According to a recent report titled “Wind Energy Market”, published by Allied Market Research, the global wind energy industry generated $62.1 billion in 2019, and is expected to generate $127.2 billion by 2027, witnessing a CAGR of 9.3% from 2020 to 2027.
Significant surge in demand for renewable power sources is expected to drive the wind energy market growth. Governments across the globe are promoting sustainable energy sources, which can reduce carbon emission, unlike conventional power sources.
Furthermore, the offshore wind turbine technology removes the constraint of water depth, which aids in selecting the best site possible for power generation. For instance, in June 2017, Statoil, a Norwegian energy company invested $268 million for its Hywind turbine project. The project involved installation of floating wind turbines at 78 meter sea depth in the north-east coast of Scotland. Additionally, the efficiency of wind energy is higher than that of conventional fossil energy sources (coal, natural, and oil). The maximum efficiency of wind turbines can be up to 59%, whereas for fossil fuel it is 35-45%.
However, the initial installation cost of offshore wind turbines with multiple mooring lines and anchors can be expensive. In addition, during heavy storms or hurricanes, the wind turbines may face severe damage. Nonetheless, technological advancements in wind turbine structure, such as the “Twisted Jacket” foundation with fewer nodes and components may be a permanent solution against heavy storms. The inward battered guide structure provides robust and secure structure, and also reduces installation cost. Such new developments will create further opportunities in the wind energy market.
Global wind energy market is segmented on the basis of type, end user, and region. Based on type, it is segmented into offshore and onshore. Based on end-users, the market is classified into industrial, commercial, and residential. Based on region, the wind energy market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Major players have adopted acquisition, agreements, and partnership to sustain the intense market competition. Some of the key players profiled in the wind energy industry report include Siemens General Electric, Enercon GmbH, Vestas Wind Systems A/S, Exelon Corporation (EXC), NextEra Energy, Inc., American Electric Power Company, Inc., Xcel Energy Inc., Avangrid, Inc., and Ameren Corporation.
Global Wind Energy Market, By Region
Asia-Pacific accounted for the highest revenue share in 2019, owing to the rise in concern from governments across emerging nations, such as China, India, and South Korea, regarding zero emission norms, is expected to drive the market growth. Europe accounted for highest market growth during 2020-2027, owing to rise in investments in countries such as France, the UK, and Norway. In addition, the presence of major manufacturers, such as Siemens General Electric, Vestas Wind Systems A/S, and Enercon GmbH operating a significant number of the global wind energy projects will positively impact the growth of the wind energy market.
Global Wind Energy Market, By Type
Offshore wind energy accounted for highest market growth during 2020-2027. This is attributed to higher capacity factor than that of onshore wind turbines. Offshore wind turbines have a high-capacity factor, due to consistent wind flow at sea shore. For instance, the capacity factor for offshore wind turbines is 0.5-0.7, whereas the onshore wind turbine has capacity factor of around 0.25-0.3.
Global Wind Energy Market, By End-user
The industrial end-user accounted for significant revenue share in 2019, owing to increase in demand for renewable energy sources. Wind energy has significant demand in rural and isolated areas where grid power is not available. However, the price and demand of wind energy is highly volatile, due to its high dependency on government incentive schemes.
COVID-19 scenario analysis
- The COVID-19 pandemic severely impacted the wind turbine manufacturing in countries such as China and Germany. For instance, in 2020, Germany’s Nordex SE reported negative EBITDA of $86.5 million down from positive EBITDA of $21 million in previous financial year (2019).
- Additionally, limited availability of spares and manpower for maintenance is a major problem affecting the market growth. During high wind season, planned maintenance became a major issue for industry players, owing to reduced labor force and social distancing norms.
- Furthermore, project delays and cancellation of orders further affected the key markets for both blade production and wind turbine installations. For instance, Siemens Gamesa Renewable Energy SA accounted for a net loss of $577 million during its fiscal third quarter in 2020.
- However, shifting trends toward domestic supply chain may reduce the reliance on foreign imports encouraging domestic production of wind turbines. Furthermore, implementation of digitization will aid in remote monitoring for project execution; thus, limiting the labor force as much as possible.
Key benefits for stakeholders
- The global wind energy market analysis covers in-depth information of major industry participants.
- Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
- Major countries have been mapped according to their individual revenue contribution to the regional market.
- The report provides in-depth analysis of the global wind energy market forecast for the period 2020–2027.
- The report outlines the current global wind energy market trends and future estimations of the market from 2019 to 2027 to understand the prevailing opportunities and potential investment pockets.
