Market Trends of Direct Drive Wind Turbine Industry
This section covers the major market trends shaping the Direct Drive Wind Turbine Market according to our research experts:
Offshore Segment to Witness Growth for Turbine Capacity of 1 MW – 3 MW
- In 2020, total offshore wind installed capacity surpassed the 35 GW mark, accounting for around 4.8% of the total wind capacity. By 2025, the share of the new offshore installation is expected to exceed 10%, and the total installed base is expected to reach 100 GW, majorly installed with a direct drive system of 1 MW - 3 MW.
- The global offshore market witnessed significant new installations of around 6 GW in 2020. China accounted for almost half of the new installations, propelling the direct drive wind turbine market.
- The offshore wind annual installations are likely to quintuple by 2025 from 6.1 GW in 2020. In total, around 70 GW of new offshore wind capacity is projected to be added worldwide between 2021 and 2025. Further, the global demand for wind turbine direct drive systems in the offshore sector is increasing significantly.
- The wind turbine direct-drive systems are much more robust, efficient, and 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 impact on the market during the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific Region to Dominate the Market
- The installed wind capacity in Asia-Pacific increased to 346.69 GW in 2020 from 291.08 GW in 2019. China's installed capacity primarily dominates the increasing wind capacity.
- According to IRENA, Asia-Pacific may 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 336 GW in 2020 to over 2,600 GW by 2050.
- Furthermore, the region attracts significant investments from countries like China and India and emerging countries like Taiwan's wind sector. Chinese manufacturers comprise nearly 95% of the overall wind power market. The government policy and incentives have made China a favorable hotspot for investment. In 2020, the country accounted for over 55% of the new onshore global wind installed capacity.
- In addition, India holds the fourth-largest wind power installed capacity globally. These projects are majorly spread in the northern, southern, and western parts of the country. The government has set a target of 60 GW by 2022. The number of projects during the next two years is expected to increase drastically.
- This factor, in turn, is expected to present Asia-Pacific as an excellent business destination for players involved in the wind turbine direct drive systems business during the forecast period.
Get Analysis on Important Geographic Markets
Download Sample
