South Korea Onshore Wind Energy Market Overview
As per MRFR analysis, the South Korea Onshore Wind Energy Market Size was estimated at 4.95 (USD Billion) in 2023.The South Korea Onshore Wind Energy Market Industry is expected to grow from 5.25(USD Billion) in 2024 to 10.5 (USD Billion) by 2035. The South Korea Onshore Wind Energy Market CAGR (growth rate) is expected to be around 6.504% during the forecast period (2025 - 2035)
Key South Korea Onshore Wind Energy Market Trends Highlighted
The South Korea Onshore Wind Energy Market is experiencing important changes due to the government’s dedication towards renewable energy and sustainability. The country has set bold targets to increase the proportion of renewable sources in the energy mix, as it tries to minimize emission activity and shift away from fossil fuel dependency. This government initiative remains the strongest driver for the market, along with supporting policies and incentives for wind energy facilities. Additionally, improvements in the efficiency of turbines and energy storage systems are enhancing the economic feasibility and operational efficiency of onshore wind farms, increasing investment opportunities within this industry.
There are numerous gaps to be filled in the onshore wind energy market in South Korea. The government is working to further expand wind capacity in areas of greater wind opportunity such as the south western coast and Jeju Island. Moreover, there is an increasing attention in wind projects at the community level which aid in animating appreciation for projects by mitigating local acceptance and helping share the profits. The developing system of regulations is supportive of new and innovative options within the industry. Recently, industry trends have shifted to larger and more efficient wind turbines which optimize power output. At the same time, there is an increasing number of companies in South Korea looking to do business internationally, particularly to exploit foreign experience and technology.
South Korean authorities are giving more focus towards the installation of smart grid systems for effective control of energy generated from onshore wind farms. While South Korea is still working towards its renewable energy goals, this does suggest that there is more room for development in the wind energy market and further emphasize a greater shift towards sustainability diversified energy sources.
South Korea Onshore Wind Energy Market Drivers
Government Commitment to Renewable Energy
The South Korean government has set an ambitious target to increase the share of renewable energy in its total energy mix. The government's commitment is evident in its plan to raise the capacity of renewable energy to 20% by 2030, which includes substantial investments in the South Korea Onshore Wind Energy Market Industry. The Ministry of Trade, Industry and Energy in South Korea has announced policies supporting this growth, indicating plans for additional financial incentives and subsidies for onshore wind projects.
This is crucial considering that, according to governmental sources, the current onshore wind capacity is around 6 gigawatts, and plans are to double this amount by 2030. The proactive measures taken by the government act as a significant driver for market growth and provide a conducive environment for investments and developments in the South Korea Onshore Wind Energy Market.
Technological Innovations in Wind Energy
Advancements in technology are playing a pivotal role in enhancing the efficiency and reliability of wind turbines. Innovations such as improved turbine design, larger rotor diameters, and advanced materials are increasing energy output while reducing costs. Leading companies like Doosan Heavy Industries & Construction are at the forefront, developing more efficient turbines that are better suited for the wind conditions in South Korea.
This technological progression is essential as the efficiency of wind turbines has improved significantly, with the South Korea Onshore Wind Energy Market Industry observing an increase in average turbine capacity from about 2 megawatts to 3 megawatts over recent years, according to industry reports.Hence, continued R&D and technological advancements are anticipated to further bolster market growth in South Korea.
Growing Environmental Awareness
There is a notable increase in public awareness regarding environmental issues and the need for sustainable energy sources in South Korea. The younger generation is particularly vocal about the need for cleaner energy alternatives to combat climate change. Reports from the Ministry of Environment have identified a steady rise in public support for renewable energy sources, with a survey indicating that approximately 70% of South Koreans advocate for a transition to renewable energy.
This cultural shift towards sustainability is driving demand for the South Korea Onshore Wind Energy Market Industry, as more citizens are pushing for cleaner alternatives to fossil fuels, thereby creating a favorable market environment for onshore wind projects.
