A growing focus on reducing the global carbon footprint coupled with rising investments and research in wind energy projects will drive wind turbine market growth. According to the EU's 2030 climate & energy framework, the renewable energy target in the region alone is expected to reach at least 32% by 2030, compared to prior set targets of 27%.
Growing investments in R&D and rising acceptance of large-capacity projects will extensively influence industry growth. In 2019, GE Renewable Energy bagged two major deals to supply wind turbines and other equipment in Turkey, for a 138 MW and a 158 MW project. Additionally, the company has decided to invest around US $30 million by the end of 2019 to expand its facility and recruit 300 new employees.
A 2018 wind turbine market report by Global Market Insights, Inc. shows industry revenue is set to rise from USD 50 billion in 2017 to around USD 80 billion by 2024.
Rising awareness regarding the usage of renewable energy and increasing wind energy capacity worldwide will accelerate wind turbine industry size. Rapid deployment of new wind farm projects will complement market outlook. According to the International Energy Agency (IEA), since 2016, the U.S. has installed 22.6GW of new onshore wind capacity, with EU at 30.7GW and China with 50.3GW.
Players operating in the wind turbine industry have been receiving major orders lately that are likely to augment the market trends. For instance, in 2019, European wind turbine maker, Nordex received a large order for 56 new wind turbines of its Delta4000 series along with a two-years' service contract for a project in the U.S., scheduled to start in summer 2020. The company also generated revenues worth EUR 2.5 billion in 2018.
Growing demand for myriad wind turbines with advanced features like smart sensors and internet connectively as well as compatibility to adverse environmental conditions and cold temperatures across regions like Europe and North America will complement the market share.
The offshore wind turbine market size is estimated to surpass USD 16 Billion by 2024. Features like higher efficiency, steady power output compared to onshore turbines and cost-effectiveness will complement the industry outlook.
Moreover, rapid technological advancements and the development of new wind turbines designed specifically for offshore operations will accelerate segment growth.
Browse key wind turbine market insights from the 2018 report spread across 800 pages offering 1696 market data tables as well as 13 figures & charts along with the table of contents:
In 2019, General Electric finished manufacturing its new 12-megawatt offshore wind turbine, dubbed the Haliade-X, in a bid to become a leading provider in offshore market against rivals Siemens Gamesa and MHI Vestas. The company has also recorded orders in the offshore sector like the 396-MW Merkur project in the German North Sea.
Advancements in the offshore wind turbine sector are also witnessed across China where major companies have been forging agreements with top telecom providers to promote 5G internet construction within the offshore wind manufacturing industry. Technological advancements are thus likely to majorly drive offshore wind turbine market size over the coming years.
Europe is expected to evolve as one of the most significant regional grounds for the wind turbine market. Estimates claim the Europe wind turbine industry size will surpass annual installation of 20 GW by 2024.
According to EWEA (European Wind Energy Association) 2018 reports, wind energy currently accounts for 18.8% of the EU's total installed power generation capacity. This growth is mainly witnessed across Germany, where wind power capacity installed in 2018 accounted for 28% of Europe's gross installations.
The product's cost efficiency and low carbon emission compared to conventional energy sources have influenced technological adoption in the region. Growing dependency on wind energy in countries across Europe will also foster regional market size. As per EWEA, Denmark recorded the highest share of wind energy in its electricity demand (41%).
The UK registered the largest annual increase of wind energy in its electricity demand, from 13.5% to 18% in 2018. Investments in the wind energy sector, in 2018, have also surged by 20% to €26.7 billion, whereas offshore investments reached €10.3bn, cite reports. With such advancements, the Europe wind turbine market will register a substantial growth rate over the projected timeframe.
The Asia Pacific market has also garnered lucrative growth lately, especially across countries like China and India. Expansion in the region's wind energy sector will support the market outlook. In fact, according to India's Ministry of New and Renewable Energy 2018 report, the country has the fourth-largest wind installed capacity across the world.
Additionally, the Ministry has also announced plans to bid out 10 GW wind power capacity annually by 2020. Meanwhile, a recent assessment conducted by NIWE (National Institute of Wind Energy) indicates a gross wind power potential of 302 GW in India (as on 2018 end).
Rising foreign investments and implementation of new wind energy projects across Asia Pacific are expected to boost the market. As per recent news reports, international equity investments in India's clean energy sector were recorded at $532 million in 2017 and $1.02 billion in 2018.
Meanwhile, in 2018, the Chinese Government approved a number of new offshore wind projects, totaling 13GW of production and costing around $13.3 billion, as the country continues to invest in utility-scale power. Driven by the expansive renewable energy scenario across India, China, and other economies, the size of the APAC wind turbine industry will surge massively by 2024.