Global Wind Power Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Global Wind Power Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global wind power equipment market is expected to grow at a CAGR of less than 2% during 2020-2025. Wind energy is one of the cheapest forms of electricity in many markets. The declining cost of the wind energy and increasing investments in the wind power sector are the key drivers for wind power equipment market. On the flipside, substitution from the solar energy and gas-fired power plants are expected to continue to restrain the market. The solar energy industry has achieved the cost reduction at a significantly higher rate than wind energy sector.

Key Highlights

• Onshore wind power industry is estimated to have the highest market share in 2019 and is expected to dominate the market during the forecast period.
• The wind power industry has demand for cost-effective solutions, and a highly efficient product has the potential to change the dynamics of the industry. There have been instances where old equipment of the wind turbines are replaced, not because of the damage, but due to the availability of more efficient equipment in the market. Hence, technological developments present themselves as opportunities to the global wind power equipment market.
• At the regional level, Asia-Pacific is likely to dominate the wind power equipment market in 2019, with the majority of the demand coming from the countries such as China, India, and Australia.

Key Market TrendsIncreasing Demand from Onshore Wind Power Industry

• The onshore wind power industry has dominated the wind power equipment market and is expected to continue its dominance over the forecast period.
• Over the past few decades, onshore wind power has emerged as one of the most valued sources of renewable energy, worldwide. The cumulative onshore installed wind power capacity reached 568.4 GW in 2018, with an addition of 8.9% to the previous year’s capacity. Countries such as China, the United States, Germany, and India dominated the onshore wind power market, in 2018.
• The total onshore installed wind power capacity is expected to reach 619 GW by 2023, with majority of the growth coming from the developing markets in the Middle East & Africa, South America, and Southeast Asia.
• Moreover, the cost of onshore wind power generation has reduced significantly, driven by the reduction in capital investments, owing to better turbine designs and economy of scale, increased capacity factors due to technological advancements in equipment and wind power plant design, and increased production life of wind turbines.
• Adding to this, in 2015, onshore wind required an average of EUR 2 million of financing for each MW of capacity installed in Europe. By 2018, this number had reduced to EUR 1.4 million per MW. This, in turn, is expected to boost the number of onshore wind installations in Europe in the coming years and, further, drive the demand for wind power equipment.
• Therefore, factors, such as decline in onshore wind CAPEX, along with supportive government policies and targets, are expected to increase the number of wind power plants across the world in the coming years. This, in turn, is expected to directly impact the onshore wind power equipment market during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is the regional hotspot for the wind power equipment market, owing to governmental support, numerous incentives, and national targets. In 2018, the total installed wind power capacity in the region reached 261.15 GW, representing an increase of 11.40% over the previous year’s level. The offshore wind power industry in the region registered a significant growth rate of 61.2% over the 2017’s level.
• As of 2018, China held the largest installed wind power capacity in the world. The Chinese onshore wind market installed 21.2 GW in 2018, and has been the leading market since 2008. In the offshore wind market, China installed 1.8 GW in 2018, taking the lead for the first time, followed by the United Kingdom.
• The government of China is actively promoting the development of renewable infrastructure, in order to curb pollution and to reduce the share of thermal power in the country’s power generation profile. This is likely to drive the development of wind power projects in the country which, in turn, is expected to drive the wind power equipment market during the forecast period.
• As of 2018, India’s installed wind power capacity stood at 35.13 GW. The number of new installations has slowed down in the country, as the industry has been adapting to the new method of determining tariff, i.e., wind power auction. However, the future looks bright, as the government aims to install about 60 GW of wind power, by 2022.
• The Ministry of New and Renewable Energy is pushing for offshore wind power development. In early 2019, MNRE announced a draft offshore wind energy policy. After that, an MOU for setting up a joint venture company (JVC), to execute the country’s first offshore demonstration project, was signed by the Union Ministry of New and Renewable Energy (MNRE), National Institute of Wind Energy (NIWE), and a consortium of public sector agencies.
• South Korea’s state-owned National Oil Corporation (KNOC) is planning to develop a 200 MW floating offshore wind project 58 km off the coast of Ulsan City. Floating turbines are considered the next step in conquering wind resources in deep coastal waters where fixed turbines cannot be built.
• Therefore, factors such as upcoming wind power projects along with supportive government policies and regulations in different countries across the region are expected to increase the demand for wind power equipment over the forecast period.

Competitive Landscape

The global wind power equipment market is fragmented. Some of the key players in this market include General Electric Company, Siemens Gamesa Renewable Energy SA, Vestas Wind Systems A/S, Nordex SE, and Enercon GmbH.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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