Although the market for small wind power systems has been in existence for 30 years, there are many signs that the industry is reaching a critical juncture. The past 18 months have seen a number of bankruptcies and acquisitions among small wind turbine manufacturers. Nevertheless, the overall opportunity for small wind power remains strong across a variety of applications in both developed and developing countries. According to a recent report from Navigant Research, the worldwide market for small wind systems will reach $723 million by 2018, with $3.3 billion in cumulative sales from 2013 through 2018.

"Small wind is growing primarily as a result of state and national incentives, including a burgeoning market in the United Kingdom," says Dexter Gauntlett, research analyst with Navigant Research. "The question is: Can the small wind turbine industry grow to more than just a niche market, and attract the investment required to drive down costs? Given the precipitous price declines for solar photovoltaic modules, distributed solar PV is increasingly competitive with small wind."