Wind Turbine Market Forecasts from 2023 to 2028

The global wind turbine market is estimated to grow at a CAGR of 5.33% to reach US$150.165 billion in 2028 from US$104.403 billion in 2021.

During the forecast period, the wind turbine market is anticipated to be driven by factors like rising demand for renewable energy sources, particularly wind power, attempts to reduce reliance on fossil fuel-based power generation, and regulations on energy efficiency.

Advantages of Wind Turbine

According to the Lawrence Berkeley National Laboratory report, carbon dioxide, nitrogen oxides, and sulfur dioxide emissions from the electricity industry are decreased by wind generation. For plants built in 2021, these reductions give public health and climate advantages that vary regionally but are commercially valued at an average of over $90/MWh-wind. The IRENA analysis projects that by 2050, Asia will account for more than 50% of the world's onshore wind power installations and more than 60% of the world's offshore wind power installations. According to the report by EIA, the Horse Hollow Wind Energy Centre in Texas, one of the biggest wind farms in the US, featured 422 wind turbines on over 47, 000 acres as of the end of 2021. The project can generate 735 megawatts (or 735, 000 kilowatts) of power in total.

Increasing Installation of Wind Power Plants

As per the Office of Energy Efficiency & Renewable Energy, in 2021, the U.S. wind sector added 13, 413 megawatts (MW) of additional wind capacity, bringing the total installed wind capacity to 135, 886 MW. With an investment of $20 billion, this is the second-highest amount of wind capacity installed in a single year (after 2020). Increases in wind energy capacity have been sparked by decreases in the cost and performance of wind power technology, and the production tax credit, resulting in cheap wind energy. The average nameplate capacity of recently installed wind turbines is now 3 MW, up 9% from 2020 and 319% since 1998–1999. Wind turbines have continued to expand in size and power. The benefits of wind energy for the grid, the environment, and health are greater than three times its levelized cost of electricity.

Increasing Environmental Concerns

High environmental sustainability concerns and goals to reduce reliance on non-renewable energy sources are encouraging the installation of wind turbines throughout the region, which is positively affecting the expansion of the wind turbine market. For instance, the renewable energy firm Vattenfall recently announced that a 50-turbine wind farm in southern Scotland will be operational by the end of 2023, providing power to almost 170, 000 homes in the United Kingdom.

Increasing Offshore Wind Turbine

Major nations and businesses are switching to the adoption of renewable energy sources, especially wind energy, as they can supply clean energy, as global energy demand is on the rise, which has attracted the use of offshore wind energy with cutting-edge technologies. According to a report by the Office of Energy Efficiency & Renewable Energy published on August 2022, with 17, 398 MW of brand-new projects being launched in 2021, offshore wind installations worldwide set a record year for deployment, surpassing 50 GW in installed capacity. The largest floating offshore wind project ever constructed was the 50 MW Kincardine Offshore Wind Farm in Scotland. The overall global pipeline for floating offshore wind energy doubled to 60, 746 MW in 2021 as a result of these additions.

Government Initiatives

Government initiatives for sustainable energy and innovations by key players are fueling the offshore wind turbine market. For instance, on July 2023, the largest offshore wind energy project in the United States received federal approval; it is predicted to supply renewable energy to hundreds of thousands of residences in New Jersey and is anticipated to generate over 3, 000 employees in the building and development sectors. Additionally, on June 2023, the second significant round of offshore wind tenders for the construction of 1.8 gigawatts (GW) of capacity in four areas was completed with the submission of proposals by Japan's Ministries of Economy, Trade, and Industry (METI) and Land, Infrastructure, Transport, and Tourism (MLIT).

Asia-Pacific is Expected to Grow Considerably

Wind energy is one of the most plentiful energy sources in the Asia-Pacific area, making it the perfect source for meeting the region's energy needs. Asian nations, including China, India, Japan, and others, are presently concentrating on implementing a wider deployment of this energy source due to the enormous growth potential of wind energy. Further, offshore wind energy has gained popularity as a source of energy as a result of an increased focus on sustainable development and a desire to lower greenhouse gas emissions. Offshore wind energy has undergone a tremendous shift from being an alternate energy source to being a major energy source for power generation. Further, due to recent developments in turbine technology and government incentives, offshore wind power technology is being produced at a rapid pace in Asian countries, which has led to a growing reliance on wind energy. India added about 1.8 GW of new wind power capacity in 2022, bringing its total installed capacity to 41.9 GW by the end of the same year. The northern, southern, and western regions of the nation are where these projects are primarily located.

Key Market Developments

• In April 2023, Vestas obtained a 238 MW order from Hibiki Wind Energy for the Kitakyushu-Hibikinada Offshore Wind Farm Project, which is situated off the coast of Kitakyushu city in the Japanese prefecture of Fukuoka.
• Braun Windturbinen GmbH, a German producer of wind turbines, stated in January 2023 that it will install 7.5 KW of small wind turbines. With the Smart Wind SW7.5 and a 6.0 kW heating rod serving as a backup heating system, the system runs in three-phase parallel to the grid.
• In 2022, the offshore wind industry installed additional capacity totalling 8.7 GW, with more than 5 GW of offshore wind grid connected in 2022, China took the top spot globally for new installations for the third time in a row.

Segmentation:

By Type

• Horizontal-axis Wind Turbine
• Vertical-axis Wind Turbine

By Size

• Small
• Medium
• Large

By Location

• Onshore
• Offshore

By Application

• Utility
• Non-utility

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Spain
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Indonesia
• Thailand
• Others