Climate concern is driving growth in the global wind turbine market

Climate concern is driving growth in the global wind turbine market

Wind turbine market to surpass $30bn

The sector will grow at a CAGR of 22.5 per cent between 2018 and 2025, with revenues slated to rise from $7.4 billion to $30.5 billion, predicts a report

February 2020

Driven by the growing need for clean energy, innovations and new technologies, climate concerns, and supportive policies for renewable sources, the global wind turbine market was valued at $49,882.36 million in the year 2018, according to a report by ResearchAndMarkets.com.

The market is expected to grow owing to a number of factors including climate concern reducing CO emission, abundant availability of wind energy, growing need to use renewable resources for clean energy, improving policies like auctions and utilise the fullest capacity of wind energy available on earth.

The market is primarily driven by growing need for clean energy, innovations in wind turbine, new technology to improve efficiency, the climate concern in developed countries with developing countries also adopting renewable sources, supportive policies like FITs (feed in tariff), PPAs (power purchase agreement) for renewable sources, auctions and other mechanisms, it said.

The Asia Pacific (APAC) region holds the largest market of wind turbine market and is estimated that it will continue to dominate the market share in the forecast period.

Technological improvements such as increased-capacity wind turbines, floating wind turbines, and 3D printing have brought down the overall cost of offshore wind power and opened up new offshore locations that were previously inaccessible. These developments are accelerating the adoption of wind power worldwide and driving the global offshore wind turbines market toward monumental growth.

Additionally, the scaling up of investments in the renewable energy sector through national, regional, and international climate change-related policies has had an enormous effect on the offshore wind turbine market. In fact, a recent analysis by Frost & Sullivan predicted that the sector will grow at a CAGR of 22.5 per cent between 2018 and 2025, with revenues slated to rise from $7.4 billion to $30.5 billion.

According to Frost & Sullivan, the integration of artificial intelligence (AI), internet of things (IoT), robotics, and data analytics in wind turbines will enable advanced condition monitoring and predictive maintenance. This will result in increased efficiency and reduced operational and maintenance costs, which will lead to a growth in the deployment of offshore wind turbines, noted Frost & Sullivan’s latest research, “Growth Opportunities in the Offshore Wind Turbine Market, Forecast to 2025.”

Europe is the largest market for offshore wind turbines, generating $4.91 billion in 2018, followed by APAC, which garnered $2.47 billion in revenue. As the European wind turbine market is mature, revenues are expected to grow at a comparatively low CAGR of 18.2 per cent.

On the other hand, revenues from the APAC region are forecast to grow at a CAGR of 27.5 per cent as a result of increased installations in China and Taiwan. However, the highest growth is projected to be in the North American market, driven by demand from the US, as several offshore wind projects reach completion. The market is also expected to start picking up in the rest of the world, as several projects in Brazil, Saudi Arabia, and Kenya develop over the forecast period.

Frost & Sullivan stated that country-specific clean energy targets aimed at remedying climate change, along with strong regulatory support, will drive the growth of the global offshore wind turbine market. Additionally, the corporate sector’s growing interest in procuring cost-efficient wind power to meet their renewable energy targets will sustain the demand for offshore turbines in the years to come.

The report stated that manufacturers of offshore wind turbines could potentially foster growth by: Offering turbines for floating foundations to access previously inaccessible markets; leveraging IoT, AI, robotics, and data analytics to enable predictive maintenance and increased efficiency; expanding into emerging geographies to benefit from the expected demand surge in these regions; and exploring collaboration and partnership opportunities to diversify product lines and expand global presence.

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