Market Trends of Wind Turbine Gearbox and Direct Drive Systems Industry
This section covers the major market trends shaping the Wind Turbine Gearbox & Direct Drive Systems Market according to our research experts:
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.
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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-Pacificis 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.
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