Europe Small Wind Turbine Market Size, Share & Trends Analysis Report By Grid Connectivity (On-Grid, Off-Grid), By Axis (Horizontal Axis, Vertical Axis), By Component (Aerogenerators, Solar Photovoltaic Panels, Battery Banks, Charge controllers, Inverters), By Hybrid Systems (Wind-Solar Photovoltaic (PV), Wind-Diesel, Wind-Fuel Cell, Wind-Hydro), By Capacity (Up to 2kW, 2kW to 5kW, 5kW to 10kW), By Application (Residential, Commercial, Agriculture, Industrial, Construction, Infrastructure, Telecommunication, Government and Military) and By Country(U.K., Germany, France, Italy, Russia, Nordic, Benelux, Rest of Europe) Forecasts, 2024-2032

Market Overview

The Europe small wind turbine market size was valued at USD 56,606.8 thousand in 2023 and is projected to reach a value of USD 1,63,189.4 thousand by 2032, registering a CAGR of 12.5% during the forecast period (2024-2032).

The small wind turbine market in Europe has grown steadily, owing to supporting regulations, technological developments, and increased demand for renewable energy. In 2023, Europe installed 18.3 gigawatts (GW) of new wind power, with the EU accounting for 16.2 GW. This was a record amount for the EU, but it is still barely half what is required to reach its 2030 climate and energy ambitions.

Furthermore, the Microgeneration Certification Scheme (MCS) is a quality assurance program that certifies and protects users of small-scale renewable energy technology, such as small wind turbines. The MCS is backed by the UK Department of Energy and Climate Change (DECC) and has international recognition. 2023 was a record-breaking year for MCS and small-scale renewables and the best year in UK history for renewable energy and heating installations. This demonstrates both the market's potential and the region's commitment to diversifying its energy mix and lowering carbon emissions.

Market Dynamics

Europe small wind turbine market drivers:

Environmental concerns and climate goals

Environmental concerns and stringent climate targets are essential to Europe's small wind turbine business. The necessity to battle climate change and reduce carbon emissions has resulted in strong legislation and efforts promoting renewable energy sources, such as modest wind turbines. These activities consistently reach carbon neutrality and ensure sustainable development across the continent.

Furthermore, Germany's Energiewende policy, or "energy turnaround," seeks to transform the country's energy system into one that is more efficient, ecologically friendly, and commercially viable by 2030. Small wind turbines are essential to Germany's decentralized renewable energy policy, especially in rural and distant places where large-scale wind farms aren't practical. By supporting modest wind turbines, Germany hopes to diversify its energy mix, reduce its reliance on fossil fuels, and meet its climate goals.

Europe small wind turbine market restraints:

Inconsistency in wind pattern and intermittent nature of winds

Unlike large wind farms, which are often located in high-wind areas, small wind turbines are frequently built in changing wind conditions, which affects their efficiency and reliability. Small wind turbines typically require an average annual wind speed of at least 4 meters per second (m/s), or 9 miles per hour (mph), to function efficiently. However, many European cities need help to fulfill this level consistently.

Due to poor wind conditions, small wind turbines in cities frequently function at 10-20% of their maximum capacity. Wind speeds in Europe vary by region, with some areas receiving higher-than-average winds and others experiencing lower winds. Wind speeds in 2022 were lower than usual throughout central, western, and northeastern Europe but higher in southeastern and far-eastern Europe and sections of Spain. As a result, variable wind speeds and inconsistent energy output pose substantial barriers to adopting tiny wind turbines in Europe, particularly in metropolitan locations where wind conditions are less favorable.

Europe small wind turbine market opportunity:

Integration with smart grids and energy storage solutions

Integrating small wind turbines with smart grids and energy storage solutions represents a promising opportunity in the European market. Smart grids use advanced communication and control technologies to improve electricity distribution efficiency. They enable real-time monitoring and adjustments, critical for incorporating variable renewable energy sources such as small wind turbines.

Additionally, the Netherlands is developing smart grids incorporating renewable energy sources, such as small wind turbines. The Dutch government is also working together on smart grids. For example, Netbeheer Nederland is a leader in developing smart grids in the Netherlands. The organization focuses on improving the energy infrastructure to integrate renewable energy sources. This integration enables real-time adjustments to energy distribution, reducing waste while increasing the use of renewable energy.

