Wind Power Market Trends, 2021-2031

China Leading Wind Power Market with Large Difference

Wind power is a form of energy conversion, where the turbines transform the kinetic energy of wind into mechanical or electrical energy. This transformation of energy is considered a renewable energy source. The energy from wind is generated for centuries for tasks such as grinding grain and pumping water. Current commercial wind turbines generate electricity by using rotational energy to run an electrical generator. They are usually made of a rotor or blade. Wind power is one of the fastest-growing renewable energy technologies and offers several benefits with low air pollution and zero water consumption. Moreover, wind energy is also the most affordable source of power creation. The wind turbine used to generate energy from wind can operate for more than 20 years once installed. All these factors are contributing to making wind energy an ideal alternative to fuel, which is one of the significant factors driving the wind power market.

Before five years, wind energy was contributing around 4% of the world’s total electricity. Since then, the generation of wind power has been increased dramatically, owing to concerns over the price of petroleum and impacts of fossil fuel combustion on the weather and environment. China is one of the nations with the most number of installed wind capacity. In 2016, China was generating 168.7 GW of energy, which increased to 281 GW in 2020. With China's new capacity of generating energy from wind, they are the largest in the world by a wide margin. Moreover, with steady economic growth and rise in industrial demand, the demand for electricity has increased majorly. Moreover, fast-developing industries and rapid urbanization in China are most likely to increase the demand for electricity. This will result in an increased growth rate for wind power market in China and globally in the upcoming future.

Shortage of Raw Materials Led to Massive Slowdown of Wind Power Market during COVID-19 Crisis

The COVID-19 pandemic has had a wide and devastating impact on global industries, including the wind power market. Most producers had shut down their plants at the start of 2020, resuming production on a limited scale. Regulation to contain the spread of the virus has caused traffic bans and quarantine measures in China, impacting the supply chain. The production capacity in regards to elements and turbines has declined drastically. Loads of wind turbines are expected to further decline during the year 2021. The wind project installation in China is growing much slower than predicted. Moreover, the global COVID-19 outbreak has worsened the previously severe shortage of key components, adding pressure on wind power development in China. Furthermore, restrictions on global trade impacted the supply chain of raw materials and technology, which China is heavily dependent on other countries. All these factors contributed to the hindrance in the wind power market amid the pandemic.

Although most facilities are not yet functioning at full capacity, and many workers and employees are working from home, the restoration of manufacturing suggests that the recovery to normal has already begun. However, the impact caused during the shutdown of global industries will take a while to recover. Moreover, restraints on trade activities, travel, and border closings have distinctly decreased the energy demand in various industries, lowering the consumption of wind power. Developing macroeconomic hurdles may provoke the dissolution or suspension of investment decisions for both large and small-scale designs under development. However, with rising population and energy demand, the wind power market is anticipated to increase its production to full capacity in order to flatten the demand curve. The post-COVID-19 pandemic is expected to bring new opportunities in the regional market, as all the closed businesses will require energy to restore their processes.

Supporting Policies, Incentives to Drive Wind Power Market in China, Globally

Wind power is one of the clean sources of renewable energy that does not contribute to air or water pollution. The operational costs are almost nothing once a turbine is installed. In addition, government incentives in China to encourage wind energy development and production to make turbines cheaper are major factors for an increasing number of wind power sources in China. Moreover, wind power is one of the cheapest land-based utility energy sources available in present times. The electricity from the wind farms is usually sold at a steady price, while other energy source prices vary with time and circumstances. Most other power plants rely on the combustion of fossil fuels, such as coal or natural gas, which release particulate matter, nitrogen oxides, and sulfur dioxide that cause human health problems and economic damages. Wind power does not contribute to air pollution as well as does not allow atmospheric emissions that cause acid rain, smog, or greenhouse gases.

The wind is a form of solar energy, as it is caused by the heating of the atmosphere by the sun, while the earth is rotating with its surface irregularities. Thus, the infinite source of wind can be transformed into energy for a long time. The increased production of wind energy is also proving propitious in the economy in rural areas, where most of the best wind sites are found. Moreover, China has strict policies regarding limiting carbon dioxide emission and the government is offering incentives to adopt renewable energy sources. All these factors are anticipated to fuel the growth of the wind power market during the forecast period.

