Wind Tower Market | Contrive Datum Insights

The Global Wind Tower Market Size Was Valued At USD 22.65 Billion In 2021. The Market Is Projected To Grow From USD 24.30 Billion In 2022 To USD 40.65 Billion By 2030, Exhibiting A CAGR Of 7.6% During The Forecast Period.

Wind Tower Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand for wind tower has been higher than expected in all areas compared to levels before the pandemic. According to our research, the world market grew by 37.8% in 2020 compared to 2019.

Wind towers are large structures that hold up wind turbines and all of their parts. The tower holds the turbine's rotor and nacelle in place and wires the blades up so they don't hit the ground. The wind turbine is set up at the right height to turn the wind into electricity. Wind power is being promoted by governments all over the world as an alternative to traditional energy sources, which is boosting demand for the product.

Market Dynamics:

Latest Trends:

Using more power will make more people want to buy products.

The world's population is growing quickly, and more and more people are using electronic devices. This makes the need for constant power even higher. As industrialization grows, so does the need for power. The demand for electricity is also going up because of growth in things like building infrastructure and commercial and residential construction.

To meet this need, the government is looking for low-cost, pollution-free solutions like solar and wind power. This makes more places around the world use wind energy to make electricity to meet the growing global demand.

Because the government has strict rules about Greenhouse Gas (GHG) emissions, companies are more likely to use renewable energy sources, especially wind power, to make electricity. Several countries want to have net-zero emissions by 2030, which is also increasing the number of wind energy installations around the world.       

Driving Factors:

Favorable policies on renewable energy and more money being put into wind energy will drive market growth.

More rules about protecting the environment force the power industry to switch to cleaner, more environmentally friendly energy sources. Several countries around the world are putting a lot of effort into developing renewable energy power generation to reduce their reliance on traditional sources like fossil fuels. In recent years, investments in wind, solar, and other sources of renewable energy have been going up and up.

One of the main reasons for the growth of the wind tower market is the important role that government programmes and policies play. In many countries, like Germany, the U.K., the U.S., Japan, and China, feed-in tariffs, tax credits, net metering, and capital subsidies are the most important wind tower-specific energy policies.

In the U.S., for example, the Federal Business Energy Investment Tax Credit (ITC), which is a tax incentive for businesses, lets the owners of new wind energy systems get tax credits worth 30% of the value of the facility. With these kinds of signs, the wind energy sector will grow a lot around the world. So, the demand for the product is likely to go up.

Installing more renewable energy sources to make power will help the market grow.

It is expected that the market will be driven by the move towards making power generation less carbon-intensive by using eco-friendly and clean energy technology. Several countries make sure to reach their goals for renewable energy by installing renewable energy systems on a regular basis. They do this with the help of major private organisations. Because of rules about the environment, many companies are getting their power from renewable sources like solar and wind power. This is likely to help the market grow.

The International Energy Association (IEA) says that the amount of electricity made by wind will increase by a record 273 TWh in 2021. This was 45% more growth than in 2020, and it was the most growth of any of the renewable energy sources.

Restraining Factors:

Steel prices that go up and down will slow market growth.

Steel is a key raw material that is used to make wind towers. Changes in the price of steel are slowing the growth of the market. Steel is the most traded metal in the world, and the price changes are hurting many industries that use steel. So, price changes affect production costs and the growth of the global market.

Also, steel prices change often, so the cost of the final product may go up or down. For example, if the cost of the raw materials goes up, the cost of making the product will go up, and so will the price of the finished product. The General Steel Corporation says that the price of steel will go up by 3% in 2020 and by 4.10% in 2021. Also, this change could hurt the company's financial performance, which would slow the growth of the market.

Segmentation Analysis:

By Type Analysis:

The market is divided into steel towers, concrete towers, and hybrid towers based on the type. In 2021, most of the market was made up of concrete towers, which had a lot of benefits, such as lower project costs and fewer parts. This information is well known to the market. Up to 20% of the total cost of a wind turbine goes to the tower, and using concrete towers helps keep the cost of a wind farm down. These towers are strong, don't cost much, and the materials needed to build them are usually easy to find nearby.

Because composite materials are becoming more popular, the hybrid tower market is likely to grow a lot in the next few years. These kinds of materials can be used in the same way as two different kinds of materials. The weight of these towers is also less.

By Installation Analysis:

Based on where the installations are made, the market has been split into onshore and offshore. In 2021, the onshore segment was by far the largest part of the market. Compared to other segments, the onshore segment has a low amount of carbon emissions and a low cost structure. In 2021, more than 72 GW of new onshore wind power projects were built around the world.

The offshore segment is likely to grow at a slow rate because onshore wind is getting so much attention and installation. The cost of putting up an offshore wind farm is a lot more than putting up an onshore wind farm. The growth of the offshore segment is also being driven by the development of floating offshore wind.

Regional Insights:

During the time frame of the forecast, Asia Pacific is expected to have the largest share of the global wind tower market. The area is the leader in installing wind turbines on land. Major countries like China, India, and Australia are using more energy because they are becoming more industrialized and urbanized quickly. China is at the top of the market because it is putting in more renewable energy sources.

Another big market for wind towers is Europe. Also, it is the region with the most offshore wind farms. The market is growing in Europe because more and more wind farms are being built quickly and the government is making it easier to do so. The governments in the area are also working to make it easier to install wind power, which is another thing that is helping the market grow.

During the next few years, the market is expected to grow significantly in North America. Along with a lot of wind turbines, the area is also home to several well-known tower manufacturers. In North America, the market share is growing because there is more attention being paid to using more renewable energy.

The market growth for wind capacity installation, which is proportional to wind tower installation, is expected to be driven by the falling cost of wind power generation and rising investments in renewable energy generation in Latin America, the Middle East, and Africa.

Scope Analysis

Recent Development:

• September 2022 - Broadwind Inc. announced that it has received an order valued at US$38 million for new towers from a leading global wind turbine manufacturer. This constituted the largest tower order in more than three years as demand for new wind turbines began to grow after the recent passage of the Inflation Reduction Act (IRA).
• July 2021 - Nordex Group has received an order from Italy for the delivery of two wind farms with Delta4000 turbines totaling 54.9 MW. The association is providing six N133/4.8 turbines for the 28.8 MW wind farm and five N149/5.X turbines for the 26.1 MW capacity project. The deal also consists of a premium service agreement on the turbine for an initial two years, with several options extending up to 10 years.
• July 2021 - Nordex Group announces a strategic partnership with TPI Composites in Mexico. The two companies have agreed to a unique strategic collaboration, with collaborations in India and Turkey.
• December 2020 - Veolia North America and GE Renewable have agreed to recycle blades removed from US onshore wind power. Through this deal, GE plans to recycle the majority of blades that are replaced while power is re-applied.
• June 2020 – GE Renewable Energy, LafargeHolcim and COBOD have agreed to collaborate and develop wind turbines based on optimized 3D printed concrete reaching heights of up to 200 meters.

Market Segmentation

By Type:

• Steel Tower
• Concrete Tower
• Hybrid Tower
• Others

By Installation:

• Offshore
• Onshore
• Others

By Companies:

• Suzlon Group (India)
• Nordex Group (Germany)
• Broadwind (U.S.)
• Ventower Industries LLC (U.S.)
• Arcosa Inc. (U.S.)
• Windar Renovables (Spain)
• Shanghai Taisheng Wind Power Equipment Co., Ltd. (China)
• Dongkuk s&c (South Korea)
• KGW Schweriner Maschinen- und Anlagenbau GmbH (Germany)
• S. Wind Corporation (South Korea)
• Others