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The direct drive wind turbine market size is forecast to increase by USD 89.9 billion, at a CAGR of 18.65% between 2023 and 2028. Market growth hinges on various factors, including favorable governmental policies, increased consumption, and declining costs associated with wind projects. These elements collectively contribute to the advancement and expansion of the market, fostering an environment conducive to sustainable energy initiatives. With supportive regulations, rising demand for renewable power sources, and cost efficiencies, the market is poised for further development and adoption of such solutions. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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The market share by the onshore segment will be significant during the forecast period. The market is dominated globally by onshore plants. Regions such as Europe, Latin America, Africa, and the Middle East will see 19%, 27%, and 120% increases in new onshore wind turbine installations in 2021 compared to 2020, respectively. The growth of the land segment is related to the parallel growth of wind turbines. This growth is due to increased operational efficiency and lower prices for wind turbines. All these factors thus drive the growth of onshore wind turbines and thus the market to be watched during the forecast period.
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The onshore segment was valued at USD 30.10 billion in 2018. Wind turbines under 1 MW are designed to provide the most cost-effective energy over the long term. The use of these wind turbines in various onshore and offshore projects will drive the growth of the segment, making the market a hot spot during the forecast period. Countries are shifting their focus from non-renewable energy sources to renewable energy sources for power generation. The change in focus is due to the depletion of conventional energy sources. Wind power is the most efficient energy source among all renewable energy sources.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The growth of the market in APAC is mainly due to population growth and rising living standards. Due to high greenhouse gas (GHG) emissions from fossil fuels, more and more countries are emphasizing the inclusion of renewable energy in their overall energy mix, leading to increased adoption of clean energy sources such as wind power. This has spawned many new wind turbines in the region, helping to meet the growing energy demand.
Further, rising greenhouse gas emissions in China and India have forced these countries to shift their focus to renewable energies such as wind power and reduce their dependence on fossil fuels for power generation. The initiatives taken by many countries, such as China, India, and others in the region, and the pace of their implementation, show a growing willingness to replace fossil fuels with renewable energy. Governments in these countries are pushing for large-scale deployment of renewable energy to combat the environmental degradation and pollution problems caused by burning fossil fuels. Both countries have huge electricity consumption bases, and the demand for electricity is constantly increasing due to the improvement in living standards.
The market is evolving rapidly with advancements in permanent magnets and gearbox technology, reducing complexity in design and enhancing efficiency in both onshore and offshore locations. Unlike traditional gearbox systems, direct drive systems offer lower maintenance problems and are favored for their durability and reliability in wind power plants. Despite higher initial capital investment, these turbines benefit from reduced weight and improved performance, making them suitable for floating wind turbines as well. The market continues to innovate amidst challenges such as lockdown protocols, focusing on sustainable energy solutions that maximize energy capture and minimize environmental impact.
Favorable government policies are notably driving the market growth. Advancing zero-emission technologies necessitates the adoption of alternative energy sources such as solar, wind, and hydropower. Governments globally are increasingly incentivizing renewable energy generation through favorable policies, recognizing the long-term benefits of reducing carbon emissions and dependence on fossil fuels. Purchase incentives further encourage investment in renewable energy infrastructure. Wind power capacity targets set by governments have proven effective in driving growth in the wind power sector. For instance, in 2008, the US Department of Energy introduced a policy aiming for 20% wind power by 2030, signaling a significant commitment to expanding renewable energy generation.
Alongside advancements in generator technology and single-stage gearboxes, addressing design limitations, bearing requirements, manufacturing tolerances, and material strength becomes paramount to ensure the reliability and efficiency of renewable energy systems. Additionally, implementing predictive maintenance and advanced condition monitoring techniques can help minimize operational costs and maximize revenue from renewable energy projects. Further, the MRFR database provides valuable insights into the market, particularly in the UK, where technological advancements in gearbox systems are shaping renewable energy markets, supported by initiatives from organizations GWEC. Therefore, such factors will drive market growth during the forecast period.
