Small Wind Turbine Market - Growth, Trends, And Forecasts (2023 - 2028)

Small Wind Turbine Market - Growth, Trends, And Forecasts (2023 - 2028)

The Small Wind Turbine market is expected to reach USD 296.2 million by the end of the year and is projected to register a CAGR of over 1.12% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Presently the market has now reached pre-pandemic levels.

• Over the medium term, lower environmental impact due to smaller size and land footprint and lower CAPEX and OPEX requirements are also expected to drive the growth of the market studied.
• On the other hand, competition from alternative distributed generation sources such as rooftop solar photovoltaic (pv) may negatively impact the market’s growth and is one of the major restraints for the market.
• Nevertheless, commercialization of building-integrated wind turbines and development of bladeless wind turbines, are expected to provide growth opportunities in the forecast period.
• The Asia-Pacific region dominates the market and is also likely to witness the highest CAGR during the forecast period. The growth is mainly driven by the existing framework of policies supporting the adoption of small scale wind power developments.

• Though smaller turbines cost less in initial capital outlay, they are proportionally more expensive. Wind energy becomes more economical with growing turbine size and height, and the cost of energy generated/energy is significantly higher in smaller turbines than that of large turbines. The cost of an installed residential wind energy system with an 80-foot tower, batteries, and inverter typically range from USD 15,000-50,000 for a 3-10 kW wind turbine.
• According to the American Wind Energy Association (AWEA), small wind turbines cost between USD 3,000-5,000/kW. Most homeowners using a wind turbine as their primary source of electricity install between 5-15 kW of wind power capacity, which translates to total projects costs between USD 15,000-75,000 for their small wind turbine project.
• In comparison, larger MW-scale turbines cost approximately USD 2.6–4 million for a single average-sized commercial wind turbine, with average costs being nearly USD 1.3 million/MW of electricity-producing capacity.
• Moreover, O&M (operations and maintenance) costs are also significantly higher for large MW-scale turbines due to higher speeds and extreme operating conditions. O&M costs for large-scale wind turbines are nearly USD 0.01-0.02/kWh, equating to almost USD 42,000-48,000 annually.
• For small wind turbines, the cost of maintenance is drastically lower due to the proximity of smaller turbines and the lack of requirement of specialized equipment or crew for carrying out essential maintenance operations. According to the United States Department of Energy, the average scheduled maintenance cost per visit for small wind turbines is about USD 37/kW.
• Moreover, smaller wind turbines are suited to the needs of smaller rural consumers in residential, portable, or off-grid applications. Small-wind turbines are mostly used to power rural or suburban homes, farms, schools, and manufacturing facilities. During 2020, small wind systems were installed in wineries, schools, residences, farms, a tribal government, an animal eye care clinic, and a biodiesel production facility in the United States.
• Therefore, owing to the above points, the lower CAPEX and OPEX requirements are expected to drive the market during the forecast period.

• Asia-Pacific dominated the wind power generation market in 2022, and it is expected to continue its dominance in the coming years as well. The region holds vast potential for the expansion of the small wind turbine market, notably in the form of off-grid and residential-scale small wind turbines.
• China holds the largest wind power generation capacity globally, with 328.9 GW of installed capacity as of 2021. The country installed 33.38 MW of small wind turbines in 2021, reaching a cumulative installed capacity of 610.61 MW.​ China experienced a 30% increase in small wind installations from 2020 to 2021. The country first introduced FiT from onshore wind in 2009; it currently offers FiT for small wind turbines ranging from USD 13.4-20.1 ct/kWh.
• Chinese small wind turbine application is shifting from rural electrification oriented to city streets illumination and telecom stand-alone power systems. It is developing rapidly in these new application fields.​
• On the other hand, India holds the fourth-largest wind power installed capacity in the world. The country’s wind power installed capacity stood at 38.6 GW. ​The potential for wind power generation for grid interaction has been estimated at 1,02,788 MW taking sites having wind power density greater than 200 W/sq. m at 80 m hub height with 2% land availability in potential areas for setting up wind farms with 9 MW/sq. km.​
• Small wind power capacity in Japan has witnessed significant growth in recent years. As of 2020, the cumulative small wind turbine capacity in Japan was 12.88 MW, up from 8.3 MW in 2017.​
• South Korea added 100 MW of new wind energy capacity to the already existing 1,420 MW of wind energy, achieving a total of 1,520 MW in 2020. In 2019, South Korea had a cumulative small wind turbine capacity of 4.08 MW. ​
• Therefore, owing to the above points, Asia-Pacific is expected to dominate the small wind turbine market during the forecast period.

The small wind turbine market is moderately fragmented. Some of the major players operating in the market include Northern Power Systems Inc., Bergey Wind Power Co., SD Wind Energy, Aeolos Wind Energy Ltd, and Ryse Energy.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support