wind turbine components Market

The wind turbine components market is expected to grow to US$ 152,019.92 million by 2028; it is estimated to register a CAGR of 4.2% from 2022 to 2028.

There is an increase in demand for a clean energy source to eliminate greenhouse gases, reduce dependence on imported fuels, and diversify the energy supply. This is fueling government investments in the construction of wind farms globally. In 2021, ~10 large wind farm projects were completed in the US, including Texas Gulf Wind Repower (Texas), Las Majadas Wind Project (Texas), Milligan I Wind Project (Nebraska), Deuel Harvest Wind Farm (South Dakota), Frontier Windpower II Project (Oklahoma), Isabella Wind Project (Michigan), Jordan Creek Wind Farm (Indiana), and Maverick Creek Wind Project (Texas). This has driven the growth of wind turbine components market across North America in 2021.

Similarly, in the UK, wind power is one of the largest sources of renewable electricity, which is expected to grow more in the coming years. According to the Office for National Statistics, the electricity generation from wind power has increased by 715% from 2009 to 2020 in the UK. According to the National Grid, Britain recorded high levels of wind energy generation in 2020, making it the greenest year on record. Furthermore, various new wind farm construction activities are going on in the UK to increase electricity generation through wind energy. For instance, in September 2022, Danish energy firm Orsted announced that Hornsea 2 offshore wind farm, the world's biggest offshore wind farm, started its operation. The wind farm consists of 165 turbine sets, which can help provide power to more than 1.4 million the UK homes. This is expected to generate new growth opportunities for wind turbine components market during the forecast period.

In addition, Global Wind Energy Council is working on a net zero by 2050 target. It is seen that the international offshore wind market has grown from 2.2 GW in 2016 to 6.1 GW in 2020 due to the new installations and developments in China and the US. The Global Wind Energy Council has also provided data regarding wind power capacity in 2020 by region:

Source: Global Wind Energy Council

Thus, to achieve the target of Net Zero Emissions by 2050, significant investments are being made globally for the new construction and expansion of wind farms. As the investment in wind farms is rising, the demand for various wind turbine components such as rotor blades, nacelle, gearbox, generator, tower, and pitch system is also increasing, thereby catalyzing the wind turbine component market growth.

COVID-19 Pandemic Impact on Wind Turbine Components Market

Despite several challenges in the procurement of raw materials and transportation issues during the FY 2020 in the wake of COVID-19 pandemic, the demand for wind turbine component installation witnessed a strong growth as majority of the commercial sectors had their operations closed for an ambiguous period in 2020. The government of different countries had not halted the installation projects across the world. The vendors and governments of different countries have collaboratively worked to continue the installation of wind turbines across different wind farms that has driven the wind turbine components market growth during the FY 2020. However, as the COVID-19 restrictions started to ease down, the growth of wind turbine installation witnessed a decline in 2021 compared to that of 2020. This is mainly due to the hampered production and negative impact from the suppliers side that has also impacted negatively in the wind turbine components market growth in 2020.

In Europe wind turbine components market, Germany continues to have the largest installed wind capacity, followed by Spain, the UK, France, and Sweden. Moreover, other European countries such as Italy, Poland, Denmark, the Netherlands, Portugal, and Belgium have more than 5 GW of installed wind capacity each. According to the WindEurope report, Europe is expected to install 116 GW of new wind farms from 2022 to 2026; of which, three-quarters of these new capacity additions will be onshore wind. Similarly, according to National Wind Energy Association (ANEV), Europe will install 116 GW of new wind power capacity by 2026, an average of 23.1 GW a year. Thus, such massive wind energy potential in European countries is expected to drive the European wind turbine components market share during the forecast period.

In addition, the UK government has planned for a Green Energy Revolution, wherein the development of offshore wind power plays an important role. To comply with this, 6 new offshore wind projects in England and Wales are expected to be constructed for the next generation of the country's offshore wind projects. In early 2021, the UK's Crown Estate approved 6 fixed offshore wind projects with a combined capacity of around 8 GW. Moreover, in July 2022, the German Parliament adopted a new Onshore Wind Law to expand onshore wind by a massive 10 GW a year from 2025. Such projects have been catalyzing the wind turbine components market share across Europe. Thus, favorable policy framework, faster approval of projects, and increased investment from the European Commission are the key factors driving the wind turbine components market growth through the construction of new wind farms.

The overall wind turbine components market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the wind turbine components market size. The process also serves the purpose of obtaining an overview and forecast of the wind turbine components market size with respect to all wind turbine components market segments. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights. The participants typically involved in this process include VPs, business development managers, wind turbine components market intelligence managers, national sales managers, and external consultants-such as valuation experts, research analysts, and key opinion leaders-specializing in the wind turbine components market.