Wind Turbine Nacelle Market Size, Share & Industry Analysis, By Deployment (Onshore and Offshore), By Capacity (Small (Less Than 101 kW), Mid-Size (101 kW-1 MW), and Large-Scale (Greater than 1 MW)), and Regional Forecast, 2024-2032

The global wind turbine nacelle market size was valued at USD 44.59 billion in 2023. It is projected to be worth USD 49.92 billion in 2024 and reach USD 346.26 billion by 2032, exhibiting a CAGR of 27.39% during the forecast period.

A nacelle is a box-like housing on top of a wind turbine tower that comprises turbine's important parts such as generator, gearbox, rotor shaft, brake assembly, etc. The worldwide push towards renewable energy resources has greatly impacted the wind turbine nacelle industry. Advancements in turbine technology have led to the development of larger nacelles designed to support more powerful turbines. Larger nacelles accommodate larger generators, which in turn produce more electricity. This is crucial as the demand for renewable energy continues to grow.

As countries seek to reduce their reliance on fossil fuels and transition to cleaner energy sources, the demand for wind energy is soaring, driving the demand for wind turbine nacelles.

Many governments worldwide are implementing supportive policies, such as subsidies, tax incentives, and renewable energy targets to encourage the adoption of wind energy. These policies will create a favorable environment for the growth of the nacelle market. Continuous advancements in wind turbine technology, including the development of larger and more efficient nacelles, are making wind energy more competitive and attractive.

Siemens Gamesa Renewable Energy is one of the leading companies in the market. It officially started manufacturing at its expanded nacelle assembly site in Taiwan.

MARKET DYNAMICS

MARKET DRIVERS

Increasing Demand for Renewable Energy to Accelerate Market Growth

The increasing demand for renewable energy is a key catalyst driving the growth of the wind turbine nacelle market. As countries worldwide seek to reduce their carbon footprint and transition away from fossil fuels, wind energy has emerged as a viable and attractive alternative. These incentives make wind projects more economically feasible, driving up the demand for wind turbines and, consequently, nacelles.

Global investment in energy transition technologies, including energy efficiency, reached a record USD 1.3 trillion in 2022. However, annual investment will need to be more than quadrupled to stay on track for the 1.5°C scenario in IRENA's 2023 Global Energy Transition Outlook. Investments in renewable energy are at a record high, i.e. USD 0.5 trillion, but less than a third of the average investment needed each year. Investments are also not flowing at the speed or scale necessary to accelerate progress toward global energy access. Investment in off-grid renewable energy solutions in 2021 was at USD 0.5 billion, which was less than the annual funding need for USD 2.3 billion in off-grid solar energy products.

Increased Investments in Wind Projects to Boost Wind Turbine Nacelle Market Progress

As wind energy projects scale up in size and scope, the demand for wind turbines and their components, including nacelles, increases correspondingly. Larger projects require more turbines, which in turn will drive the demand for nacelles. The development of new wind farms, both onshore and offshore, creates a steady stream of demand for wind turbines and their components. As more projects are initiated, this market is predicted to expand. Many corporations are setting ambitious renewable energy targets and investing heavily in wind power to reduce their carbon footprint. These commitments will lead to an increased demand for wind turbines and nacelles.

The global onshore wind capacity of 5,044 GW in 2050 represents a mere fraction (5.3%) of the world's wind resource capacity of at least 95,000 GW, as estimated by the international technical committee, The Wind Energy Association (WWEA).

MARKET RESTRAINTS

Grid Integration Issues to Hinder Market Growth

Wind energy is intermittent, meaning its output can fluctuate depending on weather conditions. Integrating large amounts of variable renewable energy into the grid requires sophisticated grid management systems and energy storage solutions to ensure grid stability. The introduction of wind power can cause voltage fluctuations in the grid, which can disrupt power quality and damage sensitive equipment. Grid operators must implement measures to mitigate these fluctuations.

Maintaining the power grid's frequency is critical for its stability. Instability in the power grid can lead to less deployment of wind energy projects and consequently hinder the wind turbine nacelle market growth.

MARKET OPPORTUNITIES

Advancements in Offshore Wind Technology to Create New Market Growth Opportunities

Rapid advancements in offshore wind technology are creating new and significant growth opportunities for the wind turbine nacelle market. As offshore wind farms become more efficient, cost-effective, and reliable, the demand for larger and more powerful turbines, and consequently, nacelles, is increasing.

An IRENA report predicts that onshore wind capacity will increase from 13 GW in 2015 to 400 GW by 2045. It also indicates that technological advances have reduced costs and increased competition from offshore wind. The report predicts that the installed capacity of offshore wind power will increase by 2030 and almost tenfold by 2050.

