Wind EPC Market Size, Share, Growth & Industry Trends [2031]

Report Description

Wind EPC Market Outlook 2031

The global wind EPC market size was valued at USD 64.55 Billion in 2022 and is likely to reach USD 121. 70 Billion by 2031, expanding at a CAGR of 7.3% during the forecast period,2023–2031. The market growth is attributed to the increasing need for electricity.

Increasing need for electricity is anticipated to boost the demand for wind EPC. Wind EPC is used to generate electricity on a large scale. It is required in wind power plants for engineering, designing, & procuring wind turbines and other equipment. According to a report published by the International Energy Agency, global electricity demand is expected to grow at a rapid rate of 3% per year during 2023-2025.

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Wind EPC refers to engineering, procuring, and commissioning wind turbines and generation facilities. It provides solutions for wind power plants such as project management, engineering design, installation, and site assessments. Wind EPC is installed at onshore and offshore locations to deliver and develop cost-effective, efficient, reliable wind energy solutions while promoting sustainable energy generation.

The COVID-19 pandemic hampered the demand for Wind EPC. Government guidelines and preventive measures such as lockdowns and social distancing triggered delays in construction projects and supply chain disruption. It directly impacted the commissioning of renewable electricity projects, impeding the market.

Impact of Artificial Intelligence on Wind EPC

The growing technology integrated artificial intelligence in wind EPC, creating a lucrative opportunity in the market. Artificial intelligence enables consistent, constant, and instantaneous analysis of vast amounts of environmental data. AI-backed wind EPC empowers real-time adjustment to current weather and wind conditions by accurate prediction through predictive analytics algorithms. AI helps wind EPC in the maintenance of wind energy power plants by identifying patterns that indicate a need for future maintenance or repair.

Wind EPC Market Dynamics

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Major Drivers

Rising demand for renewable energy is projected to boost the demand for wind EPC during the forecast period. Governments across the globe are fixated on generating renewable energy while reducing carbon footprints from electrical power plants. Wind EPC helps to generate renewable energy through the construction and commissioning of generation facilities by designing, procuring, and engineering wind turbines. These turbines rotate the rotor blades, converting kinetic energy into rotational energy, thereby producing electrical energy. This encourages the adoption of wind EPC in generating renewable energy. For instance,

• According to a report published by the International Energy Agency, renewable capacity in global power generation is estimated to increase by 75% by 2027.

Growing urbanization across the globe is expected to drive the market during the forecast period. Urbanization increases construction activities leading to energy consumption. Wind power plants are required to fulfill the energy demand in urban areas for construction and industrial activities. Wind EPC is needed to generate electricity from wind power plants. Therefore, increasing urbanization is propelling the market demand. For instance,

• According to the World Bank, 56% of the global population, which is 4.4 billion, lives in cities, and the number is expected to get double by 2050.

Existing Restraints

High installation costs of wind power plants are expected to restrict the market in the coming years. The cost of setting up wind power plants are expensive, as these plants require large-scale infrastructure as well as engineering, designing, and procurement of wind turbines. Moreover, the lack of arable land, particularly in a densely populated area, is impeding the market, as wind EPC projects require large areas to hold the enormous size of windmills and wind power plants.

Emerging Opportunities

The increasing number of smart cities around the globe creates an immense opportunity in the market. Wind power plants are installed in smart cities to lower carbon emissions and generate green energy, creating opportunities for wind EPC, as it is utilized in wind power plants to generate energy. Moreover, companies are receiving orders for wind EPC for setting up wind projects to generate green energy, which creates a lucrative opportunity in the market. For instance,

• On June 8, 2023, Vestas a manufacturer, seller, installer, and servicer of wind turbines bagged the engineering, procurement, and construction (EPC) order for two wind projects, totaling 161 MW to build wind farms in Finland.

Scope of Wind EPC Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Wind EPC Market Segment Insights

Location Segment Analysis

Based on location, the wind EPC market is bifurcated into onshore and offshore. The onshore segment held a large market share in 2022, due to easy communication between wind power plant and central operational room as well as low cost. Onshore wind EPC is cheaper compared to offshore, owing to less distance between the turbines and the consumer, offering less voltage drop-off in the cabling. It also releases less emissions than other energy sources, creating little impact on wildlife. Moreover, onshore wind EPC projects are quick to install and are constructed within a few months, which increases their adoption for generating renewable energy. For instance,

• As per a report, global onshore wind capacity increased to 835 gigawatts in 2022, compared to 769 gigawatts in 2021.

The offshore segment is anticipated to grow at a robust pace in the coming years, owing to the growing need for renewable energy sources and the rising demand for wind energy projects. Offshore wind EPC generates more electricity than onshore, as wind speeds at offshore tend to be faster than on land, creating more electricity. Moreover, major companies in the market are bagging deals for offshore wind EPC, which is expected to boost the demand for the offshore segment in the coming years. For instance,

• On March 30, 2023, Hitachi Energy and Petrofac secured an offshore wind EPC agreement worth approximately EUR 13 billion. The agreement is made to deploy six record-breaking renewable integration systems at offshore wind farms.

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Application Segment Analysis

In terms of application, the market is divided into utility and non-utility. The utility segment dominated the market in 2022. The segment is projected to continue its dominance throughout the assessment period, due to increasing preferences toward renewables. Utility-scale wind projects offer several advantages such as reduced carbon emissions, high energy generation capacity, and economies of scale. Moreover, favorable regulatory policies or guidelines for renewable energy sources and increasing adoption of utility wind energy projects by governments to meet rising energy needs are propelling the segment.

Regional Analysis

Based on region, the wind EPC market is segregated into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022, due to rising industrialization and the presence of established market players such as General Electric and TPI Composites, Inc. Moreover, growing reliance on wind power for electricity generation in the region is propelling the demand for wind EPC, as it is utilized in wind power plants to generate green energy by engineering, designing, and procuring wind turbines. For instance,

• According to a report, 434.8 terawatt hours of wind electricity were generated in the US in 2022, as compared to 378.2 terawatt hours in 2021.

The market in Asia Pacific is expected to expand at a high CAGR during the projected period, owing to government initiatives to promote sustainable energy generation and an increase in electricity tariffs. Moreover, companies in the region are bagging orders for wind EPC for setting up wind projects to generate green and clean energy in the region, which is anticipated to boost the demand for wind EPC. For instance,

• On June 12, 2023, SJVN Ltd a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP) bagged a 200 MW wind EPC energy project worth INR 1,400 crore. The project is expected to generate 578.16 MUs (million units) annually.

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