International Investment and Partnerships
South Korea is increasingly becoming an attractive destination for international investments in the renewable energy sector. Collaborations with overseas firms are projected to enhance the technological capabilities and financial backing for onshore wind energy projects. For instance, companies like Siemens Gamesa have established joint ventures with local South Korean firms to leverage their expertise in wind energy technology.
Furthermore, the government's efforts to create a supportive regulatory framework will further attract foreign direct investment, which is crucial for the growth of the South Korea Onshore Wind Energy Market Industry.This influx of capital is expected to drive the establishment of more wind farms, significantly enlarging the market landscape in the coming years.
South Korea Onshore Wind Energy Market Segment Insights
Onshore Wind Energy Market Turbine Type Insights
The Turbine Type segment in the South Korea Onshore Wind Energy Market plays a pivotal role in shaping the landscape of renewable energy production in the region. This market is driven by a growing focus on reducing carbon emissions and increasing energy independence alongside government support for renewable initiatives. Among the various types, the Horizontal Axis Wind Turbines (HAWT) are particularly significant due to their high efficiency and adaptability, dominating the market due to their established technology and greater energy capture capabilities. This type of turbine is commonly used for large-scale onshore wind farms, contributing significantly to the wind energy output in South Korea. In contrast, Vertical Axis Wind Turbines (VAWT) are gaining traction in urban areas because of their compact design and ability to operate efficiently in turbulent wind conditions.
These turbines are particularly advantageous for small installations where space is limited, thus offering opportunities for local energy generation. Furthermore, the Small Wind Turbine segment caters to residential and small business needs, promoting decentralized energy production. Their modular design and relatively lower installation cost make them appealing options for individuals or communities looking to harness wind energy. Offshore Turbines, while primarily focused on marine installations, influence the onshore market as well through technological advancements and innovations that can cross over to land-based operations. The Distributed Wind Turbine segment emphasizes localized production abilities, allowing for energy generation close to consumption points, which aligns perfectly with South Korea’s ambitions of decentralizing its energy sources.
The increasing investments in clean energy technologies and supportive regulatory frameworks from the South Korean government further enhance the potential of each turbine type in maximizing efficiency and bolstering energy supply security. As South Korea continues to enhance its infrastructure and capitalizes on technological advancements, the synergy among various turbine types is expected to evolve, facilitating the growth of the South Korea Onshore Wind Energy Market while providing a sustainable path towards achieving energy goals. Overall, segmentation by turbine type underscores the diverse applications and importance each type brings to the energy grid, thereby collectively supporting the country's aim for a greener future.
Onshore Wind Energy Market Technology Insights
The Technology segment of the South Korea Onshore Wind Energy Market showcases a diverse array of advancements that significantly contribute to the sector's growth and efficiency. Gear Drive Technology remains prevalent as it has been traditionally used in wind turbines, providing a robust mechanism for energy conversion. However, Direct Drive Technology has gained traction due to its design simplicity, reducing maintenance needs and increasing reliability, aligning well with South Korea's emphasis on sustainable energy solutions. Superconducting Technology offers potential for high efficiency and reduced energy losses, appealing to advancements in research and development within the country.
Moreover, Variable Speed Technology allows turbines to adapt to varying wind speeds, optimizing energy capture and contributing to grid stability, which is crucial for South Korea's energy infrastructure. Each of these technologies plays a vital role in enhancing the performance of wind energy systems, helping the nation meet its renewable energy targets while addressing the increasing demand for cleaner energy sources. The government’s initiatives to improve wind energy capacities highlight the significance of these technological advancements in shaping the future landscape of the South Korean energy industry.
Onshore Wind Energy Market Installation Type Insights
The Installation Type segment of the South Korea Onshore Wind Energy Market plays a crucial role in shaping the country's renewable energy landscape. With the growing emphasis on reducing carbon emissions and enhancing energy independence, onshore installations are becoming increasingly significant, comprising a major part of the total wind energy capacity. These installations benefit from the favorable topography and wind resources available in various regions of South Korea, making them a practical choice for energy generation. Hybrid installations, which combine traditional wind energy systems with other renewable sources, also represent an emerging trend in the market, as they offer enhanced efficiency and reliability.
This approach not only makes use of varied energy sources but also optimizes land usage and improves energy output. Repowering installations are vital for upgrading older wind turbines with more advanced technology, thereby increasing overall energy production and extending the lifecycle of existing sites. These initiatives not only support South Korea's green energy goals but also create job opportunities and stimulate economic growth, indicating the dynamism and potential of the segment in the wider context of the South Korea Onshore Wind Energy Market industry.Overall, the growth drivers include increasing investment, technological advancements, and supportive government policies aimed at transitioning to a sustainable energy model.
Onshore Wind Energy Market Application Insights
The South Korea Onshore Wind Energy Market is characterized by a diverse range of applications that significantly contribute to its growth. The Application segment includes Utility Scale, Community Scale, and Distributed Generation, each playing a distinct role in advancing renewable energy goals. Utility Scale projects dominate the sector, leveraging large land areas and advanced technologies to generate significant electricity, thereby enhancing grid stability and reliability. Community Scale projects have gained traction as they empower local communities, promoting energy independence and fostering local economies.
Meanwhile, Distributed Generation allows consumers to harness wind energy close to their locations, reducing transmission losses and promoting sustainability. The South Korean government supports these applications through various incentives and policies aimed at achieving its ambitious renewable energy targets. As the strategy to increase the wind energy share in the national energy mix continues, the diverse applications will drive innovation and collaboration among stakeholders. Key market trends include the rise of technological advancements and efforts to improve efficiency, making these segments crucial for realizing South Korea's sustainable energy aspirations.
South Korea Onshore Wind Energy Market Key Players and Competitive Insights
The South Korea Onshore Wind Energy Market has seen significant growth in recent years, fueled by increasing environmental awareness and governmental support for renewable energy sources. As the nation endeavors to transition towards cleaner energy methods, a sense of competition has emerged among key players in the market. The competitive landscape comprises various companies that are focusing on innovation, operational efficiency, and strong project execution to capture market share. The industry's performance is bolstered by advancements in wind turbine technology, the strategic acquisition of land, and collaboration with research institutions to enhance efficiency.
Additionally, the commitment of the South Korean government to promote extensive renewable projects enhances the competitiveness of the onshore wind energy sector, facilitating entry for new players while pushing existing companies to innovate and expand their portfolios.POSCO Energy stands out in the South Korea Onshore Wind Energy Market with its strong reputation and robust operational capabilities. Established as a front-runner in the clean energy sector, POSCO Energy has capitalized on its extensive experience in industrial energy production and engineering excellence, providing the company with a competitive edge. The company has developed a portfolio of onshore wind projects that leverages their technological prowess to deliver reliable energy solutions.
Their financial strength and commitment to sustainability enable POSCO Energy to undertake large-scale projects while maintaining efficiency. This position allows them to forge partnerships and alliances that further enhance their capacity to undertake renewable energy initiatives. As a dominant player, POSCO Energy is well-positioned to navigate challenges in the industry and capitalize on emerging opportunities, thereby reinforcing its market presence in South Korea.Hanwha Energy has made a notable impact on the South Korea Onshore Wind Energy Market through its extensive range of services and commitment to sustainable energy.
The company offers various innovative energy solutions, including the development and management of wind energy projects tailored to meet the growing energy demands of the region. With a robust portfolio of wind farms, Hanwha Energy leverages its technical expertise and financial backing to enhance power generation efficiency and operational reliability. Additionally, the firm has made strategic investments and partnerships that have allowed for expansion in renewable energy capacity, significantly strengthening its market position. Hanwha Energy also emphasizes the importance of sustainability in its operations and is dedicated to adapting to new regulatory environments to remain compliant while pursuing mergers and acquisitions that align with its goals in the South Korean energy landscape.
This proactive approach not only consolidates their strength in the wind energy sector but also reinforces their commitment to contributing to South Korea's energy transition goals.
Key Companies in the South Korea Onshore Wind Energy Market Include
- POSCO Energy
- Hanwha Energy
- Korean National Oil Corporation
- Samsung C&T
- SK E&S
- Vestas Wind Systems
- Nordex SE
- Sungrow Power Supply
- Korea Electric Power Corporation
- Doosan Heavy Industries & Construction
- Korea Southern Power Company
- Kyungdong Energy
- Suwon Wind Power
- GS Energy
- Siemens Gamesa Renewable Energy
South Korea Onshore Wind Energy Market Industry Developments
The South Korea Onshore Wind Energy Market has recently seen significant developments with an emphasis on expanding renewable energy capabilities to meet national goals. POSCO Energy has been engaged in various projects to increase its wind energy capacity, aligning with the government's push for green energy. In the past few months, Hanwha Energy announced plans for new onshore wind farms, contributing to the nation's renewable energy targets. Current market dynamics reflect a growing collaboration among major players such as Samsung C&T, SK E&S, and Vestas Wind Systems.
Recently, in October 2023, Korea Electric Power Corporation secured contracts for new wind energy projects that are expected to bolster the overall market. Additionally, the South Korean government is providing incentives for investment in onshore wind technologies to achieve carbon neutrality by 2050, driving companies like Doosan Heavy Industries and Construction to innovate further. There have been notable mergers, such as the collaboration between Nordex SE and local firms to enhance project delivery. The market valuation of these companies is witnessing steady growth, with investments increasing as South Korea aims to fulfill its ambitious renewable energy targets.
South Korea 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
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
4.95(USD Billion) |
| MARKET SIZE 2024 |
5.25(USD Billion) |
| MARKET SIZE 2035 |
10.5(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
6.504% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
POSCO Energy, Hanwha Energy, Korean National Oil Corporation, Samsung C&T, SK E&S, Vestas Wind Systems, Nordex SE, Sungrow Power Supply, Korea Electric Power Corporation, Doosan Heavy Industries & Construction, Korea Southern Power Company, Kyungdong Energy, Suwon Wind Power, GS Energy, Siemens Gamesa Renewable Energy |
| SEGMENTS COVERED |
Turbine Type, Technology, Installation Type, Application |
| KEY MARKET OPPORTUNITIES |
Government incentives for renewable energy, Increasing demand for clean energy, Technological advancements in wind turbines, Expansion of grid infrastructure, Strong public support for sustainability |
| KEY MARKET DYNAMICS |
government policies and incentives, technological advancements, rising energy demand, environmental sustainability focus, grid infrastructure development |
| COUNTRIES COVERED |
South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Onshore Wind Energy Market is expected to be valued at 5.25 billion USD in 2024.
By 2035, the South Korea Onshore Wind Energy Market is anticipated to reach a value of 10.5 billion USD.
The market is projected to grow at a CAGR of 6.504 percent from 2025 to 2035.
The Horizontal Axis Wind Turbine segment is expected to have the largest market share valued at 2.1 billion USD in 2024.
The Vertical Axis Wind Turbine market is projected to reach 1.5 billion USD by 2035.
Key players in the market include POSCO Energy, Hanwha Energy, and Samsung C&T among others.
The Small Wind Turbine market is expected to be valued at 0.5 billion USD in 2024.
Emerging trends include advancements in turbine technology and an increasing focus on renewable energy.
The Distributed Wind Turbine market is expected to be valued at 2.0 billion USD by 2035.
Challenges include regulatory hurdles and competition from other renewable energy sources.
