USD 6.2 billion
Report ID:
SQMIG55F2055 |
Region:
Global |
Published Date: January, 2025
Pages:
182
|Tables:
84
|Figures:
83
Global Small Wind Power Market size was valued at USD 1.93 billion in 2023 and is poised to grow from USD 2.06 billion in 2024 to USD 3.84 billion by 2032, growing at a CAGR of 8.2% during the forecast period (2025-2032).
Small wind power is a versatile way to generate sustainable electricity. These systems can be used independently or connected to the grid and are found in various places such as farms, remote areas, telecommunications towers, homes, and tall buildings. They're placed near where energy is needed, making them easier to install and operate compared to larger wind turbines. Small wind electric systems can significantly reduce electricity bills, often by as much as 45% to 91%. They're commonly used in rural areas where extending utility power lines is expensive, providing a cost-effective alternative for electricity needs. These systems are versatile and can also be used for tasks like water pumping on farms and ranches. The increasing affordability of small wind turbines has greatly contributed to the expansion of the small wind market. Additionally, there's a rising global demand for renewable energy sources due to concerns about the depletion of non-renewable resources and environmental issues, alongside rapid industrialization. Furthermore, the global energy crisis, environmental concerns, and the push for electricity access in remote areas are driving the growth of the small wind market. Government regulations aimed at reducing carbon emissions, along with financial incentives to encourage the use of renewable energy sources, are major factors propelling market growth. Moreover, the growing energy demand and concerns about the environmental impact of fossil fuel-based power generation are also fueling the growth of the small wind market. Many countries are encouraging renewable energy adoption by offering subsidies, programs, and favorable policies. This push towards renewables is driving growth in the small wind turbine market.
For instance, in December 2022, the National Renewable Energy Laboratory, with support from the U.S. Department of Energy's Competitiveness Improvement Project (CIP), announced plans to grant $2.8 million to 11 manufacturers of small- and medium-scale wind turbine technology. These grants support manufacturers producing turbines with a capacity of less than 1 megawatt. Bergey Windpower Company was among the companies selected for this project.
Market snapshot - 2025-2032
Global Market Size
USD 6.2 billion
Largest Segment
Off-Grid
Fastest Growth
On-Grid
Growth Rate
14.9% CAGR
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Global Small Wind Power Market is segmented by Type, Installation Type, Capacity, Application and region. Based on Type, the market is segmented into Horizontal Axis Wind Turbine and Vertical Axis Wind Turbine. Based on Installation Type, the market is segmented into On-Grid and Off-Grid. Based on Capacity, the market is segmented into Upto 2KW, 2KW to 5KW and 5KW to 10 KW. Based on Application, the market is segmented into Domestic, Small-Scale Industries and Commercial. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Horizontal axis wind turbines (HAWT) are currently dominating the market by a significant margin, mainly because this design has been around for the past two centuries. Demand for horizontal small wind systems is projected to rise at a CAGR of 9.5% and reach a valuation of USD 1.6 million by the end of 2031. This segment is projected to experience robust growth in the coming years due to the ease of installation and the ready availability of components. Most small wind turbines today are the horizontal-axis type, with two or three blades usually made of materials like fiberglass.
On the other hand, the fastest-growing segment in the Global Small Wind Power Market is vertical axis wind turbines (VAWT) are expected to see rapid growth in the forecast period. This is because they are more affordable and offer various environmental benefits compared to HAWTs.
The largest market segment within the small wind power market is the off-grid segment. The off-grid segment captured 59.7% of the market in 2023 and is expected to continue growing. This growth is driven by the introduction of new and innovative technologies aimed at modernizing existing equipment. Off-grid small wind energy is important in remote areas of underdeveloped and developing countries. It serves various off-grid applications such as providing electricity to rural homes, powering telecommunication stations, and generating offshore power. In these off-grid settings, small wind turbines can be connected to batteries for energy storage. However, the off-grid segment will remain dominant due to the presence of older installed turbines.
For instance, a microturbine, the Halo 6.0 was developed with a design featuring only two moving parts, making it highly efficient. These turbines are enclosed in a cover for improved performance. With a capacity of up to 6 kW, the Halo 6.0 is specifically designed to meet the energy needs of off-grid turbines worldwide.
In 2023, the on-grid segment accounted for 41.3% of the market, largely due to government efforts to improve grid connectivity for small wind systems and is the fastest-growing segment in the market. Various financial incentives provided by regulators, such as Production Tax Credits, Investment Tax Credits, and Feed-in Tariffs, will further boost the growth of small wind systems in this segment.
