Wind Energy Market By Location (On shore and Offshore), By Application (Utility and Non-utility), By Component (Turbine, Support Structure, Electrical Infrastructure, Others), and Region (North America, Europe, Asia Pacific, Middle East and Africa, and South America) Global Forecast 2022 to 2032

The global wind energy market size was valued at USD 215,107 million in 2017. The falling levelized cost of electricity (LCOE) has driven the global installed wind generation capacity onshore and offshore by a factor of almost 50 in the past two decades. The growing need to achieve sustainable power generation has led to increasing focus on power generation through renewable sources.                       

Wind power is obtained by harnessing the kinetic energy created by the air in motion and then transforming it into electrical energy. This is done using wind turbines or wind energy conversion systems. The inception of offshore wind turbine was around a decade ago following the invention of electrical generators in the 1930s. Wind power generation happened in the UK and United States in 1887 and 1888, but the modern wind power was first developed in Denmark in 1891. The global energy system is disrupted by renewable energy sources assisted by the tremendous fall in the cost of generation of electricity from these sources. The decline in average LCOE from onshore wind by 23% from 2010 to 2017 demonstrates the unprecedented cost fall in wind power generation technologies.

The market for wind energy worldwide was estimated to be worth US$ 81.30 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 10.10% from 2023 to 2032, or about US$ 211.84 billion.

The installation of renewable that was riddled with longstanding obstacles, have now been side-lined by three key enablers; cost effective and reliable grid integration, technological innovation, and rapid attainment of grid parity. Wind energy which was once dismissed as an expensive source, is now beating conventional sources on price, and at the same time are matching their performance. This has resulted in the accelerated installation of wind capacities and with this rapid installation the cost equation of renewables is improving. For instance, International Renewable Energy Association (IRENA) estimates that with every doubling of installed capacity, the investment cost drops by 9% while the resulting electricity becomes 15% cheaper.

Feed in tariffs (FiTs) were used as the key incentive to drive the growth of wind energy till 2016. However, continuous cost reductions has led to FiTs being replaced by auction based competitive bidding. This trend is expected to become the most prominent driver of wind capacity installations as more and more countries will adopt competitive auction mechanism for wind power development.                 

Installation of wind capacity takes is segmented into offshore installation and onshore installations. The onshore installations held the largest market share in global wind energy market with more than 90% of total wind capacity installation globally. This dominance of onshore wind capacity is mainly due to the cost of generation of electricity which has fallen by approximately a quarter since 2010. The best onshore wind projects are expected to deliver electricity for an equivalent of USD 3 cents per KWh or less. Competitive procurement, especially auction have spurred cost reduction for power from wind. The low auction results for onshore wind in countries such as Brazil, Canada, Germany, India, Mexico and Morocco are witnesses of the fact that onshore wind is one of the most competitive sources of new generation capacity.

However, the offshore installation are expected to grow at a faster CAGR over the forecast period. Many parts of the world experience strong winds but the best locations for generating maximum power are sometimes remote ones. Thus the offshore installation of wind capacity offers tremendous potential. Breakthroughs in fixed bottom and floating foundations are creating new deployment opportunities and driving cost reductions in offshore installations. The learning rate which is the percentage cost reduction experienced for every doubling of cumulative installed capacity, is estimated to at 14% for offshore wind and 21% for onshore wind. This positions offshore wind energy on the cusp of a fast paced and widespread growth.

Region wise wind power generation has been dominated by Asia Pacific, with China leading capacity installations with 188 GW in 2017. Further down south, India is the 4th largest market in the world for wind energy with capacity installation of 32.848 GW in 2017. Global wind sector is seeing considerable growth in spots across Asia, with Japan, South Korea and Taiwan set to increase capacity in their offshore wind farms and Indonesia, the Philippines and Vietnam working on onshore wind developments. However, Middle East and Africa, and Latin America are expected to project the fastest CAGR during the forecast period. The wind energy market is now started to penetrate by countries such as Chile, Ethiopia, South Africa and Iran among others.

The dedicated R&D efforts that is being put by governments around the world is increasing. Rapid and continuous developments in technology has led to the unlocking of efficiencies in manufacturing of power quality equipment as well as in terms of performance improvements or installed cost reductions.

Wind Energy Market Scope

Key segments of the global wind energy market

Installation Type Overview (USD Billion)

• Onshore Installation
• Offshore Installation

Turbine Size Overview, (USD Billion)

• Small Wind
• Large Wind

Turbine Type Overview, (USD Billion)

• Horizontal Axis
• Vertical Axis

Regional Overview, (USD Billion)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Italy
  • UK
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Rest of Middle East & Africa