Wind Turbine Market Evaluates US Tariff Impacts | USD 153.8 Bn

Overview

New York, NY – April 23, 2025 – The global Wind Turbine Market is experiencing rapid growth, driven by increasing demand for clean energy and government policies supporting renewable power. Valued at USD 87.5 billion in 2023, the market is projected to reach USD 153.8 billion by 2033, expanding at a 5.8% CAGR from 2024 to 2033.

Horizontal-Axis Wind Turbines dominated with a 94.8% market share, valued for their high efficiency and substantial electricity generation. Commonly used in onshore and offshore wind farms, these turbines feature a rotor shaft and generator atop a tower, aligned with the wind. The Onshore Segment led in 2023, capturing 77.8% of the market share. Installed on land, onshore turbines benefit from lower installation and maintenance costs and are typically located in rural or remote areas with ample space for wind farms. The Medium Capacity Segment (100 KW to 1000 KW) held a 45.3% market share, ideal for community projects and small-scale commercial applications.

US Tariff Impact on Market

Recent U.S. tariffs have significantly impacted the wind turbine industry. Proposed tariffs of 25% on imports from Mexico and Canada, along with an additional 10% on Chinese imports, could increase U.S. onshore wind turbine costs by up to 7% and overall project costs by 5%.

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These tariffs affect components like steel and aluminum, essential for turbine manufacturing, leading to increased costs and potential project delays. The tariffs also disrupt supply chains, as many U.S. wind projects rely on imported components. This policy shift has prompted companies like GE Vernova to consider expanding U.S.-based manufacturing to mitigate tariff impacts.​

Key Takeaways

• Wind Turbine Market to reach USD 153.8 billion by 2033, with a CAGR of 5.8% from 2023.
• Dominant Technology: Horizontal-axis turbines captured 94.8% market share in 2023 for efficiency and widespread use.
• Onshore turbines dominated with 77.8% market share in 2023, due to lower costs.
• Medium capacity turbines (100 KW to 1000 KW) led with 45.3% market share in 2023.
• Grid-connected turbines held 71.5% market share in 2023 for a steady energy supply.
• The Industrial sector accounted for 38.7% market share in 2023, driven by sustainability.
• North America holds the largest share of the global wind turbine market, accounting for 36.4%.

Analyst Viewpoint

The Wind Energy Sector presents a compelling investment opportunity, driven by the global shift towards renewable energy. Onshore wind power has achieved grid parity in several regions, making it cost-competitive with traditional fossil fuels. Offshore wind, while more capital-intensive, offers higher capacity factors and is becoming increasingly viable due to technological advancements and economies of scale.

Investors are attracted to the sector’s potential for stable, long-term returns, especially as governments worldwide set ambitious decarbonization targets. The sector is not without risks. Regulatory uncertainties, such as changes in subsidy schemes or permitting processes, can impact project viability. Supply chain challenges, including the availability of specialized vessels and components, can lead to project delays and cost overruns.

Report Scope

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Key Market Segments

By Type

• In 2023, Horizontal-Axis Wind Turbines dominated with a 94.8% market share, valued for their high efficiency and substantial electricity generation. Commonly used in onshore and offshore wind farms, these turbines feature a rotor shaft and generator atop a tower, aligned with the wind. Their widespread adoption stems from proven technology and superior energy output compared to other designs.

By Location

• The Onshore Segment led in 2023, capturing 77.8% of the market share. Installed on land, onshore turbines benefit from lower installation and maintenance costs and are typically located in rural or remote areas with ample space for wind farms. Their dominance is driven by mature technology and ease of construction, and management. The Offshore Segment, though smaller, is growing rapidly due to higher wind speeds at sea, enabling greater electricity generation per turbine.

By Capacity

• The Medium Capacity Segment (100 KW to 1000 KW) held a 45.3% market share, ideal for community projects and small-scale commercial applications. These turbines balance significant energy output with adaptability for diverse onshore and offshore sites, driven by their versatility and moderate site and capital requirements. The Small Capacity Segment (up to 100 KW) serves residential properties, small businesses, and remote applications, such as powering homes or small communities. These turbines are prized for affordability and minimal space needs, catering to less intensive projects.

By Connectivity

• The Grid-Connected Segment dominated in 2023 with a 71.5% market share, integrating directly with utility grids to deliver scalable, reliable renewable energy to broad consumer bases. Their popularity supports national energy grids and the shift toward sustainable energy sources. The Stand-Alone Segment addresses remote or off-grid locations, powering homes, farms, or small businesses. Often paired with battery storage to manage variable wind conditions, these systems serve niche energy independence needs but hold a smaller market share due to limited applications.

