Wind Turbine Tower Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Steel Tower, Concrete Tower, and Hybrid Tower), By Installation (Onshore and Offshore) By Region, Competition 2018-2028

Market Overview

Global Wind Turbine Tower Market was valued at USD 30.25 Billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 7.40% through 2028. Renewable energy sources, such as wind power, are becoming increasingly popular as countries around the world strive to reduce their reliance on fossil fuels and meet their climate change goals. This is driving up the demand for wind turbines, which in turn is driving up the demand for wind turbine towers. Governments around the world are offering a variety of incentives and policies to promote the adoption of renewable energy, including wind power. This includes feed-in tariffs, tax credits, and loan guarantees. These incentives and policies are making it more attractive for investors to invest in wind farms, which is further driving up the demand for wind turbine towers. Wind turbine technology is constantly advancing, with manufacturers developing new and more efficient wind turbines. This is leading to the development of taller and more powerful wind turbines, which require taller and stronger wind turbine towers. The cost of wind turbines and wind turbine towers has been falling steadily in recent years. This is making wind power more competitive with fossil fuels, which is further driving up the demand for wind turbines and wind turbine towers. In addition to these factors, the global wind turbine tower market is also being driven by the growing demand for offshore wind power. Offshore wind farms are typically located in areas with stronger and more consistent winds than onshore wind farms. This means that offshore wind turbines can produce more electricity than onshore wind turbines. However, offshore wind turbines are also more expensive to install and maintain than onshore wind turbines.

Despite the higher costs, the offshore wind market is growing rapidly, driven by government incentives and the increasing need for renewable energy sources. This growth is driving up the demand for offshore wind turbine towers, which are typically taller and stronger than onshore wind turbine towers.

Overall, the global wind turbine tower market is being driven by a number of positive factors, including the increasing demand for renewable energy, government incentives and policies, technological advancements, and falling costs. These factors are expected to continue to drive the growth of the market in the coming years.

Key Market Drivers

Renewable Energy Growth

The increasing demand for clean and renewable energy sources, driven by environmental concerns and government incentives, has led to substantial growth in the wind energy sector, spurring the demand for wind turbine towers.

Government Support and PoliciesMany governments worldwide are implementing policies and financial incentives to promote wind energy production, such as feed-in tariffs, tax credits, and renewable portfolio standards. These policies create a favorable environment for wind turbine tower manufacturers.

Technological AdvancementsOngoing technological innovations have led to the development of taller and more efficient wind turbine towers, enabling turbines to capture more wind energy at higher altitudes. Advanced materials and designs also contribute to improved tower performance.

Economies of ScaleAs the wind energy industry grows, manufacturers benefit from economies of scale, making the production of wind turbine towers more cost-effective. Global Energy TransitionThe global shift towards reducing greenhouse gas emissions and combating climate change has made wind energy a key player in the transition to cleaner energy sources.

Urbanization and Energy DemandIncreasing urbanization and a growing need for electricity are driving the expansion of wind farms, which, in turn, boosts the demand for wind turbine towers.

Cost Reduction

The wind energy sector has made significant progress in reducing the cost of wind energy generation, making it more competitive with traditional fossil fuels.Advances in grid integration and energy storage technologies make it more feasible to manage intermittent wind energy production, encouraging further investment in wind power.

Emerging MarketsDeveloping countries are increasingly investing in wind energy infrastructure to meet their growing energy demands and reduce dependence on fossil fuels. Public awareness and concerns about environmental issues and climate change have prompted investment in wind energy projects, increasing the demand for wind turbine towers. It's important to note that the wind energy industry is subject to market fluctuations, regulatory changes, and competition from other renewable energy sources. The outlook for the global wind turbine tower market is positive, but it's essential for manufacturers and investors to adapt to evolving market conditions and technologies to remain competitive.

