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The global wind tower market size was valued at USD 22.65 billion in 2021. The market is projected to grow from USD 24.30 billion in 2022 to USD 40.65 billion by 2029, exhibiting a CAGR of 7.6% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with wind tower experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 37.8% in 2020 as compared to 2019.
Wind towers can be defined as giant structures that support wind turbines and their constituents. The tower clutches the rotor and nacelle of the turbine as well as wires the blades to clear the ground safely. The wind turbine is placed at an optimal height to produce electric power from the wind. Governments worldwide are widely promoting wind power as a substitute for conventional energy resources, positively inducing the product demand.
Market Growth Slightly Impacted Due to Disturbances in the Timeline of Planned Projects
The COVID-19 pandemic has not significantly affected the market as the installation has increased substantially in the years 2020 and 2021. The global wind tower market has seen record-breaking capacity installation in 2020 and 2021. However, in several countries, including China, the renewable industry largely depends on imports from other countries. Most U.S. wind raw materials and components are imported from China and Europe.
Due to lockdown in multiple countries, major wind equipment makers such as G.E., Xinjiang Goldwin, and Hybrid Tower faced production shutdowns, causing huge backlogs and delays in order fulfillment. According to WindEurope, wind turbines experienced a decline of 30% in 2020.
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Increase in Power Consumption to Boost Product Demand
The global population is growing abruptly and the penetration of electronic gadgets is growing; this further increases the demand for constant power supply. Growing industrialization also increases the power demand. Growth in various activities such as infrastructure development and commercial and residential construction works further boosts the electricity demand.
To fulfill such demand, the government is looking for cost-effective emission-free solutions such as wind and solar. This increases the installation of wind energy across the globe to produce electricity to overcome the increasing global demand.
Due to stringent government norms regarding Greenhouse Gas (GHG) emissions, companies are more inclined to use renewable energy sources for power generation, particularly wind power. Several countries have targeted to reach net-zero emissions by 2030, which also increases the installation of wind energy globally.
Favorable Renewable Energy Policies & Rising Investment in Wind Energy to Drive Market Growth
The growing environment protection regulations propel the power generation industry to shift to cleaner and environment-friendly energy resources. Several countries across the globe are focusing on developing renewable energy power generation to reduce their dependence on conventional sources such as fossil fuels for power generation. In recent times, it has been observed that investments in wind, solar, and other renewable energy sources are increasing continuously.
One of the primary drivers of the wind tower market growth is the crucial part played by government initiatives and policies. In numerous countries such as Germany, the U.K., the U.S., Japan, and China, policies such as feed-in tariffs, tax credits, net metering, and capital subsidies are the key energy policies explicitly geared toward wind tower.
For instance, in the U.S., the Federal Business Energy Investment Tax Credit (ITC), a corporate tax incentive, allows the owners of new wind energy systems to receive tax credits worth 30% of the facility's value. Such indicated stimuli will allow the wind energy sector to grow significantly globally. Hence, the product demand is expected to increase.
Rising Installation of Renewable Resources for Power Generation to Augment Market Growth
The transition toward decarbonizing power generation by embracing eco-friendly and clean energy technology is projected to drive the market. In association with leading private entities, various countries ensure to achieve renewable energy goals by consistently installing renewable energy systems. Due to environmental regulations, numerous companies are using renewable energy sources for power generation, particularly solar and wind power. This is expected to augment market growth.
According to the International Energy Association (IEA), in 2021, wind electricity generation increased by a record 273 TWh. This was 45% higher growth than in 2020 and was the highest among all renewable power technologies.
Fluctuating Prices of Steel to Hinder Market Growth
Steel is a significant raw material used for manufacturing wind towers. Fluctuating steel prices are hampering market growth. With steel being the world's most traded metal, the price volatility is hampering various end-use industries. Thus, price fluctuation affects the production costs and influences global market growth.
