Wind Power Market Size, Growth, Global Trends, Forecast 2034

Wind Power Industry Perspective:

The global wind power market size was approximately USD 101.52 billion in 2024 and is projected to reach around USD 193.54 billion by 2034, with a compound annual growth rate (CAGR) of approximately 8.40% between 2025 and 2034.

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Key Insights:

• As per the analysis shared by our research analyst, the global wind power market is estimated to grow annually at a CAGR of around 8.40% over the forecast period (2025-2034)
• In terms of revenue, the global wind power market size was valued at around USD 101.52 billion in 2024 and is projected to reach USD 193.54 billion by 2034.
• The wind power market is projected to grow significantly due to government incentives and supportive policies, increasing environmental concerns and carbon reduction targets, as well as a rise in offshore wind energy projects.
• Based on component, the turbine segment is expected to lead the market, while the support structure segment is expected to grow considerably.
• Based on capacity, the above 5 MW segment leads the market, while the 3 MW to 5 MW segment is expected to continue progressing steadily.
• Based on location, the onshore segment is the dominant segment, while the offshore segment is projected to witness sizable revenue growth over the forecast period.
• Based on application, the utility segment is expected to lead the market, followed by the non-utility segment.
• Based on region, Europe is projected to dominate the global market during the estimated period, followed by the Asia Pacific.

Wind Power Market: Overview

Wind power is a renewable energy source that harnesses the kinetic energy of wind to generate electricity using wind turbines. It is a sustainable and clean alternative to fossil fuels, generating no GHG emissions during operations. Worldwide, wind power is rapidly expanding due to declining costs, the urgent need to reduce carbon footprints, and government incentives. The global wind power market is expected to grow rapidly, driven by government policies and incentives, technological advancements, and increasing concerns about environmental issues and climate change mitigation. Several governments offer subsidies, favorable regulations, and tax incentives to promote the adoption of wind energy. For instance, the United States Production Tax Credit and the European Union's Renewable Energy Directive have fastened wind power projects by decreasing operational and capital costs.

Moreover, continuous enhancements in turbine design, energy storage systems, and blade materials have elevated efficacy and lowered the levelized cost of electricity from wind power. Offshore turbines with massive capacities and floating platforms have increased the geographical feasibility of wind farms. Furthermore, the rising awareness of climate change has driven companies, governments, and consumers to support clean energy solutions. Wind power produces electricity without GHG emissions, making it a vital technology for meeting international climate change targets like the Paris Agreement.

Despite the growth, the global market is hindered by factors such as intermittency and variability, as well as environmental and wildlife concerns. Wind energy generation relies on wind speed, which is inherently variable. This challenges grid stability and demands complementary energy storage or backup systems. Similarly, wind farms may impact bat and bird populations and could face opposition due to visual and noise pollution. These environmental concerns may delay project approvals and raise regulatory barriers.

Nonetheless, the global wind power industry stands to benefit from several key opportunities, including the expansion of offshore wind projects and the development of hybrid renewable energy systems. Offshore wind capacity is progressing rapidly due to more substantial and persistent wind resources at sea. Floating wind turbines present new opportunities in deep-water regions that were previously inaccessible for conventional installations. Additionally, assimilating wind with smart grids, solar, and storage may improve efficiency and reliability. Hybrid projects attract new investments and offer avenues for advancements in energy management.

Wind Power Market Dynamics

Growth Drivers

How is the wind power market fueled by the increasing corporate investments in renewable energy?

Businesses are actively committing to renewable energy targets, creating significant demand for wind power. Technology giants such as Amazon, Microsoft, and Google have entered into long-term power purchase agreements (PPAs) to source wind energy directly, thereby promising sustainable electricity for their operations. Recent news highlights Apple's partnership with Ørsted to develop a 400 MW offshore wind farm in Denmark, underscoring the strategic role of corporate investments in driving the growth of the wind power market. This trend, in addition to fueling immediate project financing, also promotes capacity expansion and advancements in the wind sector.

How are declining costs of wind energy favoring the wind power market growth?

The cost of generating electricity from wind has gradually decreased, making it a more attractive alternative to fossil fuels. According to the International Renewable Energy Agency (IRENA), the worldwide average LCOE for onshore wind dropped to $0.038 per kWh in 2024, from $0.056 per kWh in 2015. Offshore wind costs have also decreased due to economies of scale, improved supply chain integration, and technological advancements. Lower costs enhance the competitiveness of wind power, promoting more utilities and nations to adopt it as a mainstream energy source.

Restraints

Environmental and social concerns hamper the market progress

Wind power projects can encounter resistance due to social and environmental concerns. Turbine installations can affect local wildlife, particularly bats and birds, and alter landscapes, sparking opposition from conservationists and local communities. These controversies may halt or delay projects, raising regulatory barriers and costs. While the sector continues to develop mitigation solutions, these concerns remain a significant limitation to the speedy deployment in sensitive regions.

Opportunities

How does the adoption of floating wind turbines present favorable prospects for the wind power market expansion?

Floating wind technology enables turbines to be deployed in deeper waters, significantly expanding the viable project locations. The European Energy Agency reports that floating wind capacity is expected to reach 10 GW by 2030, with more than 200 MW already installed by 2030. The recent deployment of the Hywind Tampen floating wind farm in Norway presents operational and feasibility efficiency in extreme marine environments. Floating wind reduces land restrictions and opens up new markets in the APAC region, including South Korea and Japan, presenting a notable growth opportunity for developers in the wind power industry.

