
Companies Mentioned
- GENERAL ELECTRIC
- Siemens Gamesa Renewable Energy, S.A.
- Vestas
- NORDEX SE
- Suzlon Energy Limited
- goldwind.com.cn
- ENVISION GROUP
- Renewables First
- Bergey Windpower Co.
- ENESSERE S.r.l.
- VENSYS Energy AG
Methodology
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