Wind Turbine Market Overview
The Global Wind Turbine Market is expected to grow at a high CAGR of 6% during the forecasting period (2024-2031). The wind turbine is a system that transforms the wind’s kinetic energy into some useful source of power. Wind flows over the rotor of a turbine that causing it to rotate on a shaft.
The resulting shaft power is used to run a generator to produce electricity. Moreover, the mechanical energy generated can also be used directly for pumping water and other application. The amount of power harnessed by a turbine depends on its size and the length of its blades. A group of wind turbines is called wind farms, where many turbines are placed at a particular location to generate a vast amount of power. Also, the power harnessed using a turbine is a clean energy source that causes the least pollution and is used as an alternative source of energy. As a result, the industry possesses considerable potential and has proliferated in recent years.
Also, the industry is one of the fastest-growing renewable energy sources in the world. The electricity generation increased by four times between 2000-2006. In 2102, the total estimation of power generation was more than 70,000 megawatts globally. If the momentum sustains, the industry will meet one-third of global energy demands by 2050 globally.
Market Scope
| Metrics | Details |
| Market CAGR | 6% |
| Segments Covered | By Location, By Type, By Power Rating, By Connectivity, By Application and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Largest Market Share | Asia Pacific |
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Dynamics and Trends
The pricing of oil & natural gases and higher return rate among different alternative energy sources are vital drivers of wind turbine market growth. Several other factors like globalization, technological advancement, climate change concerns, government support, funding and new regulations/taxes attract new players in the market.
The increase in oil and gas prices and less dependence on fossil fuels is expected to drive the growth in the forecast period
Fluctuations in oil and natural gas pricing and shifting to an alternative energy source other than fossil fuels drive the growth of the wind turbine market. Wind energy is a clean source of energy that causes minimum pollution. Moreover, the rising demand for electricity in recent years and concern about using fossil fuels because of their harmful effects on the environment, like carbon emission, propels the market's growth. Also, operational costs are minimum after the installation of turbines. Mass production and technological advancement are making it more cost-efficient.
Government support, funding and new regulations/taxes attract new investors to the market
Favourable government policies and flexible regulations/taxes are attracting new players in the market. The government is also providing support and funding to the industry to help in the industry's market growth. For instance, in the US, The National Ocean Industry Association has established the US first offshore wind farm in 2017 in Rhode Island known as Block Island Wind Farm, installed by Ostered A/S.
Variability in the wind speed and environmental/social issues are major concerns or hindrances in wind turbines market growth
Change in wind speed is a vital problem that the industry is facing. For instance, if the wind speed is too weak, low power is generated. However, if it is a strong wind, it can cause structural damage, resulting in the turbine shut down. Moreover, the wind is rarely steady and also causes problems like variable power output by generators and variables forces on blades of a turbine resulting in damage due to fatigue failure.
Furthermore, environmental concerns and social issues are barriers to widespread wind power utilization, which provoke strong opposition by residents near the proposed wind farm. Wind turbines have sizes up to 100 feet, which cause visual impacts, resulting in strong opposition by nearby residents. Noise pollution, loss of habitat, land use are some of the other issues that are hindrances in the market's growth.
Covid-19 Impact on Wind Turbine Market
The manufacturing and assembly of wind turbines have been majorly affected due to the ongoing pandemic of Covid-19. Major companies have gone through a total production shutdown, resulting in a backlog and unable to fulfil the demands. Furthermore, companies cannot work with their full force because of the social distancing norms, resulting in a temporary halt in production, leading to a reduction in turbines' demand.
Market Segmentation Analysis
By location, the wind turbine market is segmented into onshore and offshore regions.
Easy installation and maintenance on onshore is driving the segment growth
Onshore wind turbine market share has emerged as the first choice over the past few years, resulting in the most valued renewable energy source, with 520 GW installed globally by the end of 2017. The infrastructure of onshore wind farms is relatively cheaper than offshore locations. Moreover, the recent advancement in technology and innovation has led to a further reduction in cost. As per Siemens Gamesa Renewable Energy, by 2020, the onshore wind power was estimated to prevent carbon emissions by 975 million tons. Furthermore, the onshore segment contributes to local job opportunities and economic supports, resulting in projects being developed in a more diverse range from local to large corporations.
