The $100 billion energy opportunity: Big data, connected technologies, and advanced materials are spearheading the growth of an increasingly competitive wind power sector, according to new research.
US research and consulting firm Frost & Sullivan reports that the wind power market has seen “tremendous growth” in recent years, and will reach even greater heights as IoT technology advances.
Currently 80 countries have already installed wind farms, with 26 generating more than one gigawatt apiece, said Frost & Sullivan.
Wind power will become “increasingly competitive with conventional fuels”, with $100 billion of global investments annually until 2025.
By 2025, the wind power services market alone will be worth $24.97 billion, an increase of $9 billion from 2016 figures.
Led by the IoT
This growth is being aided by advancements in IoT technologies, data analytics, predictive modelling, and advanced lightweight composite materials, said Frost & Sullivan.
These disruptive innovations respond to “specific challenges” across the industry, and are capable of “creating additional revenue opportunities for participants in the competitive market”.
Frost & Sullivan analyst Swagath Navin Manohar said that connected technology will transform the wind industry by helping companies tap into new opportunities.
“In the coming years, we will see IoT-enabled ‘talking’ turbines, drones, and robots designed to replace the manual inspection of wind turbines and blades, as well as lightweight, high-strength composite materials to drive wind turbine size,” he said.
However, he warned that the industry still faces a plethora of challenges. These include “integration with the electricity grid, withdrawal of government subsidies, and political instability”.
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A growing industry
Despite these challenges, the sector is growing both in its existing strongholds in Europe and North America, and via new investments in Asia, said the company.
North America and Europe will continue to dominate the sector, accounting for 45.9 per cent of global revenues. However, China will become an increasingly powerful player, generating 39.3 per cent of global revenues.
India, Brazil, France, Spain, Germany, and the UK are also leading expansion.
Governments are among the biggest investors in the wind market, launching projects that promote energy security and reduce coal consumption in response to global warming.
Internet of Business says
The latest figures from Frost & Sullivan reveal an important truth about the IoT: connected technologies’ industrial applications are the key to helping new and more sustainable sectors stand shoulder to shoulder with their traditional counterparts. Data, smart facilities, mobility, lower costs, and increased safety all point towards a renewed, and smarter, energy sector.