Forecast
Period
|
2024-2028
|
Market
Size (2022)
|
USD
30.25 Billion
|
CAGR
(2023-2028)
|
7.40%
|
Fastest
Growing Segment
|
Concrete
Tower
|
Largest
Market
|
Asia
Pacific
|
Market Overview
Global
Wind Turbine Tower Market was valued at USD 30.25 Billion in 2022 and is
anticipated to project robust growth in the forecast period with a CAGR of 7.40% through 2028. Renewable
energy sources, such as wind power, are becoming increasingly popular as
countries around the world strive to reduce their reliance on fossil fuels and
meet their climate change goals. This is driving up the demand for wind
turbines, which in turn is driving up the demand for wind turbine towers. Governments
around the world are offering a variety of incentives and policies to promote
the adoption of renewable energy, including wind power. This includes feed-in
tariffs, tax credits, and loan guarantees. These incentives and policies are
making it more attractive for investors to invest in wind farms, which is
further driving up the demand for wind turbine towers. Wind turbine technology
is constantly advancing, with manufacturers developing new and more efficient
wind turbines. This is leading to the development of taller and more powerful
wind turbines, which require taller and stronger wind turbine towers. The cost
of wind turbines and wind turbine towers has been falling steadily in recent
years. This is making wind power more competitive with fossil fuels, which is
further driving up the demand for wind turbines and wind turbine towers. In
addition to these factors, the global wind turbine tower market is also being
driven by the growing demand for offshore wind power. Offshore wind farms are
typically located in areas with stronger and more consistent winds than onshore
wind farms. This means that offshore wind turbines can produce more electricity
than onshore wind turbines. However, offshore wind turbines are also more
expensive to install and maintain than onshore wind turbines.
Despite the higher costs, the offshore
wind market is growing rapidly, driven by government incentives and the
increasing need for renewable energy sources. This growth is driving up the
demand for offshore wind turbine towers, which are typically taller and
stronger than onshore wind turbine towers.
Overall, the global wind turbine tower
market is being driven by a number of positive factors, including the
increasing demand for renewable energy, government incentives and policies,
technological advancements, and falling costs. These factors are expected to
continue to drive the growth of the market in the coming years.
Key Market Drivers
Renewable
Energy Growth
The
increasing demand for clean and renewable energy sources, driven by environmental
concerns and government incentives, has led to substantial growth in the wind
energy sector, spurring the demand for wind turbine towers.
Government
Support and Policies: Many governments worldwide are implementing policies and
financial incentives to promote wind energy production, such as feed-in
tariffs, tax credits, and renewable portfolio standards. These policies create
a favorable environment for wind turbine tower manufacturers.
Technological
Advancements: Ongoing technological innovations have led to the development of
taller and more efficient wind turbine towers, enabling turbines to capture
more wind energy at higher altitudes. Advanced materials and designs also
contribute to improved tower performance.
Economies
of Scale: As the wind energy industry grows, manufacturers benefit from
economies of scale, making the production of wind turbine towers more
cost-effective. Global Energy Transition: The global shift towards reducing
greenhouse gas emissions and combating climate change has made wind energy a
key player in the transition to cleaner energy sources.
Urbanization
and Energy Demand: Increasing urbanization and a growing need for electricity
are driving the expansion of wind farms, which, in turn, boosts the demand for
wind turbine towers.
Cost
Reduction
The
wind energy sector has made significant progress in reducing the cost of wind
energy generation, making it more competitive with traditional fossil
fuels.Advances in grid integration and energy storage technologies make it more
feasible to manage intermittent wind energy production, encouraging further
investment in wind power.
Emerging
Markets: Developing countries are increasingly investing in wind energy
infrastructure to meet their growing energy demands and reduce dependence on
fossil fuels. Public awareness and
concerns about environmental issues and climate change have prompted investment
in wind energy projects, increasing the demand for wind turbine towers. It's
important to note that the wind energy industry is subject to market
fluctuations, regulatory changes, and competition from other renewable energy
sources. The outlook for the global wind turbine tower market is positive, but
it's essential for manufacturers and investors to adapt to evolving market
conditions and technologies to remain competitive.
