Market Trends of Wind Power Equipment Industry
Increasing Demand from Onshore Wind Power Industry
- The onshore wind power industry has dominated the wind power equipment market and is expected to continue its dominance over the forecast period.
- Over the past few decades, onshore wind power has emerged as one of the most valued renewable energy sources worldwide. According to Global Wind Report 2023, as of 2022, the total onshore installed wind power capacity reached 842 GW, adding 8.8% to the previous year's span. China, the United States, Germany, and India dominated the onshore wind power market in 2022.
- Despite a challenging economic environment and complex supply chain difficulties, 2022 Europe had a record year annual growth of 18.2% in onshore wind capacity, mainly owing to record installations in Sweden, Finland, and Poland and rebounding installations in Germany.
- Moreover, the cost of onshore wind power generation has reduced significantly, driven by the reduction in capital investments, owing to better turbine designs and economy of scale, increased capacity factors due to technological advancements in equipment and wind power plant design, and increased production life of wind turbines.
- Therefore, factors such as a decline in onshore wind CAPEX and supportive government policies and targets are expected to increase the number of wind power plants worldwide in the coming years. This, in turn, is expected to directly impact the onshore wind power equipment market during the forecast period.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is the regional hotspot for the wind power equipment market, owing to governmental support, numerous incentives, and national targets. In 2022, the region's total installed wind power capacity reached 425.7 GW, representing an increase of 10.6% over the previous year's level.
- As of 2022, China held the world's largest installed wind power capacity. According to Global Wind Energy Council Market Intelligence, China will be the engine of near-term growth, accounting for 62% of new installations in 2023.
- The government of China is actively promoting the development of renewable infrastructure to curb pollution and reduce the share of thermal power in the country's power generation profile. This is likely to drive the growth of wind power projects in the country, which, in turn, is expected to drive the wind power equipment market during the forecast period.
- As of 2022, India's installed wind power capacity stood at 41.9 GW. The number of new installations has slowed down in the country as the industry has been adapting to the new method of determining tariffs, i.e., wind power auction.
- Moreover, in February 2022, Tata Power and German electricity generating company RWE agreed on a partnership to explore the potential for joint development of offshore wind projects in India. India currently has no working offshore wind energy plant.
- South Korea's state-owned National Oil Corporation (KNOC) plans to develop a 200 MW floating offshore wind project 58 km off the coast of Ulsan City. Floating turbines are considered the next step in conquering wind resources in deep coastal waters where fixed turbines cannot be built.
- Therefore, factors such as upcoming wind power projects and supportive government policies and regulations in different regions are expected to increase the demand for wind power equipment over the forecast period.
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