Wind Turbine Gearbox and Direct Drive Systems Market - Growth, Trends And Forecast (2020 - 2025)
The wind turbine gearbox and direct drive systems market is expected to witnessing significant growth with CAGR of 3% due to rising energy demand coupled with the increasing share of renewables in the power generation mix. Recently, the major wind power plant starts shifting to a direct drive system from the conventional gearbox system due to low maintenance costs and a long life span. The advancement in technology of gearbox and direct drive system is expected to propel the wind turbine gearbox and direct drive systems market during the forecast period. However, the initial capital investments required for wind energy is slightly on a higher side when compared to the other non-renewable energy markets in terms of tower installations and turbine and other equipment. This high cost likely to hinder the wind turbine gearbox and direct drive systems market during the forecast period.
- The overall cost of offshore wind power reached to the lowest level and opened up new offshore locations that were previously inaccessible due to lack of investment and technology. These developments are accelerating the adoption of wind power worldwide and hence, these trends are likely to drive the wind turbine gearbox and direct drive systems market during the forecast period.
- Moreover, the integration of advanced technology in wind turbines gearbox and direct drive system will enable advanced condition monitoring and predictive maintenance which result in increased efficiency and reduced operational and maintenance costs, which is likely to provide the opportunity to a growth in the deployment of gearbox and direct drive system for wind turbines in coming future.
- Asia-Pacific is the largest as well as the fastest-growing wind turbine gearbox and direct drive systems market. According to the global wind energy council (GWEC), Asia-Pacific has the largest installed capacity of wind energy, majorly in China with 21.2 GW onshore wind power capacity.
Key Market Trends
Offshore Segment to Register Higher Growth
- The global offshore market remained stable in 2018 with 4.49 GW of new additions, almost the same market size as in 2017. The total cumulative offshore installations have reached 23.14 GW, representing a 24% increase in cumulative offshore wind installed capacity over the previous year.
- Globally, the share of offshore installations continues to increase and reached 8% for new installations and 4% of the total installations in 2018. By 2025, the share of the new installation is expected to exceed 10%, and the total installed based is expected to reach 100 GW.
- Global demand for the wind turbine gearbox and direct drive systems market in the offshore sector is increasing at a significant rate. Even though Europe dominated the market with 59.9% of global annual offshore wind energy generation capacity at the end of 2018, Asia saw a substantial increase in offshore wind energy deployment, installation of 1.8 GW. By the end of 2018, the installed offshore wind power capacity has risen to 23.140 GW from 18.658 GW at the end of 2017, with a significant fraction of investments coming from the private sector.
- The wind turbine gearbox and direct drive systems market are required to be more robust and more efficient and, in turn, are costlier, as the wind speed in offshore regions is higher. Hence, the growth of the offshore wind energy sector is expected to have a significant positive impact on the market during the forecast period.
Asia-Pacific Region to Dominate the Market
- The installed wind capacity in Asia-Pacific increased to 256 GW in 2018 from 231.41 GW in 2017. The increase in wind capacity has been primarily dominated by the increase in China's installed capacity.
- According to IRENA, Asia-Pacific is poised to become the world’s dominant wind market, accounting for more than 50% of onshore and 60% of offshore wind installations by 2050. Asia’s onshore wind capacity is expected to grow from 256 GW in 2018 to over 2,600 GW by 2050.
- Furthermore, Owing to the large investments in countries like China and India, and emerging countries like Taiwan the wind sector investments are dominated by the Asia-Pacific region. Chinese manufacturers comprise nearly 95% of the overall wind power market. The government policy and incentives have made China a favorable hotspot for investment. At the beginning of 2017, China announced its plan to invest about USD 360 billion on renewable energy by 2020, turning down the plan of building 85 coal-fired power plants. In 2018, the country accounted for the largest share of about 45% of the new onshore global wind installed capacity.
- In addition, India holds the fourth-largest wind power installed capacity in the world. These projects are majorly spread in the northern, southern, and western parts of the country.The government has set a target of 60GW by 2022, and in order to achieve the target, the number of the project during the next two year are expected to increase drastically.
- This, in turn, is expected to present Asia-Pacific as an excellent business destination for players involved in the wind turbine gearbox and direct drive systems business during the forecast period.
The wind turbine gearbox and direct drive systems market is moderately fragmented due to many companies operating in the industry. The key players in this market include Dana Brevini SpA, Moventas Gears Oy, Winergy Group,Voith GmbH, NGC Gears, and others.
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- 1 INTRODUCTION
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
- 2 RESEARCH METHODOLOGY
- 3 EXECUTIVE SUMMARY
- 4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast, until 2025
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
- 4.5 Investment Opportunities
- 4.6 Market Dynamics
- 4.6.1 Drivers
- 4.6.2 Restraints
- 4.7 Supply Chain Analysis
- 4.8 Porter's Five Forces Analysis
- 4.8.1 Bargaining Power of Suppliers
- 4.8.2 Bargaining Power of Consumers
- 4.8.3 Threat of New Entrants
- 4.8.4 Threat of Substitutes Products and Services
- 4.8.5 Intensity of Competitive Rivalry
- 5 MARKET SEGMENTATION
- 5.1 Location of Deployment
- 5.1.1 Onshore
- 5.1.2 Offshore
- 5.2 Type
- 5.2.1 Wind Turbine Gearbox
- 5.2.2 Wind Turbine Direct Drive System
- 5.3 Geography
- 5.3.1 North America
- 5.3.2 Europe
- 5.3.3 Asia-Pacific
- 5.3.4 South America
- 5.3.5 Middle-East and Africa
- 6 COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
- 6.3 Company Profiles
- 6.3.1 Dana Brevini SpA
- 6.3.2 Siemens Gamesa Renewable Energy SA
- 6.3.3 Moventas Gears Oy
- 6.3.4 Winergy Group
- 6.3.5 ISHIBASHI Manufacturing Co., Ltd.
- 6.3.6 Suzlon Energy Ltd
- 6.3.7 ZF Friedrichshafen AG
- 6.3.8 NGC Gears
- 6.3.9 Enercon GmbH
- 6.3.10 China High Speed Transmission Equipment Group Co., Ltd
- 6.3.11 Hitachi, Ltd.
- 6.3.12 Voith GmbH
- 7 MARKET OPPORTUNITIES AND FUTURE TRENDS