Renewable
Energy Growth driving the market
One
of the primary drivers behind the expansion of the global wind turbine tower
market is the surging demand for renewable energy. As concerns about climate
change and environmental sustainability escalate, countries around the world
are seeking alternative energy sources to reduce their reliance on fossil
fuels. Wind energy, generated through wind turbines installed on wind turbine
towers, is a clean and renewable energy source. It plays a pivotal role in
addressing these concerns, as it produces electricity without emitting
greenhouse gases or other harmful pollutants. This environmental advantage
positions wind energy as a significant contributor to the global shift toward
cleaner and more sustainable energy solutions.
Government
Support and Policies:
The
wind turbine tower market also benefits from the support and policies
implemented by governments worldwide. Many countries have recognized the
importance of wind energy in their energy mix and have introduced various
incentives and regulatory mechanisms to encourage its development. These
policies include feed-in tariffs, tax credits, and renewable portfolio
standards. Feed-in tariffs guarantee a certain price for the electricity
generated from wind energy, providing a stable source of revenue for wind farm
operators. Tax credits offer financial incentives to investors and operators in
the wind energy sector. Renewable portfolio standards mandate that a certain
percentage of a region's electricity must come from renewable sources,
including wind energy. These government-driven policies create a favorable
environment for wind turbine tower manufacturers by ensuring a steady demand
for their products.
Technological
Advancements:
The
continuous evolution of wind turbine technology is another significant driver
of the global wind turbine tower market. Innovations in materials, design, and
manufacturing have allowed for the construction of taller and more efficient
wind turbine towers. Taller towers enable wind turbines to capture wind energy
at greater altitudes, where wind speeds are typically higher and more
consistent. Advanced materials, such as high-strength steel and composites, are
used to build these towers, ensuring their structural integrity and longevity.
Improved tower designs optimize aerodynamics, reducing the loads on the tower
and foundation, which contributes to enhanced turbine performance. These
technological advancements increase the efficiency and overall productivity of
wind turbines, further driving the demand for advanced wind turbine towers.
Economies
of Scale:
As
the wind energy industry has grown, manufacturers have benefited from economies
of scale. Mass production and increased competition among manufacturers have
led to cost reductions in the production of wind turbine towers. Larger orders
and standardized manufacturing processes have allowed for the efficient
production of tower components, making wind energy more cost-competitive. The
declining cost of wind energy is crucial in the context of global energy
transition, as it enables wind energy to compete with conventional fossil fuels
on a level playing field.
Global
Energy Transition:
The
global shift towards reducing greenhouse gas emissions and combating climate
change plays a pivotal role in driving the growth of the wind turbine tower
market. As the world grapples with the urgent need to reduce its carbon
footprint, renewable energy sources like wind energy have gained prominence.
Wind energy, harnessed through advanced wind turbine towers, produces
electricity without the emissions associated with fossil fuels, making it an
attractive option in the transition to cleaner energy sources. The adoption of
wind energy is instrumental in achieving international climate goals and
reducing the carbon intensity of electricity generation.
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Key Market
Challenges
Wind
Energy's Rapid Rise
Before
diving into the central challenge, it's essential to understand the context and
significance of the wind turbine tower market. Wind energy has emerged as a
critical player in the global transition to renewable energy sources. It is a
clean, abundant, and sustainable form of energy that mitigates greenhouse gas
emissions and reduces dependence on finite fossil fuel reserves.
