Market Trends

Soaring High: Wind Energy Market Poised for Expansive Growth by 2028

NEW YORK, April 5, 2024 /PRNewswire/ -- In the dynamic landscape of renewable energy, the global wind energy market is experiencing a surge of growth, with forecasts estimating an expansion of USD 47.88 billion from 2024 to 2028. This astonishing increase is expected to proceed at a compound annual growth rate (CAGR) of 7.93% during the forecast period, according to market research firm Technavio. At the heart of this expansion lie the pressing concerns over environmental sustainability and the urgent need to transition away from depleting fossil fuel resources.

Investment and Infrastructure: Wind Energy Gaining Traction

Countries like India, China, and the United States are strategically reducing greenhouse gas emissions and favoring renewable energy consumption, thereby propelling extensive investments in wind energy infrastructure. The market encompasses vital components such as electrical wind generators, wind battery charging systems, and expansive onshore and offshore wind farms. Despite challenges associated with sea depth constraints, raw material shortages, and the quest for cost-effectiveness, the market is advancing steadily.

Renewable energy, notably wind power, is becoming indispensable for isolated coastal regions desperate to reduce carbon emissions resulting from traditional power plants and fossil fuels like coal and oil. This sector of the energy market is becoming more diverse with technological innovations, including fixed wind turbines, floating foundations, and resilient transmission lines.

For those seeking more insights on the historic and projected market size, Technavio encourages a detailed exploration through a sample report.

Wind Energy Market Analysis: Unpacking the Scale and Scope

The groundwork for current trends lies in substantial historical data and forecasted evaluations. With 2023 as the base year, the periodic analysis spans from 2018 to 2022 to outline the historic period and from 2024 to 2028 for the forecast period. The relentless momentum observed in the previous year at 6.96% growth sets a strong precedent for the projected swell in market valuation.

A fragmented market structure allows room for new entrants, fostering innovation and driving competitive momentum. As the market landscape unfolds, the Asia-Pacific (APAC) region stands out, contributing a prodigious 44% to the market. This geographical analysis is complemented by significant performing contributions from North America, Europe, South America, and the Middle East and Africa.

When it comes to the main players behind this gust of activity, the United States, Canada, China, Japan, and Germany emerge as key influencing countries. The comprehensive list of profiled companies includes industry giants such as ABB Ltd., Acciona SA, Adani Green Energy Ltd., and General Electric Co., among others, which are laying down the trajectories for future growth.

Segment Breakdown: Diving into the Details

The wind energy market report delineates thorough segmentation, considering criteria such as Type (Onshore, Offshore) and End-user (Industrial, Commercial, Residential) across different geographies (APAC, North America, Europe, South America, Middle East, and Africa).

Market Segmentation by Type

In 2023, the wind energy market rides a powerful growth wave, primarily propelled by the industrial sector's pivot toward renewable power sources. Wind-generated electricity is becoming more ubiquitous, with wind generators now commonly employed for battery charging in industrial contexts. This reduces dependency on fossil fuels and creates an eco-friendlier production landscape. Offshore wind plants are being developed to circumvent sea depth limitations. Such establishments are not just more cost-efficient but also dovetail with the current uptick in raw material production courtesy of wind energy. Technological advances like larger turbine capacities and innovative floating foundations are heightening the appeal of wind power.

Furthermore, weather conditions significantly impact the feasibility of wind projects, with onshore initiatives facing lesser challenges as compared to their offshore counterparts. The renewable energy landscape is broadening, with sources such as geothermal, hydropower, tidal energy, and solar thermal energy working in tandem with wind to offer a more robust supply of clean energy.

Geography Overview

The APAC region is positioned to spearhead the global wind energy market through the forecast period. Core components such as electrical wind generators and the increasing importance of wind battery charging systems all contribute to the region's leading status. Challenges persist, particularly in-depth constraints for offshore wind plants and the imperative for cost-effective solutions that are environmentally responsible.

Traditional energy plants, heavily reliant on fossil fuels, are yielding to the emerging primacy of wind energy projects. With an array of options for onshore turbines and offshore farms, the integration of cutting-edge technologies like the Twisted Jacket foundations helps mitigate the adversities posed by storms and severe weather conditions. In the grand scheme, renewable energy modalities, with wind energy at the forefront, are favored for their lowered carbon and greenhouse gas emissions footprint.

