Wind Tower Market Size, Share, Trends & Growth | Report 2031

Report Description

The global wind tower market size was valued at USD 28.4 Bn in 2022 and is likely to reach USD 55 Bn by 2031, expanding at a CAGR of 8.4% during 2023–2031. The market is driven by the rising need for power generation, the depletion of fossil fuels, and growing environmental protection regulations.

Rising installation of renewable energy for power generation which results in increasing government initiatives for renewable energy production. Various emerging economies increase the number of wind towers to produce electricity without emitting polluting gases into the atmosphere. This, in turn, is driving the demand and subsequently the installation of wind towers to reduce reliance on fossil fuels and conserve water resources.

Get Free Sample Report

These structures provide support for the nacelle and rotor blades of wind turbines. Wind towers are available in various sizes and types, encompassing small residential turbines as well as large commercial turbines employed in wind farms. They serve a pivotal role in harnessing wind energy and transforming it into electrical energy. 

• According to the International Energy Association (IEA), wind electricity generation is projected to reach a record-breaking 273 TWh in 2021. This represents a remarkable 45% increase compared to the previous year and stands as the fastest growth rate among all renewable energy technologies. 

Wind towers are massive structures that provide support to wind turbines and their components. These towers tightly hold the rotor, nacelle, and blades of the turbine, ensuring safety from the ground. Wind turbines are placed at an ideal height and bind the power of the wind to generate electricity. Governments across the globe are actively promoting wind power as an alternative to traditional energy sources which creates a positive environmental impact for the growth of wind towers market.

Wind power stands out in power generation due to its eco-friendly characteristics, as it produces electricity without fuel combustion or harmful emission into the environment. The tower itself is typically constructed from steel or concrete and consists of multiple sections that are bolted or welded together. Furthermore, governments and major private organizations are collaborating to achieve decarbonization in power generation by adopting eco-friendly and clean energy technologies. The installation of renewable energy systems to meet renewable energy targets which are set by governments across the globe. 

The COVID-19 pandemic affected the wind tower market. The wind tower industry faced disruption in the supply chain. Wind tower manufacturing relies on a global supply chain for various components. The travel restrictions and factory closures during the pandemic peak disrupted the supply chain of raw materials required for wind tower production. Many wind energy projects experienced delays due to the pandemic. Construction activities were halted or slowed down to comply with social distancing and safety protocols.

Wind Tower Market Dynamics

Get Free Sample Report

Major Drivers

Increasing investments in wind energy and favorable renewable energy policies by various governments worldwide are propelling the market. Governments around the globe are implementing regulations and initiatives to promote cleaner and more sustainable power generation practices.

This is leading to a shift from traditional dependence on fossil fuels for energy production. The supportive environment for renewable energy generation is resulting in a continuous rise in investments in wind power, as well as other renewable sources including solar energy.

• Emerging economies such as India are taking steps towards raising renewable energy production by increasing investment and supportive policies. For instance, in 2023, the Indian Government, in the annual Union Budget session announced Rupees 35,000 crore as a priority capital investment for energy transition. Commenting on this development, Girish R Tanti, Vice Chairman of one of the key companies in the market, Suzlon Energy Limited said, “The Union Budget in India represents a positive viewpoint for the renewable energy sector. The green energy transition is the right step and demonstrates the nation’s will for a sustainable future.”

Rising focus on harnessing wind power for energy generation is another key driver of the market. Countries such as Germany, the United Kingdom, the United States, Japan, and China, among others, have implemented energy policies specifically aimed at promoting the development of wind towers. These policies include feed-in tariffs, tax credits, net metering, and capital subsidies.

• For example, in the US, the Federal Business Energy Investment Tax Credit (ITC) provides a corporate tax incentive of 30% of the value of new wind energy systems. Such initiatives and incentives encourage the growth of the wind energy sector globally, leading to an increased demand for wind towers.

Existing Restraints

The high initial cost of investment essential to set up wind energy projects hinders the market. Wind turbine-related infrastructure can be expensive to manufacture, transport, and install.  Cost is a barrier especially for small-scale projects or in regions with limited financial resources. The need for skilled labor and specialized equipment for the installation, operation, and maintenance, adds to the overall cost of wind energy projects.

Increasing fluctuation of raw materials such as steel is another factor that hampers the market. This price fluctuation directly affects the production costs of raw materials. The prices of these raw materials are influenced by factors such as supply chain disruptions and geopolitical issues. 

Emerging Opportunities

Increasing demand for renewable energy creates lucrative opportunities for the market. The growing global emphasis on reducing greenhouse gas emissions and transitioning to clean energy sources increases the demand for renewable energy, including wind power. Wind towers play an important role in harnessing wind energy and converting it into electricity, making them integral components of the expanding renewable energy infrastructure worldwide.

Scope of Wind Tower Market Report

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

Wind Tower Market Segment Insights

Type Segment Analysis 

Based on type, the wind tower market is divided into concrete, hybrid, tubular steel, and lattice. The concrete segment is expected to expand at the fastest growth rate during the projection period owing to the low cost and advantages of taller concrete-made wind turbines.

Concrete towers are alternatives to steel towers and are used in the construction of wind turbine tower. These towers require lower prices and have high strength, also the material required to build these towers can be sourced locally. The manufacturing process for the concrete tower is less complex than for steel towers, leading to potential cost savings.

Get Free Sample Report

Application Segment Analysis

On the basis of application, the global market is bifurcated into onshore and offshore. The onshore segment is projected to witness substantial growth during the forecast period due to the high demand for wind power and comparatively low maintenance and setup costs required for onshore projects.

The onshore category emerged as the leading revenue contributor for the market in 2021 and is expected to maintain its market leadership in the coming years. This can be attributed to the strong demand for wind power and the advantages of onshore wind farms, including lower setup and maintenance costs, faster installation, and minimal environmental impact. According to the International Energy Agency (IEA), onshore systems accounted for 93% of the total installed wind capacity of 830GW in 2021.

Onshore wind is a well-established technology present in more than 115 countries worldwide. Industry leaders are focusing on technological advancements such as longer blades and taller towers to increase the productivity of onshore wind turbines, especially in regions with lower wind velocities.

The offshore segment is expected to hold a significant share of the market revenue owing to the increasing installations, the need for greater energy generation, and advancements in offshore tower technologies. Technological advancements, such as floating platforms that enable wind farms to be deployed in deeper sea depths, are driving the overall market size for offshore wind energy.

Regional Analysis

In terms of region, the global wind tower market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is expected to dominate the market during the projection period due to high electricity consumption and leading in onshore wind technology installation.

Emerging economies in the region such as India, China, and Japan are witnessing higher demand for energy due to rapidly growing urbanization and industrialization. For instance, in China, increasing energy demand has driven government initiatives to encourage the development of renewable power systems. In addition, the availability of labor at reasonable wages is likely to drive the market in the region.

Get Free Sample Report