Wind Energy Market Growth and Forecast by 2031

The wind energy market size is projected to reach US$ 172.7 billion by 2031 from US$ 95.1 billion in 2023. The market is expected to register a CAGR of 7.7% in 2023–2031. Increasing energy consumption coupled with significant efforts to minimize carbon emissions is among the key factors driving the wind energy market.

Wind Energy Market Analysis

The wind energy market is expected to experience considerable growth during the analyzed timeframe owing to the increasing number of onshore & offshore wind power projects, particularly in remote locations. Additionally, the government regulations towards reducing carbon emissions by focusing on power generation through renewable energy sources such as wind, solar, geothermal, and others are expected to drive the market growth from 2023 to 2031. Moreover, government initiatives towards the installation of wind farms across the globe are projected to fuel market growth in the coming years.

Wind Energy Market Overview

With the mounting population and industrialization, the demand for energy is also rising at the global level. The rise in energy consumption also boosted the need for renewable power generation in developing and developed economies. This has resulted in driving the demand for wind power infrastructure across the globe. Wind power generation has gained a high level of importance and acceptability across the world compared to other renewable energy sources. Advanced developments in technology in design and development of wind power blades, turbines, shafts, and other components have contributed to significant advancement in wind energy adoption and in achieving maximum power from available wind. As per the International Renewable Energy Agency (IRENA), the global wind installed capacity reached 1,017 GW by the end of 2023 from 825 GW in 2021. Thus, such an increase in the wind installed capacity is expected to increase in the coming years, owing to the advantages of wind energy and favorable policies, incentives, and tax rebates.

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Wind Energy Market Drivers and Opportunities

Government Initiatives to Promote the Installation of Wind farms are expected to be the Prime Driver for the Wind energy market.

Increase in support from various governments of different countries in terms of policies, subsidies, and investment for raising the installation of wind energy projects is projected to fuel the wind energy market growth over the analyzed timeframe. The Indian government is engaged in promoting wind power plants in the country through private sector funding by providing various fiscal and financial incentives such as Accelerated Depreciation benefits and concessional custom duty or tax exemption on certain components of wind electric generators. For instance, Germany is planning to introduce a bill to accelerate wind energy expansion. The new law will apply binding area targets for onshore wind energy expansion in the federal states. In April 2022, Germany planned to deploy offshore wind targets to more than 10 GW per year from 2025 with the help of a historic package called the Easter Package, which is the most profound series of changes in German energy policy. With the help of these government initiatives, 80% of Germany's electricity demand will be covered by electricity from renewable energy sources by 2030.

The Growing Focus on Floating Wind Technology holds Potential Growth Opportunities.

The floating wind technology is the offshore wind turbine mounted on a floating structure in sea that ensures the turbine to generate electricity in water depths. The floating or offshore wind technology is highly efficient in harsh environmental conditions and thus capable of producing huge amounts of power. This floating wind technology is globally adopted across various countries such as China, Germany, Japan, the UK, France, Belgium, and Denmark. The growth prospects in the adoption of floating wind technology are primarily attributed to an increase in advancement in technology, associated advantages, 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 is posing 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 United Kingdom government announced 11 renwable power projects that will each be awarded up to US$959.23 million as it puts forward US$2.97 billion to boost the renewable energy generated in the UK. Such investment in offshore or floating wind technology across the world is projected to fuel the market growth in the coming years.

Wind Energy Market Report Segmentation Analysis

Key segments that contributed to the derivation of the wind energy market analysis are capacity and installation.

• Based on capacity, the wind energy market has been divided into up to 1 MW, 1-3 MW, 3-5 MW, and above 5 MW. The 1-3 MW segment held a larger market share in 2023.
• Based on the installation, the wind energy market has been divided into onshore and offshore. The onshore segment held a larger market share in 2023.

Wind Energy Market Share Analysis by Geography

The geographic scope of the wind energy market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America.

Asia Pacific will dominate the wind energy market in 2023. The Asia Pacific region includes Australia, China, Japan, India, South Korea, & the Rest of Asia Pacific. The growth of the wind energy industry in the Asia Pacific is primarily attributed to increasing investment in renewable industry, exponential increase in industrialization and urbanization, wind energy generation capacity, new electrification projects, and grid strengthening initiatives. As per IRENA and renewable energy targets by China, the country could add more than 90 GW worth of new offshore wind power capacity from 2021 to 2030. The Asia-Pacific region's wind energy sector is set for rapid expansion. It could make up nearly a quarter of the power capacity mix in the area this decade, according to a new study, as high domestic demand for offshore wind power turns mainland China into the world's largest market by 2030.

Wind Energy Market Regional Insights

The regional trends and factors influencing the Wind Energy Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Wind Energy Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Wind Energy Market Report Scope

Wind Energy Market Players Density: Understanding Its Impact on Business Dynamics

The Wind Energy Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Wind Energy Market are:

1. Vestas Wind Systems A/S
2. Siemens Energy
3. Goldwind
4. ENVISION Group
5. GE Renewable Energy
6. Mingyang Smart Energy

Disclaimer: The companies listed above are not ranked in any particular order.

Wind Energy Market News and Recent Developments

The wind energy market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for wind energy market and strategies:

• In June 2022, Vestas partnered with PEC Energia for an 86 MW wind park in Brazil. With this project, Vestas surpassed the milestone of 7 GW of order intake in Brazil since 2018.
• In September 2021, Goldwind, a wind turbine maker, connected its 5-megawatt onshore test unit to the power grid as it prepares to begin deliveries in 2022. Goldwind's permanent magnet direct-drive (PMDD) onshore 5S Smart Wind Turbine possess rotor diameter of 165m and hub heights ranging from 100 to 130 meters.

Wind Energy Market Report Coverage and Deliverables

The “Wind Energy Market Size and Forecast (2021–2031)” report provides a detailed wind energy market analysis of the covering below areas:

• Market size and forecast at global, regional, & country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed Porter’s Five Forces analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles with SWOT analysis