The global wind energy market size surpassed USD 89.60 billion in 2023 and is anticipated to reach around USD 260.81 billion by 2034, exhibiting a CAGR of 10.2% from 2024 to 2034.
Wind Energy Market Key Insights
- Asia-Pacific dominated the wind energy market with the largest market share of 43% in 2023.
- North America is expected to be the most opportunistic during the forecast period.
- By location, the offshore segment led the market in 2023.
- By location, the onshore segment is estimated to be the most opportunistic segment during the forecast period.
- By application, the utility segment has generated the highest market share in 2023.
Market Overview
The wind energy market encompasses the development, production, and deployment of wind power technologies used to convert wind energy into electricity. Wind energy is a renewable energy source that produces power from the Earth’s atmosphere and has a lower environmental impact than fossil fuel.
Wind energy is increasing by 10 and is an important component of climate cane mitigation and sustainable growth plans in nations like India, Canada, Germany, and the U.S. The sun’s heat naturally produces it, changes in the earth’s surface and the planet’s rotations. Wind energy is classified into two types: utility-scale wind projects, which account for 84 of total energy production in the United States, and offshore wind energy, which provides electricity near major cities.
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Regional Outlook
Asia-Pacific occupied more than 43% of the market share in 2023.
The Asia-Pacific wind power industry has grown due to favorable government regulations, greater investment in wind power projects, and lower wind energy prices. This has resulted in greater wind energy adoption, which has a favorable effect on demand. However, the growing use of other energy sources, such as gas and solar power, may limit market development. Technological improvements and lower offshore wind turbine production costs are likely to generate possibilities for market participants. China controls the market, making it an attractive investment destination.
North America is expected to be the most opportunistic because of favorable government regulations, more investment in wind energy projects, and lower prices. As governments become increasingly worried about climate change, wind power is likely to gain market share in the area.
However, the growing use of alternative energy sources, such as gas-powered and solar power, may limit market development. Technological developments and lower manufacturing costs of offshore wind turbines give a chance to market players, with projects offering considerable prospects. The United States is predicted to be the largest market throughout the projection period.
- For instance, in July 2024, Adani Green Energy’s shares increased by about 2% following the successful completion of a 250 MW wind power project in Khavda, Kutch, Gujarat. Adani Renewable Energy Forty-One Ltd, a subsidiary, operates India’s largest and one of the world’s most powerful onshore wind turbines, each having a capacity of 5.2 MW.
Wind Energy Market Top Companies
- Vestas
- Goldwind
- Dongfang Electric Corporation
- Ming Yang Smart Energy Group Co.
- Sinovel
- GE Renewable
- ENERCON GmbH
- Nordex SE
- Suzlon Group
- Siemens Gamesa Renewable Energy S.A.
Recent Developments:
- In July 2024, China is utilizing its large offshore wind energy potential, notably in floating wind power projects, to offset the depletion of shallow sea resources since deep-sea potential is three times bigger than near-shore locations.
- In July 2024, According to Inox Wind, a local OEM, long-term asset owners and corporations in India avoid dealing with Chinese wind turbines. The firm has had a great year, with India’s largest single turbine deal, a 1.5GW order for its 3.3MW turbines, boosting its stock price.
- In July 2024, Plenitude completed a 39 MW onshore wind farm in Calabria, Italy, using nine sophisticated turbines. The facility will create 84 GWh of power each year, enough for more than 30,000 families. This addition to Plenitude’s renewable energy plant portfolio in Italy expands the company’s current 1GW capacity.
Market Scope
| Report Coverage | Details |
| Market Size in 2023 | USD 89.60 Billion |
| Market Size in 2024 | USD 98.74 Billion |
| Market Size by 2034 | USD 260.81 Billion |
| Growth Rate from 2024 to 2034 | CAGR of 10.2% |
| Largest Market | Asia Pacific |
| Fastest Growing Market | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | Location, Application, and Component |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Wind Energy Market Segments Outlook
Location Outlook
The offshore segment dominated the wind energy market in 2023. Offshore wind energy is a more effective way to generate power from wind blowing across the sea because of higher wind speeds, more consistency, and less physical interference from land or man-made things. Offshore wind turbines need fewer turbines to generate the same amount of electricity as onshore wind farms since they are further distant from the local population and may safeguard maritime environments.
