Wind Energy Market is expected to reach US$ 220.7 Billion by 2028

The wind energy market size is expected to reach US$ 220.7 billion by 2028 and it is registering at a CAGR of 5.0% from 2022 to 2028, according to a new research study conducted by The Insight Partners.

Growing Focus on Floating Wind Technology Provide Growth Opportunities for Wind Energy Market During 2022–2028

Renewable energy is a clean source of energy as it does not emit greenhouse gases, diversifies the energy supply, and reduces dependence on imported fuels. The advantages of renewable energy and growing adoption from the residential, industrial, and commercial sectors are paving the way toward sustainable energy security. Thus, the advantages of renewable energy are increasing the investment in renewable energy, which is driving the wind energy market growth over the forecast period. As per the National Energy Administration (NEA), China has more than doubled its offshore wind capacity, from less than 10GW in 2020 to 26.4GW in 2021. Further, as a part of efforts to boost renewable energy to meet climate change goals, in March 2022, the National Development and Reform Commission (NDRC) of China planned to build 450GW of solar and wind power generation capacity on the Gobi and other desert regions. Thus, the increasing production capacities of wind energy is anticipated to boost the market growth over the forecast period. The US government is moving forward to increase offshore wind energy along the East Coast. For instance, in March 2021, the US government approved a huge wind farm off the New Jersey coast as part of an initiative to generate electricity for more than 10 million homes nationwide by 2030.

Wind Energy Market — by Region, 2022

Source: The Insight Partners Analysis

The strong onshore wind investments support Europe’s need to reach its new climate change and energy security targets. The REPowerEU agenda strategizes to expand the European wind capacity from 190 GW in May 2022 to 480 GW by 2030. According to the agenda, building 35GW of new wind turbines every year until 2030 will help achieve the goal. The new wind investments in Europe in 2021 covered only 19 GW of new capacity. As per WindEurope, in May 2021, Europe invested US$ 42 billion in new wind farms, financing 25GW of new capacity. The increase in investment in renewable energy is showing an upward trend in the installation of wind farms, a surge in contracts from turbine manufacturers, and an increase in competitiveness in the market. According to the Institute for Energy Economics and Financial Analysis, an investment worth US$ 14.5 billion was invested in India’s renewable energy during 2021-2022, up by 125% compared to previous financial years. In addition, as per the Japan Wind Power Association, Japan installed 87 new wind turbines at 16 different sites totaling 221MW capacity in 2021 and targeting ~28GW of wind power capacity by 2030.

Support of various governments of emerging countries in terms of policies and investment for increasing the installation of wind energy projects is expected to fuel the wind energy market growth over the coming years. The Indian government is promoting wind power projects in the country through private sector investments by providing various fiscal and financial incentives such as Accelerated Depreciation benefit and concessional custom duty exemption on certain components of wind electric generators. In January 2022, The People's Bank of China (PBOC) started providing low-cost loans to fund decarbonization activities. Further, Beijing's current policy initiatives focus on tax breaks and low-interest loans to low-carbon project developers, power market reforms, and grid improvement. In Canada, the Offshore Renewable Energy Regulations (ORER) initiative will support the implementation of Offshore Renewable Energy Projects and Offshore Power Lines by developing modern safety and environmental protection regulations for offshore renewable energy (ORE) projects and power lines in Canada’s offshore areas.

Asia Pacific is the leading region in the wind energy market owing to favorable government policies, increasing investment in wind energy projects, and the reduced cost of wind energy, which led to increased adoption of wind energy. Countries such as China, India, and Japan are the dominating countries holding a large portion of the market share, which is expected to increase in the coming years. China dominated the wind energy market and remained the largest onshore market with 21.2 GW of new capacity additions. The supportive government policies and incentives made China a favorable hotspot for investment, and therefore, the wind energy market is expected to flourish in the coming years. As per the Global Wind Energy Council (GWEC) report, Asia Pacific is set to become a leader in offshore wind, with its share in the global offshore wind market expected to grow from 24% in 2019 to 42% by 2025. The GWEC report had expected the global wind energy sector to significantly grow from 2022 to 2025, with a CAGR of 3.5% and annual added capacity to reach 110.6GW by 2025.

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.

Vestas Wind Systems A/S; Xinjiang Goldwind Science & Technology Co., Ltd; Siemens Gamesa Renewable Energy S.A.; ENVISION Group; GE Renewable Energy; Mingyang Smart Energy; Nordex SE; Shanghai Electric; Zhejiang Windey Co., Ltd; and China Shipbuilding Group Haizhuang Wind Power Co. Ltd are a few of the key players profiled during this study on the wind energy market. Several other important market players were analyzed during the course of this market research study to get a holistic view of the global wind energy market and its ecosystem.

The COVID-19 outbreak dramatically impacted the global economy in early 2020, and the crisis has hampered business activities in manufacturing industries. Before the onset of the COVID-19 pandemic, the wind energy market was experiencing substantial growth owing to the growing awareness among consumers, planned strategies and projects as per timelines, and supportive government policies framework. However, the significant investment initiatives in wind energy farms from second half of 2020 were driving the market growth. Still, the projects under construction were delayed or postponed after the onset of the pandemic, which has adversely affected the market. In a few countries, access to some sites was allowed under full lockdown, while in others, work on some projects could not continue even under a partial lockdown. 

Contact Us