Regional Analysis

The Europe small wind turbine market has grown steadily, owing to supporting regulations, technological developments, and increased demand for renewable energy. In 2023, Europe installed 18.3 gigawatts (GW) of new wind power, with the EU accounting for 16.2 GW. This was a record amount for the EU, but it is still barely half what is required to reach its 2030 climate and energy ambitions. To address climate change, the European small wind turbine market's environmental trend focuses on lowering carbon emissions and encouraging sustainable energy sources. According to the European Commission, the EU plans to reduce greenhouse gas emissions by at least 55% by 2030 compared to 1990. Small wind turbines help achieve this goal by generating clean, renewable electricity.

Additionally, WindEurope says that the European wind energy business employs over 300,000 people, with modest wind farms helping to create jobs in rural and distant areas through production, installation, and maintenance. Furthermore, locals in Denmark have invested in modest wind turbines. In 2023, a project in Thyborøn garnered 22.8 million Euros from 2,800 residents. Approximately one of every five inhabitants aged 18 and above invested.

Though the country's FiTs for small wind power are lower than those for solar, the small wind power tariffs are competitive with those of other countries. The FiT for little wind power in the country is approximately EUR 8.38 ct/kWh. Furthermore, unlike many other nations in the region, the German government intends to continue the FiT program, which assures the country's small wind turbine operators.

Segmental Analysis

The european small wind turbine market is based on axis type, grid type, component, hybrid system, power, and application.

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

Horizontal-axis wind turbines dominate the market and is expected to grow at a CAGR of 12.8% during the forecast period. The segment's growth is due to its high efficiency, scalability, and demonstrated performance. HAWTs are preferred because they produce more power effectively, especially in areas with consistent wind patterns. They are also easy to scale, enabling larger installations with 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 leading choice in the market for grid type and is projected to have a CAGR of 11.1% over the forecast period. Their capacity to generate electricity in isolated and rural areas where access to the power grid is challenging or nonexistent renders them highly useful. These devices are primarily observed in rural areas, farms, and off-grid households, where achieving energy self-sufficiency is crucial. Off-grid microwave turbines are engineered to function autonomously without relying on the local utility grid.

The market is sub-segmented based on components such as aerogenerators, solar photovoltaic panels, battery banks, charge controllers, and inverters.

Aerogenerators have a significant market presence, exhibiting a CAGR of 12.4% throughout the projection period. Aerogenerators are the system's most crucial and valuable component as they capture and convert energy. Their efficacy in directly converting wind energy impacts the system's overall energy production. The aerogenerator has been the dominant force in the small wind turbine market due to its significant role in energy generation.

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

Wind-solar photovoltaic (PV) sector holds the largest market share and is projected to grow at a CAGR of 13.5% throughout the forecast period. Wind-solar PV hybrid systems utilize wind turbines and solar panels to combine wind and solar energy. This hybrid system capitalizes on the synergistic relationship between wind and solar energy, using solar panels to generate electricity during daylight hours and wind turbines to supply power during nighttime and overcast conditions.

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

Up to 5kW is the dominating segment, expanding at a CAGR of 13.2% over the forecast period. Small wind turbines with power outputs of up to 5 kW are commonly employed in household and small-scale settings. Individual residences, cabins, and small farms can all benefit from the turbines' energy output. They are trendy in rural and distant places with limited or no grid connectivity.

The segment can be bifurcated by application into Residential, Commercial, Agriculture, Industrial, Construction, Infrastructure, Telecommunication, Government and Military.

The residential category is one of the most dominant sectors in the small wind turbine market, rising at a CAGR of 12.9% over the forecast period. The segment's growth is driven by a convergence of variables highlighting the appeal of decentralized energy generation and sustainability. In recent years, there has been a significant increase in residential installations of tiny wind turbines, driven chiefly by rising environmental consciousness, a desire for energy independence, and technological developments that make these systems more accessible and efficient for homeowners.

Recent Developments

• April 2024- Eocycle Technologies received USD 25 million in financing to bring low-cost clean energy to rural America and Europe.
• April 2024- ZONHAN, a renowned manufacturer of renewable energy solutions, successfully shipped a 3 kW grid-tied small wind power plant to Finland. This cutting-edge device harvests wind energy and effortlessly integrates it into the current electrical grid architecture.