42 Billion Wind Power Market Faces 6% Project Decline In 2026

How can a market worth over $100 billion still face a slowdown? The global wind energy market is valued at USD 108.81 billion in 2025. It’s projected to reach USD 119.91 billion in 2026. Yet despite this growth, the industry expects a 6% decline in new project activity next year. That’s a puzzling gap between money flowing in and projects getting built.

A $108 billion market still can’t outrun policy headwinds and infrastructure bottlenecks slowing new projects.

The numbers tell a complicated story. Global wind capacity additions are expected to hit 170 GW in 2025. But policy headwinds in key markets like the US threaten to drag that figure down in 2026. The Inflation Reduction Act has helped boost growth, contributing an estimated +1.8% impact on growth forecasts. Still, shifting political winds could slow momentum. GWEC Market Intelligence raised its 2025 global installation forecast by 8.8% to 150 GW. That optimism doesn’t fully extend into the following year.

Asia-Pacific remains the dominant force. The region held 53.55% of global wind capacity in 2025. China alone added 76 GW in 2024, mixing record onshore builds with offshore expansion in the South China Sea. India’s auction pipeline targets 140 GW by 2030. However, state-level grid upgrades haven’t kept pace with capacity growth. Japan and South Korea are turning to floating offshore projects because of limited land.

Offshore wind is the fastest-growing segment. It’s expanding at a 12.2% CAGR from 2026 to 2035. Cost declines in turbines rated 15 MW and above are helping push adoption in both Asia-Pacific and Europe. Floating offshore technology now allows deployment in locations that were previously out of reach. Demand for floating wind components is surging at a 34.2% CAGR as developers target deep-water sites beyond 60 meters.

Corporate demand is also rising. Power purchase agreements from data-center operators are adding an estimated +2.0% impact on growth forecasts across North America, the EU, and parts of Asia-Pacific. Energy storage integration is expanding the need for cheap renewable electricity. Analysts project that wind could supply 35% of global electricity by 2050, underscoring the long-term commercial opportunity driving corporate investment decisions.

Global wind capacity is expected to cross 2 TW by 2030. It could reach 2,314 GW by 2031. The long-term trend points upward. But the short-term dip in 2026 shows that even booming industries aren’t immune to policy uncertainty and infrastructure bottlenecks. Notably, wind capacity added outside China in 2024 fell to roughly 34.4 GW, an approximately 18% year-over-year decline that highlights how non-China markets are struggling to maintain momentum.