Wind
turbines, which convert kinetic energy from the wind into electrical power,
have become the emblematic symbol of this transition. They consist of several
key components, including the rotor blades, nacelle (housing the generator and
gearbox), and the tower. The tower serves as the backbone of the entire
structure, raising the turbine's height to capture stronger and more consistent
winds at elevated altitudes. The Rise of Tower Heights
The
evolution of wind turbine towers is crucial to understanding the current
challenge in the market. Early wind turbines featured relatively short towers,
typically reaching heights of 20 to 40 meters. These turbines were primarily
deployed in regions with moderate wind resources, and their energy generation
was limited compared to today's standards.
As
wind energy technology advanced, so did the height of wind turbine towers.
Taller towers allow turbines to access higher and more consistent wind speeds,
significantly increasing energy production. This trend toward taller towers has
been driven by several factors:
Improved
Energy Output: Taller towers enable turbines to reach higher altitudes, where
wind speeds are generally stronger and more consistent. This results in higher
energy production and increased efficiency.
Expansion
into Low-Wind Regions: As wind energy expanded into regions with lower wind
speeds, taller towers became essential to harness the available energy
resources effectively.
Reduced
Visual Impact: Taller towers often have smaller footprints, which can reduce
their visual impact on the landscape, making them more acceptable to
communities and regulators.
Economies
of Scale: Taller turbines benefit from economies of scale, as they can capture
more energy with fewer turbines. This reduces the overall cost of energy
production.
Technological
Advancements: Advances in materials and engineering have made it possible to
construct taller and more robust wind turbine towers, further supporting their
growth.
The
Challenge of Scaling Up
While
the trend toward taller wind turbine towers has been instrumental in the
success of the wind energy industry, it has also given rise to the main
challenge facing the market: scaling up tower heights even further. Currently,
the industry is in a race to develop and deploy wind turbines with tower
heights well beyond the 100-meter mark, and even reaching heights of 200 meters
or more.
The
primary drivers behind this push for even taller towers are:
Access
to Higher Wind Resources: As wind turbines continue to reach new heights, they
can tap into previously untapped wind resources at higher altitudes. This leads
to increased energy production and greater capacity factors.
Reduced
Land Footprint: Taller towers allow for the installation of larger rotor
blades, which capture more wind energy. This means that fewer turbines are
needed to generate the same amount of electricity, reducing the overall land
footprint of wind farm.
Energy
Transition Goals: Many countries and regions have set ambitious renewable
energy targets to combat climate change. Achieving these goals often requires
harnessing wind resources at greater heights to meet energy demand.
However,
scaling up wind turbine towers presents several significant challenges:
Technical
Challenges: As towers get taller, they must contend with greater structural
loads, including wind forces, gravity, and dynamic loads from the rotating
blades. Designing towers that can withstand these forces while remaining
cost-effective is a formidable engineering challenge.
Logistics
and Transportation: Transporting extremely tall tower sections to remote wind
farm locations can be logistically complex and costly. It requires specialized
equipment and infrastructure, including roads and cranes capable of handling
such large components.
Foundation
Design: Taller towers require more substantial foundations to ensure stability
and safety. Designing and constructing these foundations can be challenging,
especially in regions with challenging soil conditions.
Environmental
and Regulatory Considerations: Increasing tower heights may raise concerns
about visual impact, aviation safety, and environmental impacts, such as
impacts on wildlife and ecosystems. Navigating these regulatory and
environmental challenges is essential for project approval.
Costs:
While taller towers offer benefits in terms of energy production and land use,
they also come with higher manufacturing, transportation, and installation
costs. Balancing these costs against the increased energy yield is a critical
economic consideration.
Key Market Trends
Urbanization
and Energy Demand
Increasing
urbanization and the growing demand for electricity have propelled the
expansion of wind farms and, by extension, the demand for wind turbine towers.
Urban areas require a reliable and consistent supply of electricity to meet the
needs of a growing population and the expansion of industries and
infrastructure. Wind energy, generated by turbines mounted on wind turbine
towers, contributes to the diversification of the energy supply. Wind farms can
be located in rural areas with abundant wind resources and connected to urban
centers through the grid. This allows for the efficient distribution of
wind-generated electricity to meet the energy demands of urban populations.
