The global wind turbine market is expected to continue to grow over the next few years, according to new figures published by analysts GlobalData, with market value estimated to be $47.83 billion in 2022, up from $44.75 billion in 2017, driven primarily by onshore development
GlobalData published a new report last week which claimed that the global wind turbine market will surf the wave created by renewable energy global investment trends aimed at addressing power sector challenges. The authors of the report point out the obvious, that “solar and wind are prevalent due to the availability of resources across the world” and that “Power sectors in countries are moving towards improving energy security, self-sufficiency, and addressing climate change issues; driving the utilization and deployment of clean energy technologies such as wind as a power generation source.”
With regards the wind turbine market specifically, GlobalData expects the Asia Pacific region to lead the way, with a market value in 2022 of $17.24 billion and an aggregate market value of $93.85 billion. They will be followed by the EMEA region (Europe, Middle East, and Africa) with an aggregate market value of $88.77 billion — although, it’s worth noting, GlobalData expects EMEA to “outrun” the Asia Pacific region in terms of market value for offshore wind installations, as compared to wind as a whole
“There are growing concerns regarding environmental impacts of industrial activities and geo-political risks, which are prompting governments to utilize clean energy resources available within the country,” explained Nirushan Rajasekaram, Analyst at GlobalData. “Furthermore, the market opportunities are attracting a plethora of potential investors and stakeholders driving down equipment costs, promoting technology development, and thereby creating a conducive market for wind turbines.”
According to GlobalData, the “need to improve access to electricity, increasing consumption of electricity, and strong industrial market are primary driving factors for onshore wind turbines market.” Unsurprisingly, the growth in the Asia Pacific region is strongly driven by China, “which has established comprehensive development plans focused on utilizing renewable energy to sustain its growth and market ambitions to strengthen its position as a global leader in wind technology development.”
“The utilization of renewables is seen as a suitable mechanism to wean away from the widespread resilience on fossil fuels, which has contributed to a myriad of environmental and economic challenges,” added Rajasekaram. “The global commitment to curb emissions, need to circumvent geopolitical risks impacting fossil fuel supply, transition towards low carbon economies, and increasing demand for electricity will drive the wind turbines market.”
As regards China specifically, it will be interesting to see what role is played by the Government’s recent decisions to phase-out renewable energy subsidies in an effort to bring these technologies up to grid price parity.
“Although, the plan to phase out subsidies is expected to affect the Chinese market globally but it will prove beneficial in long run, helping to attain grid parity,” explained Nirushan Rajasekaram. “Thus, the Chinese wind power sector is expected to witness a decline in the market value from $13.4 billion in 2017 to $11.8 billion in 2022. On the volume side, the market is estimated to fall and reach 18.3 GW in 2022 from 19.5 GW in 2017 owing to the expected reduction in subsidies.”
Stepping away from China, however, and the role of offshore wind is set to play an important part in the expansion of wind development throughout the Asia Pacific region. Specifically, both Taiwan and Japan have, to varying degrees, committed heavily to developing large-scale offshore wind industries and pipelines.
Specifically, Taiwan’s Bureau of Energy has awarded a total of 5.4 GW worth of offshore wind capacity this year alone — in auctions in April and June. Across the waters in Japan, while things are not quite so far advanced, the country is nevertheless looking to offshore wind as a primary source of new power capacity as it transitions away from nuclear in the wake of the 2011 Fukushima Daiichi nuclear disaster. Specifically, the Tokyo Electric Power Company, better known as TEPCO, has announced it plans to pursue the development of up to 6 or 7 GW worth of new renewable energy, focusing primarily on offshore, while Japan’s Electric Power Development Co., better known as J-Power, signed a Memorandum of Understanding (MoU) with French multinational electric utility ENGIE to collaborate on power projects, specifically offshore wind and floating offshore wind projects.
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