Wind Energy Market

The Wind Energy Market

Wind energy is one of the fastest growing major sources of new electricity around the world, with installations of more than 55,000 megawatts (MW) of new clean, reliable wind power during 2016. More than 80 countries have installed wind energy facilities, with the global leaders being China, the U.S., Germany, India, Spain, the U.K., France and Canada.

Wind Energy Market Analysis

Wind power capacity has been growing at an average rate of 21% over the last decade; even after the recent global economic downturn there was a 30% annual growth from 2008 to 2009. The total global installed wind capacity stands at 318,105 MW at the end of 2013. Total wind investments in 2013 exceeded $80 billion, with North America and Europe representing the majority of wind installations, although China has the largest wind energy producing capacity, followed by USA and Germany.

Approximately 20% - 25% of expenditures, $16 - $20 billion, is spent on maintenance, repair and overhaul (MRO) services for wind turbines; nearly 90% of that spending is for generators, gearboxes and turbine blades. Any improvements in reliability and performance can lead to significantly decreased MRO costs for wind farm operators.

Global energy production capacity is 5,500,000 MW, and only 5% is provided by wind energy. There is a large gap to close before wind energy can become a significant power source. An increase in efficiency and output can help make wind turbines a more viable longterm solution. With the looming threat from climate change governments and industry are focused on reducing green house gas emissions, and wind energy is one of the fasted growing alternative energy solutions.

Comerton’s goal is to bring new and innovative technologies like the Automatic Balancer to the wind energy market in an effort to improve wind power generation from this growing sector. The market is quite large and it is recommended that as a new entrant, Electronautics focus on select customer segments where it can provide the highest value proposition for their needs, i.e., improved efficiency, greater power output, increased reliability, and reduced maintenance.

News in the Marketplace

WELLESLEY, Mass., Jan. 18, 2018 (GLOBE NEWSWIRE) -- Fluctuating oil prices, strong government support, and growing demand for energy are key factors driving the market for wind turbines. In a new report, Wind Turbines: Technologies, Applications and Global Markets, BCC Research estimates the global market for wind turbines to reach $51.5 billion and $71.2 billion in 2017 and 2022, respectively, indicating a compound annual growth rate (CAGR) of 6.7%.

Increasing energy demands, especially in emerging economies such as India, China, Brazil and Russia, will further boost market growth. Power costs from wind generation have decreased through better technology, efficiency and capacity scaling. The uptick in fuel prices has rendered wind energy costs increasingly competitive with costs are now approaching those of fossil-fuels. - from BBC Research

Offshore Wind Market (source GM Insights)

Offshore Wind Market share for 2016 was valued over 60 Billion and cumulative capacity is set to exceed 60 GW by 2024. Rising concern towards climate change coupled with growing demand for energy independency will foster the market trends. Offshore wind energy market share is anticipated to exceed USD 130 billion by 2024. Rising number of wind farms is expected to drive the market growth over the forecast period.

The Numbers

Over $80 billion is invested in the wind energy sector, annually. Out of that $16 - $20 billion is spent on maintenance, repairs & overhauls.

The Micro Turbines Market is expected to grow from an estimated USD 159.7 Million in 2017 to USD 251 Million by 2022.

Wind Industry Insights

Increasing need to replace conventional sources of energy with renewable energy is expected to drive the market for wind power generation over the next decade.

The global market for wind power has experienced robust growth in the last two decades. Governments across various nations have been supporting the use of renewable energy sources including solar power, hydropower, wind power, and biomass.

Regulatory bodies also, to reduce carbon footprints and reduce reliance on conventional energy sources have been promoting power generation using wind turbines. 
- courtesty of Grand View Research

Global Insights

Europe was the largest consumer of wind power till 2012 due to large regulatory support from the European Union and national government. Asia Pacific overtook Europe in terms of volume of wind power consumed in 2013. Asia Pacific region accounted for 37.4% of total market volume in 2013.

Asia Pacific market was closely followed by Europe.The Middle East and Africa is expected to be the fastest growing regional market for wind power at an estimated CAGR of 44.8% from 2014 to 2020.

Increasing concerns about conventional energy sources has helped this market to grow. China has been a key consumer of wind power which was followed by the United States and Germany.  The European market is expected to grow at a sluggish rate due to maturity of the market.