The rising number of offshore wind farm installations is one of the primary market trends shaping the growth. Offshore wind projects have gained momentum in recent years as demand for the installation of clean and sustainable energy sources increased around the world. Onshore is considered a mature technology, but the potential of offshore wind is not yet fully realized. The adoption of offshore farms is growing rapidly due to the superior operating conditions compared to onshore farms. Sea breezes are relatively stable. This is because the speed and direction are relatively constant and offshore turbines have higher fan utilization than onshore wind turbines. This significantly increases the annual power generation capacity of offshore turbines compared to onshore turbines. In the market, the adoption of Electrically Excited Synchronous Generators and Permanent Magnet Synchronous Generators enhances capacity and power ratings, particularly for offshore applications, offering low maintenance solutions for efficient turbine operations.
Additionally, offshore farms can have huge turbines, so fewer turbines can produce more power. In November 2020, Europe installed 3.6 GW of new offshore capacity. Ten new offshore wind farms were commissioned in five countries. The UK accounted for almost half of the new capacity at 1.7 GW, followed by Germany (1.1 GW), Denmark (374 MW), and Belgium (370 MW). Portugal also installed an 8 MW floating offshore wind farm. In July 2022, the Government of India announced its Offshore Power Development Strategy through its Offshore Wind Power Development Strategy Paper. Hence, increasing focus on offshore farms will boost the demand and boost market growth during the forecast period.
The intermittent nature is the major challenge impede market growth. Renewable energy sources are abundant, limitless, and capable of meeting growing energy demands. However, using renewable energies such as wind, solar and hydropower for energy production is important for several reasons. The intermittent nature affects power generation depending on various factors such as changes in geographic location, weather conditions, and time of day. It also causes output fluctuations, unplanned outages, and outages in production that are uncontrollable and insurmountable. Due to growing environmental concerns and the depletion of fossil fuels, many countries are moving to renewable energy sources.
However, high contributions from intermittent renewable energy sources such as wind raise concerns about grid stability. Unlike fossil fuels, sources are not available in demand. The performance of wind turbines varies greatly with changes in wind flow at different times of the day and even different times of the year. Disturbances are primarily caused by differential heating at the poles compared to the equator and the Coriolis effect caused by the Earth's rotation. These factors are out of control and can limit the power generation of wind farms, which in turn affects the market growth.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Market players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting.
ABB Ltd: In its electrification business segment, the company manufactures and sells electrical products and solutions. It also offers direct-drive wind turbines with easy installation and management.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
Wind Turbine Bearing Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, India, Spain - Size and Forecast
Wind Turbine Gearbox Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Germany, India, Spain - Size and Forecast
Wind Turbine Gear Oil Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, India, Germany, Spain - Size and Forecast
The market is seeing significant growth, especially in onshore locations where wind turbine manufacturers are focusing on integrating innovative technologies like 3D printing for rotor and blade manufacturing. This approach enhances the swept area and overall efficiency while reducing maintenance costs over time. The offshore sector is also expanding rapidly, driven by advancements in offshore wind energy and installations, particularly in regions like Taiwan's burgeoning wind sector. Chinese manufacturers, such as Fujian Equipment Manufacturing, are pivotal in this market, making it a hotspot for investments. As the dominant wind market, the sector continues to attract attention due to its potential to increase wind installed capacity and contribute significantly to global renewable energy targets outlined by organizations like IRENA.
Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.65% |
Market growth 2024-2028 |
USD 89.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.94 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
China, US, Germany, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABB Ltd., Anhui Hummer Dynamo Co. Ltd., Bachmann electronic GmbH, Bora Energy, Emergya Wind Technologies BV, ENERCON GmbH, Extol Wind, Foshan Ouyad Electronic Co. Ltd., General Electric Co., Leitwind SPA, M Torres Disenos Industriales SAU, Mervento Power Technology AB, Northern Power Systems Srl, Qingdao Hengfeng Wind Power Generator Co. Ltd., ReGen Powertech Pvt. Ltd., Rockwell Automation Inc., Shanghai Electric Group Co., Siemens AG, XEMC Darwind BV, and Xinjiang Goldwind Science and Technology Co. Ltd. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Capacity
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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