GCC Onshore Wind Energy Market

GCC Onshore Wind Energy Market Overview:

As per MRFR analysis, the GCC Onshore Wind Energy Market Size was estimated at 3.1 (USD Billion) in 2023. The GCC Onshore Wind Energy Market Industry is expected to grow from 3.9(USD Billion) in 2024 to 9 (USD Billion) by 2035. The GCC Onshore Wind Energy Market CAGR (growth rate) is expected to be around 7.899% during the forecast period (2025 - 2035).

Key GCC Onshore Wind Energy Market Trends Highlighted

The GCC Onshore Wind Energy Market is experiencing significant growth driven by several key market drivers. One of the primary drivers is the region's strong commitment to diversifying energy sources beyond fossil fuels. Governments in countries like Saudi Arabia and the UAE have implemented national visions that emphasize sustainable energy, thereby creating a supportive policy framework for wind energy projects. Additionally, the declining costs of wind energy technologies have made it a more viable option for power generation in the GCC, making investments in wind energy more attractive to both public and private sectors. Opportunities in the GCC Onshore Wind Energy Market include the potential for cross-border energy trade and the integration of wind energy into existing projects. For example, numerous European nations are prioritizing community involvement in wind initiatives as a means of securing financial support and local support. Furthermore, the incorporation of digital technologies, including AI and IoT, into wind farm operations is improving efficiency and predictive maintenance, thereby creating opportunities for innovation. In recent years, there has been a significant increase in the repowering of existing wind facilities in Europe. This enables the modernization and expansion of energy output without necessarily increasing the land-use footprint, thereby establishing a sustainable solution to address the increasing energy demands. Additionally, countries are being encouraged to enhance grid infrastructure and cross-border energy sharing in order to create a more resilient energy network, as a result of the alignment with the EU Green Deal objectives. In general, the current trends are indicative of a shared commitment among European nations to utilize onshore wind energy as a foundation for a sustainable energy future.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

GCC Onshore Wind Energy Market Drivers

Government Initiatives and Policies Supporting Renewable Energy

The Gulf Cooperation Council (GCC) region has been decisively moving towards renewable energy, with onshore wind energy being a focal point. Governments in countries such as the United Arab Emirates and Saudi Arabia have launched initiatives like the National Renewable Energy Program. This program aims to achieve a significant increase in renewable energy contributions to their energy mix, targeting a combined capacity of 58.3 gigawatts by 2030, as reported by the UAE Ministry of Energy and Infrastructure.By focusing on renewable energy, including the development of onshore wind energy, governments are spearheading investments that contribute to the growth of the GCC Onshore Wind Energy Market industry, leading to an expected valuation of 9 billion USD by 2035. The positive regulatory environment is encouraging global players to enter the market, thus highlighting the sustainability and profitability of wind energy as part of the region's energy landscape.

Technological Advancements in Wind Turbine Efficiency

Recent advancements in wind turbine technology are significantly boosting the performance and reliability of onshore wind energy projects in the GCC region. Companies like Siemens Gamesa and Vestas have developed next-generation turbines capable of generating more electricity in lower wind speeds, which is crucial given the varied wind conditions in the GCC. The Electricity and Water Authority in Bahrain, for instance, has reported improvements in energy generation capabilities by up to 20% using advanced technologies.This increased efficiency is an important driver of the GCC Onshore Wind Energy Market industry, as it lowers the cost of electricity generation, making wind energy more competitive with traditional energy sources.

Growing Electricity Demand in the GCC Region

The GCC region is experiencing rapid population growth and urbanization, leading to an escalating demand for electricity. According to recent reports from the Gulf Cooperation Council Interconnection Authority, electricity demand in the GCC is projected to grow by 5% annually over the next decade as countries like Qatar and Oman expand their urban infrastructure and industrial capabilities. This burgeoning demand is driving investments in renewable energy sources, including onshore wind power, as governments seek to diversify their energy portfolios and reduce reliance on fossil fuels.The GCC Onshore Wind Energy Market industry stands to benefit significantly as utilities aim to meet this demand sustainably.

GCC Onshore Wind Energy Market Segment Insights:

Onshore Wind Energy Market Turbine Type Insights

The GCC Onshore Wind Energy Market is witnessing significant advancements within the Turbine Type segment, which comprises various technologies that cater to diverse energy needs in the region. Among these, Horizontal Axis Wind Turbines (HAWTs) are notably predominant due to their proven efficiency and adaptability to various wind conditions, making them suitable for large-scale power generation projects in GCC countries. Vertical Axis Wind Turbines (VAWTs), though less common, provide unique advantages, particularly in urban settings where wind direction can be variable; their robust design allows for effective energy capture from any wind direction, thus helping to address local energy demands more effectively.Small Wind Turbines have emerged in response to the growing interest in decentralized energy production. Their ability to generate energy for individual homes or small communities provides an excellent opportunity for expanding renewable energy access, benefitting rural areas in the GCC. Additionally, Offshore Turbines, while primarily used in marine environments, are integral in discussions about future energy diversification strategies in the GCC, particularly for countries looking to harness stronger offshore winds as part of regional energy portfolios.Meanwhile, Distributed Wind Turbines contribute significantly to localized energy generation, allowing for efficient energy use and reduced transmission losses, which is especially crucial in nations aiming for energy self-sufficiency. The GCC Onshore Wind Energy Market is growing rapidly, driven by supportive policies and incentives from respective governments promoting sustainability and energy diversification. This multifaceted approach to turbine types underscores the region's commitment to integrating renewable energy into their economic frameworks and achieving long-term sustainability goals.As this segment evolves, the region is likely to see enhanced innovation and investments in turbine technologies, aligning with global trends toward renewable energy adoption. Moreover, with infrastructure being developed to support these technologies, and growing interest in reducing carbon footprints, the significance of each turbine type becomes increasingly pronounced, aiding the GCC in transitioning towards more sustainable energy systems. Overall, the different turbine types reflect a broader trend in the GCC towards innovation, sustainability, and energy independence while addressing the pressing global need to mitigate climate change.

Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

Onshore Wind Energy Market Technology Insights

The Technology segment of the GCC Onshore Wind Energy Market encompasses various innovative solutions essential for harnessing wind energy effectively. Gear Drive Technology is widely recognized for its ability to optimize turbine performance and enhance energy production efficiency, making it a popular choice in the region. Direct Drive Technology, noted for its lower maintenance needs and improved reliability, continues to gain traction as operators seek to minimize operational costs. Meanwhile, Superconducting Technology presents exciting opportunities by enabling higher power output and efficiency levels, positioning itself as a potential transformative solution in the market.Variable Speed Technology plays a crucial role in maximizing energy capture across varying wind conditions, ensuring that turbines can operate optimally throughout their lifecycle. The GCC region's commitment to renewable energy, supported by government initiatives and investments, facilitates the expansion of these technologies, resulting in a competitive landscape focused on innovation and sustainability. Overall, the Technology segment is pivotal in addressing both current energy demands and future growth prospects within the GCC Onshore Wind Energy Market.

Onshore Wind Energy Market Installation Type Insights

The Installation Type segment of the GCC Onshore Wind Energy Market encompasses a diverse range of strategies employed to harness wind energy effectively. Onshore Installations are pivotal as they leverage the region's vast land resources, leading to lower energy costs and significant capacity for expansion. Hybrid Installations combine wind with other renewable sources, enhancing reliability and energy security, thus playing a crucial role in the region's transition to a more sustainable energy landscape. Repowering Installations focus on upgrading older wind farms with newer technology, maximizing outputs and efficiency while minimizing environmental impacts.This segment's growth is driven by increasing energy demands and government initiatives to enhance renewable energy contributions to national grids. The GCC is actively encouraging investments in onshore wind energy, further boosting the importance of these installation types. Overall, the focus on diverse installation approaches within the Onshore Wind Energy Market underscores a strategic commitment to sustainability and energy diversification in the region.

Onshore Wind Energy Market Application Insights

The Application segment of the GCC Onshore Wind Energy Market is a critical area that showcases the diverse utilization of wind energy within the region. Utility Scale installations are particularly significant, as they often represent the bulk of wind energy projects, leveraging large turbines designed for maximum energy production. This scale is essential for meeting the growing energy demands in GCC countries and aligns with national strategies aimed at enhancing energy security and sustainability. Community Scale projects enable local engagement and are vital for promoting renewable energy adoption within smaller urban and rural areas, providing residents with access to clean energy and stimulating local economies.Additionally, Distributed Generation systems focus on integrating wind energy at a decentralized level, offering flexibility and resilience to the energy grid. This structure not only supports reduced transmission losses but also empowers consumers to become active participants in energy production. Overall, the Application segment reflects the GCC's strategic initiatives to transition toward more sustainable energy solutions, driven by regional policies aimed at reducing carbon footprints and creating a more diversified energy portfolio.

