Onshore Wind Energy Market Analysis

Global Onshore Wind Energy Market Overview

Onshore Wind Energy Market Size was valued at USD 55.58 billion in 2023. The onshore wind energy market industry is projected to grow from USD 57.86 Billion in 2024 to USD 82.59 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.03% during the forecast period (2024 - 2032). Increased context of energy supply & demand and rising demand for renewable energy in electricity generation are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

July 2024: Siemens Gamesa Renewable Energy, a division of Siemens AG, announced the launch of its new Siemens Gamesa SG 6.6-170 wind turbine, designed to optimize energy production and reduce costs in onshore wind farms.

Onshore wind is a significantly more eco-friendly energy source than coal, oil, and natural gas. As a result, wind is probably going to start playing a bigger role in the energy landscape in the next years. Moreover, onshore wind farms need less expensive infrastructure than offshore wind farms need to transfer their electricity. In addition, onshore wind power is currently the cheapest kind of renewable energy available. Therefore, governments are encouraging the use of wind energy over other sources of energy.

• May 2023

The UK government has opened up public comment on "new and improved" incentive programs, such as lower energy costs, for English areas that host onshore wind farms. The government is now trying to persuade more communities that hosting onshore wind helps contribute to the move towards net-zero energy use as well as the delivery of a more effective and affordable electricity system. In the UK, onshore wind is one of the least expensive ways to produce electricity and hence, the UK government is now encouraging the use of the same.

Onshore Wind Energy Market Trends

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  Governmental programs encouraging construction of wind farms to boost market growth

  
  

Over the coming years, the market expansion is anticipated to be fueled by support from various governments of various nations in terms of policies and investments for expanding the installation of wind energy projects. The UK government also promised to provide new finance for offshore wind projects totaling US$ 272 million. Leading nations' increasing efforts to utilize wind energy will probably drive the market's expansion. For instance, Brazil announced its inaugural offshore wind power generating standards in January 2022. Shell applied for environmental authorization to build offshore wind farms along Brazil's coast in March 2021 with the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA).

Additionally, in July 2022, PEC Energia, a subsidiary of Engeform Energia Renovável, and Vestas inked a contract for the delivery of wind turbines to the Serra das Vacas wind farms in the Brazilian state of Pernambuco. Therefore, increasing efforts by top manufacturers to provide wind turbines and seek permits to build offshore wind farms are significant drivers of the market's expansion. Therefore, governmental programs to encourage the construction of wind farms has enhanced the onshore wind energy market CAGR across the globe in recent years.

Further, the market is expected to grow quickly over the course of the forecast period as a result of ongoing technical advancement, rising demand for the development of wind farms, and increasing power consumption. Significant market growth and technological activity from key industry players are also anticipated. In addition, the industry is being driven by the increase in projects for the development of wind farms and wind parks. Onshore wind energy is a popular choice for nations aiming to lessen their reliance on fossil fuels. Due to the cheap initial investment expenses and strong return on investment, this is also very appealing to investors. Hence, the growing demand for wind farm construction is another factor driving the growth of the onshore wind energy market revenue.

Onshore Wind Energy Market Segment Insights

Onshore Wind Energy End-use Insights

The Onshore Wind Energy Market segmentation, based on end-use, includes utilities, commercial & industrial, and hybrid power. The utilities segment held the majority share in 2021 regarding the Onshore Wind Energy Market revenue. Utilities are the essential shareholder as there is rising demand for electricity from the nations. Further, the fastest-growing segment in the onshore wind energy industry is the commercial & industrial segment.

• September 2022 For the 218.70 MW of wind generating projects spread throughout Tamil Nadu and Madhya Pradesh in India, GE Renewable Energy announced orders from Continuum Green Energy Limited to supply, install, and commission 81 units of their 2.7-132 onshore wind turbines.

Onshore Wind Energy Application Insights

The global market data has been segmented by peak power management, power storage, demand response, frequency response, and system stability. The peak power management segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Peak power management applications are predicted to rule the market because to the rising demand for electricity during peak times. Hence, the peak power management segment positively impacts the onshore wind energy market growth.

• April 2022  Peak power demand fulfilled or the maximum supply in a day increased by 12% to 198.47 GW on April 1 compared to the same day last year, reflecting the early start of summer and an improvement in commercial and industrial usage following the relaxing of lockout restrictions by governments. This has further broadened the growth opportunity for the onshore wind energy industry.

Figure 2: Onshore Wind Energy Market, by Application, 2024 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Onshore Wind Energy End User Insights

Based on power capacity, the global onshore wind energy industry has been segmented into less than 500 KW, 500 KW to 2 MW, and more than 2 MW. More than 2 MW segment dominated the market in 2021 owing to wind towers occupy a significant portion of the market with a capacity of more than 2 MW.

