Wind Turbine Components Market Research Report and Outlook by 2028

The market for wind turbine components is projected to reach approximately US$ 152,019.92 million by 2028, with an anticipated compound annual growth rate (CAGR) of 4.2% from 2022 to 2028.

The rising demand for sustainable energy sources aimed at reducing greenhouse gas emissions, decreasing reliance on imported fuels, and diversifying energy supplies is driving significant government investments in wind farm development worldwide. In 2021, around ten major wind farm projects were completed in the United States, including notable projects such as the Texas Gulf Wind Repower, Las Majadas Wind Project, Milligan I Wind Project, Deuel Harvest Wind Farm, Frontier Windpower II Project, Isabella Wind Project, Jordan Creek Wind Farm, and Maverick Creek Wind Project. This surge in activity has significantly contributed to the expansion of the wind turbine components market in North America during 2021.

In the United Kingdom, wind energy has emerged as one of the primary sources of renewable electricity, with expectations for further growth in the coming years. Data from the Office for National Statistics indicates that electricity generation from wind power surged by 715% from 2009 to 2020. The National Grid reported that 2020 was the greenest year on record for Britain, marked by high levels of wind energy generation. Additionally, numerous new wind farm projects are underway in the UK to enhance wind energy production. For example, in September 2022, Danish energy company Orsted announced the operational launch of Hornsea 2, the largest offshore wind farm globally, featuring 165 turbines capable of supplying power to over 1.4 million homes in the UK. This development is anticipated to create new growth opportunities for the wind turbine components market throughout the forecast period.

Moreover, the Global Wind Energy Council is actively pursuing a net-zero emissions target by 2050. The international offshore wind market has expanded from 2.2 GW in 2016 to 6.1 GW in 2020, driven by new installations and advancements in countries like China and the United States. The Global Wind Energy Council has also provided insights into wind power capacity by region for 2020:

Source: Global Wind Energy Council

To meet the Net Zero Emissions goal by 2050, substantial investments are being made globally for the construction and expansion of wind farms. As investments in wind energy increase, the demand for various wind turbine components?including rotor blades, nacelles, gearboxes, generators, towers, and pitch systems?is also rising, thereby propelling the growth of the wind turbine components market.

Impact of the COVID-19 Pandemic on the Wind Turbine Components Market

Despite facing challenges related to raw material procurement and transportation during the fiscal year 2020 due to the COVID-19 pandemic, the demand for wind turbine component installations experienced robust growth. Many commercial sectors were temporarily closed in 2020, yet governments worldwide did not halt installation projects. Vendors and governments collaborated to ensure the continuation of wind turbine installations across various wind farms, which contributed to the growth of the wind turbine components market during FY 2020. However, as COVID-19 restrictions began to ease, the growth of wind turbine installations saw a decline in 2021 compared to 2020, primarily due to production disruptions and negative impacts from suppliers, which adversely affected the wind turbine components market growth in 2020.

In Europe, Germany maintains the largest installed wind capacity, followed by Spain, the UK, France, and Sweden. Additionally, several other European nations, including Italy, Poland, Denmark, the Netherlands, Portugal, and Belgium, each boast over 5 GW of installed wind capacity. According to a report by WindEurope, Europe is projected to install 116 GW of new wind farms from 2022 to 2026, with three-quarters of this new capacity expected to come from onshore wind projects. Similarly, the National Wind Energy Association (ANEV) anticipates that Europe will add 116 GW of new wind power capacity by 2026, averaging 23.1 GW annually. This substantial wind energy potential in European countries is likely to enhance the market share of wind turbine components in the region during the forecast period.

Furthermore, the UK government has initiated a Green Energy Revolution, emphasizing the development of offshore wind power. As part of this initiative, six new offshore wind projects in England and Wales are slated for construction to advance the country's offshore wind capabilities. In early 2021, the UK's Crown Estate approved six fixed offshore wind projects with a combined capacity of approximately 8 GW. Additionally, in July 2022, the German Parliament enacted a new Onshore Wind Law aimed at expanding onshore wind capacity by an impressive 10 GW annually starting in 2025. Such initiatives are significantly boosting the wind turbine components market across Europe. Consequently, a favorable policy environment, expedited project approvals, and increased investments from the European Commission are key factors driving the growth of the wind turbine components market through the establishment of new wind farms.

The overall size of the wind turbine components market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the wind turbine components market size. This approach also aimed to provide an overview and forecast of the market size across all segments. Additionally, multiple primary interviews were conducted with industry stakeholders to validate the data and gain further analytical insights. Participants in this process typically included VPs, business development managers, market intelligence managers for wind turbine components, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the wind turbine components market.