Wind Turbine Market Expected to Reach $115.2 Billion by 2033

According to a new report published by Allied Market Research, titled, “wind turbine market" was valued at $63.4 billion in 2023, and is projected to reach $115.2 billion by 2033, growing at a CAGR of 6.2% from 2024 to 2033.

Wind energy is a form of renewable energy generated from the kinetic energy of wind. This energy is captured using wind turbines that convert the movement of air into electrical power. The underlying principle of wind turbine is based on the conversion of wind's mechanical energy into electricity through the rotation of turbine blades. Wind energy is one of the most sustainable and environmentally friendly sources of power, as it does not involve the combustion of fossil fuels or the emission of greenhouse gases.

Wind energy is predominantly used for electricity generation. Onshore and offshore wind farms are established to harness wind power on a large scale. Onshore wind farms are on land, where turbines are installed in areas with high wind speeds. Offshore wind farms, situated in water bodies, benefit from stronger and more consistent winds. The generated electricity is integrated into the power grid, contributing to the diversification of energy sources and reducing reliance on fossil fuels.

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Increase in renewable energy demand is expected to drive the growth of the wind turbines market during the forecast period. As the impacts of climate change become increasingly apparent, governments, businesses, and individuals are recognizing the necessity of transitioning to cleaner energy sources to mitigate environmental damage and reduce greenhouse gas emissions. Renewable energy sources, such as wind, solar, hydro, and biomass, offer a sustainable alternative to traditional fossil fuels such as coal, oil, and natural gas, which are major contributors to global warming. Technological advancements and decreasing costs have further accelerated the adoption of renewable energy. Innovations in energy generation, storage, and grid integration are making renewable technologies more efficient and economically viable.

For example, the cost of solar photovoltaic (PV) panels has decreased over the past decade, making solar energy more accessible and competitive with traditional energy sources. Similarly, advancements in wind turbine technology and energy storage solutions are enhancing the reliability and performance of wind and solar power. By the end of 2022, Texas had the highest cumulative wind power capacity in the U.S. At the time, it had around 40 GW of installed capacity, over three times that of Iowa. Only three states had more than 10 GW of installed wind capacity in the same year.

However, high initial costs are expected to hamper the growth of the wind turbines market during the forecast period. High initial costs associated with wind turbine installation and infrastructure presents a notable challenge for the wind energy sector. Establishing a wind farm involves substantial capital investment, which includes expenses for the turbines themselves, as well as the associated infrastructure such as foundations, electrical systems, and grid connections. Onshore wind farms include costs such as site preparation, land acquisition, and the construction of access roads and maintenance facilities. Offshore wind farms, which are generally more complex, include high costs due to the need for specialized equipment, marine logistics, and the construction of underwater foundations and cables.

Infrastructure costs also play a critical role in the overall expense of wind energy projects. The development of grid connections to transport the generated electricity from the wind farm to the main power grid involves significant investment in electrical infrastructure and substations. For offshore projects, the initial financial investment rises significantly due to the added complexity and costs of laying undersea cables and building offshore substations.

Segment Highlights

The wind turbine market is segmented into axis type, installation, component, application, and region. By axis type, the market is bifurcated into horizontal and vertical. As per installation, the market is categorized into onshore, and offshore. On the basis of component, the market is divided into rotator blade, gearbox, generator, nacelle, and others. On the basis of application, the market is segmented into industrial, commercial, residential, and utility. Region-wise the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Key market players in the wind turbine market include ENERCON Global GmbH, Siemens Gamesa Renewable Energy, S.A.U., GE VERNOVA, Goldwind Americas, Guodian United Power Technology Co., Ltd, Mingyang Smart Energy Group Co., Ltd, Sinovel Wind Group Co., Ltd., Senvion India Pvt. Ltd, Suzlon Energy Limited, and Vestas.