Developments in grid connection technology are making it easier to integrate large-scale offshore wind farms with the existing power grids. The advancements in offshore wind technology are creating a favorable environment for the growth of the market. As the industry continues to evolve, manufacturers and suppliers that can adapt to these technological changes will be well-positioned to capitalize on the opportunities presented by this growing market.

MARKET CHALLENGES

Technological Problems to Create Challenges for Market Growth

Technological setbacks delay the development and deployment of wind farms, limiting market growth. There are numerous problems in a wind turbine nacelle, such as sensitive electronic systems and critical components, so the most common problems inside a wind turbine are electrical and mechanical failures. Electrical failures are costly and, unfortunately, the most basic letdowns inside wind turbines. For instance, Fraunhofer conducted a study regarding humidity-related electrical failures inside wind turbines. It concluded that the humidity and temperature conditions inside the converter cabinets contributed to a cabinet-internal climate found to be subject to seasonal variations leading to electrical failures. Still, the problems extend beyond the converter cabinet.

These challenges might reduce the number of wind energy projects and create problems with the demand for nacelles.

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MARKET TRENDS

Increasing Inclination Toward Larger Turbine Sizes to Become One of the Key Market Trends

The increasing inclination toward larger turbine sizes is a significant driver of growth in the wind turbine nacelle market. As turbine sizes increase, so does the demand for larger, more powerful nacelles to accommodate the increased capacity. Larger turbines can generate more electricity per unit area, reducing the cost of energy production. They also harness more wind energy, leading to higher overall energy output. Larger turbines benefit from economies of scale, reducing manufacturing and installation costs.

According to a report by energy.gov, the share of installed turbines was expected to increase to 3.5 MW or larger by 2023. Fewer machines are needed to produce the same amount of energy in a wind farm, resulting in lower costs.

The high popularity of larger turbine sizes is expected to continue in the coming years as well, driving further growth in the wind turbine nacelle market. Manufacturers that can adapt to these trends and develop nacelles that meet the requirements of larger turbines will be well-positioned to capitalize on the market opportunities. So, this factor is a major trend in the wind turbine nacelle market.

IMPACT OF COVID-19 ON GLOBAL WIND TURBINE NACELLE MARKET

The impact of the COVID-19 pandemic on the wind turbine nacelle market growth trends was significant due to disruptions in the global supply chain caused by the outbreak. These disruptions affected the availability of critical components, such as generators, gearboxes, and bearings, leading to delays in the manufacturing and delivery of nacelles and hindering the growth of wind energy projects. The pandemic-induced disruptions and increased transportation costs led to higher prices for nacelles and other components, making wind energy projects less economically viable.

SEGMENTATION ANALYSIS

By Deployment 

Onshore Wind Turbines Widely Installed Due to Their Cost-effectiveness and Ease of Installation Compared to Offshore

The market is segmented into onshore and offshore based on deployment.

Onshore is the dominating segment in the wind turbine nacelle market. Onshore wind farms are cheaper to install and maintain than the offshore ones. This is because there is no land-based investment in the installation of environmental works or seabed preparation, which greatly reduces the initial capital costs. In addition, the base costs for onshore turbines are lower than the heavy infrastructure required for offshore turbines.

Vast areas of the ocean, especially in coastal regions, offer abundant wind resources, and due to this, the offshore segment is expected to grow significantly. Offshore wind farms often experience more consistent and stronger winds than their onshore counterparts, leading to higher energy production. Offshore wind farms minimize the impact on land and related ecosystems compared to onshore projects. Many governments prioritize offshore wind development due to its potential for large-scale renewable energy generation and economic benefits. Improvements in floating foundation technology and grid connection solutions have made offshore wind development more feasible and cost-effective. In August 2024, Siemens Gamesa Renewable Energy started production at its expanded nacelle assembly plant in Taichung, Taiwan. The company will supply nacelles for 14 MW wind turbines to be installed at the Hai Long wind farm in 2025. The Siemens Gamesa nacelle plant in Taichung is the company's first nacelle manufacturing facility outside Europe. The wind power manufacturer began expanding the facility in 2022 to upgrade to a full assembly line. This included production lines for hub assembly, nacelle assembly, and final nacelle assembly, as well as work related to production.

By Capacity

Demand for Large-Scale Turbines Increases Due to Their Ability to Generate More Electricity Than Other Turbines

The market is divided by capacity into small (less than 101 KW), mid-size (101 KW-1 MW), and large-scale (greater than 1 MW).

The large-scale (greater than 1 MW) segment is the dominant segment in the wind turbine nacelle market. Larger turbines generate significantly more electricity, making them more economically attractive for large-scale energy projects. The production and installation of larger turbines can benefit from economies of scale, thereby reducing costs. Advances in turbine design, materials, and manufacturing processes have made it possible to build larger and more efficient turbines.

The installed capacity of offshore wind increased from 67 megawatts (MW) in 2000 to 20 gigawatts (GW) in 2017.

The mid-size (101 KW-1 MW) segment is the second-dominating segment in the market. Mid-size turbines are often used in smaller-scale projects or remote locations where grid connection or land availability is limited. Compared to larger turbines, these turbines may have a higher Levelized Cost of Energy (LCOE) due to economies of scale and efficiency considerations.

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WINDE TURBINE NACELLE MARKET REGIONAL OUTLOOK

The market has been studied geographically across five main regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is the dominating region in the global wind turbine nacelle market.

Asia Pacific

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Rapid Economic Growth and Increased Energy Demand Will Propel Asia Pacific Market Growth

Many countries in the region are experiencing rapid economic growth, leading to increased energy demand. Wind power is seen as a clean and sustainable alternative to fossil fuels. Several countries in the region have abundant wind resources, making wind power a viable option for energy generation. The cost of wind energy has decreased significantly in recent years, making it more competitive with traditional energy sources. Advances in turbine technology, including larger turbine sizes and increased efficiency, have made wind power more attractive to investors and policymakers in Asia Pacific. There is a growing awareness of climate change and the need for sustainable energy sources, driving the demand for wind power.

In June 2024, Dongfang Electric China (DEC) installed an 18MW offshore wind turbine at an offshore test site in Shantou, Guangdong Province on June 5^th. This model has a rotor diameter of 260 meters and an area of 53,000 square meters. According to the company, 72 gigawatt hours of electricity produced by the wind turbine per year is enough to supply electricity to 36,000 houses.

The main component of the wind turbine is the 18.X fixed power generator developed in-house by DEC, which claims that the new machine has low vibration, low noise, and increased smooth temperature. In early 2023, Chinese OEM CSSC Haizhuang Wind Power, a subsidiary of China State Shipbuilding Corporation (CSSC), built the 18MW model H260-18MW onshore nacelle.

North America

Significant Wind Resources to Drive North America Market Growth

The U.S. and Canada have set ambitious renewable energy targets, leading to increased investments in wind power. Governments in both the countries have implemented policies and incentives, such as tax credits and production tax credits to encourage the development of wind energy projects. North America has significant wind resources, particularly in the Great Plains and along the coasts, making it an attractive region for wind power development. Improvements in turbine technology, including larger turbine sizes and increased efficiency, have made wind power more cost-effective and competitive. According to the GWEC report, about 60 GW of onshore wind capacity will be added in North America over the next five years, 92% of which will be built in the U.S. and the rest in Canada.

Europe

Significant Offshore Wind Potential and Expansion of Renewable Energy Sector is Driving the Regional Growth

Europe has witnessed the development of several large-scale offshore wind farms, which require a substantial number of nacelles. European manufacturers have been at the forefront of technological advancements in nacelle design, manufacturing, and materials. The European Union has set ambitious renewable energy targets and has a strong focus on sustainability. This has driven the demand for wind energy and, consequently, nacelles. Europe has a competitive landscape for nacelle manufacturers, with several global players and regional suppliers operating in the market. The European Commission has published its wind energy package, which outlines 15 measures to strengthen the competitiveness of the region’s gas supply chain. The Commission and the European Investment Bank (EIB) are working on this project. Most of the customs associated with the EU member states are advanced, and as a result, Europe's gas supply chain is expanding. But more energy is needed to help the EU achieve its energy targets.

The European Union wants to build wind farms across the region and wants locally-made turbines. The Net Zero Industry Act requires 36 GW of wind energy capacity in the EU by 2030. To achieve this, it is necessary to strengthen the competitiveness of the region’s wind industry; without problems, it will be able to produce the amount of wind turbines that Europe needs.

The supply chain is taking part in new investments announced across Europe. For example, wind turbine manufacturer Vestas will launch a new nacelle and a new blade factory in Szczecin, Poland. The two plants are expected to create more than 1,700 direct jobs by 2026. Siemens Energy plans to hire around 4,000 new employees in Europe to increase production capacity for the equipment network.

Latin America

Increasing investments in renewable energy projects to Drive the Market Growth in the Region.

Numerous Latin American nations, including Brazil, Chile, and Uruguay, have enacted supportive measures designed to diversify their energy mix. These measures consist of financial incentives and regulatory structures that foster the advancement of wind energy. For instance, Brazil's National Policy on Climate Change endorses the growth of renewable energy utilization as a component of its long-term approach. These initiatives establish a suitable climate for the expansion of nacelle manufacturing as the need for wind turbines rises.

In March 2024, Energy infrastructure developer Sempra Infrastructure placed a turbine order with Danish wind producer Vestas for the development of the 319 MW Cimarron wind farm in Mexico. This order includes the supply and installation of 46 V163-4.5MW Vestas turbines and an additional 18 V162-6.2MW turbines. Upon completion of the wind farm, Vestas will also issue a ten-year service contract for the operation and maintenance of the wind farm.

