Wind Turbine Nacelle Market Analysis

The global wind turbine nacelle market size was valued at USD 6.4 billion in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 8.41% from 2022 to 2030.  A wind turbine nacelle is a complex structure that houses the generating components of the wind turbine. It houses the generator, gearbox, and drive train. It is also connected to the rotor. It is located on the top of the tower and fastens to the main frame, which is a large, metal structure. It must be able to withstand heavy fatigue loads. The nacelle may be as tall as 50 feet long and weigh as much as 300 tons.

Global Wind Turbine Nacelle Market: Regional Insights

The global wind turbine nacelle market is regionally divided into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa.

North America among regions is expected to have the highest market share in the global wind turbine nacelle market over the forecast period. The growth of this region is due to government support to increase production of domestic energy in countries such as the U.S. The country has larger coastal areas that can be leased due to which, the offshore wind power sector is a major sector of development. According to the Coherent Market Insights, the onshore and offshore wind turbine installation in the United States in 2020 was 16.19 GW and 12 MW respectively with a 16% growth in wind installed capacity compared to 2019.

Furthermore, Asia Pacific is also expected to witness substantial growth in the global wind turbine nacelle market over the forecast period, owing to presence of high population, higher demand for electricity in countries such as China and India, and growing investment by multinational firms in wind turbine sector with provincial and federal governments in these countries.

Figure 1. Global Wind Turbine Nacelle Market Share (%), by Region, 2021

Global Wind Turbine Nacelle Market Drivers:

Growing number of upcoming projects and rise in investments is expected to propel growth of the global wind turbine nacelle market during the forecast period. Due to growing investments in wind power projects, the wind power sector is expanding all over the world leading to growing demand for wind turbine nacelle. For instance, as per the European Wind Energy Association (WindEurope), Europe’s wind energy sector witnessed over EUR 80 billion of investment activities in 2020 including EUR 43 billion for new wind farm construction.

Moreover, constant decline in wind energy cost is also projected to boost growth of the global wind turbine nacelle market during the forecast period. In the past few years, the cost of wind energy has declined significantly due to growing use of larger and taller wind turbines. The wind industry in the past majorly depended on steel and aluminum components for large-sized wind turbines due to which the cost of wind energy used to be high. For instance, as per the International Renewable Energy Agency, the weighted-average LCOE of newly commissioned projects around the world for off shore wind dropped from US$ 0.162 per kWh to US$ 0.084 per kWh between 2010 and 2020 respectively with 48% cost reduction in the ten years.

Global Wind Turbine Nacelle Market Opportunities:

Growing interest of emerging and untapped markets in offshore wind energy is expected to offer various growth opportunities to market players in the global wind turbine nacelle market during the forecast period. The development of offshore wind power is increasing due to growing hunt for renewable energy sources around the world. Due to this, the power source is expected to have a promising role in generation of power in the coming future. As per the World Bank data, the total technical potential of offshore wind turbine around the world is 71 TW with 29% in fixed offshore wind conditions and twice of that in deeper water conditions.

Growing technological developments in wind turbine materials is projected to offer various growth opportunities in the global wind turbine nacelle market during the forecast period. Technological developments in design of materials used for wind turbines such as glass composites for reducing the installation and maintenance cost is growing. Contemporary glass composites are used for building components that are less expensive, smaller and easy to assemble and carry. This results into decreased costs of installation and maintenance, which is likely to support the market growth.

Wind Turbine Nacelle Market Report Coverage

Report Coverage	Details
Base Year:	2021	Market Size in 2021:	US$ 6.4 Bn
Historical Data for:	2017 to 2020	Forecast Period:	2022 to 2030
Forecast Period 2022 to 2030 CAGR:	8.41 %	2030 Value Projection:	US$ 13.24 Bn
Geographies covered:	North America: U.S. and Canada Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Middle East: GCC Countries, Israel, and Rest of Middle East Africa: South Africa, North Africa, and Central Africa
Segments covered:	By Location of Deployment: Onshore and Offshore. By Turbine Capacity: Less than 1.5 MW, 1.5MW to 2 MW, 2 MW to 2.5 MW and Greater than 2.5 MW
Companies covered:	Molded Fiber Glass Companies, Hexcel Corporation, BFG International, Siemens Gamesa Renewable Energy SA, General Electric Company, Nordex SE, Suzlon Energy Limited, and ENERCON GmbH
Growth Drivers:	Growing number of upcoming projects and rise in investments Constant decline in wind energy cost
Restraints & Challenges:	Increasing adoption alternative clean power sources Growing government policies in favor of solar and gas power infrastructures

Global Wind Turbine Nacelle Market Trends:

The Onshore segment among Location of Deployment is gaining traction in the market, which is expected to propel growth of the global wind turbine nacelle market during the forecast period. Nacelle offer protection to the inner machinery of the wind against any external hazards such as UV radiation, precipitation, lighting strikes, and dust. Which is why they are used in several onshore wind turbines. This trend is expected to continue in the near future and boost the market growth.

