The global wind turbine nacelle market size was valued at USD 6.78 billion in 2023. It is expected to reach USD 12.83 billion in 2032, growing at a CAGR of 7.35% over the forecast period (2024-32). Many governments worldwide are offering financial incentives, subsidies, and favorable policies to promote renewable energy adoption, including wind power. These incentives encourage investments in wind energy projects and create a favorable market environment for wind turbine manufacturers, including nacelle suppliers.
Over the past ten years, there has been a dramatic decrease in the price of wind energy. Adopting higher and larger-sized wind turbines is the main factor contributing to the price decline. Previously, steel and aluminum-based components were the mainstays of the wind industry. If used to make big wind turbine blades, these materials are hefty and risk being broken. The wind industry has recently created more robust, lighter materials, including polymers and fiberglass composites.
Additionally, whereas in the past, the wind business mainly employed steel to construct enormous towers, today's wind towers are built of steel and concrete, allowing the producers to construct large towers. The gearbox for wind turbines now uses better bearing materials. In addition, there have been substantial advancements in the designs and production techniques during the past few years. These advancements have made it possible for producers of wind turbines to construct powerful wind turbines at a relatively reduced cost.
The electrical systems have the highest yearly failure rates of any fixed-base wind turbine component, exceeding 0.5 in some cases, with an average downtime of just under two days per failure, according to analyses of the failure rates of different components of the turbine. This is the outcome of numerous technical issues that also need trained experts. The need for experts and professionals is growing due to improved analysis methods for combined wind and wave loading present on FOWT installations, an adaptation of current manufacturing methods to enhance the performance of turbine blades, and optimization of power cabling connections for deep water offshore operations. A lack of technical expertise seriously hampers the offshore wind industry's progress.
Technological developments in the design of wind turbine components, like glass composites, to lower the cost of maintenance and installation will further extend lucrative opportunities to market players in the forecast period of 2022 to 2029. Modern glass composites construct smaller, cheaper, and more accessible transport and assemble components. These components are elementary to install and repair. Costs associated with installation and maintenance are thereby reduced, which will help the market grow.
| Study Period | 2020-2032 | CAGR | 7.35% |
| Historical Period | 2020-2022 | Forecast Period | 2024-2032 |
| Base Year | 2023 | Base Year Market Size | USD 6.78 billion |
| Forecast Year | 2032 | Forecast Year Market Size | USD 12.83 billion |
| Largest Market | Asia Pacific | Fastest Growing Market | North America |
The global wind turbine nacelle market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.2% during the forecast period. China had recognized the potential of wind energy technology as a reliable means of supplying electricity to remote and rural areas ever before the modern wind turbine generator (WTG) was created in 1891. By the end of 2020, China's installed wind capacity will have increased from just 4 MW in 1990 to 281.99 GW due to legislative changes, focused R&D projects, new financing methods, and specific targets in the most recent Five-Year Plans. China had the world's highest installed and new capacity by 2020. By 2050, China is anticipated to dominate the onshore wind power sector, accounting for more than 50% of all installations worldwide. The nation's high population density and electricity demand are predicted to encourage wind energy development. With the assistance of the federal and provincial governments around the country, numerous global enterprises, including Chinese businesses, are investing in this industry.
One of the top nations in the world for carbon emissions is India. The government has been pushed to choose renewable energy to reduce carbon emissions due to the rise in electricity consumption needed to sustain industrialization and the expanding population. By utilizing the 7,600 kilometers of untapped offshore wind energy potential along its coastline, India is attempting to increase the proportion of renewable energy sources in its energy mix. In recent years, offshore has come under more attention. By 2022 and 2030, the Ministry of New and Renewable Energy established a goal of 5.0 GW and 30 GW of offshore wind installations. A thorough Wind Resource Assessment is necessary to identify potential locations because the wind is an unreliable and site-specific energy source. Through the National Institute of Wind Energy (NIWE), the government has set up more than 800 wind-monitoring stations across the nation and published wind potential maps at heights of 50, 80, 100, and 120 meters. According to a recent evaluation, the country has a gross wind energy potential of 302 GW at 100 meters and 695.50 GW at 120 meters above the ground.
