Wind Energy Market Forecast to 2031: Global Industry to Expand at 7.7% CAGR from US$ 95.1 Billion (2023) to US$ 172.7 Billion
Wind energy captures the kinetic force of moving air using turbines equipped with spinning blades. These blades rotate to power generators, creating electricity as a sustainable, emission-free substitute for fossil fuels.
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Wind Energy Market Size and Share
The global wind energy market is experiencing strong momentum, driven by rising electricity demand, decarbonization targets, and supportive government policies worldwide. The market size is projected to grow from US$ 95.1 billion in 2023 to US$ 172.7 billion by 2031, registering a CAGR of 7.7% during the forecast period. Wind power continues to gain acceptance as one of the most mature and cost-competitive renewable energy sources, making it a key pillar of the global energy transition.
Rising Energy Demand and Technology Advancements
Increasing population, urbanization, and industrial expansion are significantly boosting energy consumption across both developed and emerging economies. As countries move away from fossil fuels, renewable sources such as wind, solar, and geothermal are being prioritized. Among these, wind energy has emerged as a preferred option due to its scalability, declining levelized cost of energy (LCOE), and technological maturity. Continuous advancements in turbine design, blade materials, and power electronics are improving efficiency and enabling power generation even in low-wind and offshore environments.
Government Regulations and Decarbonization Goals
Government initiatives to reduce carbon emissions remain the primary driver of the wind energy market. Policies such as feed-in tariffs, renewable portfolio standards, and accelerated permitting processes are enabling faster deployment of wind farms. Countries across Europe and Asia Pacific are strengthening regulatory frameworks and offering fiscal incentives to attract private investment. These measures are improving project bankability and reducing the overall risk profile of wind energy investments.
Growth of Offshore and Floating Wind Technology
Offshore and floating wind technology represents a major growth opportunity for the wind energy market. Floating wind turbines enable power generation in deep-water locations where fixed-bottom turbines are not feasible. Countries such as China, Japan, France, the UK, Denmark, and Norway are investing in floating wind pilot projects and large-scale offshore installations. Advancements in floating platforms, mooring systems, and installation techniques are improving reliability and reducing lifecycle costs.
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Capacity-Based Segmentation Trends
By Capacity, the market is segmented into up to 1 MW, 1–3 MW, 3–5 MW, and above 5 MW. The 1–3 MW segment dominated in 2023 due to large-scale adoption of mid-capacity turbines in onshore wind farms. However, turbines above 5 MW are witnessing strong growth in offshore projects, driven by their higher energy output, improved capacity factors, and cost advantages per megawatt installed.
By Installation Type, onshore wind accounted for the largest market share in 2023 due to lower installation costs, faster deployment timelines, and easier grid integration. Offshore wind is expected to grow at a faster pace during the forecast period, supported by stronger government backing, technological improvements, and rising investments in large-capacity offshore wind farms.
Regional Market Leadership
Asia Pacific dominated the wind energy market in 2023, led by strong capacity additions in China and rising investments in India, Japan, South Korea, and Australia. China is projected to remain the world’s largest offshore wind market by 2030, supported by aggressive renewable energy targets and robust domestic manufacturing. Europe continues to lead in offshore wind technology development, while North America is witnessing steady growth supported by corporate renewable energy procurement and supportive state-level policies.
Key Players
- Vestas Wind Systems A/S – Global leader in wind turbine manufacturing and service solutions
- Siemens Energy – Strong offshore wind portfolio and grid integration capabilities
- Goldwind – Major player in large-capacity onshore and offshore turbines
- ENVISION Group – Focus on smart wind turbines and digital energy platforms
- GE Renewable Energy – Advanced offshore turbine technology and hybrid renewable systems
- Mingyang Smart Energy – Strong offshore and floating wind technology portfolio
- Nordex SE – Specializes in high-efficiency onshore wind turbines
- Shanghai Electric – Integrated wind power equipment and EPC solutions
- Suzlon Group – Major contributor to India’s onshore wind capacity
- ENERCON GmbH – Known for gearless turbine technology and long-term service expertise
Future Outlook
The future of the wind energy market remains highly positive as countries accelerate their transition toward net-zero emissions and energy security. Large-scale offshore wind farms, floating wind projects, hybrid renewable systems (wind-solar-storage), and digital monitoring solutions are expected to reshape project economics and operational efficiency. Continued cost reductions, grid modernization, and rising corporate demand for clean power will further support market growth, positioning wind energy as a cornerstone of the global renewable energy mix through 2031 and beyond.
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