2023 was a challenging year for the wind industry. Although investment increased from $167 billion in 2022 to $200 billion in 2023, much of that was due to cost inflation, as opposed to a significant increase in capacity. Onshore wind continued to face challenges in many markets because of regulatory constraints, and the increase in financing and project costs compounded this. Some major offshore projects were either put on hold or abandoned.

Frost & Sullivan believes this is likely to be the low point for the industry, and the medium-to-long-term growth prospects remain strong. Regulators are already acting; the European Union’s Renewable Energy Directive III requires member states to simplify planning laws and create zones for renewable energy development.

INSIGHT PREPARED BY OUR KNOWLEDGE PARTNER: Frost & Sullivan