The wind energy sector is poised for substantial growth as global markets turn to renewable energy solutions. The market is expected to grow from $89.6 billion in 2023 to an impressive $260.8 billion in 2034. The market is expected to grow at a CAGR of 10.2% over the next decade.

Market overview: Harnessing the power of wind

The wind energy sector is experiencing significant investment and development, fueled by the global push for renewable energy. Offshore wind projects are poised for growth, leveraging advanced technology and greater efficiency than onshore installations. In 2023, offshore projects had already secured the largest revenue share, a trend that is expected to continue as technological advances continue to drive down costs.

Key market segments and growth drivers

Location Insights: Onshore vs Offshore

Offshore wind energy will lead the market growth due to higher efficiency and increasing number of feasible installation locations. Despite higher initial costs, the long-term benefits of offshore projects make them very attractive. Meanwhile, onshore wind projects are essential, with lower costs and easier installation. The onshore segment is expected to grow significantly through 2034, especially in regions with abundant land and favorable wind conditions.

Application Insights: Useful and Not Useful

Utility-scale wind projects will dominate the market in 2023, reflecting the significant investments and extensive infrastructure required for large-scale energy production. Integrated into national grids, these projects are critical to meeting substantial energy demand. Conversely, the non-utility segment, which includes residential and commercial projects, is gaining momentum as technology becomes more accessible and land constraints are relaxed.

Global perspectives

Asia Pacific: Leading the Way

In 2023, the Asia-Pacific region led the global wind energy market with a 43% share. Valued at $38.5 billion, this market is expected to reach $112.2 billion by 2034, with a CAGR of 10.4%. Government initiatives and infrastructure developments in countries such as China and India are fueling this growth. According to the Global Wind Energy Council (GWEC), China installed 52 GW of new wind capacity in 2021 alone.

North America: New Opportunities

North America is expected to be the fastest-growing market, driven by the United States’ significant wind energy potential and falling technology costs. The region presents lucrative opportunities for investors, with emerging markets showing robust demand for renewable energy solutions. The American Clean Power Association reported that the U.S. added 13.4 GW of wind capacity in 2021, reflecting a solid growth trajectory.

Market growth factors

There are several factors driving the growth of the wind energy market:

• Environmental regulations: Strict environmental policies are accelerating the shift from fossil fuels to renewables. The International Energy Agency (IEA) stresses that renewable energy policies will be crucial to achieving global climate goals.
• Technological advancement: Innovations in turbine technology and installation methods are reducing costs and increasing efficiency. For example, the development of floating wind turbines is opening up new possibilities for offshore installations.
• Government initiatives: Policies and incentives to reduce carbon emissions are driving investment in wind energy projects. The European Union’s Green Deal is a good example, with significant funding to expand renewable energy capacity.
• Increasing demand for energy: The growing demand for sustainable energy in healthcare and residential construction is supporting market growth.

Leading market players

Key industry players such as Vestas, Siemens Gamesa and GE Renewable are driving market development. These companies are investing heavily in R&D to improve the efficiency and reliability of wind energy technologies, so they can remain competitive in a rapidly changing landscape. Strategic partnerships and acquisitions are expected as these companies seek to minimize costs and maximize market share.