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The global wind tower market size stood at USD 24.82 billion in 2019 and is projected to reach USD 45.72 billion by 2027, exhibiting a CAGR of 8.0% during the forecast period.
Wind towers are tall structures that support wind turbines and their components. The tower holds the rotor and nacelle of the turbine, as well as it supports the blades to clear the ground safely. The wind turbine is positioned at an optimum height to produce electric energy from wind. Government from both developed and developing countries are strongly promoting wind energy as an alternative to the conventional energy source and hence positively influencing the wind turbine towers market.
The renewable sector in many countries is heavily dependent on imports from other regions, mainly China. The global wind industry is dependent on imports of wind equipment from a wide array of countries with the level of dependence varying by component. China holds more than 30%, and Europe holds more than 25% of the U.S. raw wind material and component imports. Thus, due to nationwide lockdown in many countries, major wind equipment suppliers such as GE, Siemens, Xinjiang Goldwin, and others have observed production delays, resulting in a huge backlog for fulfilling orders. According to WindEurope, wind energy installations for 2020 are expected to be 30% down compared to industry forecasts.
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Increase in Power Consumption To Boost Growth
High population growth across the globe, flourishing industrial sector, and growth in infrastructure development activities are all leading to a considerable rise in demand for electricity. Due to the development of the countries and the improvement in the standard of living, there is a higher demand for energy consumption. As the demand for electricity increases, regions across the globe are increasing their power generation capacity by installing new plants or expanding the capacity of the existing one. Due to stringent government norms regarding greenhouse gas emissions, companies are more inclined towards the use of renewable energy sources for power generation and particularly towards solar energy and wind power.
Rising Investment in Wind Energy to Drive the Growth of Wind Tower Market
An increase in environmental protection regulations across the globe forces the power generation industry to shift to cleaner and environment-friendly energy resources. Major economies around the world are highly focused on developing renewable energy power generation to reduce their dependency on conventional power generation through fossil fuels. Wind energy is a major renewable energy source with the potential to meet many of the challenges facing the world. Wind power installation rose to 651 GW, as the world installed 60.4 GW of new wind power projects in 2019. With 30.6 GW of installation, the Asia Pacific region accounted for 50.7% of all new installations. Hence, such tremendous yearly addition in the capacity of wind power is certainly boosting this market globally.
Supportive Government Initiatives and Policies Propelling Growth of the Market
Over the past few years, the renewables investment record shows that the focus on reducing global dependence on coal and other fossil fuels is well underway. As a measure, several new wind power energy projects are being established across the globe and will start contributing to the global energy mix consistently in the next few years. One of the primary drivers for the growth of the market is the important part played by government initiatives and policies. In many countries such as the U.S., China, Japan, and EU countries, policies such as feed-in tariffs, tax credits, net metering, and capital subsidies are the major energy policies explicitly geared towards the wind.
The indicated incentives will allow the wind energy sector to grow substantially in these countries.
Fluctuating Prices of Steel to Hinder Market Growth
Steel is a major raw material used for manufacturing wind towers. The fluctuating prices of steel hinder the wind tower market growth. Since steel is the most vastly traded metal worldwide, the price fluctuation hampers various end-use industries. Such wind towers are manufactured out of such steel sheets throughout the world. Thus, price fluctuation affects the cost of production, influencing the global market growth.
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Concrete Wind Tower to Grow at Faster Pace during 2020-2027
Based on type, the industry is divided into steel towers, concrete towers, and hybrid towers. The concrete towers segment held a dominant wind tower market share in 2019, and the segment is expected to maintain a high growth rate during the forecast period. These towers have high strength, require low transportation costs and the material needed to build these towers is generally available locally. Furthermore, large turbines are heavier, require large rotors, and are taller. For these types of turbines, the concrete wind tower proves to be more cost-effective than of tubular steel towers due to their high strength.
Onshore Segment Dominated the Market in 2019
Based on the installation, the market is segmented into onshore and offshore. The onshore segment held a dominant share of the market in 2019. The onshore segment shows low carbon emission and economic cost structure as compared to other segments. Globally, more than 54 GW of new wind power projects installed onshore in 2019.
Asia Pacific Wind Tower Market Size, 2016-2027 (USD Billion)
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Asia Pacific is anticipated to lead the global market over the forecast period. The Asia Pacific is the leading region in onshore wind installation. Countries such as China, India, and Australia continue to post a higher demand for power owing to rapid industrialization and urbanization. China represents the largest wind capacity with 1,164 MW new installation of offshore wind power during 2017. The total installed wind capacity in Asia-Pacific in 2017 had been 233,735 MW.
Europe is the second-largest market for wind towers. Also, it is the leading region in offshore wind installation. Rapidly increasing the installation of wind farms and favorable regulations are the major factor driving the growth of the market in Europe. The EU Renewable Energy Directive states the plan for the promotion & production of sustainable energy sources across the nation. This directive has levied targets to attain 20% renewable adoption in the overall energy mix. Such factors provide a further boost to the growth of the market.
Key Participants are Concentrating on Increasing Their Production Capacity by Introducing New Plants or Expanding the Existing Ones
The global market is consolidated owing to the strong product portfolio and a remarkable distribution network of major companies in developed and emerging countries. Currently, Nordex Group, Broadwind, and Suzlon Group lead the market, accounting for a dominant share in 2019. However, strong barriers to entry are projected to the limited number of domestic players entering the global market. This makes the market more competitive in the future.
The companies are expanding their production capacities by inducing new plants or expanding the existing ones. Recently, the Nordex Group has opened a plant in the North Brazilian state of Brazil Piaui for the production of concrete towers. The plant is to produce the 65 towers required for the “Lagoa do Barro” wind farm.
Additionally, companies are focusing on new contracts. For instance, in April 2020, US wind industry supplier Broadwind Energy has won a USD 19 million wind tower order from a wind turbine manufacturer. The company anticipates delivering the tower sections through early 2021.
This global market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.
An Infographic Representation of Wind Tower Market
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Value (USD Billion)
Fortune Business Insights says that the global wind tower market size was USD 24.82 billion in 2019.
The global market is projected to grow at a CAGR of 8.0% in the forecasted period
The global wind tower market is projected to grow at a CAGR of 8.0% in the forecasted period
The concrete wind tower segment is expected to be the leading segment in this market during the forecast period
The global industry size is anticipated to reach USD 45.72 billion by 2027 growing at a substantial CAGR of 8.0% during the forecast period (2020 -2027)
Supportive government policies and regulations, and renewable energy targets are major factors driving the growth of the market.
Asia Pacific region dominated the market share in 2019.
Nordex Group, Broadwind, Dongkuk S&C, and Suzlon Group, are major players of the global market
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