Market Trends of Wind Turbine Tower Industry
This section covers the major market trends shaping the Wind Turbine Tower Market according to our research experts:
Concrete Wind Tower to Witness Highest Growth Rate
- The concrete wind tower segment is expected to be the fastest-growing segment of the wind tower market. These towers have high strength, require low transportation costs, and the material needed to build these towers is generally available locally.
- Due to technological advancements, large-capacity wind turbines are becoming more cost-effective. The large turbines are heavier, require large rotors, and are taller. For these types of turbines, the concrete wind tower proves to be more cost-effective than tubular steel towers due to their high strength.
- As of 2021, global cumulative wind energy installed capacity reached 824,874 MW, comparatively higher than 436,828 MW installed in 2015. The market is growing strongly, which is likely to boost the growth of concrete wind towers.
- In December 2020, Nordex began the production of concrete wind turbine towers from its new factory in Spain. The concrete tower production facility is built in Motilla del Palancar, in Castilla-La Mancha. The company plans to equip four wind farm projects in Spain with concrete towers.
- Therefore, the increasing share of large wind turbines, relatively high stability of concrete tower cost, lower transportation requirements, local availability of material for concrete towers, and increased import duty on steel in the United States are expected to be the major drivers for the concrete wind tower market.
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Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be one of the promising markets for wind turbine towers in the coming years, owing to the favorable government policies and the efforts to increase the share of cleaner and renewable sources in power generation.
- In China, nearly 70% of the electricity produced in 2021 was from thermal energy sources. Due to the increasing pollution from thermal sources, the country has been trying to increase the share of cleaner and renewable sources in power generation.
- As of 2021, India holds the fourth-largest wind power installed capacity globally. These projects are majorly spread in the northern, southern, and western parts of the country.
- The Indian government has successfully reduced the cost of wind power below the cost of coal-based power, owing to which renewable power has become an attractive market for consumers.
- In June 2021, Suzlon Group, India's largest renewable energy solutions provider, announced its new order for the development of a 252 MW wind power project from CLP India. Suzlon will install 120 units of S120-140m wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower, with a rated capacity of 2.1 MW each. The project is located in Sidhpur, Gujarat, and is expected to be commissioned by 2022.
- In July 2021, Danish wind turbine manufacturer Vestas Wind Systems AS signed an agreement to sell its tower factory in Pueblo, Colorado, to South Korean tower maker CS Wind Corp.
- Therefore, the efforts of Asia-Pacific countries to increase the renewable infrastructure and diversify their energy portfolios are likely to drive the growth of the wind energy sector, further increasing the demand for wind turbine towers during the forecast period.
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