The global wind power market is growing rapidly. This expansion of the market is attributed to several key factors, including the widespread deployment of wind power projects, decreasing wind turbine costs, government policies aimed at achieving emission reduction targets and enhancing energy security, and a surge in investments in the wind energy market.
However, the time-consuming permitting process, environmental concerns, and grid infrastructure constraints are some of the major restraints on global wind power market growth.
In 2022, the global wind energy sector saw an increase of 75 GW in installed capacity, comprising 12 GW in offshore wind power and 63 GW in onshore installations. While this figure represents a 17% decrease compared to the previous year, it stands as the third-highest year in history for wind capacity additions.
Regarding wind power generation, the year 2022 witnessed a remarkable increase in wind electricity generation, with a record-breaking growth of 265 terawatt-hours (TWh), marking a 14% rise. This boost propelled wind energy production to surpass 2,100 TWh, securing its position as the second-highest growing renewable power technology, following closely behind solar photovoltaics (PV).
Policy support by governments around the world continues to be the main driver of global wind power market. A wide range of policy mechanisms are propelling capacity growth, encompassing auctions, feed-in tariffs, contracts for difference, and renewable energy portfolio standards.
For instance, in August 2022, the U.S. federal government unveiled the Inflation Reduction Act (IRA), a comprehensive initiative that substantially augments support for renewable energy sources over the next decade. This support is achieved through a combination of tax credits and various other measures.
The IRA has new advanced manufacturing production credits for companies that domestically manufacture and sell clean energy equipment in the United States between December 31, 2022, and December 31, 2032.
Similarly, in October 2023, the European Commission unveiled the European Wind Power Action Plan, designed to align the clean energy transition with industrial competitiveness. This comprehensive plan outlines immediate collaborative actions to be taken by the Commission, Member States, and the industry. It builds upon existing policies and legislation and centers on six primary focus areas.
One of the key focal points is the acceleration of deployment through enhanced predictability and streamlined permitting procedures. To facilitate this, the Commission is initiating the "Accele-RES" program in partnership with Member States. This initiative aims to expedite the implementation of revised EU renewable energy regulations, with an emphasis on digitalizing permitting processes and providing technical support to Member States.
The Asia-Pacific wind power market is currently dominating the global market, primarily due to China. Following the establishment of a local wind supply chain between 2008 and 2010, China has not only risen to prominence as the world's leading wind turbine manufacturing hub but has also become the largest production center for critical components and raw materials in the wind energy industry.
China also remains at the forefront in terms of wind capacity growth, having added an impressive 37 GW in 2022, which includes 7 GW from offshore farms. The unveiling of the 14th Five-Year Plan for Renewable Energy in 2022 sets forth ambitious objectives for the deployment of renewables by 2025, including an 18% target for wind and solar technologies. These targets are expected to propel even more significant advancements in the years ahead.
India has also gained a prominent position in the global wind supply chain.
In response to the energy crisis, the European Union is ramping up its wind deployment efforts, achieving a remarkable addition of 13 GW in 2022. The proposed policies and targets outlined in the REPowerEU Plan and the Green Deal Industrial Plan are poised to play pivotal roles in stimulating investments in wind power.
In 2022, the United Kingdom made substantial strides in offshore wind energy by installing nearly 3 GW of capacity. Notably, this achievement surpasses the combined offshore wind capacity additions of the entire world, excluding China.
In the North American region, the United States is leading the market with the addition of 7.8 GW of wind power capacity. This was due to the inclusion of generous new funding for wind power in the Inflation Reduction Act (IRA), introduced in 2022. Investment and production tax credits are expected to boost capacity deployment during the forecast period.
In the wake of the COVID-19 pandemic, European and American turbine Original Equipment Manufacturers (OEMs) made strategic decisions to diversify their supply chains, with the aim of ensuring a secure and reliable source of supply.
The Onshore wind segment continues to lead the wind capacity addition growth. However, the offshore segment is increasing its share. By the end of 2022, globally, 93% of the total installed wind power capacity was in the onshore segment, and the remaining 7% was in the offshore segment.
Onshore wind technology is well-established, with a presence in 115 countries globally. In contrast, offshore wind is still in its early stages of expansion and is currently operational in just 20 countries. However, the offshore reach is expected to grow in the forthcoming years as more nations are in the process of developing or planning their inaugural offshore wind farms.
Blackridge Research's global wind power market report provides insights into the current global and regional market demand scenario and its outlook.
The new report from Blackridge Research on the global wind power market provides comprehensive qualitative and quantitative analyses along with a deep insight into the current and future of the market.
(You can access a comprehensive list of both existing and upcoming wind energy projects, along with their current status, through our extensive Global Wind Projects Database.)
The study covers all the major underlying market dynamics that help the market develop and grow, as well as the factors that constrain global market growth.
The report includes a meticulous analysis of each factor, explaining the relevant, qualitative information with supporting data.
Each factor's respective impact in the near, medium, and long term will be covered using Harvey balls for visual communication of qualitative information and will function as a guide for you to analyze the degree of impact.
This report discusses the market overview, the latest updates, important commercial developments and structural trends, and government policies and regulations.
The report provides the global wind power market size and demand forecast until 2028, including year-on-year (YoY) growth rates and CAGR.
The report examines the critical elements of the wind energy industry supply chain, its structure, and the participants.
Using Porter's five forces framework, the report covers an assessment of the wind power industry's state of competition and profitability.
The report dissects the global wind energy market into various segments based on type (onshore wind, and offshore wind). A detailed summary of the current scenario, recent developments, and market outlook will be provided for each market segment.
Further, wind power market share, size, and demand forecasts will be presented, along with various drivers and barriers for individual market segments.
Effective market segmentation enables you to identify emerging trends and opportunities for long-term growth. Contact us for "bespoke" market segmentation to better align the research report with your requirements.
The report covers detailed profiles of major regions across the world. Each region's analysis covers the current market scenario, market drivers, government policies & regulations, and market outlook.
In addition, market size, demand forecasts, and growth rates will be provided for all regions. The region is segmented geographically into North America, Europe, Asia-Pacific, and the rest of the world (South America, the Middle East, and Africa).
This report presents detailed profiles of key companies in the wind power industry, such as NextEra Energy Inc., Iberdrola SA, Ørsted A/S, Enel SpA, Vestas Wind Systems A/S, Siemens Gamesa Renewable Energy SA, GE Renewable Energy, Nordex Acciona, Envision Energy, etc. In general, each company profile includes an overview of the company, relevant products and services, a financial overview, and recent developments.
The report provides a comprehensive list of notable companies in the market, including mergers and acquisitions (M&As), joint ventures (JVs), partnerships, collaborations, and other business agreements.
The study also discusses the strategies adopted by leading players in the industry.
The Executive Summary will be jam-packed with charts, infographics, and forecasts. This chapter summarizes the findings of the report crisply and clearly.
The report begins with an executive summary chapter and ends with conclusions and recommendations.
Also, check out our other reports:
1. Executive Summary
2. Research Scope and Methodology
3. Market Analysis
4. Industry Analysis
5. Market Segmentation & Forecast
6. Regional Market Analysis
7. Key Company Profiles
8. Competitive Landscape
9. Conclusions and Recommendations
List of Tables & Figures
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