Wind Energy Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Capacity and Installation

The wind energy market was valued at US$ 85,375.22 million in 2022 to US$ 1,36,544.05 million by 2028; it is anticipated to grow at a CAGR of 8.1% from 2022 to 2028.

The growth of the wind energy market in Asia Pacific is primarily attributed to increasing investment in the renewable industry, exponential increase in industrialization, wind energy generation capacity, new electrification projects, and grid strengthening initiatives. As per Wood Mackenzie, China could add 93 GW of new offshore wind power capacity from 2021 to 2030. The wind energy sector in APAC is expected to register rapid growth and could make up approximately a quarter of the power capacity mix in the renewable energy in coming years, as high domestic demand for offshore wind power will turn mainland China into the world’s largest market by 2030. Also, as per Wood Mackenzie, Taiwan, Japan, South Korea, Vietnam, and India will rank among the world’s twenty largest offshore wind markets, adding a combined 29GW of new wind capacity from 2021 to 2030. Further, APAC will add 122 GW of new wind capacity from 2021 to 2030, surpassing the projected new capacity across Europe and the US in the same period.

The floating wind technology is the offshore wind turbine mounted on a floating structure that allows the turbine to generate electricity in water depths. The floating wind technology is highly efficient in harsh environmental conditions and thus capable of producing a huge amount of power. This technology is globally adopted across countries such as China, Germany, Japan, the UK, France, Belgium, and Denmark. The growth prospects in adopting floating wind technology are primarily attributed to increased technological advancements, and turnkey solutions provided by various service providers. The growing awareness for achieving the clean energy targets by various countries is propelling the demand for floating offshore wind power, which offers a potential opportunity for the growth of the wind energy market.

The Floating Offshore Wind Centre of Excellence report has identified 22 countries that are most ready to become major players in the nascent renewable energy technology. In January 2022, the UK government announced 11 successful renewable energy projects that will each be awarded up to US$ 959.23 million as investment and US$ 2.97 billion to boost the renewable energy generated in the UK. In addition, in April 2022, Technip Energies was selected by Equinor to perform a front-end engineering design (FEED) for the offshore floating wind Firefly project, which is located on the East Coast of South Korea.

The increase in power consumption is the most prominent trend in developing economies. The surge in power demand is primarily attributed to an increase in population, growth prospects in industrialization, and a significant increase in urbanization. The global electricity demand increased in 2021 owing to a increasing population, pushing the energy prices to unprecedented levels and driving the power sector’s emissions to a record high level. The growing consumption of power is increasing the need to harness more power by keeping the emissions level at its minimum, which is accelerating the demand for generating power. After a small drop in 2020, global electricity demand grew by ~6% in 2021.

The electricity markets witnessed strong growth in electricity demand, unfavorable renewable conditions, and increasing gas prices in 2021. As per the Electricity Market Report published by IEA, total thermal electricity generation increased by ~6% (980 TWh) in 2021. The demand for electricity generation increased from a low of 2% in 2020 to 8% in 2021 due to rising electricity consumption of China and India (both up ~10%). Despite a diversifying generation mix, China's electricity system remains largely coal-dominated. In 2021, coal accounted for 64% of power generation, followed by hydropower with a share of 16%, wind at 7%, and nuclear at 5%. Thus, increasing electricity demand from coal-fired plants has put pressure on the power producer to cater to the ongoing demand, which is hampering the environment by producing emissions.

The key players profiled in the wind energy market study are Alpha ESS Co., Ltd.; BYD Motors Inc.; HagerEnergy GmbH; ENERSYS; Kokam; Leclanché SA; LG Electronics; SimpliPhi Power; sonnen GmbH; and SAMSUNG SDI CO., LTD. The wind energy market report provides detailed market insights, which help the key players to strategize the growth in the coming years.

The increasing investment in ongoing wind farms is augmenting the wind energy generation capacity, which is supporting the wind energy market growth. For instance, the largest wind energy construction projects in APAC that were initiated in the third quarter of 2021 were Dulacca Wind Farm which involves the construction of a 180MW wind farm with an investment worth US$ 328 million and is expected to finish by Q3 2023. Thus, such factors are expected to boost the wind energy market growth over the forecast period.

The wind energy market is bifurcated into capacity and installation. Based on capacity, the wind energy market is segmented into upto 1MW, 1-3 MW, 3-5 MW, and above 5MW. Based on installation, the wind energy market is bifurcated into onshore and offshore.

The wind energy market is segmented into five major regions - North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, APAC led the wind energy market with the largest share, followed by North America. Further, Europe is expected to register the highest CAGR in the wind energy market from 2022 to 2028.