Renewable Energy Growth driving the market

One of the primary drivers behind the expansion of the global wind turbine tower market is the surging demand for renewable energy. As concerns about climate change and environmental sustainability escalate, countries around the world are seeking alternative energy sources to reduce their reliance on fossil fuels. Wind energy, generated through wind turbines installed on wind turbine towers, is a clean and renewable energy source. It plays a pivotal role in addressing these concerns, as it produces electricity without emitting greenhouse gases or other harmful pollutants. This environmental advantage positions wind energy as a significant contributor to the global shift toward cleaner and more sustainable energy solutions.

Government Support and Policies

The wind turbine tower market also benefits from the support and policies implemented by governments worldwide. Many countries have recognized the importance of wind energy in their energy mix and have launched various incentives and regulatory mechanisms to encourage its development. These policies include feed-in tariffs, tax credits, and renewable portfolio standards. Feed-in tariffs guarantee a certain price for the electricity generated from wind energy, providing a stable source of revenue for wind farm operators. Tax credits offer financial incentives to investors and operators in the wind energy sector. Renewable portfolio standards mandate that a certain percentage of a region's electricity must come from renewable sources, including wind energy. These government-driven policies create a favorable environment for wind turbine tower manufacturers by ensuring a steady demand for their products.

Technological Advancements

The continuous evolution of wind turbine technology is another significant driver of the global wind turbine tower market. Innovations in materials, design, and manufacturing have allowed for the construction of taller and more efficient wind turbine towers. Taller towers enable wind turbines to capture wind energy at greater altitudes, where wind speeds are typically higher and more consistent. Advanced materials, such as high-strength steel and composites, are used to build these towers, ensuring their structural integrity and longevity. Improved tower designs optimize aerodynamics, reducing the loads on the tower and foundation, which contributes to enhanced turbine performance. These technological advancements increase the efficiency and overall productivity of wind turbines, further driving the demand for advanced wind turbine towers.

Economies of Scale

As the wind energy industry has grown, manufacturers have benefited from economies of scale. Mass production and increased competition among manufacturers have led to cost reductions in the production of wind turbine towers. Larger orders and standardized manufacturing processes have allowed for the efficient production of tower components, making wind energy more cost-competitive. The declining cost of wind energy is crucial in the context of global energy transition, as it enables wind energy to compete with conventional fossil fuels on a level playing field.

Global Energy Transition

Key Market Challenges

Wind Energy's Rapid Rise

Before diving into the central challenge, it's essential to understand the context and significance of the wind turbine tower market. Wind energy has emerged as a critical player in the global transition to renewable energy sources. It is a clean, abundant, and sustainable form of energy that mitigates greenhouse gas emissions and reduces dependence on finite fossil fuel reserves.

Wind turbines, which convert kinetic energy from the wind into electrical power, have become the emblematic symbol of this transition. They consist of several key components, including the rotor blades, nacelle (housing the generator and gearbox), and the tower. The tower serves as the backbone of the entire structure, raising the turbine's height to capture stronger and more consistent winds at elevated altitudes. The Rise of Tower Heights

The evolution of wind turbine towers is crucial to understanding the current challenge in the market. Early wind turbines featured relatively short towers, typically reaching heights of 20 to 40 meters. These turbines were primarily deployed in regions with moderate wind resources, and their energy generation was limited compared to today's standards.

As wind energy technology advanced, so did the height of wind turbine towers. Taller towers allow turbines to access higher and more consistent wind speeds, significantly increasing energy production. This trend toward taller towers has been driven by several factors

Improved Energy OutputTaller towers enable turbines to reach higher altitudes, where wind speeds are generally stronger and more consistent. This results in higher energy production and increased efficiency.

Expansion into Low-Wind RegionsAs wind energy expanded into regions with lower wind speeds, taller towers became essential to harness the found at energy resources effectively.

Reduced Visual ImpactTaller towers often have smaller footprints, which can reduce their visual impact on the landscape, making them more acceptable to communities and regulators.

Economies of ScaleTaller turbines benefit from economies of scale, as they can capture more energy with fewer turbines. This reduces the overall cost of energy production.

Technological AdvancementsAdvances in materials and engineering have made it possible to construct taller and more robust wind turbine towers, further supporting their growth.

