Wind Turbine Tower Market

Market Perspective

The global Wind Turbine Tower Market was valued at USD 19.57 billion in 2022 and is projected to reach USD 27.24 billion by 2030, growing at a CAGR of 4.12% from 2023 to 2030.

The perspective of the wind turbine tower market is marked by significant growth prospects, driven by a multitude of factors. Key drivers include the increasing global emphasis on clean and renewable energy sources to combat climate change. Governments and organizations worldwide are setting ambitious targets for wind energy capacity, which is boosting the demand for wind turbine towers. Additionally, advancements in wind turbine technology, such as taller towers and larger rotor diameters, are increasing energy generation efficiency and further driving market growth.

Analyst’s Review on Wind Turbine Tower Market

Key trends in the wind turbine tower market indicate a promising scenario for the forecast years. One notable trend is the increasing adoption of taller towers. Taller towers allow wind turbines to access higher and more consistent wind speeds, resulting in improved energy production efficiency. This trend is expected to continue as manufacturers develop advanced tower designs and construction methods to support these taller structures.

A combination of steel and concrete can enhance tower strength and reduce costs. This trend is driven by the need for more robust and cost-effective solutions in the wind energy industry. The wind turbine tower market is expected to see sustained growth due to the global shift toward renewable energy sources. Increasing investment in wind energy projects, coupled with favorable government policies and incentives, will continue to drive the demand for wind turbine towers. As technology evolves, the emphasis on sustainable and recyclable tower materials is likely to intensify, further aligning the industry with environmental goals.

Market Definition

Wind turbine towers are critical components of wind energy systems. These towers are tall structures that support the wind turbine's nacelle, rotor, and blades, positioning them at an optimal height to capture wind energy.

The primary purpose of a wind turbine tower is to elevate the wind turbine to a height where it can access stronger and more consistent wind speeds, which results in higher energy production. The tower's design and height are essential factors in determining the efficiency and effectiveness of a wind turbine. Modern wind turbine towers can range in height from around 80 meters to well over 150 meters, depending on the specific site conditions and turbine technology.

Applications of wind turbine towers are predominantly in the renewable energy sector. They are used in both onshore and offshore wind farms. Onshore wind turbines are installed on land, while offshore wind turbines are positioned in bodies of water, typically in shallow coastal areas or further out at sea. Offshore wind farms require specialized tower designs capable of withstanding harsh marine environments, including saltwater corrosion and challenging weather conditions.

Market Dynamics

One of the significant drivers in the wind turbine tower market is the increasing global focus on renewable energy sources and sustainability. Governments, businesses, and individuals worldwide are recognizing the urgent need to reduce carbon emissions and combat climate change. Wind energy, harnessed through wind turbine towers, is a key player in this transition.

Governments are implementing policies and incentives to promote the development of wind energy projects, which directly drives the demand for wind turbine towers. This includes initiatives such as renewable energy targets, tax credits, and subsidies for wind power generation. These measures encourage investments in wind energy infrastructure, increasing orders for wind turbine towers.

Steel, a crucial raw material in wind tower manufacturing, is experiencing price fluctuations that are impeding market expansion. As the most widely traded metal globally, the volatility in steel prices is negatively impacting various industries that rely on it for their end products. Consequently, these price fluctuations are influencing production costs and hindering global wind turbine tower market growth.

Furthermore, the unpredictable nature of steel prices has a direct impact on the final product cost. For instance, an increase in raw material costs directly affects manufacturing expenses, resulting in a higher price for the end product. In 2020, General Steel Corporation observed a 3% rise in steel prices, followed by a further increase of 4.10% in 2021. Moreover, this fluctuation poses potential risks to the company's financial performance, thereby constraining market growth.

Segmentation Analysis

The global wind turbine tower market is segmented based on type, deployment, and geography.

Based on type, the market is categorized into tubular steel towers, hybrid towers, and lattice towers, and others. The tubular steel towers segment held the largest market share in 2022. These towers have been widely used due to their cost-effectiveness and structural advantages. However, ongoing research and development in alternative tower technologies aim to optimize structural design and reduce costs in the future.

Based on deployment, the market is bifurcated into onshore and offshore. The offshore segment accumulated the largest revenue share in 2022. Offshore wind installations offer unique advantages and increasing global investments, offshore wind farms have gained significant momentum in recent years. The rise of offshore wind power installations is fueled by multiple factors. Offshore wind farms benefit from capturing stronger and more consistent winds, leading to increased energy generation compared to onshore installations. Moreover, they have a reduced visual impact and can be situated in closer proximity to densely populated areas, resulting in lower transmission losses and enhanced grid integration. These advantages contribute to the growing dominance of offshore wind as a key player in the renewable energy sector.

Geographical Analysis

Based on region, the global wind turbine tower market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

North America dominated the wind turbine tower market in 2022 with the highest valuation owing to a strong commitment to renewable energy and the expansion of wind power projects. The United States, in particular, has seen substantial growth in its wind energy capacity, with many states implementing renewable energy targets and incentives.

In addition to favorable government policies, North America benefits from a vast and diverse geography suitable for wind energy projects. Onshore wind farms are abundant, and offshore wind projects are gaining momentum along the Atlantic coast. This diversity of wind resources has spurred the demand for a variety of wind turbine tower types, further solidifying North America's position as a market leader.

Furthermore, technological advancements and investment in research and development have enabled North American manufacturers to produce high-quality wind turbine towers, making them competitive both domestically and internationally. With continued support for clean energy initiatives and increasing investments, North America is poised to maintain its dominance in the wind turbine tower market.

Competitive Landscape

The global wind turbine tower market report will provide valuable insight with an emphasis on the consolidated nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers & acquisitions, Deployment innovations, and joint ventures to expand their Deployment portfolios and increase their respective market shares across different regions. Expansion & investments are the major strategic initiatives adopted by companies. Industry players are investing extensively in R&D activities, building new manufacturing facilities, and supply chain optimization. The major players in the market are:

• Arcosa Wind Towers, Inc.
• Nordex SE
• Vestas
• Valmont Industries, Inc.
• Broadwind Company
• Titan Wind Energy
• KGW Schweriner Maschinen- und Anlagenbau GmbH
• CS WIND CORPORATION
• ENERCON GmbH
• SPECO
• DONGKUK S&C

Key Developments

• September 2023 (Expansion): Nordex Group secured a contract from Ibereólica Renovables to deliver N155/5.X turbines for two wind farms in Spain. The manufacturer agreed to supply a total of 11 turbines for the "Aciberos" and "Padornelo 3" projects, with a combined capacity of approximately 60 MW.
• January 2023 (Expansion): Broadwind announced that it secured new tower orders worth around $175 million from a renowned global wind turbine manufacturer.
• November 2022 (Agreement): Valmont Industries officially announced its decision to sell its offshore wind business to Euro Steel, a Denmark-based supplier specializing in steel products for the European wind market.
• June 2021 (Expansion): Nordex Group expanded its portfolio of Delta4000 turbines for the North American market by introducing a new version of the N155/4.X turbine mounted on concrete towers, specifically designed for selected locations.

The global Wind Turbine Tower Market is segmented as:

By Type

• Tubular Steel Towers
• Hybrid Towers
• Lattice Towers
• Others

By Deployment

• Onshore
• Offshore

By Region

• North America
• U.S.
• Canada
• Mexico
• Europe
• France
• UK
• Spain
• Germany
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Rest of Asia Pacific
• Middle East & Africa
• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America