China’s dominance in the global wind power market is becoming increasingly evident, fueled by significant domestic demand and strategic global expansion. While internal demand may experience fluctuations, Chinese wind turbine manufacturers are solidifying their position as leaders, impacting both domestic and international markets.
Chinese OEMs Lead Global Wind Turbine Market
Chinese wind turbine original equipment manufacturers (OEMs) have surged to the forefront of the global market. Several factors contribute to this dominance:
- Market Share: In 2023, Chinese companies held 65% of the global wind capacity, propelling four Chinese OEMs into the top five worldwide rankings, a first for the sector.
- Key Players: Goldwind maintained its leading position for the second consecutive year with a record of 16.3 gigawatts (GW) capacity installed. Envision closely followed with 14.1 GW. Windey and MingYang secured fourth and fifth places, installing 10.1 GW and 9.9 GW, respectively.
- Market Consolidation: The top five OEMs control 54% of the global wind market, indicating a consolidated landscape.
- Domestic Demand: China’s ambitious renewable energy targets, particularly the 14th 5-year plan, are driving unprecedented wind deployment. This plan targets a 50% increase in renewable energy generation between 2020 and 2025.
- Record Installations: China’s accelerated installations reached 74.7 GW due to the 2024 deadline for the first batch of massive renewable energy bases. Onshore capacity achieved new highs of 67.8 GW, with nearly 7 GW of new offshore installations.
Impact on Western Manufacturers
The rise of Chinese wind turbine manufacturers has put significant pressure on their Western counterparts:
- Decreasing Market Share: American and European companies’ market share decreased to 22% in 2022, compared to 44% in 2021.
- Financial Losses: Companies in Europe and the Americas faced financial losses in 2023 due to a stalling wind market, which saw a 3% year-over-year drop, the lowest since the COVID-19 pandemic.
- Competitive Pricing: Chinese turbine prices are at least 20% lower than those of European and US manufacturers.
China’s Expanding Global Footprint
Chinese wind turbine manufacturers are not only dominating the domestic market but also expanding their presence internationally:
- Growing Exports: Chinese wind turbine exports are expected to increase from just under 10 GW over the past 12 years to over 100 GW over the next decade.
- Key Export Markets: Asia, the Middle East, and Africa are the primary export markets, with a growing push into South America.
- Overseas Orders: In the first half of 2024, China received 5 GW of wind turbine orders from abroad, a 47% year-over-year increase. By the end of 2023, China had exported nearly 15.6 GW of wind turbines to 54 countries and regions.
- Dominant Exporters: Goldwind and Envision are expected to dominate Chinese onshore wind turbine exports between 2024 and 2034, accounting for almost 90% of Chinese OEMs’ onshore wind exports.
Factors Driving International Acceptance
Several factors are contributing to the increased acceptance of Chinese turbines overseas:
- Improved Track Record: Chinese wind turbine OEMs have worked to improve their track record in overseas projects.
- Cost Pressures: Developers in the West face increasing cost pressures, making Chinese turbines attractive due to their local economies of scale and production capacity.
- Generous Financing Terms: Chinese manufacturers offer lower prices and favorable financing terms, including deferred payments, which can be difficult for Western companies to match without public subsidies.
Challenges and Opportunities
Despite the overall positive outlook, the wind energy sector faces several challenges and opportunities:
- Profitability Concerns: Intense competition among Chinese OEMs has reduced turbine prices, impacting profitability.
- Supply Chain Issues: Supply chain disruptions, access to materials, and quality issues remain concerns for all players in the industry.
- offshore wind Growth: Offshore wind power is expected to reach a historic milestone in 2025, with China accounting for 65% (12.35 GW) of the total estimated to come online.
- Technological Advancements: Innovations in materials, aerodynamics, and digitalization are enhancing turbine performance.
- Floating Offshore Wind: The floating offshore wind sector is projected to grow, with Europe leading the way.
Future Outlook
The global wind energy market is expected to continue its growth trajectory:
- Market Size: The global wind energy market was valued at USD 174.5 billion in 2024 and is expected to grow by over 11.1% from 2025 to 2034.
- Growth Drivers: Rising investments in clean energy, increasing adoption of off-grid and distributed energy systems, and growing demand for electricity are driving market growth.
- Capacity Additions: Global wind energy capacity addition is set to double and reach over 700 GW by as early as 2028, compared to 2022 levels.
- Onshore Dominance: Onshore wind continues to dominate, holding approximately 91% of China’s total installed capacity in 2024, driven by vast land resources and favorable wind conditions.
Projections for China’s Wind Energy Market
- Installed Capacity: China’s wind energy market size is estimated at 553.95 GW in 2025 and is expected to reach 964.53 GW by 2030, at a compound annual growth rate (CAGR) of 11.73%.
- Ambitious Plans: The Chinese government has announced plans to construct 450 GW of solar and wind energy power plants in the Gobi Desert regions, demonstrating its commitment to large-scale renewable energy development.
China’s Wind Energy Market: A Force to Be Reckoned With
China’s dominance in the global wind power market is undeniable. Fueled by strong domestic policies, technological advancements, and competitive pricing, Chinese wind turbine manufacturers are poised to maintain their leadership position in the coming years. While challenges remain, the opportunities for growth and innovation in the wind energy sector are vast, and China is well-positioned to capitalize on them.
