Wind Turbine Tower Market Size, Share & Trends Analysis Report By Type (Steel Tower, Concrete Tower, Hybrid Tower), By Installation (Offshore, Onshore), By Region, And Segment Forecasts, 2024 - 2030

Wind Turbine Tower Market Size & Trends

The global wind turbine tower market size was estimated at USD 27.78 billion in 2023 and is projected to grow at a CAGR of 8.1% from 2024 to 2030. The global market is primarily driven by the increasing demand for clean, renewable energy sources as countries worldwide aim to reduce their carbon footprint and combat climate change. Governments are implementing supportive policies, such as tax incentives and renewable energy targets, to encourage the adoption of wind power.

For example, the European Union has set a target to derive 32% of its energy from renewable sources by 2030. China aims to be carbon neutral by 2060, driving significant investments in wind energy infrastructure.

Technological advancements in wind turbine design and manufacturing have also significantly propelled the market growth. Innovations such as taller towers and larger rotor diameters enhance the efficiency and energy output of wind turbines. Taller towers can access stronger and more consistent wind currents at higher altitudes, which translates to increased energy generation. For example, the latest generation of wind turbines can have towers exceeding 100 meters in height, enabling them to harness more wind power. These advancements not only improve the overall performance of wind turbines but also make wind energy more competitive with traditional energy sources, further driving market growth.

Government policies and incentives are another critical factors driving the global market growth. Many governments worldwide are implementing supportive policies, including subsidies, tax incentives, and feed-in tariffs, to encourage the adoption of wind energy. The U.S., for instance, offers the Production Tax Credit (PTC) and the Investment Tax Credit (ITC), which have been instrumental in promoting wind power projects. Similarly, the Chinese government provides substantial subsidies and favorable policies to support the wind energy sector, making it one of the largest markets for wind turbine towers globally. These policy measures create a favorable investment environment, attracting both domestic and international players to the wind energy market.

Moreover, the declining cost of wind energy is a significant factor triggering the growth of the market. Over the past decade, the cost of wind power has decreased considerably due to economies of scale, improved supply chain efficiencies, and technological innovations. This cost reduction makes wind energy an increasingly attractive option for power generation, especially in regions with high wind potential. For example, the Levelized Cost of Energy (LCOE) for wind has reached competitive levels compared to fossil fuels in many markets. This economic viability is encouraging more investments in wind power projects, thereby driving the demand for wind turbine towers. As these driving factors continue to evolve and strengthen, the global market is poised for sustained growth and development.

Installation Insights

Based on installation, the wind turbine tower market is segmented into offshore and onshore. The onshore installation segment registered the largest revenue market share of over 78.0% in 2023. These towers are generally easier and less expensive to construct and maintain compared to their offshore counterparts. Onshore installations can range from single turbines to large wind farms, and they are often found in rural or remote locations. The height of onshore towers varies but is usually between 80 to 120 meters tall, allowing the turbines to capture stronger and more consistent winds at higher altitudes.

Offshore wind turbine towers are installed in bodies of water, usually in shallow coastal areas or on continental shelves. These installations can harness stronger and more consistent wind resources compared to onshore sites. Offshore towers are typically taller than onshore ones, often exceeding 100 meters in height, and they require specialized construction and maintenance techniques to withstand marine conditions. While more expensive to install and maintain, offshore wind farms can generate more electricity due to better wind conditions. They can be built at larger scales without the land-use constraints faced by onshore installations.

Type Insights

Based on type, the market is segmented into steel tower, concrete tower, and hybrid tower. The concrete tower type segment accounted for the highest revenue market share of over 54.0% in 2023. Concrete towers are gaining popularity, especially for taller turbines and offshore installations. These towers can be constructed using precast concrete segments or cast-in-place concrete. Concrete towers offer superior stability and can reach heights exceeding 200 meters. They have longer lifespans and require less maintenance compared to steel towers. Concrete towers also have better-damping properties, reducing vibrations and potentially extending the life of turbine components. However, they are generally more expensive to produce and transport than steel towers.

Steel towers are the most common type in the market due to their cost-effectiveness and ease of manufacturing. They are typically made from cylindrical steel sections that are bolted together on-site. Steel towers offer good strength-to-weight ratios, allowing them to reach heights of up to 160 meters. They are relatively easy to transport and install, making them suitable for a wide range of locations. However, as turbine sizes increase, steel towers face challenges in terms of stability and transportation logistics for taller structures.

Hybrid towers combine the advantages of both steel and concrete designs. Typically, they feature a concrete base section topped with a steel upper section. This design allows for greater heights while maintaining stability and reducing transportation challenges associated with very tall steel towers. Hybrid towers can reach heights of 140-180 meters or more, making them suitable for low-wind areas where taller turbines are needed to capture stronger winds at higher altitudes. While they offer a good balance of benefits, hybrid towers can be more complex to design and construct compared to single-material towers.

