The global wind energy market size was worth USD 86.14 billion in 2023 and is projected to reach USD 186.67 billion by 2032, growing at a CAGR of 10.15% during the forecast period (2024-2032).
Wind energy is a renewable energy form that relies entirely on the wind. Hydrogen energy can be stored in three different forms: liquid, solid, and gaseous. Wind energy is turned into electric energy by a generator in a wind turbine. Wind energy is used in various ways, including wind pumps, electrical wind generators, and wind battery charging.
The industry is expected to develop due to the rising demand for renewable energy sources and growing government concern about decarbonization. Compared to traditional power sources, floating wind turbines can dramatically cut carbon emissions. Furthermore, when choosing a location for a wind power facility, an offshore wind turbine removes the sea depth constraint.
The primary industry participants are collaborating and acquiring suppliers of raw materials and component manufacturers to reduce the overall cost of wind energy projects. To acquire a competitive edge over their rivals and increase their market share over the projected period, the major market players are also investing in research and development to make their technologies more efficient.
Conventional technologies are being replaced by new technologies and non-renewable power sources are being depleted at an alarming rate as a result of the growing global population, industrialization, and new technologies. Increasingly, there is a demand on a global scale for renewable power sources that are not only safe but also cost-effective and efficient. Furthermore, renewable power sources such as floating wind turbines, can be utilized in remote coastal areas, which present a significant challenge for industry players when it comes to the supply of power through conventional power plants at those locations. The energy generated by wind is more efficient than the energy generated by fossil fuels (coal, natural gas, and oil). On the other hand, the maximum efficiency of fossil fuels ranges from 35 to 45 percent, whereas wind turbines can achieve up to 59 percent of their potential efficiency. Furthermore, land-based onshore turbines are more cost-effective than fossil fuels in terms of energy production. Because of the substantial investments that are being made in the wind energy sector and the growing interest that is being shown by industry players, the wind energy sector will experience a further reduction in energy prices, which will drive market growth.
The global wind energy market is anticipated to experience growth due to the increasing concern among governments regarding environmentally friendly energy sources on a global scale. The carbon emission during power generation is reduced by the offshore and onshore wind turbine, which consumes zero conventional fossil power. Furthermore, it is anticipated that the demand for sustainable, affordable, and reliable energy will drive future expansion in the wind power sector. It is also expected that the global wind power market will be stimulated by the favorable policy and regulatory frameworks that have been implemented by governments in a variety of countries to encourage the generation of renewable energy.
For instance, in 2023, wind energy prevented the emission of 348 million metric tons of CO2 according to the American Clean Power Association.
Installation of a wind turbine with multiple mooring lines and anchors is costly at the initial stage. There are few sites across the globe with high wind speed, and setting up new wind firms in those places will lead to high installation costs. For instance, setting up a new wind firm will cost around $2,200/KW, with a maintenance cost of about 20-25% of the total levelized price per kWh. Such factors hinder the growth of the global wind energy market.
The unpredictable environment and weather conditions are the main obstacles businesses in the wind energy sector must overcome. Climate plays a key influence in the management and upkeep of offshore wind farms, particularly in deciding when to access the turbines. Thus it will be necessary to have consistent, dependable weather data. The weather also impacts the output of the turbines. When there is no or little wind flow in a specific location or area, the output of the wind turbine is high. Thus, the expansion of the wind energy industry throughout the predicted period is being constrained by climatic and weather circumstances.
A technological breakthrough in wind turbine structure, such as the "Twisted Jacket" type with fewer nodes and components, maybe a permanent alternative against the heavy storm. The inward battered guide structure offers a robust and secure system and lowers installation expenses. The such new development will generate further opportunities in the market.
