The wind power generation market involves the generation of wind power from onshore and offshore sites across the globe. Turbine blades around the rotor generate electricity in the wind power plant. Rising government initiatives and collaboration between government and private bodies are expected to surge the demand for wind power generation in the coming years. For instance, the Global Offshore Wind Alliance (GOWA) was formed by the Government of Denmark, the IRENA, and the Global Wind Energy Council in 2022. GOWA aims to contribute toward achieving an offshore wind capacity of ~380 GW by 2030 and 2,000 GW by 2050. Thus, governments and international associations have completely woken up the possibilities that offshore wind industry can grow significantly, making offshore wind a globally interesting topic for investment and increasing ambition in developed and developing markets worldwide.
Government policies and international commitments to reduce carbon emissions and combat climate change are also driving the need for power generation from renewable energy sources such as wind power. Various countries have set ambitious renewable energy targets, creating a strong market incentive for wind power installation. For instance, in September 2023, the US Department of Energy unveiled the Tribal Nation Technical Assistance Program for Offshore Wind Transmission. This initiative is designed to provide education and training to resources or employees, responding directly to input from Tribal communities. The program’s overarching goal is to propel the development of equitable and sustainable offshore wind energy in the US, emphasizing domestic manufacturing and effective grid integration. It is part of a broader set of initiatives within the Biden-Harris administration to achieve the deployment of 30 gigawatts (GW) of offshore wind by 2030 while concurrently paving the way for the potential expansion to 110 GW or more by 2050. Offshore wind projects supported by this program require grid integration to transport the generated electricity to onshore locations. This grid integration includes the use of high-capacity transmission lines, which can boost the demand for wind power generation in the coming years.
Growing Power Consumption Coupled with Significant Efforts to Minimize Carbon Footprint
The surge in power demand in developing economies is primarily attributed to an increase in population, growth prospects in industrialization, and a significant increase in urbanization. The global electricity demand increased in 2022 owing to a rapid economic rebound and more extreme weather conditions, which have pushed energy prices to unprecedented levels and driven the power sector’s emissions to a record high level. The growing consumption of power and the need to harness more power keeps the emissions level at its minimum which is further accelerating the demand for generating power. After the small drop in 2020, the global electricity demand grew by ~6% in 2021. The year 2021 was exceptional for electricity markets due to the strong growth in electricity demand, unfavorable renewable conditions, and increasing gas prices. As per the Electricity Market Report published by International Energy Agency (IEA), total wind electricity generation increased by almost more than 13% (1838.664 TWh) in 2021.
The increasing electricity demand has put pressure on power producers to cater to the ongoing demand from coal-fired plants, which is eventually hampering the environment by producing emissions. Thus, government bodies are strictly focusing on the growing demand for renewable energy sources. Thus, such a growing demand for electricity is a key trending factor serving both objectives of generating renewable energy and mitigating carbon footprints.
Wind Power Generation Market Analysis: Deployment Type Overview
Based on deployment type, the wind power generation market is segmented into onshore and offshore. The onshore segment accounted for 80.94% of the wind power generation market share in 2022 and is expected to grow at a CAGR of 8.2% during the forecast period.
Onshore wind energy is the power generated by wind turbines located on land driven by the natural movement of the air. The onshore wind is the wind that blows from the sea toward the land. Since onshore wind energy has been in use for the longest time, it is most widely adopted across the globe. In terms of cost, the infrastructure necessary for electricity transmission in onshore is significantly cheaper than that in offshore. Due to the affordable cost, offering the power to the consumers is also cheap, which makes it a more popular source of renewable power. It also has minimal maintenance costs. Onshore wind energy offers one of the most economical sources of electricity in most countries across the world. Thus, all these factors accelerate the wind power generation market growth.
Wind power generation market Analysis: End User Overview
By end user, the global wind power generation market is segmented into residential, commercial, and industrial. The industrial segment accounted for 44.3% of the overall wind power generation market share in the year 2022 and is expected to maintain its dominance from 2022 to 2030. This is due to the rise in demand for electricity from industrial customers in countries such as the US, China, India, Brazil, Japan, and Russia. Rapid economic growth and industrial development in advanced economies, particularly in North America, Europe, Japan, and Australia, have spurred offshore wind power installations until now. This is further expected to be driven by emerging countries such as China, India, Brazil, Turkey, and Canada from 2022 to 2030.
Given falling renewable energy costs and technological innovation, the electrifying industry can make the electric grid more reliable by adding new clean energy generation. This will also provide flexible services to smooth out fluctuating renewable energy production and demand peaks. Hence, the rise in demand for clean power generation from industrial consumers across the globe, together with carbon emission reduction targets by industries, is further anticipated to favor the wind power generation market.
Wind Power Generation Market Analysis: Power Capacity Overview
Wind power generation market: Competitive Landscape and Key Developments
Year | News | Country |
2024 | Optate Africa, a Zimbabwean company, is expected to establish a 200 MW wind power plant in Mayobodo, Mangwe, in Zimbabwe for Plumtree. This project will offer efficient electricity supply to residents and reduce GHG emissions in the country. | Africa |
2022 | GE Vernova announced 2.4 GW for Pattern Energy’s SunZia Wind project in New Mexico. This will help in increasing wind power generation in the region. | North America |