Cost
Reduction
Cost
reduction is a critical driver for the wind turbine tower market. Over the
years, the wind energy sector has made significant progress in reducing the
cost of wind energy generation. The cost reductions are achieved through
various means, including technological advancements, streamlined manufacturing
processes, and economies of scale. These cost reductions have made wind energy
increasingly competitive with traditional fossil fuels. As wind energy becomes
more cost-effective, it becomes an attractive option for investors, utilities,
and governments seeking affordable and sustainable energy solutions.
Grid
Integration:
Advancements
in grid integration technologies and energy storage solutions play a vital role
in driving the wind turbine tower market. One of the challenges of wind energy
is its intermittency—wind doesn't blow consistently at all times. However,
innovations in grid management and energy storage allow for more efficient
management of wind energy production. Grid integration technologies enable the
smooth integration of wind energy into existing electricity grids, ensuring a
stable and reliable energy supply. Energy storage systems, such as batteries,
can store excess wind-generated electricity and release it when needed, further
enhancing the reliability of wind energy.
Emerging
Markets:
Developing
countries are increasingly investing in wind energy infrastructure to meet
their growing energy demands and reduce their dependence on fossil fuels. These
emerging markets present significant opportunities for the global wind turbine
tower market. In regions with rapidly expanding populations and energy needs,
wind energy offers a sustainable solution that can help bridge the energy
supply gap. Many of these regions have abundant wind resources, making wind
energy an attractive choice for expanding their energy infrastructure.
Environmental
Concerns:
Public
awareness and concerns about environmental issues, including climate change,
air pollution, and habitat destruction, have played a significant role in
driving the demand for wind energy and, consequently, wind turbine towers. The
desire to mitigate the adverse environmental impacts of traditional energy
sources has motivated individuals, communities, and governments to invest in
renewable energy solutions. Wind energy's minimal environmental footprint and
its potential to reduce greenhouse gas emissions align with these concerns,
making it a favored choice in the pursuit of sustainable energy generation.
In
conclusion, the global wind turbine tower market is on a trajectory of
sustained growth, fueled by a combination of drivers. The demand for renewable
energy, government support and policies, technological advancements, economies
of scale, and the global energy transition are just a few of the critical
factors contributing to the expansion of this market. As urbanization and
energy demand increase, the wind turbine tower market plays a crucial role in
delivering reliable and sustainable energy solutions. Cost reduction, grid
integration, and the expansion of wind energy in emerging markets provide
additional impetus for the industry's growth. Environmental concerns, including
the need to reduce greenhouse gas emissions and address climate change, reinforce
the importance of wind energy and the role of wind turbine towers in the global
energy landscape.
It
is important to note that the wind energy industry is subject to market
fluctuations, regulatory changes, and competition from other renewable energy
sources. The outlook for the global wind turbine tower market is positive, but
it is essential for manufacturers, investors, and policymakers to remain
adaptable and responsive to
Segmental Insights
Type Insights
The concrete
tower segment held a majority of the market share in 2021 owing to its various
benefits including project cost and modularity reduction. The market well
understands this material. Towers hold up to 20% of the total costs of a wind
turbine, and the use of concrete towers helps reduce the sufficient cost of a
wind farm. These towers have high strength, require low prices, and the
material needed to build these towers is generally available locally. The
hybrid tower segment is expected to expand significantly in the coming years
owing to the rising trend for composite materials. These types of materials can
provide the benefits of two materials in one. These towers are lighter in
weight also.
Installation
Insights
The market has
been divided into onshore and offshore based on installation. The onshore
segment held a dominant share of the market in 2021. The onshore segment shows
low carbon emissions and economic cost structure compared to other segments.
