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The onshore wind power systems market size is estimated to increase by USD 35.6 billion and grow at a CAGR of 5.11% between 2023 and 2028. The onshore wind power systems market is experiencing significant growth, driven by several key factors. The increasing height and capacity of wind towers enable the capture of more wind energy, resulting in increased efficiency and productivity. Additionally, the declining Levelized Cost of Energy (LCOE) in wind power makes it a cost-competitive alternative to traditional energy sources. Furthermore, the role of wind energy in mitigating climate change by reducing greenhouse gas emissions is a significant motivator for market expansion. Governments and corporations are investing heavily in this sector to meet renewable energy targets and reduce carbon footprints.
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The wind turbine segment is estimated to witness significant growth during the forecast period. The wind turbine segment comprises the mast, nacelle, rotor blades, gearbox, generator, and anemometer. The mast mainly supports the rotor, which consists of three blades, and the nacelle, which constitutes the mechanical and electrical gear as well as the generator. The generation of electricity by wind turbines occurs through a series of processes that initiate when the rotor blades spin due to the difference in air pressure across the two sides of the blades, leading to the production of kinetic energy
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The Wind turbine segment was the largest segment and was valued at USD 75.80 billion in 2018. The capacity range of modern onshore wind turbines can range from several kilowatts to several MWs. Vestas is one of the prominent companies in the global market which offers onshore wind turbines with a capacity of 4 MW. The increasing availability of wind turbines with high capacity has resulted in an increase in the size of the rotors and masts which has led to the high output capacity of the turbines. Furthermore, the advancement of high-performance wind turbines has facilitated wind farm owners to develop wind farms in areas with space constraints. Hence, such factors are expected to fuel the growth of this segment which, in turn, will drive the growth of the market during the forecast period.v
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APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Some of the key factors that are significantly contributing to the global market in APAC are population growth and the increase in the standard of living, which are driving the demand for energy in the region. Additionally, there is an increasing focus on clean energy sources as several countries are emphasizing increasing the percentage of renewable electricity in their overall energy mix. There is an increasing shift towards renewables such as wind and solar energy for power generation in countries such as China and India due to the growing pollution from GHG emissions. Furthermore, there are several government initiatives in these countries supporting the large-scale installation of renewables to resolve the issue of environmental degradation and pollution as a result of burning fossil fuels. Hence, such factors are expected to drive market growth in the region during the forecast period.
Reducing the Levelized Cost of Energy (LCOE) in wind energy is crucial for fostering sustainable and cost-effective renewable energy solutions. A comprehensive study leveraging reliable data is essential to understand the factors influencing LCOE reduction. Collaborative efforts and community-owned wind projects play a pivotal role in spreading the benefits of renewable energy across localities. Leading wind turbine manufacturers such as Vestas Wind Systems, Mitsubishi Power Systems, and Repower continually innovate to enhance electric wind energy generation efficiency. Integrating power storage solutions and implementing demand response and frequency response mechanisms further optimize the stability and reliability of wind-generated electricity. Increasing wind capacity through technological advancements and strategic investments contributes to achieving higher efficiencies and lower costs in the long term. As the renewable energy sector expands, focusing on decreasing LCOE not only promotes environmental sustainability but also strengthens energy security and economic resilience.
The market is witnessing significant growth, driven by the imperative need to mitigate climate change. With increasing concerns over greenhouse gas emissions, there's a burgeoning demand for renewable energy sources, particularly onshore wind power. Countries worldwide are actively seeking alternatives to fossil fuels to meet carbon reduction targets, making onshore wind energy a pivotal component of their energy transition strategies. Notably, onshore wind power offers the advantage of electricity generation without releasing greenhouse gases, thereby aiding in climate change mitigation efforts. This burgeoning adoption of onshore wind energy underscores its pivotal role in fostering a sustainable ecosystem and meeting renewable energy targets amidst the evolving energy landscape.
A key factor shaping the market growth is digitalization and remote monitoring. The implementation of digital technologies is a primary trend in the global market. The main advantages of the implementation of these digital technologies are that the operators can monitor key parameters in real-time and thereby, improve the operational efficiency and safety of wind power systems by integrating IoT sensors and data analytics into wind turbines. Additionally, several algorithms assist the users in analyzing data to determine potential problems before they become serious, thus reducing downtime as well as repair and maintenance expenses. Furthermore, the algorithms can also analyze certain patterns and customize the operational settings accordingly to maximize energy output and thereby enhance turbine performance. Hence, such applications are expected to drive the market growth during the forecast period.
Issues related to land availability and proper sites to set up wind farms are some of the key challenges hindering the market growth. One of the main challenges in the global market is finding the right kind of land for wind farm development. It has become a tedious task to find and acquire vast amounts of land with reliable wind resources, especially in heavily populated areas or places. Additionally, there is an increasing land-use conflict related to onshore wind energy projects as the communities and stakeholders may have conflicting interests and concerns regarding the environmental and social implications of wind farms. Several local communities are against unnecessary development that may hamper the beauty of the natural landscape or result in noise pollution generated by wind turbines. Hence, such factors can hinder the market growth during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB SKF: The company offers onshore wind power systems such as SKF WindCon for onshore wind turbines.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
1. Onshore Wind Power Systems Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, India, Spain - Size and Forecast
2. Wind Energy Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast
3. Direct Drive Wind Turbine Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, India, UK - Size and Forecast
Reducing the Levelized Cost of Energy (LCOE) in wind energy, particularly in offshore wind farms, is pivotal for advancing sustainable electricity generation. Companies like Vestas Wind Systems are at the forefront, innovating wind turbine technology to harness high, medium, and low wind speeds efficiently. Peak power management and ensuring system stability are critical for enhancing grid connectivity and accommodating peak power demand. The sector's growth is driven by new product launches, contractual agreements, and competitive insights that foster technological advancements and operational efficiencies in both on-grid and off-grid scenarios. Investments in hybrid power solutions, such as pumping water and charging batteries, complement land-based wind turbines to bolster installed capacity and integrate renewable energy into the electric grid seamlessly. As these initiatives unfold, the industry moves closer to achieving sustainable energy goals while bolstering global energy security.
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Market Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 5.11% |
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Market growth 2024-2028 |
USD 35.6 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
4.85 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 61% |
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Key countries |
China, US, Germany, Brazil, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB SKF, AEROVIDE GmbH, Belden Inc., Bora Energy, CS WIND Corp., Doosan Corp., Emergya Wind Technologies BV, ENERCON GmbH, Envision Energy USA Ltd., Fujikura Co. Ltd., General Electric Co., K2 Management, Nexans SA, Nordex SE, ReGen Powertech Pvt. Ltd., Siemens AG, Suzlon Energy Ltd., TERNA S.p.A., Vestas Wind Systems AS, and Xinjiang Goldwind Science and Technology Co. Ltd. |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Technology
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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