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The wind turbine gearbox market size is estimated to grow by USD 4.23 billion at a CAGR of 6.39% between 2022 and 2027. The market's growth is underpinned by several key factors, starting with the increase in offshore wind energy installations. This trend reflects a broader shift towards renewable energy sources, driven by environmental concerns and the need for sustainable energy solutions. Another significant factor is the decline in the Levelized Cost of Energy (LCoE) of wind power generation, making wind energy more competitive with traditional fossil fuels. This decline is attributed to technological advancements, economies of scale, and favorable government policies promoting renewable energy. Additionally, the market's growth is propelled by the rising height and capacity of wind towers. Taller towers allow wind turbines to access stronger and more consistent winds at higher altitudes, increasing energy production efficiency. This trend is supported by advancements in turbine design and construction techniques, enabling the development of taller and more powerful wind towers.
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This market report extensively covers market segmentation by type (replacement and new), application (onshore and offshore), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The replacement segment will account for a major share of the market's growth during the forecast period. Globally, the demand for the replacement of wind turbine gearboxes depends on the cumulative installed capacity of wind turbines. Gearboxes generally have a shorter lifespan than the whole wind turbine assembly. Thus, they may require to be replaced once or multiple times during the operating lifespan of the turbine.
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Nevertheless, the reliability of gearboxes has experienced substantial progress over the recent years, which is anticipated to grow their replacement cycle in the future. Further, the gearbox's shelf life is extended, and the exchange process is sped up. Upgrading to the most recent technologies is made easier by replacing the gearbox. The substitute of wind turbine gearboxes involves substantial additional costs, including transportation, crane services, service disruptions, and labor costs. As a result, the replacement of gearboxes is often delayed by operators. In addition, some operators prefer replacing wind turbine gearboxes with direct drive systems at the end of the gearbox's lifespan instead of a similar geared system. Furthermore, similar to new installations, the average price of replacement gearboxes is also expected to decline during the forecast period, which is expected to drive the growth of the segment during the forecast period.
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APAC is estimated to account for 56% 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. In APAC, energy demand is on the rise due to the growth in the population and improvement in the standard of living. Countries in the region, particularly China and India, are rapidly growing their capacity for renewable energy sources, including wind energy, to achieve their emission targets and reduce environmental pollution. China had the highest wind energy installations, with an installed capacity of 228 GW as of 2022. India stood fourth in the ranking with an installed capacity of 35GW. Therefore, the rise in power generation activities using wind turbines will encourage the growth of the market in the region.
The market is a critical component of electric generator systems, responsible for converting the rotational speed of the blades into usable energy. The gearbox connects the rotor shaft to the generator shaft, transmitting power efficiently. Factors such as loading, environmental conditions, and failure rate are crucial considerations for gearbox design and durability. With the rise of industrialization and urbanization, the demand for renewable energy sources like solar and hydro is increasing, driving the need for efficient wind turbine gearboxes. The market is influenced by regional initiatives like the ASEAN Plan of Action for Energy Cooperation (APAEC), aiming to enhance electrical energy infrastructure. Gearboxes can be designed with vertical axes or horizontal axes, each with its advantages depending on the wind farm layout and operation. Maintenance and operational efficiency are key focus areas for gearbox manufacturers, leading to innovations in drive motors, planetary drives, and helical gears to improve performance and longevity.
An increase in offshore wind energy installations is driving the market growth. In recent years, the offshore wind energy industry has presented major growth opportunities for companies in the market, as offshore wind installations have experienced a marked growth. Offshore wind farms are gaining popularity because they do not need a reliable area of land for installation and are located on the ocean surface, where the wind energy potential is higher. This is supported by electric generator, rotational speed, shaft, loading, environmental conditions, failure rate, wind turbines, industrialization, urbanization, business sectors, and wind energy. Offshore wind turbines are generally larger than onshore wind turbines, with capacities in the range of 4 MW-10 MW, and requiring high-performance gearboxes for lower maintenance and repair.
