Wind energy generation is one of the most developed methods of harnessing renewable energy. It accounts for a large share of the global renewable energy market. Wind energy can be broadly categorized into two sectors: onshore wind and offshore wind. The offshore wind sector is still in the initial phases of development, with deployment restricted to Europe and Asia Pacific. However, the onshore wind energy sector is developed with significant technology maturity and project development experience. Currently, Asia Pacific is the leading investor in the onshore wind energy sector, with China and India emerging as market leaders in the region. Financial incentives and subsidies declared by national governments coupled with renewable energy installation targets are the major factors driving investment in the onshore wind energy industry. China led the onshore wind energy market with a record installation of 16030 MW in 2013. Of late, growth of onshore wind energy installations in developed regions such as Europe and the U.S. has been sluggish.
Europe was once a major hub for onshore wind energy development. The region has not been able to maintain its historical installation rates after the economic crisis. Germany and the U.K. accounted for over 65% share of the total installations in Europe in 2013. However, the region’s renewable policy framework and the European Union’s renewable energy directive are likely to ensure a degree of stability for the onshore wind market in Europe. In terms of installed capacity, the U.S. is one of the leading markets for onshore wind energy globally. However, onshore wind energy installations in the U.S. declined markedly due to the withdrawal of the production tax credit (PTC) scheme by the government. Nevertheless, PTC is likely to be reintroduced in the near future. Major wind projects, which are currently in various stages of the development pipeline, are likely to be installed in the near future. Brazil is expected to be an investment hotspot for investors dealing in wind energy in Latin America. Argentina and Costa Rica are also exhibiting promising prospects for the development of onshore wind energy.
The levelized cost of electricity from onshore wind power plants is affected by various factors such as annual capacity utilization, financing cost, investment cost, operation & maintenance cost and the assumed economic life of the plant. Wind power plants are capital intensive in nature. Initial investment cost accounts for the major share of the total expenditure; operation & maintenance costs constitute the remaining share of the total expenditure. There has been a continuous change in the structure of the onshore wind energy industry over the past few years. Wind turbine developers in China have emerged as the leading players in the wind turbine industry due to large domestic installations. This coupled with the faltering European economy has resulted in major players in Europe losing market share over the past few years. Some of the major turbine developers have forward integrated and started to act as project developers in various nations. Furthermore, research wings of these companies have started focusing on alternate materials and innovative designs for turbine construction in an attempt to achieve significant cost savings. Earlier, the onshore wind industry would focus more on increasing the total nameplate capacity of wind turbines. Now, the focus has further diversified to capacity factors of turbines. This helps companies keep energy costs low by providing the maximum power.
The global wind turbine manufacturing industry is consolidated in nature; the top 10 turbine manufacturers accounted for nearly 80% of the global market share in 2013. Five major turbine manufacturers are based in Europe, three in China, and one each in the U.S. and India. Rapid development of China’s domestic wind energy industry has led to the emergence of several major wind turbine developers such as Goldwind Science and Technology Co., Ltd. However, considering the overall scenario, the turbine manufacturing industry was negatively affected by rising costs and retracting government support. These led to cancellations in expansion plans and scaling back of operations by several industry majors.
Wind energy is a relatively mature method of generating renewable energy. It has garnered significant share in the global renewable energy market due to its relatively mature technology and low cost of generation vis-a-vis other renewable energy sources. The wind industry’s rapid development in the past few years indicates its significant potential to create jobs, spur economic activity and reduce greenhouse gas emissions.
Onshore wind energy is a relatively old technology. It has emerged as one of the most developed renewable energy generation methods in use currently. Both project development experience and technology maturity for the onshore wind energy sector is relatively high. The market for wind turbine suppliers is consolidated in nature, with 10 major turbine suppliers accounting for nearly 75% of the annual installations in 2013. The high technology maturity component is one of the primary driving factors for wind energy. A large number of project developers exist in the market. These are duly supported by national government installation targets. This has helped boost investor confidence in the wind energy sector. The technology has achieved a certain degree of maturity; however, there is still ample scope for cost reduction through technological innovations and deployment of large multi-megawatt turbines.
This research is designed to estimate, analyze and forecast the market volume and revenue for the wind power generation market. It provides an in-depth analysis of the market size of wind power in terms of capacity (MW) and revenue (USD Billion). The baseline data for this report has been taken as 2013, while all the forecasts are carried out for the 2014 to 2020 period. Wind energy can be broadly segmented into offshore and onshore. However, this report focuses exclusively on the onshore market. The report analyzes the onshore wind energy sector in detail along with deep dive research that spans five regions and 36 countries. The market has been segmented based on geography into five regions: North America, Asia Pacific, Europe, the Middle East & Africa and South & Central America. About 36 countries across these five regions have been separately analyzed to obtain a better idea of the wind energy sector globally. The market has been forecasted using the unique bottom-up approach, where individual country forecasts were added up to provide regional and global market sizes. The report primarily focuses on wind turbine developers as they form an integral part of the wind value chain. Turbine cost projections and forecasts have been provided in the report and accounted for while calculating revenue figures. The company market share provided in the report focuses on the market share of wind turbine manufacturers with respect to turbine capacities supplied by them for 2013.
The market size for onshore wind power generation has been estimated by studying the possible future technology trends in the market. Detailed research of countries and region-specific wind associations has been undertaken to estimate and forecast the installed capacity and investments in the onshore wind energy sector. As part of the bottom-up approach adopted for forecasting purposes, a deep dive regulatory analysis was required. The regulatory framework for each of the 36 countries accounted for in the report was analyzed separately. This provided a clear indication regarding the general approach of the government towards wind energy and the overall investment sentiment in the country. Legislations specifying quotas for indigenous manufacturing and renewable energy purchase also provided a clear idea regarding the clustering of turbine developers in a region, which may be observed in the future.
The report includes Porter’s five forces model and value chain analysis for the onshore wind energy sector. These have been included with respect to turbine manufacturers, developers and suppliers. Drivers, restraints and opportunities for the market have been broadly identified. Both drivers and restraints for the onshore wind energy market are subject to country or region-wise variations. On the global scale, only the most attractive drivers and pressing restraints have been included. The market attractiveness study has been conducted regionally. The study has been quantified using different factors that play a major role in determining the overall attractiveness of the market. With long-term power purchase agreements in place, project financing is not much of a hassle. The global onshore energy market has been segmented as below:
- Onshore Wind Energy Market: Regional Analysis
- The U.S.
- New Zealand
- South Korea
- The U.K.
- The Netherlands
The Middle East & Africa
South & Central America
- Costa Rica