The International Energy Agency (IEA) predicts that by 2023, the energy demand will have increased by ~5%. The need for renewable energy sources consequently rises. Solar energy, wind energy, geothermal energy, hydropower, tidal energy, and solar thermal energy are a few examples of renewable energy sources. Wind energy is converted to electrical energy by wind turbines, which are then utilized to produce electricity. A wind turbine can produce from 250 watts to 7 megawatts of electricity. The output rate is high in contrast to other renewable energy sources, except hydropower. The need for power has increased as urbanization and industrialization have grown. On Earth, there are 7.9 billion people. It shows that global population growth is accelerating. As a result, the energy demand is growing due to population growth, industrialization, urbanization, and rising disposable income. As a result, during the anticipated period, the growing market for wind energy will benefit from the spike in electricity consumption.
| Study Period | 2020-2032 | CAGR | 10.15% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 86.14 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 186.67 billion |
| Largest Market | Asia Pacific | Fastest Growing Market | Europe |
Based on region, the global wind energy market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific dominates the market, growing at a CAGR of 9%. Asia-Pacific consists of China, India, Japan, South Korea, Australia, and the rest of Asia-pacific. China primarily dominates the wind energy market due to high foreign investments in the renewable energy market. Additionally, the market has significant demand from industrial power sectors. Further, the rise in demand for sustainable energy sources in the various end-user markets drives the market growth in the projected timeframe.
Asia-Pacific is expected to witness substantial growth, owing to the impact of productivity improvements. The emerging Asian-Pacific economies are adopting various foreign equipment, thus, improving production efficiency. India is one of the key players in the renewable energy market. India reiterated its commitment to clean energy and reducing carbon emissions. India's increased focus on renewable energy is outlined in the national budget that aims to increase the share of renewable energy in total energy generation.
Europe is the second-largest region. It is estimated to reach USD 4180 million by 2030 growing at a CAGR of 10.6%. The European floating wind turbine market is analyzed across France, Germany, the UK, Spain, Italy, and the rest of Europe. Intense R&D activities and the presence of governing bodies such as The European Wind Energy Association will encourage growth opportunities in the European market. The renewable energy target is expected to play an essential role in boosting the market's growth. Wind energy will allow many European countries to continue cost-effectively decarbonizing their power systems and transforming energy systems. With over 90 GW of wind power due to being installed in the next five years, it is expected that Europe could reach 277 GW of installed capacity by 2023. As a result, the floating wind turbine market is also expected to grow.
The North American market comprises the U.S., Canada, and Mexico. U.S. and Canada accounted for more than 90% market share. Some major players in North America include General Electric Company and Vestas Wind Systems A/S. Ongoing infrastructural investments and innovative city projects are significant factors influencing the commercial wind energy market growth. The North American market has a high potential to generate around 3-4 times of electricity than current electricity production. It has the potential to harness the amount of wind energy during the forecast period. New infrastructural investments and wind energy projects are expected to impact this market growth positively. In May 2018, General Electric installed 40 GW of onshore wind power in this region. This capacity was enough to power around 11 million homes in North America. At the current stage, wind energy production is regulated under various power purchase agreements, where end-users like corporate firms purchase wind energy from wind farms.
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The global Wind Energy Market share is segmented based on type, application, end-user, and region.
By Type
The global wind energy market forecast is divided into two categories: onshore and offshore. The onshore segment dominated the global wind energy market, with a compound annual growth rate (CAGR) of 9.2%. Onshore wind energy is generated on land by fixed wind turbines. The cost of energy production is lower onshore than offshore as a result of the low installation and additional infrastructure costs. Offshore wind energy can be priced at as low as $20 per megawatt per hour. Nevertheless, an onshore wind turbine installation necessitates a substantial plot of land, with a turbine-to-turbine separation that is approximately seven times the diameter of the turbine rotor. It is an appropriate choice for those with limited financial resources due to its low production costs and straightforward installation process. Furthermore, the market growth will be adversely affected by the gradual decrease in the production cost of offshore wind energy as a result of new investment in the market.
The majority of an offshore wind turbine is submerged and is supported by either a fixed construction or a floating foundation. The wind turbine has the potential to produce electricity in water depths that are too deep for a solid foundation. The turbine is secured to the seabed using a combination of anchors and mooring lines. The market for floating wind turbines is anticipated to expand as a result of the substantial demand for renewable energy forms. Furthermore, these turbines mitigate carbon emissions in contrast to conventional energy sources. Additionally, the water depth constraint is eliminated by floating wind turbine technology, which is a form of offshore turbine, thereby simplifying the process of selecting the optimal location for power generation.
