Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Airborne Wind Energy Market size was estimated at USD 202.9 million in 2024 and is expected to surpass USD 743.3 million by the end of 2037, rising at a CAGR of 10.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of airborne wind energy is assessed at USD 224.3 million.
The global airborne wind energy market is expanding primarily due to the rising demand for renewable energy. As industries and governments push for carbon neutrality and sustainable energy alternatives, AWE is emerging as a promising solution. At the moment, high-altitude wind energy is a very capable resource for the environmentally friendly generation of electricity. Given their force and the abundance of winds that blow between 300 and 10,000 meters above the Earth, airborne wind energy systems appear to be a significant new renewable energy technology.
Moreover, governments and corporations worldwide are pushing for cleaner energy alternatives to reduce carbon emissions. AWE systems provide an innovative way to harness wind power, with lower costs and environmental impact. Traditional wind turbines are limited by tower height, whereas AWE can access stronger and more consistent winds at higher altitudes. AWE requires fewer materials, reducing installation and maintenance costs.
Airborne Wind Energy Market: Growth Drivers and Challenges
Growth Drivers
- Growing collaboration in technology development: Collaboration between industries, governments, and research institutions is accelerating the development and commercialization of airborne wind energy. Airborne wind energy is becoming more feasible and competitive as a practical and effective source of electricity due to growing collaboration for enhanced technologies, including better designs, automation, and real-time monitoring capabilities.
ENGIE and SkySails Power GmbH are leaders in the use of advanced renewable energy technology to capture wind power at high altitudes. In February 2024, the companies consolidated their relationship on two international pilot projects.As part of this collaboration, ENGIE has acquired two revolutionary airborne wind energy systems in the shape of SkySails wind kites, each capable of producing up to 200 kW. The two pilot projects will serve as real-world testing grounds for the airborne technology in comprehensive hybrid renewable energy and storage systems, allowing researchers to investigate multi-renewable energy source interactions and grid compatibility. ENGIE, with the support of ENGIE Laborelec, will carefully run and assess the SkySails Power System as part of the pilot projects to evaluate and validate its technological potential.
- Rising demand for remote power generation: Airborne wind energy provides a diverse alternative for off-grid power generation since it may be deployed in areas where standard wind turbines are impractical, such as deep-sea conditions or difficult terrains. This offers possibilities for providing electricity to rural populations, disaster-affected areas, and isolated industrial operations. For instance, in July 2024, ERA5 reanalysis data and remote sensing data demonstrated the offshore wind energy potential in China's Shandong Sea.
As a major fossil fuel consumer, China aims to reach carbon neutrality by 2060 and a carbon peak by 2030. Over the past few years, offshore wind energy has grown quickly in China due to its many benefits, including its enormous reserves, broad distribution, lack of pollution, and lack of land occupancy. China surpassed the UK to become the world's largest offshore wind power (OWP) sector in 2021, with 17 GW of newly constructed offshore wind capacity. China now holds 48.9% of the world's OWP sector, with a cumulative installed capacity of around 30.5 GW as of 2022. From 2025 to 2032, China's newly installed capacity is expected to surpass 10 GW per year, according to the Global Wind Energy Council.
Airborne Wind Energy Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
10.5% |
|
Base Year Market Size (2024) |
USD 202.9 million |
|
Forecast Year Market Size (2037) |
USD 743.3 million |
|
Regional Scope |
|
Airborne Wind Energy Segmentation
Technology (Larger Turbines (above 3 MW), Smaller Turbines (Less than 3 MW))
Larger turbines (over 3 MW) segment is projected to capture over 58.5% airborne wind energy market share by 2037. These turbines' ability to generate significant amounts of electricity makes them suitable for large-scale energy-producing operations. Their dominance is explained by the larger turbines' higher power output and efficiency, which make them ideal for capturing wind energy in areas with strong and consistent wind resources.
The overall cost per unit of power produced by larger turbines is lower than that of smaller turbines because of economies of scale. For developers and investors looking to maximize the return on investment on airborne wind-producing facilities, this cost benefit makes them more attractive. The regular installation of larger turbines in utility-scale wind farms and sizable business installations is driving the industry.
However, despite the dominance of larger turbines, smaller turbines (less than 3 MW) are also growing. These wind turbines are more adaptable and can be installed in many places, such as isolated or off-grid areas. They are appropriate for distributed energy projects and decentralized energy generation since they are also simpler to transport and install. Smaller turbines, therefore, appeal to a particular market niche, such as emerging nations, rural locations, and smaller settlements where access to conventional grid infrastructure may be restricted.
A wide variety of turbine technology serving various applications and market niches defines the airborne wind energy market. The market for utility-scale projects is dominated by larger turbines, although smaller turbines provide flexibility and scalability for distributed and decentralized energy solutions. Both technologies are anticipated to have a major impact on the shift to renewable energy sources and the growth of the airborne wind energy market as technology advances and innovation spurs efficiency gains.
Application (Offshore, Onshore)
Offshore application is anticipated to expand at a significant airborne wind energy market share. In offshore applications, wind energy systems are installed in bodies of water, usually seas or oceans. Many reasons contribute to this supremacy, including the prevalence of reliable and powerful winds offshore, which may generate more energy than onshore sites. Larger development areas and fewer land use restrictions are two other advantages of offshore wind farms, which enable the installation of bigger and more effective wind turbines. One of the many benefits of offshore wind energy projects is their proximity to inhabited coastal areas, where there is usually a greater electricity demand.
