Wind Power Market

Market Overview

The global wind power market was valued at USD 97.82 billion in 2021 and is projected to reach USD 185.20 billion by 2030, registering a CAGR of 7.35% during the forecast period (2022–2030).

The wind turbine transforms wind energy into mechanical energy, which is then converted into electrical energy by the generator. Offshore and onshore wind energy generation is viable. Onshore wind energy is associated with land-based turbines, whereas offshore wind turbines are located in the ocean or sea. However, due to consistent wind flow, offshore wind turbines are more efficient than onshore wind turbines. Offshore wind power is used to produce electricity utilizing wind farms located within bodies of water. Offshore farms produce more electricity and are also less controversial than onshore farms. The advantages of offshore wind energy include:

• Producing renewable energy.
• Eliminating environmental pollutants and greenhouse gas emissions.
• Providing a domestic energy source.

Offshore wind energy is one of many nations' most important renewable energy sources. The government's strict regulations hindered the market's growth. As international governments relax their restrictions, the industry is expected to increase.

Market Dynamics

Market Drivers

Rising Investments in the Renewable Power Sector

Growing government investments in the renewable energy sector are one of the primary factors driving the expansion of the global industry. In addition, numerous multinational corporations are reducing their carbon emissions to promote a greener planet and sustainability. Due to factors such as the need to reduce carbon emissions, the depletion of fossil fuels, the control of climate change, etc., the use of renewable and green energy is increasing. As a result of the government's stringent environmental regulations, there is expected to be a transition to renewable energy technologies from conventional energy sources, which is expected to boost the market growth.

Growing Need to Supply Energy to Various Sectors

The demand for energy in various industries, such as residential, healthcare, services, and food and beverage, is rising. The benefits of offshore wind energy, such as its low maintenance needs, labor requirements, and negligible environmental impact, are among the main factors influencing the market's expansion. Additionally, it is anticipated that the rapid R&D activities will boost the market growth to enhance the capacity utilization factor for energy generation.

Market Restraint

High Initial Installation Cost

The initial cost of installing offshore turbines with multiple mooring lines and anchors is high. Moreover, wind turbines may sustain severe damage during intense storms or hurricanes. However, technological advancements in wind turbine structures, such as the "Twisted Jacket" foundation with fewer nodes and components, may provide a long-term solution to severe weather. The inward battered guide structure provides a sturdy and secure structure and reduces installation expenses. Such innovations will generate additional opportunities in the wind energy market.

Regional Analysis

The global wind power market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific accounted for the largest revenue share and is anticipated to maintain its dominance during the forecast period. China accounted for the most installations in the region due to the government's ongoing initiatives and investments to promote industry growth. China's onshore wind power sector is anticipated to expand steadily as the government encourages renewable infrastructure development to lessen the nation's reliance on thermal power and pollution from power generation. The nation's development of wind power projects is anticipated to drive the market's overall expansion. North America and Europe are the competitive and mature regions in the wind power market.

Segmental Analysis

The global wind power market is segmented into location and application.

Based on Location

The market is categorized into onshore and offshore.

The onshore segment will dominate the market and have the highest revenue share during the forecast period. Onshore wind power has overtaken offshore wind power as the most widely used renewable energy because it is less expensive, easier to install, and emits fewer greenhouse gases. The world's wind energy installations are, however, increasingly being driven by offshore wind power generation. The construction cost of onshore and offshore wind power projects has decreased globally. It is expected to persist in doing so in the coming years, which is expected to fuel market expansion. Compared to fossil fuel sources of generation, the Levelized Cost of Electricity (LCOE) for installed onshore wind projects is already low.

Based on Application

The market is bifurcated into utility and non-utility.

The utility sector holds the most significant market share in the industry. There are both commercial and residential wind power installations in the non-utility sector. Non-utility applications held a smaller market share than utility applications due to the impossibility of applying wind turbines due to land limitations. The high cost of wind turbines is another significant factor preventing their use in non-utility applications. Large-scale utility-scale wind power projects necessitate multiple land, construction, and other permits, as well as the careful management of relationships between the process' various stakeholders. It is anticipated that removing obstacles to the Installation of utility-scale projects will propel the growth of the utility-scale segment.

Recent Developments

• May 2022- GE introduced a new Sierra platform, a next-generation 3 MW onshore wind turbine designed specifically for the North American region. 
• June 2022- GE acquired a 49% stake in Continuum onshore wind farm in support of the energy transition in India. GE (NYSE: GE) and Continuum Green Energy (India) Pvt Ltd or "Continuum," a company majority-owned by a global infrastructure fund managed by Morgan Stanley Infrastructure Inc, announced the financial close of GE Energy Financial Services ("GE EFS") acquisition of a 49% stake in Continuum's 148.5 megawatts (MW) Morjar onshore wind project ("Morjar") in Gujarat, India.