Asia-Pacific Small Wind Turbine Market

Market Overview

The Asia-Pacific small wind turbine market size was valued at USD 235,271.2 thousand in 2023 and is projected to reach a value of USD 840,879.2 thousand by 2032, registering a CAGR of 15.2% during the forecast period (2024-2032).

Asia-Pacific is the fastest-growing market for small wind turbines, driven by urbanization, economic development, and population increase. The region has enormous potential for modest wind generation, particularly in rural and off-grid areas where access to electricity is restricted or unpredictable. The region's urbanization rate is 3% yearly; by 2018, half of the population was urban. By 2050, the urban population will increase by 50% to 1.2 billion people. New energy sources, including small wind turbines, are being adopted to address this increased demand. According to the International Renewable Energy Agency (IRENA), off-grid renewable energy capacity in Asia Pacific, including small wind turbines, continuously increases. Moreover, The Asia-Pacific region offers considerable prospects for the small wind turbine market, owing to favorable government regulations, rising energy consumption, and technical developments.

Market Dynamics

Asia-Pacific Small Wind Turbine Market Drivers:

Rising Energy Demand

The Asia-Pacific (APAC) area is undergoing rapid economic expansion, resulting in a significant increase in energy demand. This growing need for energy creates an excellent opportunity to deploy tiny wind turbines as part of the region's diverse energy mix. Countries such as China, India, and Southeast Asia are experiencing rapid economic growth, resulting in increasing industrial activity and energy consumption. In 2023, India installed 2.8 GW of new wind energy capacity, up 56% from 2022. India's cumulative wind capacity stood at 44.7 GW in December 2023, up from 41.9 GW at the end of 2022.

According to the International Energy Agency (IEA), India's energy consumption is predicted to increase by approximately 3% annually until 2040, owing to strong economic growth and urbanization. Small wind turbines can be critical in addressing expanding demand, especially in rural and distant places with complex grid expansion.

Asia-Pacific Small Wind Turbine Market Restraints:

Inconsistency in Wind Pattern and Intermittent Nature of Winds

Wind patterns in many Asia-Pacific nations can be quite erratic, making it difficult for small wind turbines to produce constant and reliable power. Wind energy rises in the winter and falls in the summer due to the greater mean wind speeds associated with the winter monsoon. Temperature gradients cause wind speeds to be higher during the day than at night, especially in summer. India's wind patterns are quite changeable due to its diversified geography. Wind patterns in India vary according to location and season.

Similarly, in China, another significant APAC market for tiny wind turbines, wind resource distribution varies significantly among provinces and regions. In 2023, China's average annual wind speed will range between 6-7 meters per second (m/s) in low and 8-9 m/s in high-wind areas.

Asia-Pacific Small Wind Turbine Market Opportunity:

Government Initiatives

Many Asia-Pacific countries have introduced regulations and incentives to encourage renewable energy use. Subsidies, feed-in tariffs, and tax breaks boost investment in small wind turbine projects. As of March 2023, the Ministry of India has set the country's central financial assistance (CFA) rate for small wind turbines. In 2023, India boosted its renewable energy subsidies to INR 14,843 crore, an 8% increase over 2022.

Additionally, Chinese small wind turbine users are migrating from rural electrification to urban street lighting and telecom stand-alone power systems. It is quickly developing in these new application areas. In 2023, China ordered a record-breaking 100 gigawatts (GW) of new wind turbines to build 230 GW of wind and solar capacity. This quadrupled the number of installations in the United States and Europe, exceeding China's 160 GW renewable energy plan for 2023.

Regional Analysis

Asia-Pacific is the fastest-growing market for small wind turbines, driven by urbanization, economic development, and population increase. Small wind turbines help promote environmental sustainability by using clean and renewable wind energy to create power without generating greenhouse gases or depleting finite resources such as fossil fuels. In 2022, China installed 60 MW of tiny wind turbines for a total installed capacity of 704.32 MW. China's small wind turbine uses are changing from rural electricity to urban street lighting and telecom stand-alone power systems.

Additionally, Asia-Pacific governments develop laws, regulations, and incentives to encourage using renewable energy sources, such as modest wind turbines. Effective governance fosters transparency, accountability, and fair competition, which boosts investor confidence and market stability. In 2023, governments in India, China, Thailand, and Malaysia will construct small wind turbines in rural areas to generate electricity. These projects are driven by government subsidies and programs promoting renewable energy and reducing greenhouse gas emissions.

Segmental Analysis

The Asia-Pacific small wind turbine market is segmented based on axis type, grid type, component, hybrid system, power, and application.

The market by axis type is further segmented into Horizontal and vertical Axes.

The small wind turbine market is dominated by horizontal axis wind turbines and is projected to increase at a CAGR of 15.5% over the forecast period. The segment's rise is attributed to its high efficiency, scalability, and proven performance. HAWTs are chosen to produce more electricity efficiently, particularly in places with constant wind patterns. They are also easy to scale, allowing larger installations and higher power outputs.

Based on grid type, the market is fragmented into Off-Grid and On-Grid.

Off-grid small wind turbines have been the most popular grid type in 2023, contributing to a CAGR of 15.2% over the projection period. Their ability to generate electricity in remote and rural locations where access to the power grid is limited or nonexistent makes them extremely useful. These devices are most common in rural areas, farms, and off-grid families, where energy self-sufficiency is critical.

The market is sub-segmented based on components: Aerogenerators, Solar Photovoltaic Panels, Battery Banks, Charge controllers, and inverters.

Aerogenerators hold a substantial share of the market and a projected CAGR of 15.1%. Aerogenerators are an essential and valuable system component, as they capture and transform energy. Their effectiveness in directly converting wind energy impacts the system's overall energy production. The aerogenerator has been the prevailing entity in the small wind turbine market owing to its substantial contribution to energy production.

The market is further divided based on hybrid systems into Wind-Solar Photovoltaic (PV), Wind-Diesel, Wind-Fuel Cell, and Wind-Hydro.

The wind-solar photovoltaic (PV) sector accounts for the most significant market share and is expected to increase at a CAGR of 16.3%. Wind-solar PV hybrid systems combine wind turbines and solar panels to generate both energy sources. This hybrid system takes advantage of the synergistic interaction between wind and solar energy, with solar panels generating electricity during the day and wind turbines supplying power at night and during overcast circumstances.

Based on power, the market is classified into Up to 5kW, 6kW-10kW, 11kW-20kW, and 21kW-50kW.

The predominant power capacity utilized is 5kW, projected to experience a CAGR of 15.9% over the specified time. Residential and small-scale applications commonly use small wind turbines with power ratings of up to 5 kW. These turbines' energy output can benefit individual residences, cabins, and small farms. They are especially favored in rural, isolated regions with limited or nonexistent power grid access.

The market can be bifurcated by application into residential, commercial, agricultural, industrial, construction, infrastructure, telecommunication, government, and military.

The agriculture industry is the leading sector, experiencing a CAGR of 15.5% during the projected timeframe. The segment's expansion can be attributed to its distinct energy needs and the inherent suitability of wind power for agricultural activities. Small wind turbines are often used in rural or distant places where connectivity to the power grid is restricted or unreliable, making them an attractive choice for meeting on-site energy needs in agricultural activities.

Recent Developments

• March 2024- XCE Energy and Goldwind signed a Memorandum of Understanding (MOU) regarding renewable energy power system solutions for industrial parks.
• April 2024- Shanghai Electric completed the first trial voyage of Asia's first service operation vessel at the Wind Farm.