Government Initiatives to Increase Wind Power Prove to be Major Advantage

The wind power market is estimated to exceed US$ 1.5 Trn by 2031, expanding at a CAGR of ~10% during the forecast period. The rising need for electricity while the country is developing at a rapid pace is majorly contributing to the growth rate. Moreover, the Government of China has plans to increase the share of non-fossil fuels in primary energy consumption to around 25% by 2030. This is most likely to improve the demand for wind power equipment in the upcoming period. The plans include a road map to install 1200 GW of wind and solar energy by the end of the forecast period.

Analysts’ Viewpoint

China is a global leader in the generation of wind power with the largest installed capacity. The long landmass and coastline contribute significantly to the wind power generation. The exploitable capacity of China in the sea is around 200 GW and it is 2380 GW on land. With this amount of capacity, the efficiency to create wind power has a tremendous potential to increase in the upcoming years. In addition, presently, the wind is the third-largest source of electricity in China. With government plans to increase the wind power in the country, the growth rate for China wind power market is expected to rise during the projected period.

China and Global Wind Power Market: Overview

• According to Transparency Market Research’s latest research report on China and global wind power market for the historical period of 2020 and the forecast period of 2021 to 2031, rise in awareness about sources of renewable energy and enactment of favorable government regulations regarding the use of renewables are expected to fuel the wind power market in China and across the globe 
• In terms of revenue, the wind power market in China and across the globe is estimated to exceed US$ 1.5 Trn by 2031, expanding at a CAGR of ~10% during the forecast period. Demand for electricity has increased in China, owing to steady economic growth and rise in industrial demand. China consumed 6,510 Twh of electricity in 2019, up 4% from that in the previous year. Rise in foreign direct investments has created employment opportunities in China. This has led to a rise in the rate of urbanization. Thus, rapid increase in industrialization and urbanization in China is anticipated to boost the demand for electricity in the country. This, in turn, is estimated to propel the wind power market in China during the forecast period.
• Wind power generation offers a number of benefits such as low air pollution and no water consumption. Wind energy is also the cheapest source of power generation. Furthermore, wind turbine can operate efficiently for around 20 years without releasing any harmful emissions. These factors make wind energy an ideal and environmentally sustainable alternative for fossil fuel. Shift in focus toward wind energy is propelling the global wind power market.

Rise in Awareness about Renewable Energy: Key Driver of China and Global Wind Power Market

• Rapid increase in globalization has boosted the global demand for electricity. Generating electricity with the help of non-renewable energy sources (fossil fuels) has detrimental effect on the environment. Limited supplies of coal, natural gas, and oil (non-renewable energy sources) make them less viable than renewable energy sources. Government policies of many countries regarding limiting carbon dioxide emission as well as lucrative incentives offered by governments for adopting renewable energy sources are driving the demand for renewable sources of energy, especially wind power and solar PV.
• Renewable energy sources include solar power, wind power, hydro power, biomass, and geothermal energy sources. These renewable energy sources are present everywhere in the world and cannot be depleted. Renewable energy sources are clean sources of energy. They do not emit any hazardous pollutants into the environment. Thus, they help maintain a healthier environment.
• According to the International Energy Agency (IEA), renewable electricity generation rose by 5% in 2020. Market share of renewables in global electricity generation reached almost 30% in the year. Innovation in solar photovoltaic (PV) technologies and electricity generation by wind power is driving the growth of renewables in electricity generation.
• According to the Global Wind Energy Council (GWEC), total installed wind power capacity in China is expected to reach more than 400 GW by 2030. China invested more than US$ 83.4 Bn in renewable energy in 2019. According to the Global Wind Energy Council, China accounted for the largest wind energy installation capacity of around 73,000 MW in 2020. Thus, increase in awareness about renewable energy sources and continuous rise in investment in renewables are estimated to boost the wind power market in China during the forecast period.