By Application
The application analysis of the global wind energy market is divided into two categories: utility research and non-utility research. In terms of revenue, which utility segment represented the most dominant position in the global wind energy market in 2022. There is a connection between the transmission infrastructure of a country and utility-scale wind turbines. Large-scale utility-scale wind generating projects require a variety of permissions, including those for buildings, land, and other resources, in addition to the careful management of relationships with a large number of market participants.
On the other hand, it is anticipated that the non-utility segment will be the most opportunistic segment during the period of forecasting. Under the umbrella of the non-utility sector are wind energy projects that are both commercial and residential in nature. The non-utility applications had a smaller market share than the utility applications because it was impossible to install a wind turbine due to land constraints which prevented the installation of the wind turbine.
By End-User
Global wind energy market analysis is categorized into industrial, commercial, and residential segments based on end-users. The industrial segment dominated the global market, with a compound annual growth rate (CAGR) of 10.3%. The industrial end-user of wind energy encompasses a variety of power sectors. Major manufacturers of industrial wind turbine plants include Vestas, Nordex Group, and General Electric. The onshore turbine is currently in high demand among industrial end-users due to its ease of installation and minimal capital investment, which can be repaid within two years. Due to the growing demand for renewable energy sources in the manufacturing sector, the industrial end-user segment accounted for a substantial revenue share in 2021.
Furthermore, wind energy is in high demand in rural and isolated industrial regions that lack grid power. Nevertheless, the market is currently reliant on government subsidies and support programs. The price of wind energy will gradually improve as the number of investors in the wind energy market increases.
Commercial wind energy typically has a rating of less than 100 kW. Commercial wind energy is being employed by a variety of organizations, including schools, educational institutions, and businesses. Vestas and General Electric are substantial manufacturers of commercial-scale wind turbines. The current electricity production in countries such as the United States and Canada can be increased by 3-4 times by commercial wind energy, specifically offshore wind energy. It is anticipated that the commercial market will experience consistent growth throughout the forecast period. This is due to the increasing investment in the energy market to achieve the objective of reducing emissions.
A residential wind energy turbine is typically between 5 and 15 kilowatts. It is effective in rural and isolated areas where grid power is unavailable. Residential wind energy has the potential to decrease electricity bills by as much as 70%. In general, residential wind turbines are installed for the purpose of water pumping and agriculture. Bergey Windpower Co. and Unitron Energy are among the foremost companies that provide wind turbines for residential end-users. The wind energy plant necessitates a substantial amount of land for installation and an adequate amount of wind flow to ensure consistent electricity production. However, the creation of new market opportunities will be further facilitated by tax incentives and rebate schemes, which allow individuals to sell excess energy within a designated timeframe.
As per the WHO, the number of reported COVID-19 cases jumped from 87,137 on March 01, 2020, to 102,083,344 as of February 01, 2021, with approximately 2,209,195 deaths globally. The rapid rise in the number of confirmed COVID-19 cases globally resulted in the governments of various countries resorting to stringent containment measures to slow down the spread of the pandemic. However, complete lockdowns across countries also resulted in a short-term decline in the GDPs of their respective economies.
The COVID-19 pandemic had e a dual effect on the electronics industry, wherein the manufacturing of electronics components was halted due to lockdowns imposed in various countries, coupled with slower logistical processes and supply interruptions. Furthermore, the unavailability of labor globally has also contributed negatively to the manufacturing of electronic components.
The discontinuation in the delivery of electronics products by e-commerce companies during the lockdown, as they were considered non-essentials, negatively impacted the electronics industry. However, increased demand for laptops, computers, and mobile phones due to work-from-home situations positively affected the electronics industry.
The Chinese economy was hit tremendously as it was the epicenter of the COVID-19 pandemic, disrupting the supply chain for major electronic brands. As China is the major exporter and manufacturer of raw materials required to produce electronic products, this has led to the halting of the ongoing production of electronics in the U.S. and Europe, thereby creating a demand-supply gap.
