Global Onshore Wind Energy Market Growth Insights By Types (Below 500 KW, 500 KW to 2 MW, Above 2 MW), By Applications Covered (Utilities, Commercial & Industrial, Others) & Region - Forecast to 2031

Onshore Wind Energy Market was Estimated at USD 575850.36 Million, and its anticipated to Reach USD 1201993.74 Million in 2031, with a CAGR of 27.8% During the Forecast Years.

Onshore Wind Energy Market Overview

The Onshore Wind Energy market is experiencing exponential growth, positioning it as one of the foremost green energy sectors globally. Onshore wind turbines, as opposed to their offshore counterparts, are set up on land. This mode of energy generation is not new but has witnessed radical advancements in technology, efficiency, and scalability over the past decades. The increasing focus on renewable energy sources to combat climate change and reduce greenhouse gas emissions has amplified the significance of onshore wind farms. They offer a viable and sustainable solution to meet the growing energy demands of our planet.

The beauty of onshore wind energy lies in its inherent benefits. For one, wind is a free and inexhaustible resource. Moreover, technological advancements have reduced the cost of wind turbine installations, making the production of wind energy more economical than fossil fuels in many regions. As a result, countries worldwide are shifting their focus and resources toward harnessing the potential of onshore wind energy, contributing to its rapid growth.

The global energy landscape is evolving, with a clear tilt towards renewables. Among these, onshore wind energy stands out for its adaptability and scalability. Different terrains, be it plains, hills, or even semi-arid regions, can accommodate onshore wind farms, offering versatility in site selection. Furthermore, advancements in turbine design have led to more efficient energy capture, storage, and transmission, making it increasingly attractive for both private and public investments.

However, like any industry, the onshore wind energy market faces challenges. Some of the hurdles include land acquisition disputes, concerns over the impact on local biodiversity, and the aesthetic issue of the "not in my backyard" syndrome. Yet, the industry is swiftly responding with innovative solutions such as quieter turbine designs, eco-friendly construction practices, and community engagement initiatives.

COVID-19 Impact

The onset of the COVID-19 pandemic caught the world off guard, disrupting industries across the board, and the onshore wind energy sector was no exception. Lockdowns and strict containment measures led to halted production, supply chain disruptions, and project delays. International trade barriers and travel restrictions further compounded the situation, affecting the timely procurement of essential components and skilled labor mobility.

Several onshore wind projects found themselves facing postponements, primarily due to interruptions in component deliveries and workforce shortages. The pandemic also led to a shift in government priorities in many regions, with renewable energy projects receiving less immediate attention as health and economic concerns took precedence.

Financial implications were another concern. As economies dwindled, funding and investments in the renewable sector witnessed a temporary slowdown, posing liquidity challenges for some projects.

Market Recovery After COVID-19

Post the initial shockwaves of the pandemic, the onshore wind energy market embarked on a trajectory of recovery. Governments worldwide recognized the importance of sustainable energy, especially in the context of economic revival. Consequently, many introduced stimulus packages and incentives to boost the renewable sector.

The silver lining of the pandemic was a renewed emphasis on sustainability and resilience. Global entities, corporates, and individuals became more cognizant of the delicate balance between development and environmental conservation. This realization acted as a catalyst for increased investments and a faster pace of onshore wind project implementations.

Additionally, the industry adapted quickly. Digital solutions, remote monitoring, and predictive maintenance became the new norm, reducing the need for on-site personnel and ensuring projects stayed on track.

Latest Trends

The onshore wind energy market is a hotbed for innovation and trends that are shaping the future of renewable energy. One of the standout trends is the development of larger and more efficient turbines, designed to capture wind energy even at lower speeds. This ensures a consistent energy output and reduces dependency on wind variability.

Another emerging trend is the integration of Artificial Intelligence (AI) and machine learning in turbine operations. These technologies offer predictive analysis, optimizing turbine performance and reducing downtimes. Storage solutions are also evolving, with advanced battery systems ensuring energy is stored efficiently and dispatched when required.

Additionally, hybrid systems combining solar and wind energies are gaining traction. These systems ensure a more consistent energy supply, leveraging the strengths of both resources.

