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Increasing Demand for Local Energy Generation Drives Growth in the Distributed Wind Market Emerges as a Core Driver of the Distributed Wind Market in 2025
Use code ONLINE30 to get 30% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.What Is the Expected CAGR for the Distributed Wind Market Through 2025?
In recent years, the distributed wind market has shown significant growth. Its size is projected to increase from $4.93 billion in 2024 to $5.24 billion in 2025, boasting a compound annual growth rate (CAGR) of 6.2%. This growth during the historic period is a result of factors such as an increase in community and small-scale projects, improved grid reliability and resilience, heightened public awareness and acceptance, advancements in rural electrification, and growing environmental concerns.
What's the Projected Size of the Global Distributed Wind Market by 2029?
The market size of distributed wind is anticipated to witness robust growth in the forthcoming years, reaching $6.59 billion in 2029 with a Compound Annual Growth Rate (CAGR) of 5.9%. This expected growth over the forecast period can be credited to the escalating trend of energy systems' decentralization, heightened sustainability objectives among corporations, increased research and development activities, the emergence of advanced energy storage solutions, and the influence of government policies and incentives. Noteworthy trends for the forecast period encompass technological progress, enhancements in capacity, the implementation of hybrid energy systems, and developments in vertical axis wind turbines.
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Top Growth Drivers in the Distributed Wind Industry: What's Accelerating the Market?
The growth of the distributed wind market is anticipated to be driven by the rising demand for the generation of renewable energy. Generating renewable energy is the process of creating electricity from sources such as wind turbines or solar panels to enhance reliability, minimise transmission losses, and boost energy self-reliance. The primary needs for renewable energy generation revolve around environmental concerns, economic advantages, and energy security, which promote more sustainable and resilient energy systems. Distributed wind is bolstered by renewable energy generation, utilising small-scale wind turbines in closer proximity to the energy consumption points. This cuts down transmission losses, boosts grid stability, and advocates energy self-sufficiency and sustainability. For example, in August 2023, the US-based government administration, Energy Efficiency and Renewable Energy (EERE) reported that the wind power sector added 29.5 megawatts (MW) of fresh capacity in 2022, through the installation of 1,745 turbines. Moreover, the sector is predicted to witness significant growth by 2050, with an anticipated increase of 112,286 MW in offshore wind capacity. Consequently, the advancing demand for renewable energy generation is stimulating the growth in the distributed wind market.
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What Trends Will Shape the Distributed Wind Market Through 2029 and Beyond?
Leading businesses in the distributed wind market are forming strategic partnerships to bolster their technological prowess, extend their market footprint and hasten the uptake of distributed wind energy solutions. These partnerships in the distributed wind landscape are beneficial because they amalgamate resources and knowledge which facilitates the creation of more effective technologies and ensures access to new markets, subsequently pushing wider acceptance of distributed wind energy. As a case in point, in March 2024, the National Renewable Energy Laboratory (NREL), a research institute based in the US, joined forces with the Pacific Northwest National Laboratory (PNNL), another US-based lab, to unveil the National Distributed Wind Network. This network is designed to enhance the roll-out of distributed wind energy throughout the US by supplying vital resources and backing to a range of stakeholders, encompassing farmers, municipalities and businesses. This venture will offer technical help to communities and organisations wishing to introduce distributed wind projects, assisting them in navigating regulatory and financial hurdles.
What Are the Main Segments in the Distributed Wind Market?
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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Which Top Companies are Driving Growth 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.
Which Regions Will Dominate the Distributed Wind Market Through 2029?
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.
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