With the advancement in technologies, the cost of Global Wind Power (GWP) has declined over 65% in the past decade and is expected to drop further at significant rate, hence a major driver for the growth in GWP market. The growth rate is so significant to the extent that by 2020, wind power is estimated to supply over 10% of global electricity. Not only that, offshore wind power market is predicted to contribute more significantly than onshore market.
Despite its maturity in developed counties, especially Europe, the trend for GWP market is surging exponentially across the globe. Top four emerging trend of wind power market following the market growth:
- Rise of Corporate Buyers
The trend of corporate purchases of electricity directly from independent power producers are in the rise and it is extending massive opportunities for wind power market players in Asia, Europe and the United States. The trend, which was highly accepted in Mexico followed by the United States, is now gradually becoming common in Europe and Asia. Corporations are expected to purchase over 10 GW annually of installed capacity by 2025.
- Wind vs. Solar
By 2030, wind cost is expected to witness further decline by up to 50% than what it is presently. The involvement of Fortune 500 such as Google, Intel, and Microsoft in the wind energy market are expected to drive the market for at least another two decades as this is likely to pave way for innovations and competitive differentiation, thus driving the prices further down.
- Impact of World Bank’s Announcement
The World Bank’s recent announcement to cease financial assistance for the extraction of oil and gas – except for a few weaker economies – by next year also brings positive wave to the GWP market. Moreover, wind energy is regarded as one of the promising means in attaining this global goal of decarbonisation.
- Anticipating Future
The future of wind energy seems more lucrative as key market players are expecting Russia and Saudi Arabia to step in with bigger wind projects instead of nuclear or fuel projects. Similarly, Argentina is expected to emerge aggressively as the wind energy nation with its RenovAR program.
Frost & Sullivan predicts GWP market to gear up in the next decade to address the surging power demand in developing economies across the globe. Download a complimentary white paper by Frost & Sullivan to lean more on how your company can leverage on this growth opportunity here.
Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at email@example.com