Growing number of clean energy initiatives by government in the Europe and increasing development in wind energy is a growing trend in the global wind turbine nacelle market. Europe shows significant potential of wind energy, as the region promotes initiatives for clean energy due to its net-zero carbon goals. For instance, as per the WindEurope, in 2021, the Commission proposal of European Union raised the target for renewable energy in the EU from 32% to 40% by 2030 for which the region will need wind power capacity of 451 GW.

Global Wind Turbine Nacelle Market Restraints:

The adoption alternative clean power sources is increasing around the world, which is expected to hamper growth of the global wind turbine nacelle market during the forecast period. Due to alternate clean power generation sources, the wind power sector continues to face restraints. These alternative sources mainly include solar power and gas power. These sources offer cleaner modes of energy generation, their adoption is increasing worldwide, which is hindering the wind power demand.

Moreover, growing government policies in favor of solar and gas power infrastructures is also anticipated to impede growth of the global wind turbine nacelle market during the forecast period. For instance, in December 2020, the federal government in the U.S. announced the extension of the Investment Tax Credit to offer a tax credit of 26% for solar PV systems installed during 2020 to 2022 and 22% tax credit for systems installed in 2023. Due to such government support towards solar PV projects, the market growth is likely to be hampered.            

Figure 2. Global Wind Turbine Nacelle Market Share (%), By Location of Deployment, 2021

Global Wind Turbine Nacelle Market Segmentation:

The global wind turbine nacelle market report is segmented into Location of Deployment, Turbine Capacity and Geography.

Based on Location of Deployment, the market is segmented into Onshore and Offshore. Out of which, Onshore segment is expected to dominate the global market over the forecast period and this is attributed to the higher adoption and presence of large number of onshore wind turbines all over the world.

Offshore segment is also expected to witness significant growth in the near future and this is owing to the growing investments in offshore sector and rising capacity of power generation in offshore wind turbines.

Based on Turbine Capacity, the market is segmented into Less than 1.5 MW, 1.5MW to 2 MW, 2 MW to 2.5 MW and Greater than 2.5 MW. Out of which, Less than 1.5 MW segment is expected to dominate the global market over the forecast period due to its low maintenance, dependable alternative energy generators and low-cost, leading to wide use of these small wind turbines with less than 1.5 MW capacity in farms, households, telecommunications and agriculture.

1.5MW to 2 MW segment is also expected to witness significant growth in the near future, owing to growing adoption of wind turbines with capacity ranging from 1.5 MW to 2 MW for utility-scale and commercial operations and primary deployment in onshore operations. For instance, in June 2021, Sulzon group announced the development of its project of 252 MW wind power in Gujarat, India, in which nearly 120 units of S120-140m wind turbine with nearly 2 MW capacity will be installed.

Global Wind Turbine Nacelle Market: Key Developments

In December 2021, Hexcel Corporation entered into partnership with METYX for high-performance carbon pultrusion technology developed with unidirectional carbon fiber and polyurethane resin for the wind energy market.

In May 2020, Siemens Gamesa Renewable Energy announced the plans to expand the NACELLE assembly facility in Taichung to create a regional offshore wind NACELLE industrial hub with suppliers based in the same region.

Global Wind Turbine Nacelle Market: Key Companies Insights

The global wind turbine nacelle market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global wind turbine nacelle market are Molded Fiber Glass Companies, Hexcel Corporation, BFG International, Siemens Gamesa Renewable Energy SA, General Electric Company, Nordex SE, Suzlon Energy Limited, and ENERCON GmbH.

*Definition:

The nacelle of a wind turbine is the cover housing the wind turbine's generating components. These components include the generator, gearbox, drive train, and brake assembly. This enclosure helps control the turbine's speed and produces energy. A wind turbine's nacelle can be made of metal, wood, or plastic.