The global wind energy market size was worth USD 71 billion in 2021 and is projected to reach USD 160 billion by 2030, growing at a CAGR of 9.5% during the forecast period (2022-2030).
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.
A significant surge in demand for renewable power sources is expected to drive market growth. In addition, growing concern from the government for cost-effective energy solutions will further enhance the market growth. Furthermore, renewable power such as floating wind turbines can be utilized in isolated coastal areas where supplying power through conventional power plants is a big challenge for industry players.
Wind energy is more efficient than fossil energy sources (coal, natural, and oil). Wind turbines have a maximum efficiency of up to 59 percent, whereas fossil fuels have a maximum efficiency of 35-45 percent. Additionally, land-based onshore turbines are more cost-effective than fossil fuels. With robust investment in the wind energy sector and growing interest from industry players, the wind energy sector will witness a further reduction in energy prices, which will drive market growth.
A rise in concern from governments for environment-friendly energy sources across the globe is expected to boost the growth of the global wind energy market growth. As the offshore and onshore wind turbine consumes zero amount of conventional fossil power, it reduces the carbon emission during power generation. Moreover, Future growth in the wind power market is anticipated to be fueled by the need for dependable, affordable, sustainable energy. The worldwide wind power market is also anticipated to be driven by favorable policy and regulatory frameworks adopted by various governments across various nations to promote renewable energy generation.
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.
The global Wind Energy Market share is segmented based on type, end-user, and region.
Based on type, the global wind energy market forecast is segmented into offshore and onshore. The onshore segment dominated the global wind energy market, growing at a CAGR of 9.2%. Fixed wind turbines produce onshore wind energy on land. Onshore energy production cost is lower than offshore due to low installation and low additional infrastructure costs. The cost of offshore wind energy can be as low as $20/MWH. However, an onshore wind turbine setup requires a large area, with turbine-to-turbine separation of around 7 times the diameter length of the turbine rotor. Easy installation and low production cost make it a suitable option for low investment. Furthermore, with new investment in the market, the production cost of offshore wind energy will gradually decrease, negatively impacting the market growth.
Most of the bulk of an offshore wind turbine is submerged and supported by either a fixed construction or a floating foundation. The wind turbine may generate electricity in water depths where a solid foundation is impossible. Multiple mooring lines and anchors are used to secure the turbine to the seabed. The floating wind turbine market is predicted to grow due to the significant demand for renewable energy sources. In addition, unlike traditional power sources, such turbines reduce carbon emissions. Furthermore, the floating wind turbine technology, a type of offshore turbine, removes the water depth constraint, making it easier to choose the best location for power generation.
Based on end-user, the global wind energy market analysis is classified into industrial, commercial, and residential. The industrial segment dominated the global market, growing at a CAGR of 10.3%. Industrial end-user of wind energy consists of various power sectors. Some major industrial wind turbine plant manufacturers include General Electric, Nordex Group, and Vestas. At the current stage, the onshore turbine has significant demand in the industrial end-user segment, owing to easy installation and reduced capital investment, which can be paid back in 2 years. The industrial end-user segment accounted for a significant revenue share in 2021, owing to increased demand for renewable energy sources in the manufacturing sectors.
Additionally, wind energy has considerable demand in rural and isolated industrial areas, where grid power is unavailable. However, the market is currently dependent on government support and subsidy schemes. As the number of investors gradually increases in the wind energy market, the price of wind energy will slowly improve.
Commercial wind energy is generally below 100 KW rating. Various business firms, schools, educational institutions, and other corporations are utilizing the power of commercial wind energy. Vestas and General Electric are significant manufacturers of commercial-scale wind turbines. Commercial wind energy, specifically offshore wind energy, can increase electricity production by 3-4 times that of current electricity production in countries such as the U.S. and Canada. The commercial market is expected to witness steady growth during the forecast period. This is attributed to new growing investment in the energy market to achieve the goal of reduced emissions.
Residential wind energy turbine is in the range of 5-15 KW. It is effective in isolated and rural areas where grid power is unavailable. Residential wind energy can reduce electricity bills by up to 70%. Generally, residential wind plant is installed for agriculture and water pumping applications. Major players offering wind turbines for residential end-user include Bergey Windpower Co. and Unitron Energy. The wind energy plant requires large land for installation and enough wind flow for consistent electricity production. However, tax incentives and rebate schemes, where one can sell excess energy during a specific timeframe, will further create new market opportunities.
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 market 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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