Wind Power Equipment Market

Wind Power Equipment Market Analysis

The Wind Power Equipment Market is expected to register a CAGR of 9.12% during the forecast period.

Over the medium period, the declining cost of wind energy and increasing investments in the wind power sector are the key drivers for the wind power equipment market.

On the other hand, substitution from solar energy and gas-fired power plants is expected to continue to restrain the market. The solar energy industry has significantly reduced costs than the wind energy sector.

Nevertheless, the wind power industry has a demand for cost-effective solutions, and a highly efficient product has the potential to change the dynamics of the industry. There have been instances where old equipment of the wind turbines are replaced, not because of the damage, but due to the availability of more efficient equipment in the market. Hence, technological developments are opportunities for the global wind power equipment market.

At the regional level, Asia-Pacific is likely to dominate the wind power equipment market, with the majority of the demand coming from the countries such as China, India, and Australia.

Wind Power Equipment Market Trends

Increasing Demand from Onshore Wind Power Industry

• The onshore wind power industry has dominated the wind power equipment market and is expected to continue its dominance over the forecast period.
• Over the past few decades, onshore wind power has emerged as one of the most valued renewable energy sources worldwide. According to Global Wind Report 2023, as of 2022, the total onshore installed wind power capacity reached 842 GW, adding 8.8% to the previous year's span. China, the United States, Germany, and India dominated the onshore wind power market in 2022.
• Despite a challenging economic environment and complex supply chain difficulties, 2022 Europe had a record year annual growth of 18.2% in onshore wind capacity, mainly owing to record installations in Sweden, Finland, and Poland and rebounding installations in Germany.
• Moreover, the cost of onshore wind power generation has reduced significantly, driven by the reduction in capital investments, owing to better turbine designs and economy of scale, increased capacity factors due to technological advancements in equipment and wind power plant design, and increased production life of wind turbines.
• Therefore, factors such as a decline in onshore wind CAPEX and supportive government policies and targets are expected to increase the number of wind power plants worldwide in the coming years. This, in turn, is expected to directly impact the onshore wind power equipment market during the forecast period.

Asia-Pacific to Dominate the Market

• Asia-Pacific is the regional hotspot for the wind power equipment market, owing to governmental support, numerous incentives, and national targets. In 2022, the region's total installed wind power capacity reached 425.7 GW, representing an increase of 10.6% over the previous year's level.
• As of 2022, China held the world's largest installed wind power capacity. According to Global Wind Energy Council Market Intelligence, China will be the engine of near-term growth, accounting for 62% of new installations in 2023.
• The government of China is actively promoting the development of renewable infrastructure to curb pollution and reduce the share of thermal power in the country's power generation profile. This is likely to drive the growth of wind power projects in the country, which, in turn, is expected to drive the wind power equipment market during the forecast period.
• As of 2022, India's installed wind power capacity stood at 41.9 GW. The number of new installations has slowed down in the country as the industry has been adapting to the new method of determining tariffs, i.e., wind power auction.
• Moreover, in February 2022, Tata Power and German electricity generating company RWE agreed on a partnership to explore the potential for joint development of offshore wind projects in India. India currently has no working offshore wind energy plant.
• South Korea's state-owned National Oil Corporation (KNOC) plans to develop a 200 MW floating offshore wind project 58 km off the coast of Ulsan City. Floating turbines are considered the next step in conquering wind resources in deep coastal waters where fixed turbines cannot be built.
• Therefore, factors such as upcoming wind power projects and supportive government policies and regulations in different regions are expected to increase the demand for wind power equipment over the forecast period.

Wind Power Equipment Industry Overview

The global wind power equipment market is fragmented. Some of the key players in this market (in no particular order) include General Electric Company, Siemens Gamesa Renewable Energy SA, Vestas Wind Systems A/S, Nordex SE, and Enercon GmbH.

Wind Power Equipment Market Leaders

Wind Power Equipment Market News

• May 2023: Suzlon, a developer of renewable energy solutions, has received a 69 MW wind energy order from the Indian division of a renowned Nordic Energy Company. Suzlon will deploy 23 wind turbine generators (WTGs) with 3 MW rated capacity and a Hybrid Lattice Tubular (HLT) tower.
• October 2022: Suzlon Group secured new order to develop 144.9 MW wind power projects located at Gujarat and Madhya Pradesh sites for the Aditya Birla Group. As a part of the contract, the company will install around 69 units of wind turbine generators (Wind Turbines) with a Hybrid Lattice Tubular (HLT) tower with a rated capacity of 2.1 MW each. It is expected to commence operations by the end of 2023.
• January 2022: The Blue Circle and its partner CleanTech Global Renewables Inc. signed a contract to construct an offshore wind project in the Philippines with a capacity of 1.2 GW located in Bulalacao, Oriental Mindoro. The wind farm will feature 100 turbines with a unit capacity of 12 MW.