Dublin, Nov. 25, 2020 (GLOBE NEWSWIRE) -- The "Global Wind Turbine Market - Forecasts from 2020 to 2025" report has been added to ResearchAndMarkets.com's offering.
Global wind turbine market was valued at US$90.114 billion in 2019 and is expected to grow at a CAGR of 5.34% over the forecast period to reach a total market size of US$123.154 billion in 2025. Wind power technologies transform the kinetic energy of the wind into mechanical power. Wind is used to generate electricity using the kinetic energy created by air in motion which is then transformed into electrical energy using wind turbines or wind energy conversion systems. The amount of energy that can be harvested from wind depends on the size of the wind turbine and the length of its blades. As such, the total energy output is proportional to the dimensions of the rotor and to the cube of the wind speed.
Renewable power generation can help nations meet their sustainable development goals and targets through the provision of access to clean, reliable, secure, and affordable energy. Growing focus on environmental sustainability across the globe is the major driver of global wind turbine market. Governments of different nations as well as global organizations are continuously trying to achieve their set targets of reducing carbon footprints/greenhouse gas (GHG) emissions. Increasingly pronounced effects of climate change coupled with the finite nature of non-renewable energy sources has made it necessary for the world to secure alternative power sources.
The government of Denmark has set a target of 50 per cent wind energy in its total electricity consumption by 2020 as part of its long-term strategy to achieve a 100 per cent renewable energy mix in the country's electricity and heat sector by 2035, and in all sectors by 2050. In Virginia, the state has recently enacted a mandatory 100 per cent renewables target for Phase I and Phase II utilities. Phase I utilities are required to achieve the renewables target of 14 per cent by 2025 and 100 per cent by 2050. While Phase II utilities are required to achieve the renewables target of 26 per cent by 2025 and 100 per cent by 2045. The law also requires utilities to procure a certain amount of renewable energy from solar and onshore wind sources that are located within the state by a specific date. As such, tens of gigawatts of wind, solar photovoltaic, and hydropower capacity are installed globally every year in the global renewable energy market. Moreover, recent years have witnessed a dramatic reductions in the cost of renewable energy technologies as a result of increased R&D and accelerated deployment.
With rapid shift from climate-damaging, non-renewable fossil fuels towards clean, renewable energy sources, the demand for wind turbines is accelerating at a fast pace. Rising prices of electricity is also driving the demand for affordable energy access via renewable energy sources, thereby driving the wind turbine market growth. According to the IRENA (International Renewable Energy Agency), the global wind energy installed capacity has surged from 180,846 MW in 2010 to 622,408 MW in 2019. In 2016, the production of wind electricity accounted for a 6 per cent of the total electricity generated by renewable energy sources. According to the report "Future of Wind" report published by IRENA, global wind power is projected to rise ten-fold, reaching over 6,000 GW by 2050. In order to reach this target, both onshore and offshore wind capacity are required to upsurge four-fold and ten-fold respectively annually when compared to 2018 figures.
However, higher initial investment costs, challenges related to noise caused by wind turbines, and remoteness of wind farms compared to needs of energy are some of the factors that are still restraining the growth of wind turbine market.
Onshore dominates the global wind turbine market
By location, the global turbine market has been segmented as onshore and offshore. Onshore wind turbine market accounted for the major market share in 2019. According to the IRENA statistics, the onshore wind energy installed capacity has increased from 177,790 MW in 2010 to 594,253 MW in 2019. The infrastructure of onshore wind farms necessary to transmit electricity is relatively less expensive than that of offshore wind farms. Moreover, onshore wind energy is currently the cheapest form in the global renewable industry. The offshore wind energy installed capacity, according to IRENA statistics, has grown from 3,056 MW in 2010 to 28,155 MW in 2019. Many parts of the world have strong wind speeds, but remote locations are the best ones for producing wind power. As such, offshore wind power locations offers tremendous potential and the segment is projected to witness a substantial CAGR during the forecast period.
Europe is one of the major wind turbine regional markets
By geography, global wind turbine market has been segmented into five major regional markets- North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). Europe accounted for a significant market share in 2019 on account of high level of installation of wind turbines in the region. High concerns regarding environmental sustainability across the EU (European Union) member states with set targets of reducing the reliance on non-renewable energy sources is further boosting the installation of wind turbines across the region, thus positively impacting Europe wind turbine market growth. For instance, it has been recently announced by the sustainable energy company Vattenfall that a 50-turbine wind farm in southern Scotland will be set up and running by 2023 which will power approximately 170,000 homes in the United Kingdom. Also, ecoJoule construct GmbH has recently provided a 28 MW re-powering order to Vestas for the wind project Brest in northern Germany.
