Wind power plants are installed in onshore and offshore sites across the globe. Turbine blades around the rotor generate electricity in the wind power plant. Rise in government initiatives and collaboration between government and private bodies are expected to raise the wind power installation capacity in the coming years. For instance, the Global Offshore Wind Alliance (GOWA) was formed by the Government of Denmark, the International Renewable Energy Agency (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 are constantly focusing on increasing offshore wind capacity, promoting investment and increasing wind power generation targets in developed and developing markets worldwide.
Government policies and international commitments to reduce carbon emissions and combat climate change are also driving the requirement for renewable energy sources such as wind power installations. 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 resources, 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 turbine rotor blades.
Growing power consumption coupled with significant efforts to minimize carbon footprint
The increase in power consumption is the most prominent trend followed in developing economies. The surge in power demand is primarily attributed to an increase in population, growth prospects in industrialization, and a significant rise in urbanization. The global electricity demand increased in 2021 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 to keep the emissions level at its minimal is accelerating the demand for generating power, thereby driving the wind power installation market growth. After the small drop in 2020, 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 the IEA, total thermal electricity generation increased by almost 6% (980 TWh) in 2021.
In 2021, the demand for electricity increased by 8% compared to 2% in 2020, driven by China and India (both up ~10%); despite a diversifying generation mix, China’s electricity system remains largely coal-dominated. In 2021, coal made up 64% of power generation, followed by hydropower, wind, and nuclear, which accounted for 6%, 7% and 5% respectively. Further, increasing electricity demand has put high 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 taking several initiatives to fulfill the growing demand for renewable energy sources, helping the market to grow and mitigate carbon emissions.
Wind Power Installation Market Analysis: Deployment Type Overview
Based on deployment type, the global wind power installation market is bifurcated into onshore and offshore. The onshore segment accounted for 79.53% wind power installation market share in 2022 and is expected to grow at a CAGR of 11.0% during the wind power installation market 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 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 onshore is significantly cheaper than that in offshore turbines. 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. It is driving the global energy transition, which is further accelerating the wind power installation market growth.
Wind Power Installation Market Analysis: Power Capacity Overview
Based on power capacity, the global wind power installation market is categorized into Less than 10 MW and Above 10 MW. The Above 10 MW segment accounted for 98.7% of the overall wind power installation market share in 2022 and is expected to maintain its dominance from 2022 to 2030. Factors such as increasing focus on promoting renewable energy sources to reduce greenhouse emissions and rising demand for clean energy are the major market trends for the wind power installation market. For instance, in 2023, the Indian Ministry of New and Renewable Energy announced a new auction process for wind power generation plants. Under a new auction mechanism, the government will invite bids for 8 GW wind power projects per year from 2023 to 2030 to boost the renewable energy sector. At the United Nations Biodiversity Conference 2023, the Chinese government announced plans to build 400 GW of wind and solar energy plants. Further, in 2023, the UAE opened its first commercial 104 MW wind project. Such government initiatives and investments drive the wind energy industry, thereby fueling the wind power installation market
Wind Power Installation Market: Competitive Landscape and Key Developments
Siemens Gamesa Renewable Energy SA, General Electric, Mitsubishi Heavy Industries, Vestas Wind Systems, Senvion SA, Wind World Limited, Indowind, DNV GL, Goldwind, and Bergey Wind Power are among the key wind power installation market players profiled during this market study. In addition, several other important wind power installation market players have also been studied and analyzed during the study to get a holistic view of the wind power installation market and its ecosystem.
| Year | News | Country |
| 2022 | Siemens Gamesa and Eurowind Energy have partnered to install a wind project in Romania after ten years. The project is expected to be installed in late 2024 and will use eight SG 6.6–170 turbines. | Europe |
| 2022 | GE and HSM Offshore Energy partnered to build AC offshore wind substation projects across Europe. | Europe |