Challenges

Land acquisition and permitting issues limit the market growth

Obtaining regulatory approvals and acquiring suitable land can be a complicated and time-consuming process. Onshore wind projects typically encounter opposition, legal challenges, and environmental assessments. In 2024, a wind farm in New Jersey faced lawsuits from local stakeholders over ecological concerns, which delayed construction by nearly one year. These delays not just escalate costs but also impact investor and financing confidence. This ultimately increases regulatory navigation, a persistent challenge.

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Wind Power Market: Report Scope

Wind Power Market: Segmentation

The global wind power market is segmented based on component, capacity, location, application, and region.

Based on component, the global wind power industry is divided into turbines, support structures, electrical infrastructure, and others. The turbine segment accounted for a substantial share, as it is a vital component of wind generation, and its technological complexity and cost comprise a significant portion of the total project expenditure.

On the other hand, the support structure segment held a second-leading share. It comprises foundations and towers mainly for offshore installations. It represents the upcoming largest share owing to design, material, and installation charges.

Based on capacity, the global market is segmented into up to 1 MW, 1 MW to 3 MW, 3 MW to 5 MW, and above 5MW. The above 5 MW segment held a larger share because of better economies of scale, rising demand for large-scale installations, and higher efficiency.

Conversely, the 3 MW to 5 MW segment held second rank, as it is broadly used in onshore projects where site and grid limitations make large turbines less practical.

Based on location, the global wind power market is segmented into onshore and offshore. Onshore wind farms hold leadership due to their lower maintenance and installation costs, extensive availability of suitable land, and ease of grid connectivity.

Nonetheless, the offshore segment holds a second position, fueled by higher wind speeds at sea and the development of large-scale projects. The segmental prominence is also supported by higher costs and more complex installation requirements.

Based on application, the global market is segmented into utility and non-utility. The utility segment held a leading share, as it produces large amounts of electricity for national grids, benefiting from economies of scale and major corporate or government investments.

However, the non-utility segment held a second dominating share. It comprises commercial, residential, and small industrial setups. It is progressing with the surging prominence of distributed renewable energy.

Wind Power Market: Regional Analysis

What enables Europe to have a strong foothold in the global Wind Power Market?

Europe is expected to maintain its leading position in the global wind power market due to strong government policies and incentives, a well-developed offshore wind industry, and a well-established supply chain and manufacturing base. European nations have adopted strong policies to encourage renewable energy, including tax incentives, feed-in tariffs, and renewable energy targets. For example, the European Union's Renewable Energy Directive aims to achieve 32% of energy from renewables by 2030, thereby boosting the adoption of wind power. These supportive architectures promote offshore and onshore investments in the region. Europe, especially Germany, the UK, and Denmark, is a leader in offshore wind development due to its favorable sea conditions and modernized engineering expertise.

The region is expected to account for more than 75% of the worldwide wind capacity in 2024. Large-scale offshore projects, such as the North Sea wind farms and Hornsea One (UK), showcase the region's leadership in the segment. Europe boasts a well-established wind turbine manufacturing sector, with companies such as Nordex, Vestas, and Siemens Gamesa supplying turbines worldwide. This developed supply chain lowers costs and boosts deployment. The region generates nearly 50% of the world's wind turbines, giving it a competitive advantage over other areas.

The Asia Pacific ranks as the second-largest region in the global wind power industry, driven by rapid economic growth, increasing energy demand, government support, renewable energy policies, and untapped onshore wind potential. Asia-Pacific nations, such as India and China, are experiencing robust economic growth, which is driving increased electricity consumption. Wind energy is being increasingly used to meet growing energy needs sustainably. China alone registered more than 40 GW of novel wind capacity in 2023, increasing the region's contribution.

Furthermore, governments in the APAC region offer strong incentives, such as renewable energy auctions, tax breaks, and feed-in tariffs. India's National Wind-Solar Hybrid Policy and China's long-term renewable targets promote foreign and domestic investments. These policy architectures augment wind project development in the region.

Additionally, the region encompasses vast land areas with high wind speeds, making them ideal for onshore wind farms, particularly in Southeast Asia, China, and India. Onshore wind projects are pioneers due to their lower costs compared to offshore alternatives. APAC is anticipated to account for approximately 35% of the worldwide onshore capacity by 2030.

Wind Power Market: Competitive Analysis

The leading players in the global wind power market are:

• Vestas
• Siemens Gamesa Renewable Energy
• GE Renewable Energy
• Nordex
• Suzlon Energy
• Goldwind
• Envision Energy
• Enercon
• Mingyang Smart Energy
• Senvion
• Doosan Heavy Industries & Construction
• Shanghai Electric Wind Power
• Acciona Energía
• Inox Wind
• Hitachi Energy

Wind Power Market: Key Market Trends

Move toward large-capacity turbines:

The industry is shifting towards high-capacity turbines, primarily offshore units exceeding 10 MW, to boost energy output and reduce the levelized cost of electricity. Manufacturers are developing larger rotor diameters and tall towers, facilitating turbines to capture more wind energy effectively, even in low-wind regions.

Integration with smart grids and energy storage:

Wind power is typically integrated with battery storage, smart grid technology, and hybrid renewable energy systems. This trend enhances grid stability, enables more effective energy management, and allows wind farms to supply electricity to meet peak demand consistently.

The global wind power market is segmented as follows:

By Component

• Turbine
• Support Structure
• Electrical Infrastructure
• Others

By Capacity

• Up to 1 MW
• 1 MW to 3 MW
• 3 MW to 5 MW
• Above 5MW

By Location

• Onshore
• Offshore

By Application

• Utility
• Non-utility

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa