Challenges and Developments in Wind Energy Market

The growth of global wind energy market is attributed to the growing installation of wind turbines. Wind energy is used to create power from locomotive energy. Wind energy is converted into power-driven energy by the wind turbine, which is subsequently converted to electrical energy by the generator.

Onshore wind energy is linked to land-based turbines. On the other hand, offshore wind turbines are located in the ocean or deep-sea. Due to the consistent wind flow, offshore wind turbines are competent than onshore wind turbines. Wind energy technology will be in higher demand as a result of factors such as growing investments in renewable energy generation mixed with attempts to minimize carbon emissions. A large increase in demand for renewable energy sources is expected to drive the expansion of the wind energy market. Renewable energy sources currently account for roughly 80% of global energy production and 66% of electricity output. As a result, renewable energy sources have become more important all around the world. Renewable energy is considered to be clean energy because it emits no pollutants into the atmosphere. As a result, several countries have switched to cleaner energy sources like wind. In several places, the government has begun to offer subsidies for wind turbines. As energy policies and regulations make renewable energy projects more financially feasible, renewable energy technologies are being adopted more swiftly. As a result, the growing use of renewable energy sources is opening up attractive potential for the wind energy market's growth and development.


According to Precedence Research, the global wind energy market size was reached at US$ 77.77 billion in 2021 and is anticipated to hit around US$ 174.75 billion by 2030 with a CAGR of 9.4% over the forecast period 2021 to 2030.

What are the key trends in the wind energy market?

The growth of global wind energy market is attributed to the growing installation of wind turbines. In 2020, a total of 16,836 megawatts of wind capacity was added in the U.S., amounting to 121,955 megawatts. For the first time in recent years, wind power installations outperformed solar power installations, totaling $24.6 billion in investment. The wind energy market is also growing due to the technological advancements. The offshore wind energy segment is also contributing towards the expansion of global wind energy market. The offshore wind energy generated 25 terawatt-hour in 2020, with 6.1 gigawatt of new capacity added. The nations such as the U.S. announced intentions to construct seven major offshore wind energy projects by 2030, with the potential to power 10 million households. In addition, by 2030, India wants to have 30 gigawatts of offshore wind energy. Thus, the high usage and application of offshore wind energy is supporting the growth of global wind energy market. In addition, the growing demand for clean and green energy is boosting the growth of global wind energy market.

What are the challenges in the wind energy market?

The installation of wind turbines necessitates a significant amount of finance. In many places, the corporation must comply with many regulatory protocols and procedures in order to build turbines, which also necessitates a significant investment. The enormous costs include foundation, grid connection, control systems, land, road construction, electric installation, and other financial costs, in addition to turbine installation. As a result, the market for wind energy is being hampered by high capital costs. The uncertainty of climate and weather conditions is the greatest problem that wind energy market players confront. Another major challenge that the key market players face operating in wind energy market is unpredictable climate conditions. The output generated with the help of wind turbines wholly depends upon the climate. Thus, all these aforementioned factors are restricting the wind energy market growth.

Which regions are driving the wind energy trend?

Asia-Pacific region holds the largest market share in the global wind energy market. India, China, and Australia dominate the Asia-Pacific wind energy market. The onshore wind energy segment of the Chinese wind energy market is primarily dominated with new constructions totaling 48.94 gigawatts in 2020, bringing the total capacity to 278.32 gigawatts. India, for example, had an installed wind capacity of roughly 38.62 gigawatts by the end of 2020 and added around 1.11 gigawatts in the same year. By 2022, the Indian government wants to reach a capacity of 60 gigawatts. Thus, the factors such as growing government initiatives for installation of wind turbines as well as rising investments in infrastructural projects are contributing towards the growth of wind energy market in Asia-Pacific region.

North America wind energy market is growing at a rapid pace. The offshore wind energy segment dominates the North America wind energy market. The unique strategies adopted by market players in this region are boosting the wind energy market growth. IKEA Systems B.V. increased its direct ownership of wind energy assets for self-generation in North America region to over 0.4 gigawatts in 2017. After North America region, the Europe is growing at a faster rate in global wind energy market. The countries such as Germany and Netherlands are dominating the Europe wind energy market. This is attributed to the growing installations of offshore wind farms.

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