North America Small Wind Turbine Market

Market Overview

The North America small wind turbine market size was valued at USD 31,816.8 thousand in 2023 and is projected to reach a value of USD 82,919.2 thousand by 2032, registering a CAGR of 12.4% during the forecast period (2024-2032).

North America small wind turbine market is forecast to grow steadily, with strong contributions from the United States and Canada. In 2023, the United States installed 2.3 GW of new wind capacity, including more than 1.7 GW of utility-scale wind. This boosted the US's overall capacity to 148 GW by the end of 2023, representing a 4% increase over 2022. For instance, In May 2023, GE Vernova announced a USD 50 million commitment to build a manufacturing assembly line for its Onshore Wind division in Schenectady, New York. The first turbine was built in November 2023.

Similarly, the Canadian Renewable Energy Association (CanREA) anticipates that more than 5 GW of wind will be added shortly (2023-2025). Small wind turbine manufacturers predict increased sales in 2023. The North American small wind turbine market is expected to increase, thanks to favorable legislation, technology advancements, and an increasing emphasis on renewable and decentralized energy solutions.

Market Dynamics

North America Small Wind Turbine Market Drivers:

Renewable Energy Goals

Many North American governments, at the federal, state/provincial, and local levels, have set renewable energy objectives as part of their overall climate action strategies. These goals often include increasing the proportion of renewable energy in the whole energy mix and lowering greenhouse gas emissions. Canada has set considerable renewable energy targets, both nationally and provincially. For example, the Canadian government aspires to attain 90% non-emitting electricity generation by 2030, with each province setting its target. For example, Ontario's Green Energy Act aims to replace coal-fired electricity with renewable energy sources, including wind power. Small wind turbines play an essential role in reaching these goals by generating clean and sustainable energy on a local scale.

North America Small Wind Turbine Market Restraints:

Inconsistency in Wind Pattern and Intermittent Nature of Winds

Small wind turbines' performance largely depends on persistent and strong wind resources. However, many prospective locations for small wind installations in North America experience intermittent and erratic wind patterns. This variability can cause swings in energy production, affecting small wind installations' reliability and economic viability. The central United States will have more significant wind variability and increasing wind power during some seasons. In contrast, wind power is anticipated to decline in the western United States and the East Coast. The Southern Plains will experience a significant rise in wind power in the spring and summer, while the Northern Plains and Midwest may see a minor increase in the winter and spring.

North America Small Wind Turbine Market Opportunity:

Rural and Remote Communities

The residential sector represents a considerable market opportunity for tiny wind turbines as homeowners become more interested in producing clean energy and lowering their electricity expenses. California is the third greatest wind energy generator in the United States, with wind power being the state's primary renewable energy source. In 2016, wind energy met around 6.9% of California's electricity demand, enough to power over 1.3 million households. Most of California's wind generating occurs in Kern County's Tehachapi area, but there are also significant projects in Solano, Contra Costa, and Riverside counties. California is regarded as one of the greatest states for wind power due to its abundant wind energy and incentive and rebate programs. The state provides monetary incentives to minimize the cost of modest wind farms, ranging from USD 4,000 to USD 70,000.

Regional Analysis

North America small wind turbine market is forecast to grow steadily, with strong contributions from the United States and Canada. Small wind turbines can help North America meet its environmental goals by producing clean, renewable electricity that minimizes greenhouse gas emissions and other pollutants. Wind turbines do not emit pollutants into the air or water and do not require water for cooling. Wind energy reduces CO2 emissions by 336 million metric tons per year, which is equivalent to the emissions of 73 million cars.

Additionally, homeowners and small companies increasingly use modest wind turbines to lessen their carbon footprint and attain energy independence. Small wind turbines can be an affordable renewable energy system for households with adequate wind resources and no emissions or pollution. They can help reduce electric bills by 50-90%. In addition, improving and extending federal tax incentives is an essential regulatory trend in the North American small wind turbine sector. For example, the US government provides a 30% tax credit to households that build small wind turbines between January 1, 2023, and December 31, 2032, for a maximum of USD 3,200. This tax credit makes wind turbines a more appealing alternative for environmentally conscientious homeowners seeking to use wind energy.

Segmental Analysis

The North American small wind turbine market is segmented 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 small market and is growing at a CAGR of 12.7% during the forecast period. Horizontal Axis Wind Turbines (HAWT) are the most prevalent type of wind turbine, with blades rotating around a horizontal axis. This design is comparable to classic windmills and efficiently converts wind energy into electricity. HAWTs are often erected on tall towers to capture more significant winds at higher altitudes, generating more power from stable wind directions.

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

Off-grid small wind turbines have dominated the North American industry, with a CAGR of 11.7% during the forecast period. Their capacity to provide power in remote and rural areas where grid connectivity is difficult or unattainable renders them essential. They are most common in rural areas, farms, and off-grid houses, where energy independence is critical. Off-grid tiny wind turbines are intended to function independently of 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 dominate the market, rising at a CAGR of 12.35% over the projection period. Aerogenerators are the system's most important and valuable component since they capture and convert energy. Their efficiency in converting wind energy directly impacts the system's overall energy production. Due to its importance in energy generation, the aerogenerator dominates the small wind turbine market. Its effectiveness, technical developments, and direct impact on overall system performance make it the most critical component.

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

Wind Solar PV dominates the market, increasing at a CAGR of 13.4% over the projected period. Wind-solar PV hybrid systems use wind turbines and solar panels to generate wind and solar energy. This combination takes advantage of the complementing nature of wind and solar power, as solar panels generate electricity during sunny hours, and wind turbines provide power at night and on gloomy days.

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

Up to 5kW is the most popular sector, with a CAGR of 13.1% over the projection period. Small wind turbines with power ratings of up to 5 kW are commonly employed in household and small-scale applications. Individual residences, cabins, and small farms can all benefit from these turbines' energy output. They are especially popular in rural and distant places with minimal or non-existent grid access.

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

The agriculture sector emerges as the dominant segment, with a CAGR of 13.0% throughout the predicted period. The segment's rise is attributed to its particular energy requirements and the natural compatibility of wind power with agricultural operations. Small wind turbines are primarily used in agriculture to generate water pumping systems for irrigation. Many farms rely on irrigation to maintain constant agrarian yields, especially in areas with unpredictable rainfall patterns.

Recent Developments

• May 2024- The US Department of Energy (DOE) selected Principle Power and Aker Solutions to pursue plans for serial manufacturing of WindFloat® foundations.
• February 2024- The US Department of Energy's (DOE) National Renewable Energy Laboratory requested assistance from the Competitiveness Improvement Project (CIP) for the commercialization and market expansion of small and medium wind turbine technology.