Wind Energy Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Offshore and Onshore), By End-User (Industrial, Commercial, and Residential), By Region, Competition 2018-2028
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Power | Format: Report available in PDF / Excel Format
View Details Download Sample Ask for Discount Request CustomizationWind Energy Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (Offshore and Onshore), By End-User (Industrial, Commercial, and Residential), By Region, Competition 2018-2028
| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 78. 11 billion |
| CAGR (2023-2028) | 10.67% |
| Fastest Growing Segment | Industrial |
| Largest Market | Asia Pacific |
Market Overview
Global Wind Energy Market
Key Market Drivers
The global wind energy market has experienced remarkable growth and transformation over the past few decades. Driven by the need for cleaner, sustainable energy sources and a global commitment to reducing greenhouse gas emissions, wind energy has become a prominent player in the world's energy landscape. In this comprehensive analysis, we will delve into the key drivers and trends shaping the global wind energy market, explaining them in detail to provide a thorough understanding of the industry's dynamics.
Climate Change and Environmental Concerns
One of the most critical drivers of the global wind energy market is the urgent need to address climate change and mitigate its effects. The burning of fossil fuels for electricity generation and transportation is a significant contributor to greenhouse gas emissions, leading to global warming and environmental degradation. Wind energy offers a sustainable alternative by producing electricity without emitting carbon dioxide (CO2) or other harmful pollutants. As governments worldwide commit to reducing emissions under international agreements like the Paris Agreement, wind energy's role in decarbonizing the energy sector becomes increasingly vital. Many countries have established renewable energy targets and policies to transition to cleaner energy sources, reduce dependency on fossil fuels, and combat climate change. These targets often include specific goals for wind energy capacity installation. For example, the European Union has set ambitious targets to achieve a significant share of its energy consumption from renewables, with wind power playing a central role. Such policies create a favorable regulatory environment and incentives for wind energy projects, driving market growth.
Falling Costs and Technological Advancements
Advancements in wind turbine technology and economies of scale have led to a significant reduction in the cost of wind energy production. Larger, more efficient wind turbines can capture more energy from the wind, reducing the levelized cost of electricity (LCOE). As a result, wind energy has become increasingly competitive with conventional fossil fuels. Innovations such as taller towers, longer blades, and advanced control systems have improved efficiency and grid integration. This cost decline has made wind energy an attractive option for both utilities and consumers. Energy security and diversification of energy sources are critical considerations for many nations. Wind energy provides an indigenous, domestic source of electricity production, reducing dependence on imported fossil fuels. This enhances energy security by reducing vulnerability to supply disruptions and price fluctuations in the global energy markets. Countries with diverse energy portfolios that include wind power are better equipped to manage energy-related risks. The wind energy industry has a substantial impact on job creation and local economies. The construction, operation, and maintenance of wind farms require a skilled workforce, leading to employment opportunities in both rural and urban areas. Additionally, the wind energy supply chain, including the manufacturing of wind turbines and components, generates economic activity. As a result, governments and regions often view wind energy as a means to stimulate economic growth and reduce unemployment. Corporations are increasingly adopting sustainability goals and environmental, social, and governance (ESG) criteria in their operations. Many large companies are investing in renewable energy projects, including wind farms, to reduce their carbon footprint and meet sustainability targets. These corporate off-take agreements provide stable revenue streams for wind energy developers and drive further investments in the sector. Public awareness of environmental issues and support for renewable energy have grown significantly. Communities often welcome wind energy projects due to their perceived environmental benefits and the potential for local economic development. Public support can facilitate permitting and regulatory approvals for wind farms, making it easier for developers to bring projects to fruition. Integration with other technologies, such as energy storage systems and smart grids, enhances the reliability and flexibility of wind energy. Energy storage allows excess wind power to be stored for later use, reducing the intermittency associated with wind generation. Coupled with advanced grid management systems, wind energy can play a more significant role in supplying stable and reliable electricity.
Offshore Wind Energy Expansion
Offshore wind energy is gaining momentum worldwide. Offshore wind farms offer the advantage of stronger and more consistent winds, leading to higher energy generation. As technology and experience in offshore wind develop, countries with access to offshore resources are investing heavily in this sector. The expansion of offshore wind contributes to the overall growth of the wind energy market.
