Increasing population coupled with growing industrial sector and infrastructure development activities continue to influence demand for electricity generation. With growing demand for electricity generation, countries around the globe are focusing on enhancing their power generation capacities by establishing new plants. This aspect coupled with strict government norms apropos to greenhouse gas emissions has translated into increasing need for renewable energy sources, such as wind energy, for generation of power.
Rising Wind Energy Capacity Installations to Bolster Growth of Wind Tower Market
Growing environment protection regulations and norms to lower carbon footprint and reduction in GHG emissions has pushed the power generation industry to shift towards environment friendly and cleaner substitutes of energy. Both emerging and developed economies across the globe are turning attention towards leveraging renewable energy sources to generate power and also reduce the dependency on conventional sources of power generation such as fossil fuels. Wind being one of the key renewable natural sources of energy, is considered as a crucial source to meet the energy generation challenges worldwide. In this backdrop, various countries have been focused on investing in their wind power generation capacity expansions.
For instance, according to Global Wind Energy Council (GWEC), in 2020, United States added new 17 GW of wind capacity and the country is focused on expanding it to +30 GW of offshore wind capacity by end of 2030. Likewise, according to WindEurope, around 27% of the electricity in Germany is supplied using wind energy and the country aims to increase it to 65% by 2030 end. In 2020, Germany added about 1.67 GW new wind capacity. In this background, increasing wind energy installations are expected to favour growth of the wind tower market in the coming years.
Offshore Wind Towers to Reflect Momentous Growth
With increasing need for energy combined with a shift towards adoption of renewable sources of energy, the demand for offshore wind energy is expected to showcase momentous growth. Offshore wind energy integrated with advanced technology has attracted several countries globally, which in turn has resulted in increasing investments in the offshore wind tower market. Moreover, reduced costs associated with offshore wind energy have further fuelled its adoption. Few of the major offshore wind energy projects include the 950 MW Moray East (Moray Offshore Windfarm East) near the coast of Scotland. The investment involved in this offshore wind tower project is valued at around US$ 3.3 Billion and is expected to go operational in 2022. This project is poised to offset huge amounts of carbon emissions estimated around 1.7 million tonnes each year. Likewise, according to WindEurope data, EU has raised an investment worth EUR 26.3 billion in a bid to finance the 7.1 GW new offshore wind project in 2020.
In addition, companies in the wind tower market are able to provide tall wind turbines, given the improvements in the material used in manufacturing wind turbines. Tall wind towers can exploit high altitudes and with larger blade size, they can sweep large area as compared to small turbines, which are generally used in onshore wind projects. Size difference of wind turbines has resulted in lowering of the wind energy cost, making them an economical option. These factors are expected to augment the offshore wind tower deployment in the coming years.
Concrete Towers Likely to Account for a Major Share in the Wind Tower Market
Concrete wind tower is poised to account for a significant share in the wind tower market on the global front. Concrete wind tower has higher strength and reflect low transportation costs. Moreover, easy availability of raw material to construct concrete wind towers in the local markets adds to its versatility. These wind towers are more cost efficient as compared to their tubular steel counterparts, particularly for large turbines that need heavy rotors. Thus, perceived benefits such as high stability and cost effectiveness coupled with rising need of large wind turbines is expected to fuel the demand for concrete wind towers in turn contributing to the valuation of the wind tower market worldwide.
Asia Pacific Likely to Reign Supreme as Developing Embrace Cleaner Energy Sources
Emerging economies in Asia Pacific region are expected to reflect high growth potential with respect to deployment of wind energy, in turn influencing the growth of the wind tower market. According to GWEC, China remains at the vanguard of growth with regards to wind energy capacity installations, followed by India. In 2020, about 288.32 GW of new wind energy capacity was installed as a key step towards its carbon neutrality target by 2060. Similarly, India is second in Asia Pacific region and fourth on the global front with regards to new wind energy capacity installations. The country has sketched new target to deploy 5GW of wind energy by 2022 and about 30 GW by 2030. This is anticipated to increase the investment flow in Asia Pacific in the wind energy sector, consequently influencing the wind tower market growth.
Wind Tower Market: Competitive Landscape
Few of the key players in the wind tower market include Suzlon Group, Arcosa Inc., Nordex Group, Ventower Industries LLC and CS Wind Corporation.
Global Wind Tower Market is Segmented as Below:
Key Elements Included In The Study: Global Wind Tower Market
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