The Challenge of Scaling Up

While the trend toward taller wind turbine towers has been instrumental in the success of the wind energy industry, it has also given rise to the main challenge facing the marketscaling up tower heights even further. Currently, the industry is in a race to develop and deploy wind turbines with tower heights well beyond the 100-meter mark, and even reaching heights of 200 meters or more.

The primary drivers behind this push for even taller towers are

Access to Higher Wind ResourcesAs wind turbines continue to reach new heights, they can tap into previously untapped wind resources at higher altitudes. This leads to increased energy production and greater capacity factors.

Reduced Land FootprintTaller towers allow for the installation of larger rotor blades, which capture more wind energy. This means that fewer turbines are needed to generate the same amount of electricity, reducing the overall land footprint of wind farm.

Energy Transition GoalsMany countries and regions have set ambitious renewable energy targets to combat climate change. Achieving these goals often requires harnessing wind resources at greater heights to meet energy demand.

However, scaling up wind turbine towers presents several significant challenges

Technical ChallengesAs towers get taller, they must contend with greater structural loads, including wind forces, gravity, and dynamic loads from the rotating blades. Designing towers that can withstand these forces while remaining cost-effective is a formidable engineering challenge.

Logistics and TransportationTransporting extremely tall tower sections to remote wind farm locations can be logistically complex and costly. It requires specialized equipment and infrastructure, including roads and cranes capable of handling such large components.

Foundation DesignTaller towers require more substantial foundations to ensure stability and safety. Designing and constructing these foundations can be challenging, especially in regions with challenging soil conditions.

Environmental and Regulatory ConsiderationsIncreasing tower heights may raise concerns about visual impact, aviation safety, and environmental impacts, such as impacts on wildlife and ecosystems. Navigating these regulatory and environmental challenges is essential for project approval.

CostsWhile taller towers offer benefits in terms of energy production and land use, they also come with higher manufacturing, transportation, and installation costs. Balancing these costs against the increased energy yield is a critical economic consideration.

Key Market Trends

Urbanization and Energy Demand

Increasing urbanization and the growing demand for electricity have propelled the expansion of wind farms and, by extension, the demand for wind turbine towers. Urban areas require a reliable and consistent supply of electricity to meet the needs of a growing population and the expansion of industries and infrastructure. Wind energy, generated by turbines mounted on wind turbine towers, contributes to the diversification of the energy supply. Wind farms can be located in rural areas with abundant wind resources and connected to urban centers through the grid. This allows for the efficient distribution of wind-generated electricity to meet the energy demands of urban populations.

Cost Reduction

Cost reduction is a critical driver for the wind turbine tower market. Over the years, the wind energy sector has made significant progress in reducing the cost of wind energy generation. The cost reductions are achieved through various means, including technological advancements, streamlined manufacturing processes, and economies of scale. These cost reductions have made wind energy increasingly competitive with traditional fossil fuels. As wind energy becomes more cost-effective, it becomes an attractive option for investors, utilities, and governments seeking affordable and sustainable energy solutions.

Grid Integration

Advancements in grid integration technologies and energy storage solutions play a vital role in driving the wind turbine tower market. One of the challenges of wind energy is its intermittency—wind doesn't blow consistently at all times. However, innovations in grid management and energy storage allow for more efficient management of wind energy production. Grid integration technologies enable the smooth integration of wind energy into existing electricity grids, ensuring a stable and reliable energy supply. Energy storage systems, such as batteries, can store excess wind-generated electricity and release it when needed, further enhancing the reliability of wind energy.

Emerging Markets

Developing countries are increasingly investing in wind energy infrastructure to meet their growing energy demands and reduce their dependence on fossil fuels. These emerging markets present significant opportunities for the global wind turbine tower market. In regions with rapidly expanding populations and energy needs, wind energy offers a sustainable solution that can help bridge the energy supply gap. Many of these regions have abundant wind resources, making wind energy an attractive choice for expanding their energy infrastructure.

