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Onshore Wind Market Overview
The global Onshore Wind market size is
forecast to reach $52.1 billion by 2026, growing at a CAGR of 12.3% from 2021
to 2026. Onshore Wind can be referred as wind power generation through
installation of wind turbines on land, supported with various components
including power generators, electric power transmission and so on. Additionally,
shift towards supporting the adoption of clean renewable energy sources over fossil
fuels to cut down harmful carbon emissions, rising initiatives supporting
onshore wind power capacity can be considered vital attributing to its market
growth. A growing number of infrastructural
projects related to onshore wind farms, rise in contract agreements regarding
installation, commissioning or related services for onshore wind turbines along
with high investment on research & development activities to increase power
capacity of onshore wind turbine models will further drive the market growth in
the long run.
Report Coverage
The report: “Onshore Wind Industry Outlook – Forecast (2021-2026)”, by
IndustryARC covers an in-depth analysis of the following segments of the Onshore
Wind industry.
Key Takeaways
- Onshore Wind Turbine segment is anticipated to witness the highest CAGR during the forecast period 2021-2026, attributing to rising investments on R&D activities, growing number of onshore wind farm projects and so on.
- Europe Onshore Wind market held the largest share in 2020, owing to factors including, rise in onshore wind installation projects along with initiatives towards limiting carbon emissions through raising wind power generation capacity targets.
- Growing installation, supply, commissioning and related service agreements or contracts for onshore wind turbines along with rising infrastructural activities of onshore wind farms is analyzed to significantly drive the global onshore wind market growth during 2021-2026.
Global Onshore Wind Market Value Share, By Region, 2020 (%)
Onshore Wind Market Segment Analysis - By Components
Based on components, Wind Turbine segment is analyzed
to grow with the highest CAGR of 8.5% in the global Onshore Wind market during
the forecast period 2021-2026. Factors including ease of installation, reduced
service costs related to commissioning or decommissioning compared to offshore
models, small model designs, and growing shift towards cost efficient renewable
energy sources have been attributing to the market growth of onshore wind
turbines. Rising number of investments towards increasing onshore wind power installations,
high investments on R& D activities regarding onshore wind turbines, as
well as growing infrastructural facilities related to onshore wind farms will
be fuelling the market demands in the long run. According to Global Wind Energy
Council (GWEC), the global installed wind power capacity accounted for 743 GW,
comprising of 707 GW for onshore wind by end of 2020. In addition, GWEC had
forecasted the annual average onshore installations to reach 79.8 GW over
the next five years. In October 2020, GE Renewable Energy announced the
launch of the 6.0-164 version for its Cypress onshore wind turbine platform, as
a part of supporting the development of one of the most powerful onshore wind
turbines available in the market. Integrated with two-piece carbon fiber blade,
its modular design will help in increasing annual energy production by upto
11%, compared to its previous model, alongside improving logistics, and driving
down costs, expected to be in fields by 2022. Such factors are further set to
drive the market growth in the coming time.
Onshore Wind Market Segment Analysis - By Power Rating
Onshore Wind power capacity of above 2 MW is
analyzed to grow with the highest CAGR of 7.3% during the forecast period
2021-2026. Factors such as growing demand for high power generation output, rapid
advancements as well as investments on R&D activities from various key
market players like GE, Vestas, Siemens Gamesa and many others have been attributing
to the market growth. With adverse climatic conditions within various regions, the
need for onshore wind turbines having robust body structure, reliable and
maximized wind energy potential is getting impacted significantly. In addition,
governmental initiatives towards high power onshore wind energy targets or
turbine installations, rise in investments towards onshore wind farms with high
potential wind power generation capacities, along with bigger turbine blade
swept areas can also fuel the market growth towards more than 2 MW of onshore
wind power generation capacity in the coming time. In September 2020, Siemens Gamesa Renewable Energy had revealed about
its launch of SG 3.4-145 turbine, mainly for India’s onshore wind market. Development
of 127.5 m tall wind turbine was particularly designed and optimized for
addressing wind conditions in India, while delivering lowest possible Levelized
Cost of Energy (LCoE) as well maximizing wind potential upto 3.6 MW capacity. Such
factors can further drive the market growth in the onshore wind in the long
run.
Onshore Wind Market Segment Analysis - By Geography
Europe region had dominated the global onshore wind market in 2020, with a share of over 36% and is also anticipated to have a significant growth during the forecast period 2021-2026. Growing shift towards renewable energy sources from various industries, rise in onshore wind turbine installations, along with government initiatives towards reducing carbon emissions by raising wind power generation capacity have been attributing to the market growth in the region. High investments on R&D activities on onshore wind turbines from some key market players including Nordex SE, Siemens Gamesa and others have been also impacting the market growth of onshore wind overtime. In addition, growing infrastructural projects related to onshore wind farms, along with government funding or grants to subsidize onshore wind projects will also help in fuelling its market demand across the European region in the long run. According to a European Wind Energy Association, WindEurope, an amount of €43 billion in new wind farms with 20 GW capacity was invested by Europe in 2020, a comparative rise of over 70% from 2019. Under this, about €17 billion was invested for onshore wind, covering 13GW of new capacity additions with rest for offshore wind. In February 2021, the French Ministry of Energy revealed about the results for the seventh onshore wind tender, under which about 15 projects with cumulative capacity of 519,7 MW were awarded. This government initiative was meant to help country’s aim of having upto 35 GW of onshore wind by 2028, in order to support its National Climate and Energy Plan. Such factors are further set to drive the market growth of onshore wind in the coming years.
