The global wind market is expected to grow significantly in 2025, led by a 20 percent increase in onshore installations, primarily driven by delayed projects from 2022-2023 and growth in China.
China dominates the global wind industry, accounting for 68 percent of the world’s wind turbine manufacturing capacity and contributing heavily to both onshore and offshore wind growth, according to Wood Mackenzie report.
Offshore wind installations outside China are projected to remain below 6 GW in 2025 but are expected to double in 2026, while China’s offshore installations will more than double to 12 GW in 2025.
Nearly 11 GW of onshore wind capacity will reach 20 years of operational life by 2025, prompting increased investments in repowering and decommissioning activities globally.
Chinese wind OEMs are focusing on emerging markets through initiatives like the Belt and Road Initiative, capturing an average of 20 percent of onshore wind share outside of China over the next decade.
Offshore wind components are expected to travel greater distances as the supply chain globalizes, with transportation costs and trade barriers becoming more critical factors in 2025.
New offshore wind markets, including the Baltic Sea, Southern Europe, and Asia, are advancing tender frameworks and attracting strong interest, in contrast to reduced subscriptions in established markets like the North Sea.
The global offshore wind supply chain faces increasing trade restrictions, which could impact costs, with policies introduced in Europe and the US to bolster domestic supply chains.
Technology advancements in wind turbines, installation vessels, and logistics are expected to improve project execution, contributing to cost efficiencies in the offshore wind sector.
Policymakers are re-evaluating tender frameworks to balance market demands and incentives, aiming to address declining subscriptions in established offshore wind markets while supporting growth in new markets.
Baburajan Kizhakedath