Wind Energy Market Share, Size, Trends & Forecast 2022, 2028

The wind energy market is expected to grow from US$ 156.8 billion in 2021 and it is anticipated to grow at a CAGR of 5.0% from 2022 to 2028.

Wind energy uses wind turbines to produce electricity using the kinetic energy created by wind in motion. The amount of power that can be harnessed from wind depends on the size of the turbine and the length of its blades. Wind power generation has gained a high level of attention and acceptability across the globe compared to other renewable energy technologies. New developments in technology in designing wind power blades, turbines, shafts, and other components have contributed to significant advances in wind energy penetration and in achieving optimum power from available wind. As per the International Renewable Energy Agency, the global wind installed capacity increased from 731,763 MW in 2020 to 824,874 MW in 2021. Thus, such an exponential rise in the wind installed capacity is expected to drive the wind energy market growth in the coming years.

Furthermore, the upcoming wind projects in the various emerging nations are expected to start operation by 2024 and 2025, which will further accelerate the wind power generation capacity. For instance, as per the report published by Swedish Energy Agency in March 2022, the electricity generated from wind will rise from 27.4 TWh in 2021 to 46.9 TWh by 2024 in Sweden. The published analysis says that Sweden is expected to increase wind power generation by more than 70% by 2024 compared with the level of 2021. The aim of this initiative is to reduce the country’s dependence on fossil fuels and on oil and gas supplied by Russia. In addition, Ocean Winds, a joint venture between Portugal's main utility EDP with Engie, a French company, planned to invest US$ 3.15 billion to develop offshore wind projects by 2025. The equal partners in the venture are targeting to produce ~7GW of new wind capacity. Thus, such upcoming initiatives regarding new wind projects are contributing to the wind energy market growth.

Strategic Insights

Impact of COVID-19 Pandemic on Wind Energy Market 

The COVID-19 outbreak dramatically impacted the global economy in early 2020, and the crisis hampered the business activities in manufacturing industries. However, the renewable sector was exposed to new growth opportunities due to the onset of the pandemic. As per the data published in Renewables 2021 Analysis and forecast to 2026 report, the cumulative offshore wind capacity is forecast to more than triple by 2026, reaching ~120GW. Large-scale projects are expected to be commissioned beyond the established markets of the UK, Germany, Belgium, Denmark, and the Netherlands in the next five years, with a boost to the global installed capacity set to come from France, Taiwan, South Korea, Vietnam, Japan, and the US. Also, from the second half of 2020, wind power sales increased due to the high number of wind turbine installations. In addition, the power sales in the Electric Reliability Council of Texas increased over 109% to 1.79 million MWh in Q4 compared to ~856,000 MWh sold in Q4 2019. Thus, such growth prospects in energy sector has boosted the demand for renewable energy, which has propelled the wind energy market during the pandemic recovery period.

Lucrative Regions: Wind Energy Market Share

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Market Insight – Wind Energy Market

Government Initiatives to Promote Installation of Wind Turbine Farms

Support of various governments of different countries in terms of policies and investment for increasing the installation of wind energy projects is expected to fuel the market growth over the coming years. Also, the UK government had pledged to invest US$ 272 million in fresh funding for offshore wind projects. The growing initiative from leading countries for adopting wind energy is likely to fuel the market growth. For example, in January 2022, Brazil published initial guidelines for offshore wind power generation. In March 2021, Shell applied for environmental licensing with the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) to develop offshore wind farms along the coast of Brazil. Further, in July 2022, PEC Energia, an Engeform Energia Renovável company, signed an agreement with Vestas to supply wind turbines to the Serra das Vacas’ wind farms in the state of Pernambuco, Brazil. Thus, such growing initiatives from leading players for supplying wind turbines and applying for licensing to develop offshore wind farms are the key factors boosting the market growth.

Capacity-based Insights

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. The 1-3 MW segment is dominating the market in 2021, with increasing demand for onshore installation application. 

Players operating in the wind energy market are mainly focused on the development of advanced and efficient products.

In June 2022, Vestas has sold the 183 MW Delta wind project to The AES Corporation, a global energy company in the US. The project is developed by Steelhead Americas, Vestas’ North American development arm

The wind energy market is segmented into five major regions North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, APAC led the market with a substantial revenue share, followed by Europe and North America. Further, Europe is expected to register the highest CAGR in the wind energy market from 2022 to 2028. The wind energy market analysis helps to understand the upcoming trends, new technologies, and macro and micro factors that are expected to influence the market growth in the coming years.

The key players profiled in the wind energy market study are 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. The wind energy market report provides detailed market insights, which help the key players to strategize the growth in the coming years.