Key Market Challenges
Land and Space Constraints & Energy Storage and Grid Integration
One of the fundamental challenges of wind energy is its inherent intermittency and variability. Wind turbines generate electricity when the wind blows, which is not constant. This variability can lead to fluctuations in power output, making it challenging to ensure a stable and reliable energy supply. Grid operators must manage this variability effectively to maintain a balanced and secure electricity grid. To address the intermittency issue, energy storage solutions are crucial for storing excess energy when the wind is strong and releasing it when the wind is calm. While advancements in energy storage technologies have been made, there is still room for improvement in terms of efficiency and cost-effectiveness. Additionally, integrating wind energy into existing electrical grids can be complex and may require substantial grid upgrades and infrastructure investments. Onshore wind farms require significant land areas to accommodate the turbines and associated infrastructure. In densely populated regions, finding suitable land for wind farm development can be challenging. Additionally, land-use conflicts may arise as wind projects compete with agriculture, residential areas, and other land uses. Offshore wind farms have alleviated some of these issues but present their own challenges, including construction and maintenance costs. Wind energy projects, both onshore and offshore, can have environmental impacts. Bird and bat collisions with wind turbine blades are a concern, as are potential habitat disruptions. Careful site selection and mitigation measures are necessary to minimize these impacts. Additionally, the production and disposal of wind turbine components have environmental considerations, such as materials sourcing and recycling. The production of wind turbines requires specific rare earth metals and materials, such as neodymium and dysprosium for magnets. Securing a stable supply of these materials can be a challenge due to geopolitical factors, market fluctuations, and concerns about resource depletion. Efforts are ongoing to develop alternative materials and reduce reliance on rare earth elements.
Key Market Trends
One of the most prominent trends in the wind energy market is the rapid expansion of offshore wind projects. Offshore wind farms, located in bodies of water such as oceans and seas, benefit from stronger and more consistent wind patterns compared to onshore locations. As technology advances and developers gain experience, offshore wind capacity has surged, particularly in Europe, the United States, and Asia. Key factors driving this trend include
Higher Energy Yields
Grid Connection
Floating Wind Technology
Technological Advancements and Larger Turbines
Wind turbine technology continues to evolve rapidly, with a focus on increasing efficiency and reducing costs. Key trends in this area include
Larger Turbines
Advanced Materials
Digitalization and Smart Technology
Segmental Insights
Type Insights
End User Insight
The industrial end-user accounted for significant revenue share in 2022, owing to increase in demand for renewable energy sources. Wind power has significant demand in rural and isolated areas where grid power is not found at. However, the price and demand of wind energy is highly volatile, due to its high dependency on government incentive schemes.
Regional Insights
The Asia Pacific region has established itself as the leader in the Global Wind Energy Market with a significant revenue share in 2022
Recent Developments
- In
February 2021, Continuum Wind Energy Ltd, sponsored by Singapore-based
Clean Energy Investing Ltd, the indirect wholly-owned subsidiary of a
Morgan Stanley fund entity, New Haven Infrastructure Partners, announced
its plans to issue its maiden green bond of USD 500-600 million to be
listed on the SGX. The proceeds will be used to refinance the project debt
at six of its operating entities and to set up wind projects in India.
This is expected to aid the growth of the market.
- In
February 2021, the Ministry of Infrastructure and Energy stated that it is
re-evaluating projects and investment plans in cooperation with the
European Bank for Reconstruction and Development. Four wind parks in
Albania are about to lose the licenses that they obtained in 2007 and
2008. This is expected to impede the growth of wind energy in the country.
- In
2021, a USD 43 billion deal was signed by the South Korean government. It
is expected to be the world's biggest offshore wind power complex as the
country seeks to achieve carbon neutrality by 2050. The agreement involves
33 different entities, such as regional governments, the electricity
generator KEPCO, and major private firms, including Doosan Heavy
Industries & Construction and SK E&S.
Key Market Players
- Siemens Energy
- Vestas Wind Systems
- Siemens Gamesa Renewable
Energy
- General Electric (GE)
Renewable Energy
- Goldwind
- Envision Energy
- Nordex SE
- Suzlon Energy
- Orsted
- NextEra Energy Resources
- China Guodian Corporation
(China Energy)
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