Moreover, steel prices are volatile so the final product cost may increase or decrease. For example, the cost of the raw material will increase the manufacturing cost, thus increasing the cost of the final product. According to General Steel Corporation, steel prices increased by 3% in 2020, and in 2021 steel again increased by 4.10%. Also, the company's financial performance may be adversely affected due to this fluctuation, restraining the market growth.
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Concrete Tower Segment to Dominate the Market Due to Lower Cost and High Strength
Based on type, the market is segmented into steel tower, concrete tower, and hybrid tower. The concrete tower segment held a majority of the market share in 2021 owing to its various benefits including project cost and modularity reduction. The market well understands this material. Towers hold up to 20% of the total costs of a wind turbine, and the use of concrete towers helps reduce the sufficient cost of a wind farm. These towers have high strength, require low prices, and the material needed to build these towers is generally available locally.
The hybrid tower segment is expected to expand significantly in the coming years owing to the rising trend for composite materials. These types of materials can provide the benefits of two materials in one. These towers are lighter in weight also.
Offshore Segment to Grow at Commendable Rate Due to Low Carbon Emissions
The market has been divided into onshore and offshore based on installation. The onshore segment held a dominant share of the market in 2021. The onshore segment shows low carbon emissions and economic cost structure compared to other segments. Globally, more than 72 GW of new wind power projects were installed onshore in 2021.
The offshore segment is likely to witness growth at a languid pace owing to high focus and installation toward the onshore wind. The offshore wind farm installation cost is significantly higher than the onshore wind farm. The emergence of floating offshore wind is also a critical factor in driving growth of the offshore segment.
Asia Pacific Wind Tower Market Size, 2021 (USD Billion)
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Geographically, the market has been analyzed across five main regions, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Asia Pacific is expected to lead the global wind tower market share during the forecast period. The region is leading in onshore wind installation. Major countries such as China, India, and Australia are witnessing higher demand for energy due to rapidly growing industrialization and urbanization. China leads the market owing to rising installation of renewable energy.
Europe is another major market for wind towers. Also, it is the leading region in offshore wind installation. Rapidly increasing installation of wind farms and favorable government regulations are the major factors driving the market growth in Europe. The governments in the region are also focusing on improving wind installation and this is another factor boosting market growth.
North America is estimated to witness significant growth in the market during the forecast period. Along with the high installation of wind energy, the region has the presence of several known tower manufacturers. The rising focus on increasing renewable dependency boosts the market share in North America.
The declining cost of wind power generation and rising investments in renewable energy generation in Latin America & the Middle East & Africa are expected to drive the market growth for wind capacity installation, which is proportional to wind tower installation.
Key Market Players Concentrate on Enhancing Product Portfolios and Acquisitions to Strengthen Geographical Presence
Various key players operate with local, regional, and international footholds across the market. Different companies emphasize on manufacturing products with even higher power density and efficiency to enhance their global position. Additionally, numerous participants are producing F.C. stacks at the regional or local level. For instance, in April 2022, Doosan Wind Tower Co., Ltd. announced its strategic partnership with HyAxiom and Ballard Power Systems to develop PEM (proton exchange membrane) hydrogen wind tower mobility applications initially focused in South Korea.
An Infographic Representation of Wind Tower Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, competitive landscape, types, and installation of the system. Besides this, the report offers insights into market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market growth in recent years.
Value (USD Billion)
By Type, Installation, and Region
Fortune Business Insights says that the global market size was USD 22.65 billion in 2021 and is projected to reach USD 40.65 billion by 2029
In 2021, the market value stood at USD 22.65 billion.
Growing at a CAGR of 7.6%, the market will exhibit healthy growth during the forecast period (2022-2029).
By installation, onshore is the leading segment in the market.
Favorable renewable energy policies and rising investments in wind energy drive the market growth
Suzlon Group, Nordex Group, Broadwind, Ventower Industries LLC, and Arcosa Inc. are the leading players in the global market.
Asia Pacific dominated the market in 2021.
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