For a comprehensive understanding of market contributions by various segments, including region and country-wise analysis and forecasts, interested parties can download a sample report from Technavio.

The Role of Storage and the Financial Undercurrents

The inherent intermittent nature of wind has necessitated an integration with energy storage solutions. Countries such as Germany and Denmark, enjoying high wind capacities, are utilizing batteries and hydro storage systems to harmonize with the ebb and flow of wind energy production. In times of overproduction, wind generators charge storage units, ensuring an even distribution of energy regardless of the weather conditions.

Addressing the elephant in the room, the wind energy market grapples with hefty upfront costs. These costs span across land acquisition, the construction of wind turbines, and enhancements to grid infrastructure. The integration process into the existing energy grid calls for added investments, particularly in smart grid technologies and ancillary energy storage systems.

Despite the daunting initial expenditures, sectors such as commercial and residential harbor ambitions for long-term sustainability and diminished energy costs. These aspirations are slowly translating into broader adoption of wind energy. The potential of wind is manifest in its various avatars—onshore, offshore, and beyond, enhanced by a supportive regulatory landscape and innovations in renewable energy technologies.

Commercial and residential sectors continue to strive towards achieving their sustainability goals and reaping the benefits of reduced energy expenses, leading to an upswing in the embracement of wind energy technology, irrespective of the initial capital investments.

Market Dynamics: The Convolution of Drivers, Trends, and Challenges

The Wind Energy Market reflects significant gains as the planet pivots towards eco-friendlier energy sources. This move minimizes dependence on fossil fuel-driven power while curtailing greenhouse gas emissions. The technologies wielded, such as onshore wind turbines, tap into the kinetic and mechanical essence of the wind to deliver electric power. Wind energy projects typically encompass turbines and transmission structures, thereby converting breezes into widely consumable clean electrical energy.

The prevalence of onshore turbines does not overshadow the potential contained within land-based wind pumps and electric generators of wind origin. Wind energy asserts itself as a powerhouse among renewable tech options, standing as a rival even to hydrogen energy, whether in liquid, solid, or gaseous states. Advances in technology and policy will continue nurturing growth within the wind energy sector.

Vistas of Wind Energy Market Research

Recent energy insights elucidate that wind turbines were responsible for over 700 terawatt-hours of worldwide electricity generation in 2020. With countries such as the U.S., China, and Germany at the helm, offshore wind energy garners attention for its greater capacity factor compared to its onshore counterparts. The burgeoning technology beholds improvements in turbine dimensions and operational capacity.

Although the inception of a wind energy project demands a considerable initial investment, the long-term payoffs are manifold. They encompass mitigated greenhouse emissions, bolstered energy self-sufficiency, and ancillary socio-economic advantages. Consequently, the industry swings between the challenges of intermittency and the relentless pursuit of advanced energy storage solutions.

About Technavio: The Research Maestros

Technavio stands as a luminary in global technology research and advisory domains. Their acumen extends to deciphering burgeoning market trends, distilling them into actionable stratagems for businesses eager to carve out market positions and discern emerging opportunities. Exuding expertise through over 500 specialized analysts, Technavio's report depository spans across more than 17,000 pieces, catering to 800 technologies within 50 countries.

Their clientele includes a spectrum of enterprises, featuring over a hundred Fortune 500 conglomerates. As new market scenarios materialize, these entities rely on Technavio’s exhaustive coverage and sharp market intelligence for sustaining and reinforcing market stances.

Please refer to Technavio's contact information for media inquiries: Jesse Maida, Media & Marketing Executive, is reachable at [email protected] or through their website www.technavio.com.

This resolute advance in wind energy is not just a reaction to the opportunistic endeavors of business and technology; it is a compelling narrative of our collective motion towards a greener, more responsible energy economy. As we step forward into this whirlwind saga of innovation and environment-friendly progress, the industry's thrum and the planet's sigh of relief crescendo in unison.

SOURCE: Technavio