Moreover, countries in Western Europe dominate the offshore wind power industry, contributing to about 84% of the cumulative installed capacity. The remaining capacity is installed in China, various other South Asian countries, and the US. The project cost of offshore wind turbines has experienced a significant decline in recent years, with advancements in turbine technology and an expansion in generation capacity per turbine, thereby improving the adoption of wind turbines across the globe. New entrants to the offshore wind power industry include Australia, Taiwan, Brazil, and Turkey. These countries are expected to make significant investments in offshore wind energy technology during the forecast period, which will in turn drive market growth during the forecast period.
Major Market Trend
The decline in the cost of gearboxes used in wind power generation is a primary trend in the market growth. Over the past few decades, the growth in wind power generation capacity has been increased by the decline in the cost of components used in wind turbines, including the cost of gearboxes. The cost of the wind turbine gearbox has lowered considerably over the years due to some factors such as improvements in designs, optimization in raw material sourcing and supply chain, and entry of new players into the market, leading to enhanced competition and larger economies of scale due to increased demand for gearboxes.
Moreover, the reduction in the cost of the wind turbine gearbox can be attributed to the rising trend of vertical integration of gearbox manufacturing by wind turbine suppliers. The cost of the gearbox is further anticipated to drop in the near future. The declining costs will drive the demand for gearboxes in the wind energy market. The low cost of gearboxes will also bring about a reduction in the replacement costs, and the number of units of gearboxes sold will increase considerably, thereby compensating for the declining manufacturing costs. Therefore such factors are expected to drive market growth during the forecast period.
Growing competition from direct drive systems is the challenge that affects the market growth. Over the past decade, direct drive systems have emerged as strong competition to geared drive systems in various end-use applications. Features of direct drive systems make them less complex in design and easier to operate and maintain, which is a significant factor driving the adoption of these systems in heavy-duty applications such as wind power generation and industrial automation.
Moreover, due to stress from wind fluctuations, the use of direct drive turbine systems eliminates the need for the gearbox that is prone to considerable wear and tear. Though direct drive systems are largely more expensive than gearbox-operated systems, the R&D in direct drive systems, such as magnet and generator designs, is lowering the cost of these systems. Such developments have enabled manufacturers to design more compact and lighter direct drive systems. Major wind power turbine manufacturers, including Siemens and Voith Gmbh, have been providing direct drive turbines for wind power generation, which in turn will impede the market growth during the forecast period.
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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, 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 report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market is experiencing significant growth driven by investment in offshore wind projects. As offshore wind energy capacity expands, gearbox manufacturers are focused on designing reliable systems capable of withstanding harsh wind conditions in the offshore segment. This market growth is particularly pronounced in emerging economies looking to reduce carbon emissions and combat climate change. Companies like Vestas and industry organizations like the Global Wind Energy Council (GWEC) are leading the way in advancing wind energy technology. Projects such as the Dulacca Wind Farm, Karara Wind Farm, and Dobele Wind Farm are contributing to the increasing wind capacity worldwide. Gearbox types such as planetary and spur gearboxes from manufacturers like Dana Motion Systems and Stork Gears are crucial components in these wind turbines, ensuring efficient operation and maintenance for years to come.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.39% |
Market growth 2023-2027 |
USD 4.23 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.53 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, India, Germany, and Spain |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Bonfiglioli Riduttori Spa, Dana Inc., Flender GmbH, Gebr. Eickhoff Maschinenfabrik and Eisengiesserei GmbH, General Electric Co., Hottinger Bruel and Kjaer GmbH, ISHIBASHI Manufacturing Co. Ltd., Lenze SE, ME Production Aps, Moventas Gears Oy, Nanjing High Accurate Drive Equipment Manufacturing Group Co. Ltd., Nord Gear Ltd., Porsche Automobil Holding SE, Robert Bosch GmbH, Shandong Qingneng Power Co. Ltd., Siemens AG, Suzlon Energy Ltd., Voith GmbH and Co. KGaA, ZF Friedrichshafen AG, and ZOLLERN GmbH and Co. KG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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 Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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