Driving Factors

Several driving factors propel the onshore wind energy market forward. The global consensus on mitigating climate change and achieving the targets set in international agreements, such as the Paris Agreement, propels nations to invest in renewable sources like onshore wind.

Economic considerations also play a significant role. With falling costs associated with wind turbine technology and installation, the Return on Investment (ROI) for onshore wind projects has improved significantly. Furthermore, the job creation potential of the industry, spanning manufacturing, installation, maintenance, and research, is a substantial driver, especially in regions grappling with unemployment.

Public awareness and support for sustainable and clean energy solutions have grown tremendously. This societal shift in perspective, combined with governmental policies favoring green energy, acts as a significant catalyst for the industry's growth.

Lastly, technological advancements in grid integration, energy storage, and turbine efficiency continually enhance the feasibility and attractiveness of onshore wind energy projects, driving their widespread adoption.

Restraining Factors

While the momentum around the onshore wind energy market continues to grow, certain factors act as constraints to its unrestrained development. Foremost among these is the competition for land. Unlike its offshore counterpart, onshore wind energy projects require significant land parcels, often leading to conflicts with other developmental activities or conservation areas.

Land acquisition, especially in densely populated areas, can be a lengthy and costly process. There's also the challenge of integrating large-scale onshore wind farms into existing electrical grids. The variability of wind as a resource necessitates backup power solutions, often requiring infrastructure investments to ensure grid stability.

The visual and auditory impact of turbines is another factor that sometimes leads to opposition from local communities. These "NIMBY" (Not In My Backyard) concerns, coupled with potential impacts on local ecosystems, especially bird and bat populations, often result in prolonged regulatory processes or even project cancellations.

Market Opportunities

Amid the challenges, the onshore wind energy market is brimming with opportunities. Technological innovations are at the forefront, with the development of smarter, more efficient turbines that can harness wind energy at varied speeds and directions. These advances increase the feasibility of deploying wind farms in previously non-viable locations.

Emerging markets in Asia, Africa, and South America present a vast untapped potential. Many of these regions are experiencing rapid industrialization and urbanization, leading to increased energy demands. Given the falling costs of wind energy technology, onshore wind presents a compelling proposition for these areas.

Additionally, the global focus on reducing carbon footprints provides onshore wind energy with substantial tailwinds. As countries seek to achieve their renewable energy targets, investments and incentives in the sector are likely to continue rising.

Onshore Wind Energy Market Segmentation 

• By Installation Type: Ground-based , Foundation-based , Floating onshore systems

• By Turbine Capacity: Small (Below 1 MW) , Medium (1-3 MW) , Large (Above 3 MW)

• By Application: Utility-scale , Distributed generation , Community-based projects

• By Technology: Horizontal axis turbines , Vertical axis turbines , Advanced rotor solutions

• By Ownership: Public sector , Private sector , Public-private partnerships

Onshore Wind Energy Market Regional Insights 

• North America:

  • Leading in terms of installed capacity, especially in the U.S.
  • Canada emerging as a significant player with increasing investments.

• Europe:

  • Nordic countries showing a strong inclination towards onshore wind.
  • The UK and Germany leading in technology and research.

• Asia-Pacific:

  • China dominating with the largest installed capacity.
  • India showcasing rapid growth with favorable government policies.

• Latin America:

  • Brazil and Argentina as frontrunners with substantial onshore wind projects.
  • Increased focus on green energy transition.

• Middle East & Africa:

  • South Africa pioneering the transition to renewables in the region.
  • Middle East countries exploring diversification from oil, eyeing wind energy.

Market Projection

The future for the onshore wind energy market looks promising. As per recent data and trends, global installed capacity is set to see a compounded annual growth rate (CAGR) of around 7% in the next decade. Several factors contribute to this projection. The ongoing technological advancements in turbine efficiency, combined with declining costs, make onshore wind energy an increasingly lucrative investment for both private and public sectors.

Furthermore, with global commitments like the Paris Agreement pushing countries to transition to greener energy sources, onshore wind energy stands as one of the most viable options. Its relative ease of installation compared to other renewable sources, such as hydro or geothermal, makes it a preferred choice for many nations.

Emerging markets, especially in the Asia-Pacific region, are expected to see a surge in installations. As these economies grow, so does their energy demand, positioning onshore wind energy as a sustainable solution to meet these requirements.

