Wind Power

Wind Power

The wind power market has experienced remarkable growth and transformation over the past few decades, establishing itself as a leading renewable energy source in the global energy landscape. As of 2023, wind power has become a crucial component of the sustainable energy mix, offering numerous environmental, economic, and social benefits. Wind power offers substantial environmental benefits, including reduced greenhouse gas emissions, improved air quality, and decreased water consumption compared to conventional energy sources. Additionally, wind energy projects have created job opportunities and stimulated economic development in many regions, enhancing the development of local communities and supporting sustainable growth, thus propelling the growth of the market during the forecast period.

The Wind Power Market is expected to grow at a strong CAGR of 6.5 % during the forecast period owing to increasing renewable energy targets globally. Many countries have set ambitious renewable energy targets to reduce greenhouse gas emissions and combat climate change. Wind power plays a significant role in achieving these targets due to its scalability and cost-effectiveness. For instance, in 2021, the European Union increased its renewable energy target to 32% by 2030, with wind power.

• Based on the installation outlook, the market is bifurcated into onshore and offshore. The onshore segment held a dominant share of the global market in 2022. Onshore wind energy is the power that’s generated by wind turbines located on land driven by the natural movement of the air. Currently, there are more than 1,500 operational onshore wind farms across the UK, generating over 12-gigawatt hours (GWh) of electricity for the national electric system. In 2020 onshore wind contributed 11% of the UK’s electricity needs, with a total 34.7 terawatt hours (TWh) generated – more than enough to power 18.5 million UK homes for an entire year. Thus, the increased usage of onshore owing to its low cost over offshore wind power coupled with the easy installation process and reduction in Greenhouse Gases (GHG) are the key factors driving the growth of the market.
• By turbine capacity, the market is segmented into up to 1MW, 1 MW to 3MW, 3MW to 5MW, and above 5MW. The 1MW to 3MW category is expected to grow with a significant CAGR during the forecast period. This is mainly owing to the factor that 2 MW capacity has better wind turbine technology and efficiency, reducing the cost of energy for sites with low and medium wind speeds. Many players are launching projects with high MW to help in generating more power used for household purposes. For instance, in January 2023, Mingyang launched an 8.5 MW onshore wind turbine to generate 200,000 kWh daily.
• By application, the market is bifurcated into utility and non-utility. The utility segment held a dominant share of the market in 2022. It refers to the deployment of large-scale wind energy projects by utility companies to generate electricity for the grid. Several factors including decreasing costs, government support, increasing demand for reliable energy, and rising investments by companies are driving the growth of the segment in the forthcoming years. For instance, in February 2022, RWE partnered with Tata Power to investigate the possibility of collaborating on offshore wind projects in India. A Memorandum of Understanding (MoU) has been signed between Tata Power Renewable Energy Limited, a subsidiary of Tata Power, one of India's largest integrated power companies, and RWE Renewables GmbH, a leading company in offshore wind.
• Based on component, the market is categorized into turbine, support structure, electrical infrastructure, and others. The turbine segment held a significant share of the market in 2022. The turbine segment is a critical component of the wind power market, as it is responsible for generating the electricity that powers homes, businesses, and industries. In recent years, there has been a growing trend towards larger and more efficient turbines, as manufacturers strive to reduce the cost of wind energy and increase its competitiveness with traditional forms of energy. This has led to the development of new turbine designs, such as horizontal-axis turbines and offshore wind turbines with longer blades, which are able to capture more wind energy and generate more electricity. For instance, GE is now offering improved onshore turbine technologies rated at 4.8 MW and 5.3 MW, respectively. Siemens-Gamesa presented its 5.8 MW, 170-meter rotor diameter model, which is larger than the largest offshore turbine currently available in the market. Therefore, ongoing innovations and technology enhancements towards larger capacity turbines as well as increased hub heights and rotor diameters will drive the growth of the segment in the coming years.
• For a better understanding of the market adoption of the wind power industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and Rest of North America), Europe (Germany, U.K., France, Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The Asia Pacific region held the largest market share in 2021, accounting for more than 42.43% of the revenue, and is expected to continue to dominate during the forecast period. China had the highest number of installations in the region due to the government's efforts to promote the growth of renewable energy and reduce the dependence on thermal power. The country's onshore wind power industry is expected to continue to grow steadily in the coming years as the government encourages the expansion of renewable infrastructure to reduce pollution and shift away from thermal power. This is likely to drive the growth of the overall market in APAC during the forecast period.
• Some of the major players operating in the market include Siemens Gamesa Renewable Energy, S.A.; Suzlon Energy Limited; Vestas; NORDEX SE; Mingyang Smart Energy; GENERAL ELECTRIC; Goldwind; ENVISION GROUP; Zhejiang Windey Co., Ltd.; and SANY Group.