The wind turbine tower sector was valued at approximately US$ 8,912.1 million in 2022 and is anticipated to grow to US$ 16,438.5 million by 2030, reflecting a compound annual growth rate (CAGR) of 8% from 2022 to 2030.
Technological Innovations Driving Growth in the Wind Turbine Tower Market
Advancements in technology related to wind energy are expected to significantly lower operational costs in the near future. Specifically, the production of taller wind turbine towers can harness greater wind energy potential. At elevated heights, wind speeds tend to be stronger, often surpassing the capabilities of traditional turbines. An increase in tower height by an average of 17 meters can provide the necessary clearance for longer blades to capture these high-altitude winds. Furthermore, utilizing concrete structures for offshore wind turbines offers numerous benefits over traditional steel-only towers, including enhanced durability and a longer operational lifespan. The trend towards taller and concrete-based turbine towers is likely to play a crucial role in the future of the wind turbine tower market.
Onshore wind farms currently hold a significant share of the wind turbine tower market due to their relatively low maintenance costs and operational efficiency. However, many nations are implementing strategies to expand their offshore wind farm capacities. Despite this, the lack of adequate infrastructure and the high costs associated with maintenance hinder the growth of offshore wind farms, particularly in developing regions.
The Asia Pacific region is at the forefront of the wind turbine tower market, driven by an increasing commitment to integrating renewable energy sources into the energy mix and addressing the environmental impacts of fossil fuel consumption. China stands out as a leader in both onshore and offshore wind installations globally. Additionally, the focus of turbine tower manufacturers on enhancing the supply chain ecosystem is a significant factor propelling the overall growth of the wind turbine tower market. The positive shift towards promoting clean energy resources over traditional power generation methods, supported by funding for renewable projects, subsidies, and favorable policies, is further stimulating the demand for wind turbine towers in countries like India and Australia.
The growing concerns regarding global warming and climate change have heightened awareness around the need for sustainable products. This demand for clean and sustainable energy sources is expected to drive the wind energy sector, consequently expanding the wind turbine tower market in the years ahead. Factors such as decreasing costs associated with wind power generation, rising awareness of environmental pollution, and government initiatives aimed at enhancing wind capacity through financial incentives are projected to contribute to market growth. In 2022 alone, Europe added 16.7 GW of new onshore wind capacity.
Key players in Europe include Germany, France, Italy, Russia, and the UK, with Germany leading in installed wind capacity, followed by Spain, France, Sweden, and the UK.
Other European nations such as Poland, Denmark, Italy, the Netherlands, Portugal, and Belgium are also making significant strides in wind energy development. According to the National Wind Energy Association (ANEV), Europe is expected to install an additional 116 GW of wind power capacity by 2026. This substantial potential for wind energy in Europe is likely to further stimulate the wind turbine tower market during the forecast period.
Major manufacturers in the wind turbine tower industry include Vestas Wind Systems AS, Siemens Gamesa Renewable Energy SA, GRI Renewable Industries SL, LM Wind Power AS, ZF Friedrichshafen AG, and Flender International GmbH. These companies are actively engaged in developing environmentally friendly components to reduce pollution levels. For example, in 2023, Siemens Gamesa launched the GreenerTower, a wind turbine tower made from sustainable steel, comprising approximately 80% steel plates. This innovative tower is expected to achieve a 63% reduction in CO2 emissions from the steel plates compared to traditional steel. Such advancements from manufacturers are anticipated to significantly boost the growth of the wind turbine tower market in the coming years.
In addition to the aforementioned companies, other notable players in the wind turbine tower market include KGW, DONGKUKS&C, CS Wind Corporation, Valmont Industries Inc, Broadwind Energy, Arcosa Wind Towers Inc, Marmen Inc, and Nordex Group. A comprehensive analysis of these and other key market participants has been conducted to provide a well-rounded perspective on the wind turbine tower market and its ecosystem.