The residential sector holds the biggest share of the market by application. The small wind power systems installed in residential settings are typically used to generate electricity for single-family homes, farms, rural cabins, and off-grid properties. These systems are smaller in scale compared to commercial installations and are designed to meet the energy needs of individual households. Residential small wind turbines are often mounted on rooftops or freestanding towers and can provide an alternative or supplementary source of electricity to traditional grid power.
The commercial sector is the fastest growing in the market and is expected to continue as the strongest in the foreseeable future. This segment is significant due to the growing interest in renewable energy solutions among businesses and organizations seeking to reduce operating costs and demonstrate environmental responsibility. This growth is attributed to factors such as population growth, the need for improved infrastructure, and expansion in the industrial sector, all of which drive demand for small wind power systems. Consequently, this creates attractive opportunities for market growth.
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The dominating region in the global small wind power market is Europe, which holds a significant market share. Germany and the UK are the major contributors to economic growth in the solar and wind power sectors. Europe led the global demand for small wind power in 2023 with a revenue share of 44.0%. For instance, in 2021, Engie partnered with Eocycle to offer a range of sustainable energy solutions in Belgium, including small wind turbines.
Additionally, in April 2022, BRAUN Windturbinen GmbH, a German manufacturer of small wind turbines, supplied an Antaris small wind turbine with a capacity of 4.5 kW, which was installed by Umstro. The wind turbine is mounted on a 7.0 m tilt mast, making it a hassle-free project in North Rhine-Westphalia, Germany.
North America follows as the second largest market for small wind power, with the US taking a dominant position. The implementation of the US production tax credit-fueled rapid growth in this sector, while Canada's energy mix saw an increase in wind power investment, with a 20.1 % growth in Canadian Energy and wind power in a year. Mexico's small wind power strategy is also gaining traction as an alternative solution for generating on-site electrical power across various sectors. According to a report from the U.S. Energy Information Administration, wind energy accounted for generating 9.4% of all electricity in the United States from utility-scale sources.
Additionally, the Asia Pacific region is the fastest-growing region contributed 20.5% of the total revenue in the small wind market in 2023 and is expected to experience substantial growth in the coming years due to increased adoption of on-grid and off-grid installations across residential, commercial, and industrial sectors. China has emerged as a significant player in the small wind turbine market, largely due to substantial investments from the State Grid in the North and China Southern Power Grid in the South. Subsidies and incentives aimed at promoting wind energy will further drive the growth of the Asia-Pacific small wind turbine market in the forecast period.
Small wind power projects are witnessing growth, particularly in small towns and villages, where they are ideal to set up. This localized growth is driven by the region's reliance on renewable resources for energy production, promoting both economic and environmentally friendly practices with carbon-free emissions. Also, factors such as low feed-in tariffs, high electricity prices, and increased regional investments contribute to the regional market's growth. Overall, the small wind power market supports economic growth and sustainability, making it poised for significant expansion in the coming years.
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Rapid Industrialization
Easy Installation
Government Initiatives
Price Volatility
Rigorous Government Regulations
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The global small wind power market is primarily fragmented, with a multitude of players competing for market share across various regions and applications. Key players include Northern Power Systems and Bergey WindPower, known for their good small wind turbine solutions. Other outstanding competitors such as XZERES Wind, Kingspan Wind, and Fortis Wind Energy cater to specific segment markets with diverse product offerings. Emerging players like Eocycle and Ampair are gaining a grip on advanced technologies, contributing to the market's dynamic and competitive landscape.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global small wind power market analysis, there are several factors that shape the path of the small wind power market. The global small wind power market has experienced significant growth in recent years owing to rapid urbanization and increasing demand for sustainable/renewable energy generation. Additionally, substantial investments in renewable energy projects in public and private sectors aimed at achieving a sustainable future have driven the demand for small wind power mills worldwide. The residential segment holds a prominent chunk of the market share owing to the widespread adoption of small wind power systems by homeowners. Installation of small wind power systems also helps reduce electricity expenses in remote locations, such as islands, that rely on oil-fired generation. Europe accounts for the highest share while Asia Pacific emerges as the fastest growing regional market. A significant trend in the small wind power market is the use of technologies like Artificial Intelligence (AI), which simplifies the operational dynamics. Furthermore, the Department of Energy's Wind Energy Technologies in the U.S. has invested in research and development activities to drive innovation in wind energy technologies, reduce electricity costs, and expedite the deployment of wind power systems.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 1.93 billion |
Market size value in 2032 | USD 3.84 billion |
Growth Rate | 8.2% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Small Wind Power Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Small Wind Power Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Global Small Wind Power Market size was valued at USD 6.2 billion in 2023 and is poised to grow from USD 7.12 billion in 2024 to USD 21.64 billion by 2032, growing at a CAGR of 14.9% during the forecast period (2025-2032).