Globally, more than 72 GW of new wind power projects were installed onshore in
2022.The offshore segment is likely to witness growth at a languid pace owing
to high focus and installation toward the onshore wind. The offshore wind farm
installation cost is significantly higher than the onshore wind farm. The
emergence of floating offshore wind is also a critical factor in driving growth
of the offshore segment.

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Regional Insights
Asia Pacific plays a significant role in
the global Wind Turbine Tower market. Asia Pacific is
expected to lead the global wind tower market share during the forecast period.
The region is leading in onshore wind installation. Major countries such as
China, India, and Australia are witnessing higher demand for energy due to
rapidly growing industrialization and urbanization. China leads the market
owing to rising installation of renewable energy. Europe is another major
market for wind towers. Also, it is the leading region in offshore wind
installation. Rapidly increasing installation of wind farms and favorable
government regulations are the major factors driving the market growth in
Europe. The governments in the region are also focusing on improving wind
installation and this is another factor boosting market growth. North America
is estimated to witness significant growth in the market during the forecast
period. Along with the high installation of wind energy, the region has the
presence of several known tower manufacturers. The rising focus on increasing
renewable dependency boosts the market share in North America. The declining
cost of wind power generation and rising investments in renewable energy
generation in Latin America & the Middle East & Africa are expected to
drive the market growth for wind capacity installation, which is proportional
to wind tower installation.
Recent Developments
- September
2022 - Broadwind Inc. announced receiving an order worth USD 38 million for a
new tower from a leading global wind turbine manufacturer. This constituted the
largest tower order in more than three years as the demand for new wind
turbines began to pick up following the recent passage of the Inflation
Reduction Act (IRA).
- July
2021 - The Nordex Group received orders for the delivery of two wind farms with
Delta4000 turbines totaling 54.9 MW in Italy. The association is providing six
N133/4.8 turbines for a 28.8 MW wind farm and five N149/5.X turbines for a 26.1
MW capacity project. The deal also comprises a premium service contract for the
turbines for an initial two-year period with several options for extending up
to 10 years.
- July
2021 - The Nordex Group announced a strategic partnership with TPI Composites
in Mexico. The two companies agreed on a unique strategic collaboration along
with cooperation in India and Turkey.
- December
2020 - Veolia North America and GE Renewable inked an agreement for recycling
the blades removed from U.S. onshore wind. Via this deal, GE intends to recycle
the majority of blades replaced during repowering efforts.
- June
2020 – GE Renewable Energy, LafargeHolcim, and COBOD signed an agreement to
collaborate and develop wind turbines with optimized 3D printed concrete bases
that reach record heights of up to 200 meters.
Key Market Players
- Arcosa Inc.
- Bergey Wind Power Co.
- Clipper Windpower Plc.
- XzeresWind Corp.
- Trinity Structural Towers Inc.
- Valmont Industries Inc.
- Bouygues Construction SA
- Broadwind Energy Inc
By Type
|
By Installation
|
By Region
|
|
- Steel Tower
- Concrete Tower
- Hybrid Tower
|
|
- North America
- Europe
- Latin America
- Middle East & Africa
- Asia Pacific
|
|
Report
Scope:
In
this report, the Global Wind Turbine Tower Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
- Global
Wind Turbine Tower Market, By Type:
o
Steel
Tower
o
Concrete
Tower
o
Hybrid Tower
- Global
Wind Turbine Tower Market, By
Installation:
o Onshore
o Offshore
- Global Wind Turbine Tower Market,
By Region:
o North America
§ United States
§ Canada
§ Mexico
o Asia-Pacific
§ China
§ India
§ Japan
§ South Korea
§ Indonesia
o Europe
§ Germany
§ United Kingdom
§ France
§ Russia
§ Spain
o South America
§ Brazil
§ Argentina
o Middle East & Africa
§ Saudi Arabia
§ South Africa
§ Egypt
§ UAE
§ Israel
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Global Wind Turbine Tower Market.
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