Emergence of Distributed Generation: Major Driver of China and Global Wind Power Market

• Distributed generation is the process of generating electric power closer to the site, where power is going to be consumed. Distributed generation systems are typically small in size compared to centralized power plants. Distributed generation systems are commonly installed for residential and agricultural purposes; however, their application is not limited to just residential and agricultural purposes. Wind turbines ranging from 5KW installed capacity for household applications to wind turbines of multi-megawatt capacity for industrial applications can be connected to local distribution systems.
• Distributed generation also offers monetary benefits: the consumer who owns the asset, generates electricity for his own consumption and can sell the surplus electricity units to centralized utility providers. In traditional grid operations, high-voltage transmission lines transmit electricity from the centralized power plant to end-consumers. In this process, transmission losses take place. Consumers also need to pay extra cost for the shipping of energy. Distribution generation enables generation of electric power closer to the site where it is going to be consumed; thus, it lowers the electricity bill and eliminates the extra cost of shipping the energy.
• Greater distance between centralized power plant and end-consumer leads to more transmission losses. Hence, distributed generation can be an effective way to generate electricity at remote locations where electricity cannot be supplied by utility providers due to the constraint of distance.
• Thus, emergence of distributed generation and ease of operating of wind turbines in decentralized manner vis-à-vis other conventional power plant are projected to propel the wind power market in China and across the globe during the forecast period

China and Global Wind Power Market: Competition Landscape

• Detailed profiles of providers of wind power have been provided in the report on the wind power market in China and across the globe to evaluate their financials, key product offerings, recent developments, and strategies
• Major players operating in the wind power market in China and across the globe are
  • HZ Windpower NA
  • GOLDWIND
  • Sinovel Wind Group Co., Ltd.
  • Mingyang Smart Energy
  • ENVISION GROUP
  • Vestas
  • Siemens Gamesa Renewable Energy
  • Suzlon Energy Limited
  • GENERAL ELECTRIC
  • Dongfang Electric Co. Ltd.
  • CRRC Corporation Limited

China and Global Wind Power Market: Key Developments

• Key providers of wind turbines, such as GENERAL ELECTRIC, Siemens Gamesa Renewable Energy, and GOLDWIND are focusing on advancement of manufacturing processes of wind turbines to attract more customers. Major developments in the wind power market in China and across the globe are highlighted below:
  • In June 2020, GE Renewable Energy bagged its first onshore wind contract from PowerChina Guizhou Engineering Company in China. The contract includes 12 units of onshore wind turbines with a two-year service agreement. Under this contract, the Xuanli Qingfeng wind farm, with the help of wind power, will generate 30 MW of clean energy, which is enough to power more than 40,000 homes in the Henan province in China.
  • In May 2021, Siemens Gamesa Renewable Energy was appointed as a preferred supplier for 1044 MW Hai Long offshore wind power project. The Hai Long offshore wind farm is a 1,044 MW offshore wind farm project proposed to be developed approximately 50 km off the coast of Changhua County in Taiwan.
  • On August 14, 2020, GOLDWIND and DNV GL Business Assurance (China) Co., Ltd. (DNV GL) signed an online Turbine Approver strategic cooperation framework agreement for the SSDA Assessment (i.e. Site Specific Design Assessment). This was the first time that a China-based turbine OEM had signed an SSDA online assessment agreement with the world’s leading certification body. Turbine Approver is an online assessment tool developed by DNV GL. It is a renewables certification for the assessment of expanded wind turbine models. It can help turbine OEMs obtain fast and integrated certification support, which is expected to significantly shorten SSDA assessment cycle of international projects, thus improving project delivery efficiency.
• In the wind power market in China and global report, we have discussed individual strategies, followed by company profiles of providers of wind power. The ‘Competition Landscape’ section has been included in the wind power market in China and across the globe report to provide readers with a dashboard view and company market share analysis of key players operating in the wind power market in China and across the globe.

China and Global Wind Power Market – Segmentation

TMR’s research study assesses the wind power market in China and across the globe based on component, location, application, and region. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects of the wind power market in China and across the globe.