The global small wind power market is primarily fragmented, with a multitude of players competing for market share across various regions and applications. Key players include Northern Power Systems and Bergey WindPower, known for their good small wind turbine solutions. Other outstanding competitors such as XZERES Wind, Kingspan Wind, and Fortis Wind Energy cater to specific segment markets with diverse product offerings. Emerging players like Eocycle and Ampair are gaining a grip on advanced technologies, contributing to the market's dynamic and competitive landscape. 'Bergey Windpower Co. (United States) ', 'SD Wind Energy (United Kingdom) ', 'Aeolos Wind Energy Ltd. (United Kingdom) ', 'Ryse Energy (United Arab Emirates) ', 'Northern Power Systems Inc. (United States) ', 'City Windmills Holdings PLC (United Kingdom) ', 'Wind Energy Solutions (Netherlands) ', 'UNITRON Energy Systems Pvt. Ltd. (India) ', 'Shanghai Ghrepower Green Energy Co. Ltd. (China) ', 'TUGE Energia OU (Estonia) ', 'Envergate Energy AG (Switzerland) ', 'Kingspan Group (Ireland) ', 'Kliux Energies (Spain) ', 'Superwind GmbH (Germany) ', 'Eocycle Technologies Inc. (Canada) ', 'XZERES Corp. (United States) ', 'Sinovel Wind Group Co., Ltd. (China) ', 'New World Wind (France)', 'In November 2023, a US start-up, supported by Bill Gates and led by a former Google executive, is introducing a new technology for large-scale wind generation called 'tracks and wings.' This innovative technology is claimed to significantly reduce costs compared to traditional turbines. The company recently secured $4 million in seed funding, with Breakthrough Energy Ventures, a fund established by Bill Gates, leading the investment to support promising energy technologies. AirLoom, the company behind this new technology, states that it can achieve a levelized cost of energy as low as $0.013 per kilowatt-hour (kWh) and a site capital expenditure (Capex) of approximately $0.21 per watt (W). For example, this translates to under $6 million for a 20-megawatt (MW) wind farm. AirLoom estimates that this cost is around one-fourth of the expense associated with current wind turbine technology.', 'In July 2023, Toshiba and General Electric (GE) announced plans to establish a domestic supply chain for offshore wind power equipment. This collaboration aligns with Japan's increased focus on expanding renewable energy sources and reaching its zero-carbon objectives. As part of the partnership, GE will produce 134 wind turbines, each capable of generating 13 megawatts (MW), for three offshore wind projects won by Mitsubishi-led consortiums in the initial round. Toshiba will oversee the assembly process, as confirmed by the Japan Wind Power Association.', 'In August 2023, Mukesh Ambani, Chairman, and Managing Director of Reliance Industries Ltd (RIL), announced his ambitious plans for a new energy business which included setting up a battery GIGA factory, a Green Hydrogen production facility and larger scale power generation through solar and wind power.', 'In January 2024, The US-based startup IdentiFlight employs a combination of AI, machine learning (ML), and high-precision optics to protect birds from collisions with wind turbines. Their proprietary machine vision technology can detect birds from up to a kilometer away in real time. The system uses a convolutional neural network to gather data and train its bird detection system. IdentiFlight's optical technology includes wide field of view (WFOV) and high-resolution stereoscopic (HRSC) cameras, which enable it to accurately detect birds and prevent collisions with turbine blades. By doing so, the startup's bird detection system helps minimize costly interruptions during turbine operations, ultimately benefiting both the environment and wind energy operators.'
The commercial sector is expected to drive the demand for small wind systems as infrastructure expands rapidly and industrialization grows. This increased production of goods and services across industries is driving up the electricity demand, leading to greater adoption of small wind systems as a sustainable and eco-friendly energy solution.
Cost-effectiveness and Environment-friendly Features: A small wind power system is a cost-effective renewable energy solution suitable for home use, producing zero emissions and pollution. However, it requires specific conditions to function effectively, such as ample wind, sufficient space, and permission to install tall towers in rural areas or neighborhoods. According to the Department of Energy in the United States, small wind systems can reduce electricity bills by 50% to 90% and are useful for various applications like water pumping on farms and ranches. Wind turbines do not produce atmospheric emissions that contribute to smog, greenhouse gases, or acid rain. Building wind turbines on existing farms can generate profits and support rural economies. Farmers and ranchers can continue their agricultural activities while earning additional income by leasing land for wind power plants.
The dominating region in the global small wind power market is Europe, which holds a significant market share. Germany and the UK are the major contributors to economic growth in the solar and wind power sectors. Europe led the global demand for small wind power in 2023 with a revenue share of 44.0%. For instance, in 2021, Engie partnered with Eocycle to offer a range of sustainable energy solutions in Belgium, including small wind turbines.
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