North America is expected to grow significantly over the forecast period. The American government is giving the wind power industry a lot of help as a result of the America First program, which aims to expand domestic energy output. Due to the nation's extensive coastline that is available for leasing, the offshore wind energy sector is regarded as a significant area of development. According to the American Wind Energy Association, the onshore wind boom in Texas, which is still strong, is the main factor behind the market's considerable growth in total installed wind power capacity. Texas has more than a quarter of the nation's total wind energy capacity. The long-standing foundational subsidy, the Production Tax Credit, tough competition from solar and natural gas, and severe transmission congestion in important development locations could pose significant difficulties to the US wind energy market in the future. The government has been emphasizing expanding wind capacity, mainly for environmental reasons.
North America primarily benefits from its extensive portfolio of onshore wind farms, which significantly impacts the industry under study. But shortly, the market for wind turbine nacelles may be substantially influenced by recent advancements in the offshore sector. The government of Canada intends to boost the wind power capacity to 55 GW by 2025 to supply 20% of the nation's energy demands. The country will still need to add more power than 42 GW to reach its goals. This is anticipated to present investment opportunities for those who create wind projects.
Europe is one of the world's biggest markets for wind turbine nacelles. The region has a total installed capacity of 218.91 GW, of which 194.08 GW is for onshore wind power and 24.84 GW is for offshore wind power. Further advancements in wind energy are anticipated to accelerate as it is one of the most crucial locations to support clean energy programs for its net-zero carbon ambitions. Additionally, the area has enormous potential for wind energy, mainly offshore. Significant technological advancements that have reduced offshore wind farms' production costs and, in some cases, brought them on par with onshore wind farms in terms of economic performance are some of the main forces behind the offshore wind industry's expansion.
The offshore wind power market is anticipated to be positive during the projection period. The government has made public plans to produce one-third of the nation's electricity from wind energy by 2030, which is expected to have a long-term positive impact on the nation's wind energy sector. However, the cost of solar energy is coming down faster than that of wind power. Solar energy is now more affordable than wind energy. Due to rising FITs following the feed-in tariff's (FIT) expiration, the wind industry is anticipated to lose the competitive edge it currently holds over solar power, which could further constrain the market in the United Kingdom throughout the projected period.
Chile is the first country in South America to announce a full phase-out of coal use, to retire 1 GW of coal power by 2024. Through the Renewable Energy for Latin America and the Caribbean (RELAC) project, the nation made regional low-carbon commitments, committing to a target of 70% renewable energy consumption by 2030. With an average cost of BRL 98.62/MWh (about USD 30/MWh), wind power in Brazil has emerged as the most competitive technology. This cost is significantly lower than that of sizable hydropower projects. The Association (Abeeólica) also noted that considering 186 new wind farms planned to be online by the previous year, Brazil is estimated to have almost 18.8 GW of installed wind capacity by that time. Furthermore, according to the government's 10-year energy growth plan, the nation will have 28.5 GW of wind capacity by 2026.
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The global wind turbine nacelle market is segmented by location of deployment and turbine capacity.
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. When compared to offshore turbines, onshore wind turbine technology is more developed. Onshore wind turbines are generally less expensive and are built to operate at lower tolerance levels since they must withstand fewer environmental pressures than offshore turbines. Onshore wind turbine nacelles, however, are faced with difficulties, including abrasion damage from airborne dust and sand particles, and must employ unique designs to lessen the influence of environmental pressures. According to IRENA, a typical 2 MW onshore turbine has a nacelle assembly that weighs close to 2 tons. Most contemporary onshore nacelles use composites, despite previous ones using steel and stainless steel. They are frequently produced using glass fiber composites injected with resin to meet the demands of size, intricate geometrical design, and weight. Nacelles offer a secure working surface for maintenance employees as well as protection for the inner workings of the wind against external dangers such as precipitation, dust, UV radiation, and lightning strikes.
Additionally, many significant OEMs have built nacelle manufacturing facilities in developing nations like India. In Chennai, Tamil Nadu, Siemens Gamesa has a nacelle plant, and Vestas has also announced plans to build a new nacelle and hub assembly facility there. In Daman, Gujarat, Suzlon has a nacelle cover manufacturing facility. These manufacturing facilities primarily produce onshore turbine nacelles because the Indian market is their primary customer, and the onshore sector dominates the Indian wind energy market.
Offshore wind power has expanded quickly, and as demand for offshore wind turbines has grown, nacelle design for offshore applications has been continuously improved. The size and mass of the nacelle are also significantly more prominent in offshore turbines because they are typically larger than their onshore equivalents. The core turbine assembly must be safeguarded, most notably by offshore wind nacelles during severe weather events, including cyclonic storms and rogue waves. At the same time, corrosion and other issues may result from the air's high humidity and salt content.
As a result, offshore turbine nacelles must be manufactured with tighter tolerances and typically use materials suited explicitly for marine environments. The nacelles of offshore wind turbines are among the bulkiest parts of the overall machine. Many other alternative technologies, such as step-up-transformer-less systems, medium-frequency (in the range of a few kHz to MHz) power transformer-based systems, multilevel and modular matrix converter-based systems, and superconducting generator-based systems, have been proposed to achieve a compact and lightweight offshore wind turbine nacelle. Due to the increasing number of offshore wind projects, it is anticipated that the offshore wind markets in China, the US, and Europe will dominate the demand for offshore wind nacelles.
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 owns the highest market and is estimated to grow at a CAGR of 6.34% during the forecast period. Communities, companies, schools, clinics, single-family homes, farms, telecom towers, and a variety of equipment are often powered by wind turbines under 1.5 MW. Due to their low cost, low maintenance, and dependability as alternative energy generators, small wind turbines up to 0.1 MW in capacity have traditionally been used for remote small off-grid applications across households, farms, agriculture, and telecommunications. They can be installed quickly in a small space without additional infrastructure.
People are increasingly looking for alternative energy sources due to rising energy costs, the accompanying need for decentralized electricity generation, and worries about climate change, which is driving up demand for wind turbine nacelles in this market. In places where solar power is not practical, small wind power devices, such as transportable micro wind turbines, can be a practical choice for power generation. The movable tiny wind turbines can be quickly deployed and are lightweight. At a wind speed of 18 km/h, it can generate 5 watts of output electricity.
Typically employed for commercial and utility-scale operations, wind turbines with a power output of 1.5 MW to 2 MW are deployed for onshore operations. Per installed MW of nameplate capacity, utility-scale wind turbines cost between US$1.3 million and US$2.2 million. The majority of commercial-scale turbines installed today are 2 MW in capacity and cost between USD 3-USD 4 million to install, according to Windustry. The Global Wind Energy Council (GWEC) estimates that 86.9 GW of installed onshore wind capacity will be added in 2020, reflecting a 59% year-over-year growth that will push the total amount of onshore installed wind capacity above the 700 GW threshold.
After stagnation between 2016 and 2018, capacity additions started to increase. Onshore wind power generation has a significant cost advantage over offshore power generation. As a result, demand for wind turbine nacelle is expected to rise over the forecast period due to the increasing onshore wind turbine installation worldwide. In Gujrat, the Sulzon firm announced plans to build a 252 MW wind power facility. The project is scheduled to be completed by 2022. The company will install about 120 S120-140m wind turbine generators (WTGs) with a hybrid lattice tube tower and a rated capacity of about 2 MW each.