Furthermore, offshore wind farms provide additional development areas since seas are ideal locations for large-scale, open-air wind farms, resulting in more clean, sustainable energy generation.
For instance, in July 2024, RWE and TotalEnergies teamed to build the OranjeWind offshore wind project in the Netherlands, which has a 795 MW installed capacity. The initiative intends to combine intermittent wind power supply with flexible energy consumption, hence improving grid stability.
The onshore segment is estimated to be the most opportunistic segment during the forecast period. Wind turbines produce onshore wind energy on land, which is powered by air movement. These farms are often situated in less densely inhabited regions, making farming simpler. Onshore wind generation provides various advantages, including lower environmental impact, cost-effectiveness, faster construction and maintenance, and job development. It is one of the least expensive kinds of renewable energy, along with solar PV, and can assist in reducing power bills. Furthermore, onshore wind farms may be built rapidly and on a large scale, making maintenance costs low.
Application Outlook
The utility segment dominated the global wind energy market in 2023. Utility-scale Wind energy is a complex ecosystem that includes wind farms, transmission lines, stakeholders, and government legislation. Wind farms are enormous wind turbine installations that are carefully placed in areas with the best wind conditions, which are generally remote or offshore. Transporting produced power requires extensive transmission lines and substations. Stakeholders include developers, investors, regulators, and customers, all of whom play critical roles in the development, deployment, and use of wind energy.
- In July 2024, Mississippi’s first utility-scale wind farm, Delta Wind, contains the tallest onshore turbines in the United States. Despite initial doubts about viability, the project, which generated 184.5 megawatts of wind energy, would deliver clean, inexpensive power to 80,000 Mississippi homes each year.
Wind Energy Market Dynamics
Driver
Environmental benefits
Wind energy has various environmental benefits, including lowering carbon emissions, substituting fossil fuel electricity, and swiftly recouping energy spent on manufacturing and constructing turbines, boosting the growth of the wind energy market. It is a clean energy source that emits no pollutants or trash during operation.
Wind energy has global and national environmental advantages, as well as local consequences. In a favorable location, the energy needed to make and erect wind turbines can be repaid within six to eight months.
Restraint
Increasing material prices
Commodity inputs like copper, steel, and freight have a significant impact on wind project costs. Post-Covid supply chain concerns have raised input prices, worsened by legislative actions directed at renewable energy development. Although supply chain and cost inflation difficulties have subsided in 2023, expenses are still considerably higher than pre-Covid levels.
Orsted, for example, highlighted material supply chain concerns while abandoning previous wind projects and withdrawing from a Norwegian offshore wind partnership. The COVID-19 epidemic, supply chain instability, and the Ukraine war have disrupted global commodities markets, resulting in a 60% rise in earnings for commodity dealers to $115 billion in 2022. However, this has resulted in a 38% rise in wind turbine costs over the past two years.
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Opportunity
Utility-scale wind turbine research with NWTC
The National Renewable Energy Laboratory’s National Wind Technology Center (NWTC) has played a key role in developing wind turbine components, systems, and modeling approaches, resulting in industry acceleration. The NWTC provides several test locations, dynamometers, onsite manufacturing tools, and structural validation capabilities. It complements the Department of Energy’s Atmosphere to Electrons effort, which aims to cut wind energy costs by better understanding difficult physics.
NWTC’s innovative research opens great opportunities for the wind energy market, which includes establishing the Simulator for Wind Farm Applications, employing a programmable grid interface test system to minimize certification testing times and costs, and researching offshore wind energy to better understand industry demands and implications.