However, the shift towards renewable sources of energy has led to a development in the offshore segments making it a future of this sector. The growth in the segment is mainly because of the greater space availability and consistent wind sources. As per Siemens Gamesa Renewable Energy, the EU has experienced massive offshore wind power expansion in recent years. 4149 turbines are installed by now, with a cumulative total of 15,780 MW. Additionally, China had 2,788 MW offshore wind installed by the end of 2017 and speeded its developments. Such global growth has helped drive investment into the sector, which has led to a decrease in prices.
By type, the wind turbine market is classified into horizontal axis wind turbine (HAWT) and vertical axis wind turbine (VAWT).
Horizontal axis wind turbine (HAWT) has a high-efficiency index and cost-effectiveness, resulting in a favoured choice of the segment. Moreover, improved operational efficiency with functions like self-start gives it an edge compared to vertical axis wind turbines (VAWT). On the other hand, vertical axis wind turbine (VAWT) can effectively generate power in variable wind speed will witness a growth of over 24% by 2024. It has a low installation cost and needs low ground requirements and easy operations compared to its counterpart.
Global Wind Turbine Market Geographical Share
Boost in government projects in China and India created dominating position for Asia-Pacific globally
Wind turbine market share is mainly spread into these five regions- North America, Europe, South America, Asia-Pacific and Middle East & Africa.
Asia-Pacific is the leading region in the global wind turbine market and has high wind power installation capacity and government support and funding to shift towards renewable energy. China dominates the Asia-Pacific wind turbine market in terms of both value and volume. As per the Chinese Wind Energy Association (CWEA), new wind farms' installation has expanded by over 7% between 2016 to 2017. Furthermore, the country has the largest share of about 45% of total new onshore wind farms installed globally.
India holds the fourth-largest wind power installed. The projects are spread all over India, mainly in the north, south and west. The government has set a target of 60 GW production by 2022 and aims to achieve it between 2021 and 2022. Therefore, Asia-Pacific holds the potential for investors to invest in the sector.
Market Companies and Competitive Landscape
The wind turbine market is consolidated with the limited presence of local as well as global companies. Some of the key players contributing to the market's growth include Vestas Wind Systems A/S, Sinovel, Siemens Gamesa Renewable Energy, General Electric Wind Energy, Goldwind, Suzlon Energy, Enercon GmbH, Ming yang and Guodian United Power Technology Company Ltd.
The major players are adopting several growth strategies such as new projects and installations acquisitions and collaborations, contributing to the growth of the wind turbine market globally.
Siemens Gamesa Renewable Energy
Overview: Siemens Gamesa is a leading supplier of wind solutions, providing services all over the globe. The company has experience of over 35 years in the wind power business. It is a key player and innovative pioneer in the renewable energy sector, comprising 107 GW in almost 75 countries.
Product Portfolio: The company has products in both onshore as well as offshore segments location. In onshore turbine segments, features include proven geared technology, flexible power ratings and all wind classes products. In offshore turbine regions, the company has about 35 years with features like reliable direct drive technology and lower energy costs.
Recent Development:
- The company has secured the largest nearshore wind project in Vietnam to date. The wind farm, the Tra Vinh Dong Hai 1 is located 3.5 km offshore of the Tra Vinh province. The wind farm will feature 25 SG 5.0-145 turbines with a flexible power rating. Moreover, the company has also signed a 20-year long-term contract to provide operational and management services for the project.
- The company will make a 3.5 MW wind turbine at its Indian plant in Tamil Nadu, India. The new model has been upgraded with the 145-metre rotor of the Siemens Gamesa 4 MW platform because of its modularity. This will be the highest-capacity wind turbine in India.
The global wind turbine market report would provide access to an approx: 77 market data tables, 73 figures and 180 pages.
