Wind Energy Market Research Report and Outlook by 2028

In 2022, the wind energy sector was valued at approximately US$ 85,375.22 million, with projections indicating it will reach around US$ 136,544.05 million by 2028. This growth represents a compound annual growth rate (CAGR) of 8.1% from 2022 to 2028.

The Asia Pacific region is witnessing remarkable expansion in its wind energy market, primarily fueled by heightened investments in renewable energy, industrial growth, the expansion of wind energy generation capacity, electrification initiatives, and efforts to strengthen the grid. According to Wood Mackenzie, China is set to lead the region by adding 93 GW of offshore wind power capacity from 2021 to 2030. The APAC region is expected to play a crucial role in renewable energy production, with wind energy anticipated to account for about 25% of the region's power capacity mix in the near future. Additionally, Wood Mackenzie forecasts that countries such as Taiwan, Japan, South Korea, Vietnam, and India will emerge as significant players in the global offshore wind market, collectively contributing 29 GW of new wind capacity from 2021 to 2030. Furthermore, the APAC region is projected to add 122 GW of new wind capacity by 2030, surpassing the expected capacity growth in both Europe and the United States during the same timeframe.

Floating wind technology, which involves placing offshore wind turbines on floating platforms, allows for energy generation in deeper waters. This cutting-edge technology is known for its high efficiency, even under challenging environmental conditions, and is capable of producing substantial energy. Countries such as Germany, France, Japan, the UK, Belgium, Denmark, and China have widely adopted floating wind technology. The growth potential of this technology is largely driven by ongoing technological advancements and comprehensive solutions provided by various service providers. As nations increasingly focus on meeting clean energy targets, the advantages of floating offshore wind power are becoming more recognized, presenting a significant opportunity for the expansion of the wind energy market.

A report from the Floating Offshore Wind Centre of Excellence has identified 22 countries as being particularly well-positioned to become leaders in renewable energy technology development. In January 2022, the UK government announced 11 renewable energy projects, each receiving investments of up to US$ 959.23 million and a total funding of US$ 2.97 billion to enhance renewable energy production within the country. Additionally, in April 2022, Equinor appointed Technip Energies to perform the front-end engineering design (FEED) for the Firefly project, a floating wind initiative located off the East Coast of South Korea.

In developing economies, a notable trend is the increase in power consumption, driven by factors such as population growth, industrialization, and urbanization. The global demand for electricity surged in 2021, attributed to a growing population, which resulted in soaring energy prices and unprecedented emissions from the power sector. The rising power consumption necessitates increased energy generation while minimizing emissions, leading to a heightened demand for power generation solutions. Following a slight decline in 2020, global electricity demand rebounded by approximately 6% in 2021.

The electricity markets in 2021 experienced significant growth in demand, unfavorable conditions for renewable energy, and escalating gas prices. The IEA's Electricity Market Report indicated that thermal electricity generation would rise by about 6% (980 TWh) in 2021. This increase in electricity demand was primarily driven by China and India, both of which experienced growth rates of around 10% after a low growth rate of 2% in 2020. Despite efforts to diversify its energy generation mix, China's electricity system remains heavily dependent on coal, which constituted 64% of its power generation in 2021. The remaining generation sources included hydropower (16%), wind (7%), and nuclear (5%). Consequently, the rising demand for electricity from coal-fired plants places significant pressure on power producers to meet this demand, raising environmental concerns due to emissions.

The wind energy market analysis includes key players such as Alpha ESS Co., Ltd.; BYD Motors Inc.; HagerEnergy GmbH; ENERSYS; Kokam; Leclanch? SA; LG Electronics; SimpliPhi Power; sonnen GmbH; and SAMSUNG SDI CO., LTD. The wind energy market report offers comprehensive insights that assist these key players in strategizing for future growth.

The expansion of the wind energy market is bolstered by increasing investments in existing wind farms, which enhance wind energy generation capacity. A prime example is the Dulacca Wind Farm, one of the largest wind energy construction projects in the Asia Pacific region. This project involves the establishment of a 180 MW wind farm and has attracted an investment of US$ 328 million, with construction expected to be completed by Q3 2023. Such developments are anticipated to significantly contribute to the growth of the wind energy market in the upcoming years.

The wind energy market is segmented into two main categories: capacity and installation. In terms of capacity, the market is divided into four sub-segments: up to 1 MW, 1-3 MW, 3-5 MW, and above 5 MW. Regarding installation, the wind energy market is classified into two categories: onshore and offshore.

Geographically, the wind energy market is divided into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2021, the APAC region held the largest share of the wind energy market, followed by North America. Furthermore, Europe is expected to exhibit the highest CAGR in the wind energy market from 2022 to 2028.