According to the new research report published by The Insight Partners on "Wind Turbine Components Market Forecast to 2028 - COVID-19 Impact and Global Analysis," the market is expected to grow at a CAGR of 4.2% from 2022 to 2028 to reach US$ 152,019.92 million by 2028.
The rising demand for renewable energy due to its advantages in protecting the environment is expected to promote wind energy projects globally. For instance, the German government is planning to introduce a bill to accelerate wind energy expansion. In April 2022, the German government announced its plan to deploy offshore wind targets to more than 10 GW per year from 2025. Through these initiatives, renewable energy sources are expected to cover 80% of the country's electricity demand by 2030. In addition, the European Union is working on framing the incentives for offshore wind projects. This will increase the adoption and construction of offshore wind turbines in the region, thereby propelling the demand for wind turbine components. For instance, in December 2021, the UK government opened bidding for the fourth round of funding in the Contracts for Difference (CfD) scheme, aiming to secure 12 GW of electricity capacity. Under this, the government will provide US$ 376.9 million to develop green energy projects. Also, under the Autumn budget 2021, the UK government announced an investment of US$ 272 million for offshore wind projects. Thus, as various countries are taking initiatives for the adoption of wind energy, the demand for wind turbine components for the construction of wind projects will also increase. This will further push the component manufacturers to produce more efficient components to cater to the growing market demand, thus creating a lucrative opportunity for the wind turbine components market.
In deep water, the offshore wind turbine is mounted on a floating structure that allows the turbine to generate electricity in the water depths. The floating wind technology is highly efficient in harsh conditions and is capable of producing high power. This technology is being adopted globally. The demand for floating wind technology is growing in the market due to the increase in technological advancements, advantages associated with floating wind technology, and turnkey solutions provided by service providers. Also, the growing awareness regarding clean energy in various countries is propelling the demand for floating offshore wind power, which will boost the growth of the wind turbine components market size.
The wind turbine components market size is derived by component segment. In terms of component, the wind turbine components market is segmented into rotor blade, nacelle, gearbox, generator, tower, and pitch system. Based on rotor blade, the wind turbine components market is further categorized into below 40m, 41-60m, 61-70m, and above 70m. Based on gearbox, the wind turbine components market is further segmented into planetary gearbox, spur gearbox, and others. By generator, the wind turbine components market is further segmented into direct current and AC synchronous. In terms of tower, the wind turbine components market is further categorized into tubular steel towers, lattice towers, and hybrid towers.
Key Findings of Study:
In North America, ~12.994 GW of the new installation was done in the US in 2021. In Canada, at least 2,000 MW of wind energy growth is expected in 2022 with the launch of 23 new wind farms. According to the Land-based Wind Market Report, Canada contributes nearly 21% of the wind tower imported in the US. Similarly, Mexico contributes approximately 9% of the wind tower import and 28% of wind blades and hubs import in the US. Moreover, the US is expected to dominate the market with largest wind turbine components market share in the North America wind turbine components market in 2022. This is due to the presence of large number of manufacturing units of different global wind turbine components market players operating across different regions worldwide. Thus, the rising demand for new wind turbine installation and domestic manufacturing of components in Canada and Mexico is further fueling the wind turbine components market players growth in across those regions.
Growing initiatives to meet the rising power demand using clean energy sources and supportive government policies are accelerating the demand for wind turbine components in the MEA. In August 2021, Dumat Al Jandal, the largest wind farm in the Middle East, was connected to the grid in Saudi Arabia and started producing electricity to power 70,000 homes. The project was developed by EDF Renewables and Masdar and consists of about 99 Vestas wind turbines with a capacity of 4.2 MW each. Such initiatives by the government will boost wind turbine components market growth during the forecast period. Similarly, in 2021, Brazil had a new wind capacity installation of 3.55 GW. Also, the country exported wind-powered generating sets and parts, including nacelles, wind blades, and hubs, worth ~US$ 272 million to the US. Thus, the rising installation of wind turbines and growing manufacturing of its components further fuel the wind turbine components market growth in South America region.
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