How Has the Distributed Wind Market Size Evolved in Recent Years?
The distributed wind market has seen considerable growth due to a variety of factors.
• In recent years, the distributed wind market has seen substantial expansion. The market is forecasted to increase from $4.93 billion in 2024 to $5.24 billion in 2025, implying a compound annual growth rate (CAGR) of 6.2%.
This growth over the historic period can be traced back to the development of community and small-scale projects, improved grid reliability and resilience, heightened public awareness and acceptance, increased rural electrification, and heightened environmental concerns.
What Is The Forecast For The Distributed Wind Market Size?
The distributed wind market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of distributed wind is projected to witness a robust growth in the upcoming years. It is expected to reach a value of $6.59 billion by 2029, growing at a Compound Annual Growth Rate (CAGR) of 5.9%.
The growth in this period of prediction is due to the growing decentralization of energy systems, enhanced corporate sustainability aims, increased attention on research and development, escalation in energy storing solutions and a rise in supportive government policies and incentives. Key trends during this forecast period encompass the progress in technology, capacity advancements, heightened adoption of hybrid energy systems, and improvements in vertical axis wind turbines.
What Are The Essential Drivers Behind The Growth Of The Distributed Wind Market?
The growth of the distributed wind market is anticipated to be driven by the rising demand for renewable energy production. The term renewable energy production pertains to the creation of electricity utilizing modalities such as solar panels or wind turbines to enhance dependability, minimize transmission losses, and promote energy autonomy. The push towards renewable energy use is primarily due to environmental factors, energy security aspects, and economic advantages, which lead to the development of more sturdy and eco-friendly energy systems. Renewable energy production bolsters distributed wind technology by encouraging the utilization of small-scale wind turbines nearer to the consumption point, thereby minimizing transmission losses, improving grid stability, and fostering energy self-sufficiency and sustainability. For example, in August 2023, as per the Energy Efficiency and Renewable Energy (EERE), a governmental entity based in the US, the wind power sector incorporated 29.5 megawatts (MW) of added capacity in 2022 by installing 1,745 turbines. Moreover, by 2050, substantial growth is projected for this sector, with an anticipated addition of 112,286 MW in offshore wind capacity. Hence, the escalating demand for renewable energy production propels the distributed wind market.
How Is The Global Distributed Wind Market Divided Into Key Segments?
The distributed windmarket covered in this report is segmented –
1) By Turbine Type: Small (Under 100 kW), Mid-Size (100 kW - 500 MW), Large-Scale (Over 500 kW)
2) By Installation Type: On-Grid, Off-Grid
3) By Application: Residential, Agricultural, Industrial, Government, Institutional, Commercial
Subsegments:
1) By Small (Under 100 kW): Horizontal-Axis Wind Turbines (HAWT), Vertical-Axis Wind Turbines (VAWT), Micro Wind Turbines, Off-Grid Small Wind Turbines, Hybrid Wind-Solar Systems, Portable Wind Turbines
2) By Mid-Size (100 kW - 500 kW): Horizontal-Axis Wind Turbines (HAWT), Vertical-Axis Wind Turbines (VAWT), Grid-Connected Mid-Size Wind Turbines, Community Wind Systems, Distributed Generation Systems For Farms Or Factories
3) By Large-Scale (Over 500 kW): Horizontal-Axis Wind Turbines (HAWT), Grid-Connected Large-Scale Wind Turbines, Offshore Wind Turbines For Distributed Systems, Utility-Scale Distributed Wind Projects, Industrial And Commercial Large-Scale Wind Turbines, Repowering Of Existing Wind Projects.
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How Are Emerging Trends Reshaping The Dynamics Of The Distributed Wind Market?
Key players in the distributed wind market are forming strategic alliances to bolster their technical capacity, broaden their market influence, and hasten the uptake of distributed wind energy solutions. Such partnerships in the distributed wind market facilitate resource and expertise pooling, promoting the creation of more effective technologies and gaining entry to new markets, all of which fosters more widespread use of distributed wind energy. For instance, in March 2024, the National Renewable Energy Laboratory (NREL), a research institute based in the US, in tandem with the Pacific Northwest National Laboratory (PNNL), a US-based lab, initiated the National Distributed Wind Network. The goal of this network is to augment the distribution of distributed wind energy across the United States via offering critical resources and assistance to various stakeholders including farmers, municipalities, and businesses. This initiative will offer technical support to communities and organizations aiming to undertake distributed wind projects, assisting with overcoming regulatory and financial obstacles.
Who Are the Key Players In The Distributed Wind Market?
Major companies operating in the distributed wind market are:
• Siemens AG
• General Electric Company
• Acciona S.A.
• Vestas Wind Systems A/S
• Goldwind Science & Technology Co. Ltd.
• Nordex SE
• Enercon GmbH
• Suzlon Energy Ltd.
• Boralex Inc.
• AeroVironment Inc.
• Envision Group
• Sinovel Wind Group Co. Ltd.
• Emergya Wind Technologies B.V.
• Ming Yang Wind Power Group Limited
• MTU Onsite Energy Corp.
• Clipper Windpower Plc
• Guodian United Power Technology Co. Ltd
• Northern Power Systems
• Pika Energy Inc.
• Kestrel Renewable Energy
• Bergey Windpower Co.
• Helix Wind Corp.
• Vortex Bladeless Ltd.
• Windstream Energy Technologies India Pvt. Ltd
• Senvion S.A.
What Are The Regional Insights Into The Distributed Wind Market?
North America was the largest region in the distributed wind market in 2024. The regions covered in the distributed wind market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