Middle East & Africa

Many Countries in MEA are Setting Ambitious Renewable Energy Targets to Diversify Their Energy Mix 

Many countries in the Middle East & Africa (MEA) are setting ambitious renewable energy targets to diversify their energy mix and reduce dependence on fossil fuels. Wind power is seen as a key component of these strategies. The region has significant wind resources, particularly in coastal areas and deserts. The growing economies of many countries in MEA are driving the demand for energy. Wind power is seen as a sustainable and reliable source of electricity. Investments in power grid infrastructure and transmission lines will support the growth of wind energy projects in the region.

COMPETITIVE LANDSCAPE

Key Industry Players

GE Electric’s Clean Energy Intitiatives Makes It the Dominating Player in the Market

The global market is mostly fragmented with key players operating in the industry. Globally, General Electric is dominating the market. In January 2023, General Electric said that it had submitted plans to build two new factories in New York if it received enough orders from customers amid the government's continued demand for 4.6 gigawatts of wind power. To support the local story and New York's vision of becoming the nation's wind farm, GE plans to build a factory with Carver Companies at the Coymans Harbor site. These new facilities, which provide a blade facility and a nacelle facility, are designed to promote New York as a base of the clean energy economy and support the local community through sustainable practices and positive economic benefits.

Some of the Key Companies Profiled in the Report:

• General Electric (U.S.)


• Nordex SE (Germany)


• Vestas Wind System A/S (Denmark)


• Enercon (Germany)


• Bora Energy (Germany)


• Suzlon Energy Limited (India)


• Leitwind (Italy)


• Hexcel (U.S.)


• Siemens Gamesa (Germany)


• Enel Green Power (Italy)


• EWT (U.K.)


• BFG International (Bahrain)


• Sinovel (China)


• Hitachi Ltd. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• In September 2024, KNUD E HANSEN introduced a new concept for external electrical power protection with a floating "Jack-up on Jack-up" design. This next-generation platform is designed to provide a safer and more efficient solution for protecting electronic devices, especially for outdoor installations. The vehicle has a 15m wide work platform that can be raised to the height of the wind turbine nacelle, eliminating the need for the dangerous cable access methods used to hold the blades.


• In August 2024, Nordex's partners in Rostock achieved a major milestone by building the 2,000th Delta4000 nacelle at the company's production facility in Germany. The nacelle will be installed in a wind farm in Türkiye with 11 other N163/6.X engines. Since March 2019, Nordex has had Delta4000 nacelles, hubs, drives, and control carts at its facility in Rostock.


• In June 2024, Vestas, a global leader in renewable energy solutions, awarded a major contract to Maersk to supply the super heavy-duty V236 wind turbines, the largest ever built. The heart of the 15 MW turbine alone weighs 260 tons and will be installed in the nacelle of the Vesta plant in Lindo, Denmark. Maersk will handle the transport of special equipment from the assembly point in Lommel, Belgium, via Antwerp to the port of Lindo. The engine is one of the most important parts of the nacelle. The final V236 nacelle weighs more than 630 tons, including the engine.


• In June 2024, London-based Sense Wind announced its plans to install a 6MW wind turbine in Scotland. This installation's unique feature is the use of the Naselli installation systems with a rotor that can be built and installed without a specialist crane. As wind power becomes increasingly powerful, electric generator manufacturers are producing larger devices that can power multiple homes at once.


• In December 2023, Chinese wind turbine manufacturer MingYang Smart Energy successfully produced its first 18 MW offshore wind turbine. The nacelle, which consists of major components, such as the gearbox, engine, and control systems is an important part of offshore wind turbines. With this achievement, MingYang joined a small group of companies capable of producing these powerful nacelles. This development was an important step toward scaling up onshore wind technology and reaching the ambitious targets for renewable energy set by some countries.

INVESTMENT ANALYSIS AND OPPORTUNITIES

In May 2023, GE Vernova announced plans to invest USD 50 million in an offshore wind nacelle manufacturing facility in Schenectady, creating more than 160 new full-time jobs. This announcement complemented New York’s efforts to lead the nation in developing a green economy, reducing greenhouse gas emissions, and fighting climate change. GE will allocate funds for facility upgrades and new machinery and equipment to enhance the production of nacelles for the company's range of 6.1 megawatt onshore wind turbines. The production assembly line will be set up in the facility where GE Vernova persists in manufacturing steam turbines and generators.

REPORT COVERAGE

The report delivers a detailed insight into the market and focuses on key aspects, such as leading companies and their operations in manufacturing and producing wind turbine nacelles. Besides, it offers insights into market trends and technologies, and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors and challenges that have contributed to the growth and downfall of the market in recent years.

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