Wind Turbine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Wind Turbine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The wind turbine market is expected to grow at a CAGR of more than 10% during the forecast period 2020-2025. The market studied is expected to witness significant growth due to rising energy demand coupled with the increasing share of renewables in the power generation mix, efforts to reduce the reliance on fossil fuel-based power generation, regulations on energy efficiency, regulations to ensure efficiency and utilization of energy. However, the adoption of clean energy source like solar and other alternatives are likely to hinder the growth of the market.

Key Highlights

• Technological improvements such as increased-capacity wind turbines, floating wind turbines, and 3D printing, have brought the overall cost of wind power to the lowest level and also opened up new offshore locations such as deep water that was previously inaccessible due to lack of investment and technology. These developments are accelerating the adoption of wind power worldwide and are expected to provide significant opportunities for the players to enter the untapped regions of the market.
• Moreover, the integration of artificial intelligence, internet of things, robotics, and data analytics in wind turbines will enable advanced condition monitoring and predictive maintenance which result in increased efficiency and reduced operational and maintenance costs, which is likely to provide the opportunity to a growth in the deployment of wind turbines in coming future.
• Asia-Pacific is the largest wind turbine market owing to the largest wind power installed capacity in 2018.

Key Market TrendsOffshore Wind Turbine to Witness a Significant Growth

• As demand for energy is rising, major countries and companies are turning toward the adoption of renewable energy as it has the ability to provide clean energy. The adoption of offshore wind energy with advance technology attracted the countries and companies for high investment.
• By location of deployment, the offshore industry is expected to witness a significant growth in the global wind turbine industry investments during the forecast period, owing to declining costs and improved technology.
• The offshore wind industry witnessed major investments in 2018, as it accounted for USD 25.6 billion, which was 11% more than the previous year’s investment. The major projects in offshore wind power included the 950 MW Moray Firth East array in the North Sea, which involved an estimated investment of USD 3.3 billion. Apart from that, China started the construction of 13 offshore wind farms, estimated to require around 11.4 billion.
• Besides this, the companies have been able to install taller wind turbines due to improvements in the wind turbine materials used, which allows the turbines to exploit higher altitude winds. Also, these new turbines have larger blades and, hence, are able to sweep more area than the smaller turbines.The growing size of the wind turbines has helped lower the cost of wind energy, indicating that it is economically competitive with fossil fuel alternatives, in some locations such as the United States, Germany, France, etc. These recent trends expected to drive the offshore wind turbine market during the forecast period.

Asia-Pacific to Dominate the Market

• The installed wind capacity in Asia-Pacific increased to 256 GW in 2018 from 231.41 GW in 2017. The increase in wind capacity has been primarily dominated by the increase in China's installed capacity.
• According to IRENA, Asia-Pacific is poised to become the world’s dominant wind market, accounting for more than 50% of onshore and 60% of offshore wind installations by 2050. Asia’s onshore wind capacity is expected to grow from 256 GW in 2018 to over 2,600 GW by 2050.
• Furthermore, owing to the large investments in countries like China and India, and emerging countries like Taiwan the wind sector investments are dominated by the Asia-Pacific region. Chinese manufacturers comprise nearly 95% of the overall wind power market. The government policy and incentives have made China a favorable hotspot for investment. At the beginning of 2017, China announced its plan to invest about USD 360 billion on renewable energy by 2020, turning down the plan of building 85 coal-fired power plants. In 2018, the country accounted for the largest share of about 45% of the new onshore global wind installed capacity.
• In addition, India holds the fourth-largest wind power installed capacity in the world. These projects are majorly spread in the northern, southern, and western parts of the country. The government has set a target of 60GW by 2022, and in order to achieve the target, the number of the project during the next two year are expected to increase drastically.
• This, in turn, is expected to present Asia-Pacific as an excellent business destination for players involved in the wind turbine business during the forecast period.

Competitive Landscape

The wind turbine market is moderately fragmented. Some of the key players in this market include Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy SA, General Electric Company, Nordex SE,Senvion SA, Suzlon Energy Ltd, and Xinjiang Goldwind Science & Technology Co. Ltd.

Additional Benefits:

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

Companies Mentioned

Vestas Wind Systems A/S
Siemens Gamesa Renewable Energy SA
General Electric Company
Nordex SE
Senvion SA
Suzlon Energy Ltd
Xinjiang Goldwind Science & Technology Co. Ltd.
Guodian United Power Technology Company Limited
Enercon GmbH
Envision Energy Limited
Hitachi, Ltd.

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