NEW YORK, March 24, 2020
The market for wind power is expected to grow at a CAGR of approximately 7.9% during the forecast period of 2020 – 2025. Major factors attributing to the growth include the favorable government policies, the increasing investment in wind power projects and the reduced cost of wind energy which has led to increased adoption of wind energy, thereby, positively contributing to the demand for wind energy. The increasing adoption of alternate energy sources, such as gas-based power and solar power, is likely to hinder the market growth.
Read the full report: https://www.reportlinker.com/p05877821/?utm_source=PRN
- Onshore wind power emerged as one of the most valued renewable energy sources, worldwide. The cumulative onshore installed wind power capacity is estimated to witness an addition of 8.33% in 2018 as compared to the previous year's capacity. However, the offshore sector has been gaining momentum in the global wind power and is expected to witness the fastest growth in the near future.
- The emerging markets in Africa and South America offer a robust business opportunity for the wind power business as countries, including Brazil, South Africa, Chile, etc., are on the cusp of development, and there is an increased demand for electricity, which is expected to provide market opportunities for wind power development in the coming years. Moreover, the massive wind power potential, coupled with a decline in the cost of the same, is likely to provide widespread business opportunities to the market in the near future.
- North America is one of the most mature and competitive regions in the wind power market, with strong growth in the United States.
Key Market Trends
Offshore Sector set to be the Fastest-Growing Segment
- In 2018, the installed capacity from the offshore sector represented a 26% increase in cumulative installed capacity as compared to the previous year. Europe accounted for more than 80% of the global cumulative offshore wind installed capacity, by the end of 2018.
- The offshore wind turbine market is dominated by the United Kingdom, Germany, and China. The United Kingdom represented almost half of Europe's gross capacity in 2018 and the offshore wind industry in the country is set to double, after the country's Department for Business, Energy, and Industrial Strategy (BEIS) announced long-term political support for the country's offshore wind energy industry.
- Though the center of focus has been the drastic success in the offshore sector in Europe in the past, China's offshore industry is finally gaining momentum. In 2017, the country had installed 1,162 MW of new wind power capacity, which were spread across 18 offshore wind farms, and nine of them (968 MW) were in Jiangsu Province, which continues to be the major focus of offshore wind development.
- India is also focusing on offshore developments. In April 2018, India called for expression of interest (EoI) for the first offshore wind energy project in the country that is being set up in the Gulf of Khambat, off the coast of Gujarat state.
- Countries such as China are now facing the challenge that all the promising wind farm sites within 6 miles of the shore have already been exploited. To boost the capacity further and to meet their 2020 renewable targets, most of the countries are exploring offshore areas. As a result, offshore wind power is expected to grow at a faster pace in the coming years.
North America - One of the Competitive Markets
- North America is the most mature and competitive region in the wind power market. In 2018, the Americas region added 11.9 GW of wind power capacity, led by the United States, Brazil, and Mexico.
- In 2018, the United States witnessed a 7,411 MW increase in its installed wind energy capacity, registering an 8.32% increase over the cumulative capacity in 2017. The growth is attributed to the recent and final extension of the Production Tax Credit (PTC) in the United States. Besides, the policy commitments in California and the industry confidence in exploiting lower value levels of the production tax credit justify a modest upgrade in the United States onshore sector.
- In 2018, Mexico installed around 1 GW of new wind turbines capacity, which is one of the highest capacity additions ever made in the country. After the installation, the installed wind energy capacity in Mexico was 4.9 GW. The landscape for renewable energy sources improved significantly, following its 2014 energy reforms, which are primarily focusing on liberalizing the electricity market. Further, the country has a target to generate 35% of its power capacity through renewables before 2024.
- According to the Global Wind Energy Council (GWEC), the Americas region is expected to experience a significant expansion between 2019 and 2023. Moreover, according to GWEC, the annual wind power deployments in the Americas region is expected to result in the commissioning of 60 GW in the next five years.
- The market for wind power remains highly fragmented and competitive, with the presence of a large number firms, including utilities, IPPs, etc. The market for wind power remains highly fragmented and competitive, with the presence of a large number of firms, including utilities, IPPs, etc. Key wind farm operators include Acciona Energia SA, Duke Energy Corporation, Electricité de France (EDF) S.A., Ørsted A/S, NextEra Energy Inc, E.ON SE.
- Although, 37 manufacturers delivered wind turbines to the global wind power market in 2018, the top 10 companies captured nearly 85% share. Some of the major wind turbine suppliers involved in the global wind power market include Vestas Wind Systems AS, Siemens Gamesa, Xinjiang Goldwind Science & Technology Co. Ltd. (Goldwind), GE Renewable, and Enercon.
Read the full report: https://www.reportlinker.com/p05877821/?utm_source=PRN or go to Reportlinker. ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
(Image by David Mark from Pixabay)
View source version on PR Newswire: