Global Wind Turbine Nacelle Market Ascends at a Noteworthy CAGR of 5.80%

Introduction

The drive train and other tower-top parts are located inside a wind turbine's nacelle. It pivots in reaction to changes in wind direction using a yaw bearing. For maintenance and cleaning, the nacelle must be reachable. Ladders and a tower elevator are typically used to obtain access. The increase in investments accelerates the market's overall expansion. Offshore wind farms are expected to play a significant role in assisting the expansion of installed infrastructure in a future age based on renewable energy sources. These elements will significantly support the market's momentum during the expected period.

Market Dynamics

Declining Cost of Wind Energy Drives the Global Market

The cost of wind energy has significantly dropped during the last ten years. The key reason for the price drop is the use of higher and more giant wind turbines. In the past, the wind industry's pillars were parts made of steel and aluminum. These materials are heavy and risk breaking if utilized to create large wind turbine blades. Polymers and fiberglass composites are modern, more robust, lighter materials developed by the wind industry.

Additionally, modern wind towers are constructed of steel and concrete, allowing the manufacturers to build large towers, as opposed to the past when the wind industry only used steel to construct enormous towers. Better bearing materials are being used in the gearbox for wind turbines. In addition, over the past few years, there have been significant improvements in designs and production methods. These innovations have allowed manufacturers of wind turbines to build powerful wind turbines at a comparatively low cost.

Mounting Technological Advancements Creates Tremendous Opportunities

In addition, in the forecast period of 2023 to 2031, technological advancements in the design of wind turbine components, such as glass composites, to lower the cost of maintenance and installation will further extend lucrative opportunities to market players. Modern glass composites build components and transport that are more compact, affordable, and easily accessible. The installation and repair of these components are simple. As a result, installation and maintenance costs are decreased, promoting market expansion.

Regional Analysis

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.2% during the forecast period. Before the current wind turbine generator (WTG) was invented in 1891, China had already seen the promise of wind energy technology as a dependable way to bring electricity to isolated and rural locations. China's installed wind capacity will have expanded from just 4 MW in 1990 to 281.99 GW by the end of 2020 due to legal modifications, targeted R&D initiatives, new finance strategies, and stated goals in the most recent Five-Year Plans. By 2020, China will have the most installed and newly created capacity. China is predicted to control the onshore wind power market by 2050, with more than 50% of all installations taking place there. It is anticipated that the nation's high population density and high electricity demand will promote the growth of wind energy.

India is one of the leading emitters of carbon worldwide. Due to the increased demand for power caused by the need to support industrialization and the growing population, the government has been pressured to choose renewable energy to reduce carbon emissions. India seeks to enhance the percentage of renewable energy sources in its energy mix by harnessing the 7,600 kilometers of untapped offshore wind-generating potential along its coastline. Offshore has received increased attention recently.

The American government is actively promoting the wind power sector as part of its America First program, which aims to boost domestic energy production. The offshore wind energy sector is viewed as a significant development area because of the country's vast coastline available for leasing. The Texas onshore wind boom, which is still going strong, is the primary cause of the market's appreciable increase in total installed wind generating capacity, said the American Wind Energy Association. Moreover, a quarter of all wind-generating capacity in the country is located in Texas. Future challenges for the US wind energy market could include the long-standing structural subsidy, the Production Tax Credit, fierce solar and natural gas competition, and severe transmission congestion in crucial development regions. Expanding wind capacity has received much attention from the government, primarily for environmental reasons.

Key Highlights

• The global wind turbine nacelle market was valued at USD 5.95 billion in 2022. It is projected to reach USD 9.88 billion by 2031, growing at a CAGR of 5.80% during the forecast period (2023-2031). 
• Based on the location of deployment, the global wind turbine nacelle market is bifurcated into onshore and offshore. The onshore segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.54% during the forecast period.
• Based on turbine capacity, the global wind turbine nacelle market is bifurcated into less than 1.5 MW, 1.5MW to 2 MW, 2MW to 2.5 MW, and greater than 2.5 MW. The less than 1.5 MW segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.34% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.2% during the forecast period.

Key Highlights

• The global wind turbine nacelle market was valued at USD 5.95 billion in 2022. It is projected to reach USD 9.88 billion by 2031, growing at a CAGR of 5.80% during the forecast period (2023-2031). 
• Based on the location of deployment, the global wind turbine nacelle market is bifurcated into onshore and offshore. The onshore segment is the highest contributor to the market and is estimated to grow at a CAGR of 5.54% during the forecast period.
• Based on turbine capacity, the global wind turbine nacelle market is bifurcated into less than 1.5 MW, 1.5MW to 2 MW, 2MW to 2.5 MW, and greater than 2.5 MW. The less than 1.5 MW segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.34% during the forecast period.
• Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.2% during the forecast period.

Competitive Players

1. Molded Fiber Glass Companies
2. Hexcel Corporation
3. BFG International
4. Siemens Gamesa Renewable Energy SA
5. General Electric Company
6. Nordex SE
7. Suzlon Energy Limited
8. ENERCON GmbH

Recent Developments

• February 2024 - At its Taichung Nacelle Plant expansion in Taiwan, Siemens Gamesa finished construction. President Tsai Ing-wen, Presidential Advisor Shen Rong-jin, Presidential Secretary-General Lin Chia-lung, and other officials reportedly attended an event on February 1st to commemorate the milestone, according to a LinkedIn post. Thanks to the expansion, the factory will manufacture nacelles for the SG 14-222DD offshore wind turbines owned by the firm.
• June 2024 - The Holtsee wind energy project in Schleswig-Holstein, Germany, was awarded a 72MW order to the Danish wind turbine manufacturer Vestas. Ten V162-7.2 MW wind turbines from Vestas will be delivered and put into service.

Segmentation

1. By Location of Deployment
   1. Onshore
   2. Offshore
2. By Turbine Capacity
   1. Less than 1.5 MW
   2. 1.5MW to 2 MW
   3. 2MW to 2.5 MW
   4. Greater than 2.5 MW