Onshore Wind Energy Wind Capacity Insights

Based on wind capacity, the global onshore wind energy industry has been segmented into high wind speed, medium wind speed, and low wind speed. High wind speed segment dominated the market in 2021. Since there are turbines that run separately and provide electricity of around 2.3 MW, the high wind speed projects are predicted to dominate the market.

Onshore Wind Energy Grid Connectivity Insights

Based on grid connectivity, the global onshore wind energy industry has been bifurcated into off-grid and on-grid. On-grid segment dominated the market in 2021. In terms of overproducing, on-grid systems transmit the extra electricity they create to the utility grid.

Onshore Wind Energy Regional Insights

By region, the study provides the onshore wind energy market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia Pacific onshore wind energy market accounted for USD 20.5155 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Rising installed electrical capacity and a focus on renewable energy in China, Japan, and India are anticipated to propel market expansion in the Asia Pacific region over the projected period.

Further, the major countries studied in the onshore wind energy market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: Onshore Wind Energy Market Share By Region 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe onshore wind energy market accounts for the second-largest market share due to the need for clean energy is rising, and severe limitations on producing conventional electricity are fostering growth in the European countries. Further, the Germany onshore wind energy market held the largest market share, and the UK onshore wind energy market was the fastest growing market in the European region.

The North America onshore wind energy market is expected to grow at the fastest CAGR from 2022 to 2030. Over the past five years, onshore wind energy power generating technology has advanced to optimize electricity produced per installed megawatt capacity and to cover more locations in North America with lower wind speeds. Moreover, US onshore wind energy market held the largest market share, and the Canada onshore wind energy market was the fastest-growing market in the North America region.

For instance, US onshore wind energy market is boosted by increasing installed capacity. The US added roughly 9 GW of onshore wind capacity, bringing the country's total on-shore installed capacity to 105 GW in 2019, according to the Global Wind Energy Council (GWEC).

Onshore Wind Energy Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Onshore Wind Energy market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the onshore wind energy industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global onshore wind energy industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, onshore wind energy industry has provided some of the most significant benefits. The market major player such as Siemens AG (Germany), Envision energy (China), General Electric Wind Energy (U.S.), Suzlon (India), Vestas Wind System A/S (Denmark), Enercon GmbH (Germany), Mitsubishi Power Systems (Japan), Nordex S.E. (Germany), Repower (Switzerland), and others are working to expand the market demand by investing in research and development activities.

Siemens AG (Germany) uses renewable energy. The company provides services for generating and transmitting electricity and operation and maintenance. In September 2022, SSE Renewables has finalized the acquisition of Siemens Gamesa Renewable Energy's (SGRE) current European platform for developing renewable energy. Numerous onshore wind development projects are included in the SGRE portfolio.

Also, General Electric Wind Energy (U.S.) produces green energy. The company creates, implements, and oversees electricity-generating wind and hydroelectric projects. In September 2022, For the 218.70 MW of wind generating projects spread throughout Tamil Nadu and Madhya Pradesh in India, GE Renewable Energy announced orders from Continuum Green Energy Limited to supply, install, and commission 81 units of their 2.7-132 onshore wind turbines.

Key companies in the onshore wind energy market includes

• Siemens AG (Germany)


• Envision energy (China)


• General Electric Wind Energy (U.S.)


• Suzlon (India)


• Vestas Wind System A/S (Denmark)


• Enercon GmbH (Germany)


• Mitsubishi Power Systems (Japan)


• Nordex S.E. (Germany)


• Repower (Switzerland)


• Gazelle Wind Turbines (U.K.)


• Clipper Wind Power (UK), among others

Onshore Wind Energy Industry Developments

September 2022 SSE Renewables has finalized the acquisition of Siemens Gamesa Renewable Energy's (SGRE) current European platform for developing renewable energy. Numerous onshore wind development projects are included in the SGRE portfolio.

Onshore Wind Energy Market Segmentation

Onshore Wind Energy End-use Outlook

• Utilities


• Commercial & Industrial


• Hybrid Power

Onshore Wind Energy Application Outlook

• Peak Power Management


• Power Storage


• Demand Response


• Frequency Response


• System Stability

Onshore Wind Energy Power Capacity Outlook

• Less Than 500 KW


• 500 KW To 2 MW


• More Than 2 MW

Onshore Wind Energy Wind Capacity Outlook

• High Wind Speed


• Medium Wind Speed


• Low Wind Speed

Onshore Wind Energy Grid Connectivity Outlook

• Off-Grid


• On-Grid

Onshore Wind Energy Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America