Regional Insights

The North America wind turbine tower market benefits from vast open spaces and favorable wind conditions, especially in the Great Plains region. This geographical advantage allows for the installation of larger, more efficient wind turbines. The trend towards taller towers, some exceeding 100 meters in height, has been particularly pronounced in North America. These taller towers can access stronger, more consistent winds at higher altitudes, increasing energy production efficiency. For instance, the Vestas V150-4.2 MW turbine, with a hub height of up to 166 meters, has been deployed in several North American projects.

Asia Pacific Wind Turbine Tower Market Trends

Asia Pacific dominated the market and accounted for the largest revenue share of over 41.0% in 2023. Asia Pacific's dominance in the wind turbine tower market can be attributed to several key factors, including government policies, large-scale investments, and favorable geographical conditions. Countries such as China, India, and Japan have implemented supportive policies to promote renewable energy, including wind power. For instance, China's government has set ambitious targets for renewable energy capacity, aiming to achieve 1,200 GW of wind and solar power by 2030. This strong policy support has led to significant investments and the rapid expansion of wind energy infrastructure in the region, boosting the demand for wind turbine towers.

China stands out as the largest market for wind energy in the world. The country has leveraged its robust manufacturing capabilities to become a global leader in wind turbine production. Besides, the presence of a well-established supply chain and the ability to produce wind turbine components at lower costs have given China a competitive edge, contributing to the region's dominance in the wind turbine tower market.

Europe Wind Turbine Tower Market Trends

Europe benefits from favorable geographical conditions for wind power generation, particularly in offshore locations. The North Sea, Baltic Sea, and Atlantic coastlines offer ideal conditions for large-scale offshore wind farms. This has led to the development of specialized offshore wind turbine towers, which are typically larger and more complex than their onshore counterparts. The Dogger Bank Wind Farm in the UK, set to be the world's largest offshore wind farm when completed, exemplifies this trend and will require hundreds of advanced turbine towers, thus driving the wind turbine tower market.

Key Wind Turbine Tower Company Insights

The market for wind turbine tower market is marked by intense competition and rapid technological advancements. Major players are striving to gain market share through strategies such as product innovation, cost reduction, and geographical expansion. These players are concentrating on developing taller towers to harness stronger winds at higher altitudes while also addressing environmental impact and noise pollution concerns. Regional markets exhibit significant variation, with Europe and Asia-Pacific emerging as major growth areas.

• In February 2024, US Forged Rings Inc., a Delaware-based company, planned to invest USD 700.0 million in two new facilities on the US East Coast to produce 100% American-made offshore wind turbine towers, with operations expected to begin in 2026. The project includes a tower fabrication facility capable of producing 100 towers annually, expandable to 200, and a steel forging plant that will be the largest of its kind in North America and Europe, producing large flanges for turbine towers. This initiative aims to reduce carbon footprints by using 77% recycled materials and address supply chain bottlenecks as the U.S. targets 30 GW of offshore wind capacity by 2030 and 110 GW by 2050. The company emphasizes the importance of a local supply chain to support the growing offshore wind market.

• In March 2023, Arcosa, Inc., a Dallas-based manufacturer of infrastructure-related products, announced that its subsidiary Arcosa Wind Towers, Inc. planned to open a wind-tower production facility in Belen, New Mexico. The company chose New Mexico due to its supportive partnerships and competitive incentives. It plans to invest USD 55 to 60 Billion to purchase the property, modify the existing plant, and procure equipment. The state agreed to contribute USD 4.0 Billion from its Local Economic Development Act (LEDA) job-creation fund to assist with the expansion.

• In April 2023, Siemens Gamesa Renewable Energy, S.A.U. introduced green steel turbine towers, marking a significant advancement in sustainable wind energy technology. These towers are produced using low-emission steel, which aims to reduce the carbon footprint associated with wind turbine manufacturing. This initiative aligns with the growing demand for environmentally friendly energy solutions and reflects the company's commitment to enhancing the sustainability of renewable energy infrastructure. The move is part of a broader trend in the industry to innovate and adopt greener practices in energy production.

Wind Turbine Tower Market Report Scope

Global Wind Turbine Tower Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the wind turbine tower market report on the basis of installation, type, and region:

• Installation Outlook (Revenue, USD Billion, 2018 - 2030)

  • Offshore

  • Onshore

• Type Outlook (Revenue, USD Billion, 2018 - 2030)

  • Steel Tower

  • Concrete Tower

  • Hybrid Tower

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • UAE