Wind power is the second largest renewable energy source in the US, accounting for 2.5% of all US energy consumption. The development of this energy source has been supported through production tax credits and government benefits across the globe. As the market continues to grow, we find out about the opportunities in the sector.
The Benefits
Being the oldest and most established source of energy globally, it consists of transforming the energy produced through wind turbine blades. Like any other renewable energy, it is a 100% clean and sustainable source. The renewable energy can be produced anywhere in the world, which reduces energy imports and helps to increase local employment rates. It also doesn’t emit any toxic substances or contaminants, meaning it doesn’t damage the ecosystem or public health.
Unlike fossil fuels or nuclear power plants, wind power doesn’t generate waste or pollute waters. In fact, it has one of the lowest footprints in water consumption, which makes it an incredible renewable source to invest in. Wind turbines can be built on existing farms or ranches and, because they only take a small fraction of the space, farmers can continue to use their lands. Once the infrastructure is fully built, wind power can be produced for an estimate of 2 to 5 cents per kWh, a very competitive cost.
Where Is The Wind Power Market At?
Wind-powered electricity generation has grown steadily since the early 2000s. As of 2019, China was the leading country, with 26 thousand megawatts installed and a 44% market share. Nearly 95% of the Chinese wind power market is composed by Chinese manufacturers, the top turbine manufacturers being Goldwind, Envision and Mingyang.
The second top market player is the US, which produced 9 thousand megawatts of wind-powered electricity and had a market value of $37.3 billion. Texas was the US state with the largest new capacity installations and General Electric was the largest US-based wind turbine manufacturer. Madrid-based Acciona Energia SA, North Carolina-based Duke Energy Corporation and Danish Orsted are some of the major wind power players worldwide.
Despite disruptions in supply chains and lack of labour availability due to the pandemic, the wind power global market still saw a steady growth throughout 2020, having reached $138.4 billion by the end of the year. The total capacity of all wind farms globally reached 744 gigawatts, which is enough to generate 7% of the world’s electricity demand. Europe experienced a slower growth, whilst China, the US and Russia have all beat records in production. In Europe, the key leaders are the UK, Germany and Sweden.
Opportunities In The Wind Power Market
Wind power production resisted the hindrances brought by the pandemic in 2020, showing that it is a stable market with high potential for investment. It is predicted to reach $322.4 billion by 2027, growing at a CAGR (Compound Annual Growth Rate) of 12.8%. The key industry players, particularly the US and China, are expected to remain at the top.
Within Europe, Germany is expected to be the main wind power producer and, among other markets, Japan and Canada’s wind power production are forecasted to grow at 9.1% and 11.2% respectively.
Overall, the wind power market is expected to grow steadily all over the globe, with Asia-Pacific remaining the production leader. Continuous government support encourages both big GreenTech corporations and new GreenTech startups to tap into this market, which still offers a lot of opportunities for innovation.
If you are looking to expand your wind power business, Storm4 can help you connect with the best GreenTech professionals. Reach out to us here, and our consultants will be happy to guide you through the hiring process and help you find the right people for your team.