Onshore Wind Market Drivers
Rising infrastructural projects related to onshore wind farms have been positively impacting its market growth
Rising
infrastructural projects related to onshore wind farms can be considered as one
of the major drivers boosting the growth of onshore wind market. With rapid
transition towards renewable energy, growing wind energy capacity targets
across various countries, along with rising support towards construction of
onshore wind farms or facilities overtime have been attributing to the market
growth. Additionally, infrastructural projects related to expansion of wind
power generation farms or facilities, modernization or renovation, along with
installation or commissioning contracts related to onshore wind turbines can
also help in driving the market growth forward. Furthermore, initiatives
towards eliminating carbon emissions across various major industries as well as
restart of onshore construction wind farm projects postponed by the COVID-19
pandemic will further help in boosting its market growth in the long run. In
August 2021, a Finnish renewable energy company, named Ilmatar Energy had
revealed about starting off with the construction of its 216 MW Alajarvi
onshore wind farm, expected to become operational by end of 2023. This project
located in central Finland, is meant to support the country’s low carbon energy
strategy, which will involve the need for 36 wind turbines, thus making it one
of the largest unsubsidised wind farm projects within Europe. Such factors are
set to fuel the market growth towards onshore wind energy in the coming years.
Growing installation, supply, commissioning and related service agreements or contracts for onshore wind turbines will drive the market growth
Growing
installation, supply, commissioning and related agreements or contracts for onshore
wind turbines can also be considered a major factor driving the market growth
of onshore wind. Factors including growing shift towards making delayed onshore
wind projects operational, increasing demand for turbine renovation or onsite
servicing requirements, along with advancements in R&D activities of
onshore wind turbines with increased power capacity are some of the crucial
factors driving the need for installation, commissioning, onsite technical
support and related services by the end use customers, raising investment on
contracts overtime. Various major market vendors including GE Renewable Energy,
Siemens Gamesa and many others have been highly engaged in onshore wind turbine
servicing contracts or agreements to serve some of the largest ongoing wind
farm projects, which is eventually aiding the market growth overtime. In June
2021, Siemens Gamesa had revealed about securing a contract for supplying
typhoon-class onshore wind turbines for one of the largest onshore cluster of 4
wind farms in Japan, named Dohoku wind farm cluster. Under this agreement,
about 79 turbines will be supplied by the company for installation at the wind
farms, alongside providing technical field assistance regarding construction as
well as commissioning of the four wind projects. Such factors can positively
impact the growth of onshore wind markets in the long run.
Onshore Wind Market Challenges
Growing shift towards renewable alternatives like offshore wind power have been hampering the market growth of onshore wind
Growing shift towards renewable alternatives like offshore
wind power act as one of the major factor restraining the growth of onshore
wind market. Utilization of offshore wind energy have been significantly
growing overtime owing to benefits including faster operational speeds,
requirement of lesser turbines for producing same amount of energy as with
large number of onshore turbine models, reliable power generation capacity due
to consistent wind speeds, lower LCOE and so on. This in turn, have been
gaining wide popularity in comparison to onshore wind energy generation. Additionally,
growing number of offshore wind projects, along with governmental efforts
towards increasing the offshore wind power capacity targets in the long term,
can further create an adverse impact on the market growth of onshore wind. In
October 2020, UK government had revealed about its plans on increasing the
offshore wind generation capacity from 30 GW to 40 GW by the year 2030. Such factors will eventually slow down the
adoptability towards onshore wind energy generation in the long run.
Onshore Wind Market Landscape
Product launches, collaborations, and R&D activities are key strategies adopted by players in the Onshore Wind Market. The Onshore Wind Market top 10 companies include:
- Siemens Games Renewable Energy S.A
- Nordex SE
- GE Renewable Energy
- Goldwind
- Vestas Wind Systems A/S
- Enercon GmbH
- Senvion S.A.
- Sinovel Wind Group Company
- Suzlon Energy Ltd.
- Envision Energy
Acquisitions/Technology Launches/Partnerships
- In September 2021, Nordex announced the launch of its first 6 MW onshore turbine, named N163/6.X as a part of an addition to the Delta4000 series with 4 MW and 5MW capacity. This development is meant to support wind power generation across moderate as well as light wind regions.
- In September 2021, Siemens
Gamesa announced the launch of a next-generation onshore wind platform, SG 6.6-155 and SG 6.6-170 turbines with an increased power output of 6.6 MW. The development of these turbines was done to
provide high individual power as well as reduced operating expenditures while
ensuring low levelized cost of energy for the end use customers.
Relevant Reports:
Wind Power Market-
Forecast (2021-2026)
Report code: AIR 0297
Offshore
Wind Energy Market- Forecast (2021-2026)
Report code: EPR 50283
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