The wind turbine rotor blade market is expected to register at a CAGR of approximately 10. 1% during the forecast period of 2022-2027, reaching the value of USD 26. 82 billion in 2027 from USD 18. 75 billion in 2020.
New York, April 26, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Wind Turbine Rotor Blade Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06271841/?utm_source=GNW
With the COVID-19 outbreak in Q1 of 2020, the growth of the wind turbine rotor blade market was moderately impacted. Major countries such as China, the United States, and Germany have faced disruptions in manufacturing and supplying of the rotor blades due to unexpected lockdowns. As a result, the commissioning of the wind projects was delayed. The growing number of offshore and onshore wind energy installations across the world is expected to drive the growth of the wind turbine rotor blade market during the forecast period. However, factors, such as the associated high cost of transportation and cost competitiveness of alternate clean power sources, like solar power, hydropower, etc., have the potential to hinder the market growth in the coming years.
The onshore segment accounted for the highest market share in 2021 globally, and it is expected to dominate the market during the forecast period.
The wind power industry has been in demand for cost-effective solutions, and a highly efficient product has the potential to change the dynamics of the industry. There were instances where old turbines were replaced, not because of the damage but due to the availability of more efficient blades in the market. Hence, technological developments present themselves as opportunities for the wind turbine rotor blade market.
At the regional level, Asia-Pacific dominated the wind turbine rotor blade market in 2021, with the majority of the demand coming from countries like China, India, and Australia.
Key Market Trends
Onshore Segment to Dominate the Market
Onshore wind energy power generation technology has evolved over the last five years to maximize electricity produced per megawatt capacity installed, and to cover more sites with lower wind speeds. Besides this, in recent years, wind turbines have become larger with taller hub heights, broader diameters, and larger wind turbine blades.
According to the Global Wind Energy Council, in 2020, the global onshore wind turbine capacity additions registered to be 86.9 GW, with a 59.1% growth compared to 2019. The explosive growth was due to high investments in renewable energy in China.
The growing investments in several major countries, such as China, the United States, and India, are expected to drive the demand of the market during the forecast period. China and India are some of the fastest-growing economies in the world, and hence, they have registered significant growth in domestic power consumption.
Moreover, according to the International Energy Agency, the levelized cost of energy (LCOE) and global weighted average total CAPEX has decreased from 76.1 USD/MWh and 1730.5 USD/MWh in 2016 respectively, to 52.6 USD/MWh and 1455.1 USD/MWh in 2019. In addition, the LCOE and average weighted CAPEX is expected to decrease in the forecast period to 44.6 USD/MWh and 1338.2 USD/MWh respectively, by 2025.
As of March 2021, according to India’s Ministry of New and Renewable Energy, the country has the fourth-highest installed wind energy capacity, with a total installed capacity of 39.26 GW, and it is one of the fastest-growing wind power generators. China follows the same trend. According to the state-owned company, China Electronics Corporation, in 2020, the installed capacity registered to be 281.53 GW. Due to high investment and change in government policy, the onshore segment is expected to lead the growth of the wind turbine rotor blade market in India and China.
Similarly, according to the GWEC, the United States onshore wind sector reported the highest-ever annual new installations in 2020, with around 17 GW was commissioned. The United States onshore wind installation was driven primarily due to the planned Production Tax Credit phase-out as project developers had to meet the 2020 deadline, which also directly aids the onshore wind turbine rotor blade market.
Furthermore, according to WindEurope, onshore wind energy will lead the market demand in the European region to achieve net-zero carbon emissions by 2030. According to GWEC, onshore wind energy capacity takes around 90% of the total wind energy. The strict government regulations to reduce carbon emissions and to phase out of conventional power systems will drive the market.
Therefore, factors, such as the decline in onshore wind CAPEX and supportive government policies and targets, are expected to increase the number of wind power plants across the world in the coming years. This, in turn, is expected to directly impact the onshore wind turbine rotor blade market during the forecast period.
Asia-Pacific to Dominate the Market
The Asia-Pacific region is the regional hotspot for the wind turbine rotor blade market, owing to governmental support, numerous incentives, and national targets. As of 2020, the total installed wind power generation in the region reached 572.6 TWh, representing an increase of 12.41% over the previous year.
Both China’s installed capacity and new capacity in 2020 are the largest in the world by a wide margin. According to IRENA, China is expected to continue to dominate the onshore wind power industry, with more than 50% of global installations by 2050. Also, due to the high population, high electricity demand in the country is expected to promote growth in wind energy. Many multinational corporations, including Chinese firms, are investing in this sector with the help of the federal and provincial governments across the country.
The Chinese government has been actively promoting renewable infrastructure development to curb pollution and reduce the share of thermal power in the country’s power generation profile. It is likely to drive the growth of wind power projects in the country, which, in turn, is expected to drive the wind turbine rotor blade market during the forecast period.
In August 2020, Global Wind Energy Council (GWEC) stated that China is expected to host more than a fifth of the world’s offshore wind turbines, equating to 52 GW, claiming the top spot for the largest market for offshore wind by 2030.
As of March 2021, the installed wind capacity in India was 39.25 GW and has generated around 60.149 Billion kWh during 2020-21. The government has set a target of 60 GW of Wind by 2022. In order to achieve the target, the number of projects during the next two years are expected to increase drastically, driving the demand for wind power equipment in the country.
Furthermore, India is trying to expand its green energy portfolio by harnessing the entirely unexploited offshore wind energy potential along its 7,600-kilometer coastline. The focus on offshore increased in the recent years. Ministry of New and Renewable Energy set a target of 5.0 GW of offshore wind installations by 2022 and 30 GW by 2030.
Moreover, South Korea’s state-owned National Oil Corporation (KNOC) has been planning to develop a 200 MW floating offshore wind project 58 km off Ulsan City. Floating turbines are considered the next step in conquering wind resources in deep coastal waters where fixed turbines cannot be built. The project is aiming to start construction by the end of 2022 and is scheduled to be commissioned in 2024.
Therefore, factors, such as upcoming wind power projects, along with supportive government policies and regulations in different countries across the region, are expected to increase the demand for wind turbine rotor blades in the region over the forecast period.
The wind turbine rotor blade market is fragmented. Some of the major companies in this market include TPI Composites SA, LM Wind Power (a GE Renewable Energy business), Siemens Gamesa Renewable Energy SA, Vestas Wind Systems A/S, and Enercon GmbH.
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