Wind Energy Market Key Findings, Size, and Share 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: Strategic Insights
Market Size Value in US$ 156.8 Billion in 2021 Market Size Value by US$ 220.7 Billion by 2028 Growth rate CAGR of 5.0% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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Wind Energy Market: Strategic Insights
| Market Size Value in | US$ 156.8 Billion in 2021 |
| Market Size Value by | US$ 220.7 Billion by 2028 |
| Growth rate | CAGR of 5.0% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Capacity, and Installation
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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