GCC Onshore Wind Energy Market Key Players and Competitive Insights:

The GCC Onshore Wind Energy Market has been experiencing significant growth driven by various factors including national commitments to diversify energy sources, reduce carbon emissions, and increase reliance on renewable energy. The competitive landscape is characterized by a growing interest from both local and international players, leading to heightened competition and innovation. Companies are increasingly engaging in partnerships and joint ventures while also looking to leverage technological advancements to enhance efficiency and cost-effectiveness in wind energy production. With governments in the GCC region favoring long-term sustainability goals, the onshore wind energy sector is poised to attract more investments, thereby reshaping the competitive dynamics within this market.Enel Green Power has established a noteworthy presence in the GCC Onshore Wind Energy Market, recognized for its innovative approach to renewable energy solutions. The company's strengths lie in its versatile portfolio of wind power projects, efficient operational strategies, and a strong commitment to sustainable development. Enel Green Power actively participates in collaborations with local governments and stakeholders to secure essential support for its projects. Its experience and technological expertise enable the company to deliver projects that contribute to the GCC's renewable energy targets. Furthermore, the organization is adept at harnessing advanced technologies to optimize energy production and minimize operational costs, thereby enhancing its competitive edge in the onshore wind sector.ACWA Power is a prominent player in the GCC Onshore Wind Energy Market, known for its extensive portfolio that includes renewable energy assets across various countries in the region. The company displays significant strengths in project financing, development, and operation, making it a leading force in the renewable landscape. ACWA Power is involved in various strategic ventures that focus on harnessing wind energy, which aligns with the GCC’s increasing focus on sustainability and energy diversification. The company's commitment to delivering reliable and lower-cost energy solutions is complemented by its robust technological capabilities. In terms of expansions and acquisitions, ACWA Power consistently seeks opportunities to enhance its market presence, thereby solidifying its position as a leader in driving the transition to renewable energy sources within the GCC region.

Key Companies in the GCC Onshore Wind Energy Market Include:

Enel Green Power

ACWA Power

NextEra Energy

Mitsubishi Heavy Industries

EDF Renewables

ABB

TotalEnergies

GE Renewable Energy

Suzlon Energy

Iberdrola

Nordex SE

Vestas Wind Systems

Siemens Gamesa Renewable Energy

GCC Onshore Wind Energy Market Industry Developments

Recent developments in the GCC Onshore Wind Energy Market are significant, highlighting a growing commitment to renewable energy. In September 2023, Enel Green Power announced the successful completion of its first onshore wind project in Saudi Arabia, expected to contribute substantially to the country's renewable energy target. ACWA Power recently secured funding for a new wind farm in Oman, further expanding its energy portfolio in the region. Notable mentions include Mitsubishi Heavy Industries signing contracts for turbine supply with various GCC national projects in August 2023, reinforcing Japan's investment presence in the market. Between 2021 and 2023, the GCC's commitment to renewable energy has grown impressively, with over 20 wind projects initiated across the region, driven by national visions like Saudi Arabia's Vision 2030 and UAE's Energy Strategy 2050. In terms of market valuation, the GCC Onshore Wind Energy sector has seen investments exceeding several billion dollars, incentivized by governmental frameworks promoting green energy. Furthermore, Siemens Gamesa Renewable Energy has reported a robust increase in demand for wind turbines, fueling both project development and job creation in the region.

GCC Onshore Wind Energy Market Segmentation Insights

Onshore Wind Energy Market Turbine Type Outlook

Horizontal Axis Wind Turbine

Vertical Axis Wind Turbine

Small Wind Turbine

Offshore Turbine

Distributed Wind Turbine

Onshore Wind Energy Market Technology Outlook

Gear Drive Technology

Direct Drive Technology

Superconducting Technology

Variable Speed Technology

Onshore Wind Energy Market Installation Type Outlook

Onshore Installations

Hybrid Installations

Repowering Installations

Onshore Wind Energy Market Application Outlook

Utility Scale

Community Scale

Distributed Generation