Report: Global Onshore Wind Power Systems Market Will Grow at a CAGR of 6% to 2023

by | Apr 15, 2019

Global onshore wind power systems market size will grow by $26.81 billion from 2019 to 2023, at a CAGR over 6%, according to a new report by Technavio. To improve the efficiency of equipment and optimize the installation process to reduce the cost of power generation, companies are increasing their investments in R&D activities on renewable energy sources. As a result, onshore wind energy is witnessing technological advancements across the value chain, which, the report notes, is improving the efficiency and reliability of this energy source.

The study says that wind tower height has increased over the past few years as the wind blows more steadily at higher altitudes. Moreover, in inland areas where wind turbulence is high, a greater hub height can lead to better wind yield as wind turbulence declines at higher altitudes. The rise in the height of wind towers also reduces the total number of turbines required on a wind farm as the high wind towers can produce more power from a single turbine. Taller turbines have better energy conversion rates, which can increase the annual energy production (AEP) of such wind energy projects. Also, the size of the rotors and blades has also increased, which has led to significant growth in the power generating capacity of wind turbines. Therefore, the rise in the height and capacity of wind towers will fuel the growth of the onshore wind power systems market during the forecast period.

“Various governments across the world are supporting the adoption of renewables such as wind energy by providing incentives, subsidies, and tax benefits to consumers and producers. For instance, the government in the US offers incentives to onshore wind facilities under the Renewable Electricity Production Tax Credit (PTC). The implementation of such policies is encouraging members of the value chain to increase investments in R&D towards the development of technologies that will eventually lead to a reduction in the overall cost of electricity generation,” says an analyst at Technavio.

In February, data from BloombergNEF (BNEF) said that global commissioning of onshore wind turbines declined 3% last year, but growth is expected to bounce back in 2019. The report, called Global Wind Turbine Market Shares, analyzedstatistics from BNEF’s global database of wind projects and information from the industry. It found that developers commissioned a little over 45 gigawatts of onshore wind turbines globally in 2018 compared with 47 gigawatts in 2017.

This dip was partly due to a slowdown in India and Germany, BNEF says. However, the report authors predict that demand for onshore capacity will jump to around 60 GW of in 2019 and 2020 with increases in all regions.

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