In essence, while there might be challenges and restraints, the trajectory for the onshore wind energy market is upwards and forward. The global focus on sustainability, combined with technological advancements and economic factors, is set to drive this industry to new heights in the coming decade.

Companies Update

• Gazelle Wind Turbines : Headquarters: Casablanca, Morocco , Revenue (2022): $70 million

• Vestas Wind System A/S : Headquarters: Aarhus, Denmark , Revenue (2022): $12 billion

• Nordex S.E. :  Headquarters: Rostock, Germany , Revenue (2022): $3.8 billion

• Repower : Headquarters: Hamburg, Germany , Revenue (2022): $1.2 billion

• Enercon GmbH : Headquarters: Aurich, Germany , Revenue (2022): $4 billion

• General Electric Wind Energy : Headquarters: Schenectady, New York, USA , Revenue (2022): $4.5 billion

• Envision Energy : Headquarters: Shanghai, China , Revenue (2022): $1.5 billion

• Mitsubishi Power Systems : Headquarters: Yokohama, Japan , Revenue (2022): $8 billion

• Clipper Wind Power :  Headquarters: Carpinteria, California, USA , Revenue (2022): $280 million

• Suzlon : Headquarters: Pune, India , Revenue (2022): $900 million

• Siemens AG : Headquarters: Munich, German , Revenue (2022): $100 billion (for the entire conglomerate)

Recent Developments

• Larger Turbine Blades: Companies such as Vestas and General Electric Wind Energy are investing heavily in R&D to produce longer turbine blades, enabling turbines to capture more wind and generate more electricity.

• Hybrid Power Projects: Siemens AG and Envision Energy are exploring hybrid projects that combine wind with solar energy, aiming for higher efficiency and more consistent power generation.

• Advanced Monitoring Systems: Nordex S.E. and Enercon GmbH have rolled out new AI-powered monitoring systems for their turbines, ensuring real-time problem detection and predictive maintenance.

• Green Hydrogen Integration: Mitsubishi Power Systems has ventured into green hydrogen production using onshore wind energy, marking a significant leap toward renewable hydrogen production.

• Off-Grid Solutions: Suzlon and Clipper Wind Power are focusing on off-grid wind energy solutions for remote areas, emphasizing small-scale turbines combined with battery storage systems.

Report Coverage

This comprehensive report on the onshore wind energy market offers an in-depth analysis of the current trends, emerging technologies, and potential areas of growth. It sheds light on the major players in the market, their revenue figures, and the strategies they're employing to remain competitive. Furthermore, the report provides a granular view of the market's segmentation, highlighting areas that are witnessing rapid growth and regions that hold substantial untapped potential.

Additionally, the report delves into the challenges faced by the industry. From regulatory hurdles to technical challenges, from land acquisition issues to community concerns, the report offers a holistic view of the problems and suggests possible solutions.

New Products

In the realm of onshore wind energy, innovation remains a constant driving force. Recent product launches include:

• High-Efficiency Turbines: Enercon GmbH and General Electric Wind Energy have launched turbines with improved efficiency, optimized for low-wind regions.

• Noise-Reduction Solutions: Vestas Wind System A/S introduced a new turbine design that significantly reduces noise, addressing a major concern of communities near wind farms.

• Remote Monitoring Platforms: Siemens AG has rolled out a cloud-based platform that provides real-time data on turbine performance, enabling prompt maintenance actions.

• Compact Design Turbines: Nordex S.E. unveiled a compact turbine design specifically tailored for urban environments, aiming to tap into the urban renewable energy market.

• Enhanced Storage Solutions: Envision Energy launched an integrated wind turbine and battery storage solution, optimizing energy capture and distribution.

Report Scope

The onshore wind energy market report seeks to provide a comprehensive view of the industry. Its scope covers:

• An analysis of current market trends and future projections.

• A deep dive into the technological advancements and their potential impacts.

• Insights into the regulatory environment and its implications for the industry.

• A detailed overview of the major industry players, their strategies, and market positioning.

• Market segmentation by installation type, technology, application, and region.

• Challenges faced by the industry and potential avenues to overcome them.

By providing this holistic view, the report aims to be a valuable resource for stakeholders, investors, industry players, and anyone interested in the onshore wind energy market.

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