The year 2025 ends with a bleak assessment for the global wind power industry, faced with a combination of regulatory, technical and financial challenges that slowed its growth to the weakest pace in more than two decades. According to ten-month data, global wind-powered electricity production reached 2,158 terawatt hours (TWh), only 7% higher than in 2024, compared with an average of 14% between 2015 and 2024.
Marked slowdown in Europe and North America
The slowdown is particularly pronounced in Europe, the world’s second-largest wind power producing region. Four consecutive months of year-on-year production decline impacted sector performance as early as the first quarter. North America exacerbated the trend with five months of declines recorded between April and September. Even Asia, which accounts for about 45% of global wind power production, registered a rare decrease in output in September and October.
In this context, several European companies reconsidered their involvement in new projects. Disappointing tender results in Germany and Denmark, some receiving no bids at all, increased investor uncertainty. Numerous companies, including major players, proceeded with job cuts or project withdrawals, further amplifying instability in the sector.
Policy shift in the United States and withdrawal in Japan
The policy reversal by President Donald Trump significantly impacted offshore wind development along the Atlantic coast. The abrupt end of federal support led to an accelerated phase-out of tax credits, restrictions on foreign components and tighter construction rules. These changes are expected to hinder both onshore and offshore wind project growth in the short to medium term.
In Japan, soaring cost estimates for several offshore projects led Mitsubishi Corporation to pull out of three major developments initially scheduled to start operations before 2030. In response, Japanese authorities revised their wind power support policies, easing eligibility requirements and expanding the geographical scope for future installations.
Continued expansion in China and rising exports
China remains the clear outlier in this environment. It is expected to record its twenty-fifth consecutive year of wind power growth above 10% in 2025. Its share of global wind electricity production will reach a record level of more than 41%, up from 40% in 2024. At the same time, Chinese wind component exports increased by over 20%, surpassing $4bn during the year.
These exports, mainly destined for Europe and Asia, highlight the growing role of China’s manufacturing industry in global supply chains. The increasing availability of these components may help revive project development from 2026 onwards, particularly in regions currently implementing regulatory adjustments.