Environmental Concerns

Public awareness and concerns about environmental issues, including climate change, air pollution, and habitat destruction, have played a significant role in driving the demand for wind energy and, consequently, wind turbine towers. The desire to mitigate the adverse environmental impacts of traditional energy sources has motivated individuals, communities, and governments to invest in renewable energy solutions. Wind energy's minimal environmental footprint and its potential to reduce greenhouse gas emissions align with these concerns, making it a favored choice in the pursuit of sustainable energy generation.

In conclusion, the global wind turbine tower market is on a trajectory of sustained growth, fueled by a combination of drivers. The demand for renewable energy, government support and policies, technological advancements, economies of scale, and the global energy transition are just a few of the critical factors contributing to the expansion of this market. As urbanization and energy demand increase, the wind turbine tower market plays a crucial role in delivering reliable and sustainable energy solutions. Cost reduction, grid integration, and the expansion of wind energy in emerging markets provide additional impetus for the industry's growth. Environmental concerns, including the need to reduce greenhouse gas emissions and address climate change, reinforce the importance of wind energy and the role of wind turbine towers in the global energy landscape.

It is important to note that the wind energy industry is subject to market fluctuations, regulatory changes, and competition from other renewable energy sources. The outlook for the global wind turbine tower market is positive, but it is essential for manufacturers, investors, and policymakers to remain adaptable and responsive to

Segmental Insights

Type Insights

The concrete tower segment held a majority of the market share in 2021 owing to its various benefits including project cost and modularity reduction. The market well understands this material. Towers hold up to 20% of the total costs of a wind turbine, and the use of concrete towers helps reduce the sufficient cost of a wind farm. These towers have high strength, require low prices, and the material needed to build these towers is generally found at locally. The hybrid tower segment is expected to expand significantly in the coming years owing to the rising trend for composite materials. These types of materials can provide the benefits of two materials in one. These towers are lighter in weight also.

Installation Insights

The market has been divided into onshore and offshore based on installation. The onshore segment held a dominant share of the market in 2021. The onshore segment shows low carbon emissions and economic cost structure compared to other segments. Globally, more than 72 GW of new wind power projects were installed onshore in 2022.The offshore segment is likely to witness growth at a languid pace owing to high focus and installation toward the onshore wind. The offshore wind farm installation cost is significantly higher than the onshore wind farm. The emergence of floating offshore wind is also a critical factor in driving growth of the offshore segment.

Regional Insights

Asia Pacific plays a significant role in the global Wind Turbine Tower market.

Recent Developments

• September 2022 - Broadwind Inc. announced receiving an order worth USD 38 million for a new tower from a leading global wind turbine manufacturer. This constituted the largest tower order in more than three years as the demand for new wind turbines began to pick up following the recent passage of the Inflation Reduction Act (IRA).
• July 2021 - The Nordex Group received orders for the delivery of two wind farms with Delta4000 turbines totaling 54.9 MW in Italy. The association is providing six N133/4.8 turbines for a 28.8 MW wind farm and five N149/5.X turbines for a 26.1 MW capacity project. The deal also comprises a premium service contract for the turbines for an initial two-year period with several options for extending up to 10 years.
• July 2021 - The Nordex Group announced a strategic partnership with TPI Composites in Mexico. The two companies agreed on a unique strategic collaboration along with cooperation in India and Turkey.
• December 2020 - Veolia North America and GE Renewable inked an agreement for recycling the blades removed from U.S. onshore wind. Via this deal, GE intends to recycle the majority of blades replaced during repowering efforts.
• June 2020 – GE Renewable Energy, LafargeHolcim, and COBOD signed an agreement to collaborate and develop wind turbines with optimized 3D printed concrete bases that reach record heights of up to 200 meters.

Key Market Players

• Arcosa Inc.
• Bergey Wind Power Co.
• Clipper Windpower Plc.
• XzeresWind Corp.
• Trinity Structural Towers Inc.
• Valmont Industries Inc.
•  Bouygues Construction SA
•  Broadwind Energy Inc