By End-Use

• The Industrial Segment led with a 38.7% market share, driven by the need for cost-effective, renewable energy to power energy-intensive operations. Industries are increasingly adopting wind turbines to reduce carbon footprints and energy costs. The Utility Segment, focused on large-scale wind farms feeding power to grids, addresses regional energy demands. The Commercial Segment supports businesses and institutions seeking energy independence and sustainability.

Regional Analysis

• North America commands the largest share of the global wind turbine market, holding 36.4% in 2023. The United States leads this growth, driven by a surging demand for sustainable and efficient energy solutions. This trend is fueled by concerns over reliance on traditional energy sources and increasing focus on energy sustainability challenges.
• Growing awareness across North American industries and communities about the value of renewable energy is accelerating investments in wind turbines. Stakeholders recognize the advantages of wind turbines, including efficient energy production, cost savings, and a reduced environmental impact, fostering greater adoption of these technologies.
• The region benefits from a strong energy infrastructure, supported by a network of skilled professionals and technology providers. This ecosystem supports the development and integration of wind turbine solutions, with industry leaders advocating for their widespread use. Many top wind turbine technology companies are based in North America, driving innovation, research, and the availability of high-quality, diverse products in the market.

Top Use Cases

• Utility-Scale Power Generation: Wind turbines in large wind farms generate electricity for national grids. Onshore and offshore farms power millions of homes, reducing reliance on fossil fuels. They’re cost-effective and scalable, with modern turbines producing up to 8 MW each, meeting growing energy demands sustainably.
• Distributed Energy for Communities: Smaller wind turbines (100 KW–1 MW) provide power for local communities, schools, or businesses. Connected to local grids or off-grid systems, they lower energy costs and enhance energy independence, especially in rural or remote areas with consistent wind speeds.
• Residential Energy Solutions: Small wind turbines (up to 100 KW) power individual homes or small farms. They reduce electricity bills and environmental impact. Ideal for windy rural areas, these systems often pair with batteries for consistent power, promoting sustainable living.
• Industrial Power Supply: Industries use wind turbines to meet high energy needs, cutting costs and emissions. Medium to large turbines power manufacturing plants, data centers, or warehouses, supporting sustainability goals while ensuring reliable, renewable energy for operations.
• Offshore Wind for High Output: Offshore wind turbines harness stronger sea winds to produce more electricity than onshore systems. Built on continental shelves, they power coastal regions, minimize land use conflicts, and support large-scale renewable energy projects with fewer visual or noise concerns.

Recent Developments

1. Vestas

• Vestas continues to lead in onshore and offshore wind, recently securing a 1.6 GW order for a European wind farm. The company is investing in recyclable turbine blades to enhance sustainability and has launched the V236-15.0 MW, one of the world’s most powerful offshore turbines. Vestas is also expanding into hybrid energy storage solutions.

2. Siemens Gamesa Renewable Energy

• Siemens Gamesa launched its SG 14-236 DD offshore turbine, boosting efficiency with 15 MW capacity. The company is focusing on hydrogen-compatible wind systems and has signed a major deal to supply turbines for a 3 GW UK offshore project. It’s also advancing AI-driven predictive maintenance.

3. Suzlon Energy Limited

• Suzlon is expanding in India with a new 3 MW series turbine, targeting cost-effective onshore projects. The company secured new orders for 642 MW in 2023 and is working on repowering old wind farms to improve efficiency. Suzlon is also integrating IoT for real-time turbine monitoring.

4. Sinovel Wind Group

• Sinovel is advancing in China’s offshore wind sector, deploying 10 MW+ turbines for large-scale projects. The company is collaborating on floating wind turbine technology and expanding into Southeast Asia. Sinovel is also improving grid integration solutions for better energy stability.

5. General Electric (GE) Renewable Energy

• GE unveiled its Haliade-X 14.7 MW offshore turbine, now operational in Europe. The company is investing in digital wind farms using AI for optimization and has secured a 2.4 GW U.S. offshore wind contract. GE is also exploring modular turbine designs for easier installation.

Conclusion

The Wind Turbine Market is poised for strong growth, driven by rising demand for clean energy: Horizontal-axis turbines dominate due to high efficiency, while vertical-axis models gain traction in urban areas. Onshore installations lead for cost-effectiveness, but offshore projects are expanding rapidly: Medium-capacity turbines balance versatility and output, catering to diverse needs. Grid-connected systems power large-scale grids, while stand-alone solutions serve remote areas: Industries, utilities, and households increasingly adopt wind energy, supported by innovation and sustainability goals.

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