However, Asia Pacific (APAC) is projected to experience a substantial compound annual growth rate between 2020 and 2025. According to IRENA report, by 2050, Asia would account for more than 50 per cent of the global onshore wind power installations while for offshore, Asia would cover more than 60 per cent of global installation. Within the region, China, India, South Korea, and South-East Asia will witness a noteworthy growth during the forecast period. Recently the President of South Korea has announced to expand the country's offshore wind power capacity hundredfold by 2030 in order to accelerate the nation's transition to renewable energy.
The South Korean's government had already announced in the beginning of 2020 to invest US$789.6 million in energy-related R&D projects this year. Vestas has received a 55 MW order in China that includes a 2-year Active Output Management 4000 (AOM 4000) service agreement and the supply of 25 V120-2.2 MW. In July 2018, the Indonesian President inaugurated the country's first wind turbine power plant, with a total capacity of 75 MW and consists of 30 wind turbine generators, in Sidrap, South Sulawesi. The Government of Japan passed a bill in November 2018 that allows wind farms to operate in the country's territorial waters for up to 30 years. As a result of this law, the Japanese offshore wind farm market has set in motion, with Japanese leasing company Orix and Tokyo Electric Power Co. Holdings, and Germany's largest power provider E.ON planning to establish offshore wind farms in the country.
Impact of COVID-19 on global wind energy industry
The wind energy industry supply chain has experienced a major disruption in the first quarter, particularly on the manufacturing and assembly of wind turbine, due to the ongoing COVID-19 pandemic outbreak. Major wind energy equipment suppliers such as Siemens and General Electric among others have faced production shutdowns which has resulted in a huge backlog and delay in fulfilling orders. This drastic supply chain disruption has caused firms to shut factories while making them unable to ship their products to construction sites. The wind sector will continue to be impacted in the months ahead throughout the whole value chain whilst at the operation level, turbines, blades, component, and material orders will be either cancelled or unfulfilled.
Moreover, due to social distancing orders the projects have been temporarily halted which has further reduced the demand for wind turbines. The coronavirus crisis has caused global wind turbine manufacturers to experience net losses in the first half of the year with continued disruption of the supply chain in key markets for both blade manufacturing and wind installations. For instance, Germany's Nordex reported negative EBITDA of ?70.8 million in the first six months of 2020, down from positive ?17.1 million in 2019. Siemens Gamesa Renewable Energy SA has also reported a net loss of about ?466 million during the third quarter ended June 30, compared to a net profit of ?21 million in the same period in 2019.
Competitive Insights
Prominent key market players in the global wind turbine market include GENERAL ELECTRIC, Siemens Gamesa Renewable Energy, S.A., Vestas, Senvion S.A., NORDEX SE, Suzlon Energy Limited, goldwind.com.cn, ENVISION GROUP, Renewables First, Bergey Windpower Co., ENESSERE S.r.l., IMPSA, VENSYS Energy AG, and Sinovel Wind Group Co., Ltd.. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global wind turbine market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.
Key Topics Covered:
1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
4.5. Market Attractiveness
5. Global Wind turbine Market Analysis, By Type
5.1. Introduction
5.2. Horizontal-axis Wind Turbine
5.3. Vertical-axis Wind Turbine
6. Global Wind turbine Market Analysis, By Size
6.1. Introduction
6.2. Small
6.3. Medium
6.4. Large
7. Global Wind turbine Market Analysis, By Location
7.1. Introduction
7.2. Onshore
7.3. Offshore
8. Global Wind turbine Market Analysis, By Application
8.1. Introduction
8.2. Utility
8.3. Non-Utility
9. Global Wind turbine Market Analysis, By Geography
9.1. Introduction
9.2. North America
9.3. South America
9.4. Europe
9.5. Middle East and Africa
9.6. Asia Pacific
10. Competitive Environment and Analysis
10.1. Major Players and Strategy Analysis
10.2. Emerging Players and Market Lucrativeness
10.3. Mergers, Acquisitions, Agreements, and Collaborations
10.4. Vendor Competitiveness Matrix
11. Company Profiles
11.1. GENERAL ELECTRIC
11.2. Siemens Gamesa Renewable Energy, S.A.
11.3. Vestas
11.4. Senvion S.A.
11.5. NORDEX SE
11.6. Suzlon Energy Limited
11.7. goldwind.com.cn
11.8. ENVISION GROUP
11.9. Renewables First
11.10. Bergey Windpower Co.
11.11. ENESSERE S.r.l.
11.12. IMPSA
11.13. VENSYS Energy AG
11.14. Sinovel Wind Group Co., Ltd.
For more information about this report visit https://www.researchandmarkets.com/r/uix3ym
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