Although the airborne wind energy market is currently dominated by offshore applications, interest in and funding for onshore projects is rising. Onshore wind farms are situated on land, usually in agricultural or rural regions. By eliminating the need for costly offshore infrastructure such as foundations and subsea cables, these projects have lower installation and operating costs than offshore projects. By utilizing already-existing grid infrastructure, onshore wind farms can frequently save on connection fees and project completion times.
Our in-depth analysis of the global airborne wind energy market includes the following segments:
|
Technology |
|
|
Application |
|
Want to customize this research report as per your requirements? Our research team will cover the information you require to help you take effective business decisions.
Customize this ReportAirborne Wind Energy Industry - Regional Scope
APAC Market Analysis
Asia Pacific in airborne wind energy market is predicted to dominate over 46.6% revenue share by 2037. The adoption of cutting-edge technology methods, a strong emphasis on sustainable and renewable energy sources, and intensive research and development efforts are some of the key elements that have contributed to this regional dominance.
India places a high priority on innovation due to several variables, including the need for sustainable energy solutions, excellent wind conditions, and government backing, all of which contribute to the region's notable growth. Several companies, research institutions, and governments are forming strategic partnerships in the airborne wind energy market. For instance, in India, Ventus Group and TÜV SÜD have formed an exclusive partnership. Through the partnership, Ventus Group will provide TÜV SÜD South Asia's clientele of more than 100,000 Indian firms with its unparalleled worldwide experience in rotor monitoring and technical assistance for the renewable energy sector. Through the collaboration, Ventus Group will be able to provide businesses with monitoring, evaluating, and improving the performance of wind farms and wind turbines.
China's demand for electricity has risen throughout the years as a result of fast industrialization, urbanization, economic expansion, rising purchasing power, and other factors. To meet this enormous demand for electricity while causing no harm to the environment, the use of renewable energy for power generation is rapidly increasing in the region. According to a report by the International Energy Agency (IEA), global electricity demand rebounded sharply between 2021 and 2022. After dropping by about 1% in 2020, worldwide power demand increased by about 5% in 2021 and 4% in 2022. The majority of these gains will occur in the Asia Pacific. More than half of the worldwide growth in 2022 will come from China, the world's top electricity consumer.
North America Market Analysis
North America airborne wind energy market is expected to experience a stable CAGR during the forecast period due to an increase over the next several years. The U.S. and Canada have led the way in the adoption of AWE technology due to the need to address environmental issues, lessen reliance on conventional energy sources, and make use of efficient renewable energy sources. Regional legislation, technology preparedness, investment climates, and the availability of natural wind resources all have an impact on the various landscapes revealed by the regional study of the airborne wind energy market.
In the U.S., airborne wind energy is an emerging technology with tremendous promise that uses tethered flying devices to harvest wind energy at higher altitudes. It is being investigated through research, development, and demonstration projects. It has strong support for renewable energy and favorable regulatory measures. Airborne wind energy systems are appropriate for a wide range of applications due to their scalability and flexibility, from powering distant off-grid villages to assisting with large-scale grid integration.
According to the American Wind Power, wind is the greatest source of renewable electricity generation in the U.S., accounting for 10.1% of total generation and rising. About 10% (425 billion kilowatt-hours) of all utility-scale electricity generation in the country in 2023 came from wind energy plants spread across 41 states. In 2023, the five states that generated the most electricity from wind were Kansas, Illinois, Texas, Iowa, and Oklahoma. Together, these states generated around 59% of all wind-generated electricity in the U.S. in 2023.
In Canada, airborne wind energy is an emerging method that uses tethered devices to harness high-altitude winds, offering potential advantages over standard wind turbines, and various corporations and academic groups are investigating its development. In Canada, the vast majority of wind turbines are utility-scale and installed onshore in a variety of designs to feed power directly into the electrical grid. Black Spring Ridge, Canada's largest wind farm, is located in Vulcan County, Alberta, and consists of 166 wind turbines. In contrast, localities such as Richibucto and Rexton in New Brunswick have placed a single wind turbine to send power into the grid.
Companies Dominating the Airborne Wind Energy Market
- Vestas Wind Systems A/S
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- NORDEX SE
- Enercon GmbH
- GE Vernova
- Siemens AG
- Senvion S.A.
- Envision Group
- Suzlon Energy Limited
The airborne wind energy market is defined by the presence of several key firms that are propelling the development and use of AWE technology. These groups are crucial for attracting investments, promoting innovation, and influencing the regulatory landscape for the nascent industry. Here is a breakdown of the major airborne wind energy market participants, emphasizing their strategic roles and contributions.
Here are some leading players in the airborne wind energy market:
In the News
- In February 2023, SkySails Power GmbH and IBL Energy Holdings (IBL) collaborated to carry out their first project utilizing high-altitude wind energy as a green power substitute for diesel generators. The project illustrates the technology's commercial viability for entry into the Indian Ocean and East Africa markets. Additionally, this will contribute to Mauritius becoming less reliant on fossil fuels.
- In October 2023, RWE Renewables' airborne wind demonstration site in Bangor Erris, northwest County Mayo, Ireland, received an amendment to consent, according to Natural Power, a renewable energy consulting and service provider. With this modification, Kitepower's airborne wind energy (AWE) technology can be tested on the property.
Author Credits: Dhruv Bhatia
- Report ID: 7433
- Published Date: Apr 01, 2025
- Report Format: PDF, PPT
