The global windmills market is predicted to grow at a CAGR of 7.88% during the forecast period.
The world energy industry is progressively preferring renewables, especially amid geopolitical tensions and fluctuating fossil fuel prices. As a result, the windmills market growth is driving quickly. For Instance, in Britain, close to 27% of the country’s electricity generation in 2022 is done using wind energy. Moreover, the market expanded significantly due to the record-breaking increase in new wind capacity i.e. 106 GW by onshore wind farms. The United States and China continue to be the leading players in the onshore wind industry but are closely chased by India, Germany and Brazil. These top 5 prominent accounted for 82% of all new installations worldwide. This shows a concentrated growth pattern. Additionally, the Asian market expanded rapidly with China adding majorly i.e. 69 GW while the US witnessed a decline and installed only 6.4 GW.
Worsening problems regarding the ecological impact, renewable energy auctions, rising electricity demand worldwide, supportive government initiatives, projects, feed-in tariffs (FiTs) and other financial policies and improved efficiency of turbines are driving the windmills market. Moreover, because of the implementation of strict environmental protection laws and regulations, the market will remain on the path to shift away from conventional energy sources to renewable technology. In addition, the industry’s penetration will be fuelled by the rising offshore outlook along with the expansion of a robust industrial and commercial sector infrastructure.
The windmills market is expected to grow owing to a considerable rise in demand for renewable energy sources. Governments globally are promoting sustainable fuel resources, which, unlike traditional power choices, help reduce carbon emissions. Further, offshore wind energy turbine mitigates the challenges of sea depth, making it easier to select the perfect place for electricity generation.
The global windmills market growth is constrained by the underdeveloped grid infrastructure, technological challenges, scarcity of skilled labor force, and opposition from the domestic communities. For instance, in 2023, these problems, coupled with high inflation and other factors, restricted the US onshore installations to only 7 gigawatts, dropping from a peak of 17 GWs in 2020. Moreover, the country’s market also suffered due to the liberal tax credits for wind builders, followed by a steady phase-out of other federal tax credits for wind energy generation that caused a decline in new projects. Furthermore, the market growth is also affected by the lack of trained and skilled workforce who can execute tasks in this domain.
There is a huge opportunity for market players in the Middle East and Africa, the United States, Canada and the struggling economies of Latin America. As per the study, substantial investment is required to tap the potential 1400 gigawatts of offshore wind energy in the North Africa and Middle East region. Further, wind at sea is powerful, more persistent and less violent than on land, which assists in the dependable generation of energy. Additionally, Latin America’s biggest nation, Brazil, hasn’t yet developed any offshore wind projects but accounts for about 23.6GW in overall installed onshore wind capacity.
Geopolitical issues and regulatory difficulties are hindering the windmills market. One of the greatest obstacles currently encountered by the wind energy industry is the confusing and complex legal environment, which regularly creates hurdles that decrease the development and installation of newer wind energy projects. This includes the permitting process, interconnection laws, property rights and environmental regulations.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2032 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2032 |
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CAGR |
7.88% |
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Segments Covered |
By Type, Location and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
MHI Vestas Offshore Wind, Suzlon, Siemens, Goldwind, Nordex SE, Senvion, Vestas, Enercon, GE Renewable Energy and Sinovel Wind |
The horizontal segment is the most prevalent type in the global windmills market and is estimated to hold the major share of the global windmills market during the forecast period. This is because of the higher power generation capacity than its vertical counterpart. Also, horizontal turbines are more productive and more resources and efforts were put into research on improving and refining this. However, the maintenance of vertical windmills is comparatively easier as technicians and servicemen do not have to climb up to solve mechanical problems.
The onshore segment completely dominated the windmills market and is believed to continue its growth trajectory. The segment witnessed tremendous progress in 2023 with 54% year-on-year expansion to exceed 1 TW. On the contrary, the offshore segment experienced a 24% surge and contributed 10.8 gigawatts, or 75.2 HW worldwide overall. Furthermore, the Levelized Cost of Energy (LCOE) of Onshore wind declined to USD 0.0033 per kWh from USD O.107 and that of offshore dropped to USD 0.081 per kWh from USD 0.197. However, the offshore category holds significantly more efficiency due to a greater average utilization rate, i.e., 42% vs. 37 to 38%, despite having a higher initial cost. Still, the onshore segment gained the top stop in the global windmills market.
The region has an installed capacity of around 378.67GW. The APAC market is mainly driven by China. It has established extensive development plans emphasizing the use of renewable sources to sustain its progress and its aspiration to become a worldwide leader in technological advancements. Moreover, other economies like Japan, Australia, India and the Republic of Korea have set precise clean and emission-free generation goals for the next decade. This makes the region a key market for windmills and other related systems and services. In addition, onshore wind power generation is a notable type in the APAC region, with more than 88% share of the overall installed capacity.
The country’s onshore wind industry is slowly coming back on the right track after a decade of sluggish movement. This is due to the new tax credits, robust demand and efforts by market players to overcome several major problems involving supply-chain hiccups, increased borrowing costs and inflation. Besides this, the nation’s onshore sector battled hard to come up after the historic Inflation Reduction Act, which aimed to propel the latest wind and solar advancements rapidly. Canada is also a key market player with appropriate conditions for generating wind-powered electricity owing to its large areas of land and rich wind resources.
The market in Europe is dominated by Germany with the biggest installed capacity of wind power of over 66 gigawatts. It is followed by the United Kingdom and Spain, which each has around 29 GW. Moreover, concerning offshore wind installations, the UK is the leading industry across the continent. According to research, in 2022, about 420 terawatts hours of electricity were generated from wind in the European Union, against 385 terawatt hours in 2021. Furthermore, the regional market grew substantially to become the primary renewable energy source, surpassing hydropower, and is a significant participant in the area’s energy mix. Also, the EU countries have accelerated efforts towards decarbonization and reducing other pollutants. Hence, all these are elevating the European market growth considerably.
The Middle East and Africa (MEA) region’s market share surged in the windmills industry and is expected to drive further at a higher CAGR during the forecast period. This can be linked to the multiple announcements regarding upcoming projects, turbine orders and tenders. Moreover, the MEA market expanded considerably owing to the swift rise in its wind capacity in the last few years from only 1.1 GW in 2010 to more than 7 gigawatts by the end of 2022. Similarly, as per the latest report by the Global Wind Energy Council, Oman, Egypt, Saudi Arabia and Morocco are predicted to pave the way for the industry’s expansion.
The region possesses an untapped and comprehensive potential in this market. It has an installed capacity of more than 44 gigawatts in 2022. However, the regional industry still holds only slightly over 5 percent share of the wind capacity worldwide. Apart from this, Brazil and Mexico are dominating with the maximum market share of the overall Latin American industry.
MHI Vestas Offshore Wind, Suzlon, Siemens, Goldwind, Nordex SE, Senvion, Vestas, Enercon, GE Renewable Energy and Sinovel Wind are some of the notable players in the global windmills market.
By Type
By Location
By Region
Frequently Asked Questions
The global windmills market is expected to witness a CAGR of 7.88% from 2024 to 2032.
The onshore segment held the major share of the global windmills market in 2023.
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