The global vertical axis wind turbine market is expected to grow at a CAGR of close to 15% during the period 2018-2022, according to a new market research study by Technavio.

The report presents a comprehensive research of the global vertical axis wind turbine market by product (darrieus type and savonius type) and by end-user (non-residential and residential). The report also determines the geographic breakdown of the market in terms of detailed analysis and impact, which includes key geographies such as APAC, the Americas, and EMEA.

Market driver: rising investments in renewable energy

A positive consequence of reduced carbon emissions is the growth in the clean energy technology. The transition from fossil fuels and conventional sources of energy to renewable sources such as wind and solar is the key to achieve social, economic, and environmental development. In 2016, it was estimated that the global investments in renewable energy were over USD 300 billion. But, the investment was lower than 2015 due to the reduced cost of components required for the installation of renewable systems. With the advances in renewable technology, the overall capital expenditure required per MW of power generation reduces.

Market trend: adoption of hybrid street lighting system

Street lighting is provided by local power utilities, and a considerable amount of money is being spent to light up streets and public places to ensure visibility during the night and keep pedestrians safe. This has been leading to increased energy bills for the local municipalities, which use off-grid systems. A standalone renewable system from a single source of renewable is insufficient because of the intermittent nature of the energy source.

According to a senior analyst at Technavio for power research, "To harness renewable power from the locally available resources, renewable sources are being used with fossil fuel generators or other renewables to provide stable, reliable, and consistent power. Solar-wind hybrid streetlight is a small scale, intelligent, and off-grid LED street light system. In a solar-wind street light, the battery would be charged by solar during the day to provide power during the night, and the wind power will charge the battery during the night when the solar energy is not present."

Market challenge: competition from alternate sources of energy

Wind energy has been facing competition from other sources of energy such as fossil fuels, solar, and hydropower. Though the installation of wind energy systems costs lesser than solar PV systems, the competition in emerging markets such as Chile and Mexico is high. Furthermore, in windy places such as Argentina, the prices of solar PV have reduced significantly enough to compete with wind energy prices.

Technavio | www.technavio.com