Wind Turbine Gearbox Market size is set to grow by USD 4.17 billion from 2024-2028, Rising height and capacity of wind towers boost the market, Technavio

NEW YORK, July 23, 2024 /PRNewswire/ -- The global wind turbine gearbox market size is estimated to grow by USD 4.17 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.02% during the forecast period. Rising height and capacity of wind towers is driving market growth, with a trend towards decline in cost of gearboxes used in wind power generation. However, high O and M cost of wind turbine gearboxes poses a challenge. Key market players include Bonfiglioli Riduttori Spa, Dana Inc., Elecon Engineering Co. Ltd., Flender GmbH, Gebr. Eickhoff Maschinenfabrik and Eisengiesserei GmbH, General Electric Co., Hottinger Bruel and Kjaer GmbH, ISHIBASHI Manufacturing Co. Ltd., Lenze SE, ME Production Aps, Moventas Gears Oy, Nord Gear Ltd., Porsche Automobil Holding SE, Robert Bosch GmbH, Shandong Qingneng Power Co. Ltd., Siemens AG, Suzlon Energy Ltd., Voith GmbH and Co. KGaA, ZF Friedrichshafen AG, and ZOLLERN GmbH and Co. KG.

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Market Driver

The wind turbine gearbox market has experienced significant growth due to the decreasing cost of wind turbine components, particularly gearboxes. This decline is attributed to design improvements, optimized raw material sourcing and supply chain, and increased competition from new market entrants. Vertical integration of gearbox manufacturing by wind turbine suppliers has further reduced costs. The trend is expected to continue, fueling demand for gearboxes in the wind energy sector. Lower gearbox costs lead to reduced replacement expenses and increased sales, offsetting manufacturing cost declines, driving market expansion during the forecast period. 

The Wind Turbine Gearbox market is witnessing significant growth due to the increasing investment in renewable energy sources, particularly wind energy. With the industrialization and urbanization of many countries, there is a rising demand for electrical energy from wind turbines. The offshore wind segment is a key driver of this market, with offshore wind farms in Europe, Asia-Pacific, and emerging economies leading the way. Wind turbine gearboxes are essential components of wind turbines, converting the rotational speed from the rotor to the electrical generator's required speed. These gearboxes are subjected to heavy loading and challenging environmental conditions, leading to a higher failure rate. However, advancements in technology, such as planetary drives and helical gears, are improving the gearboxes' efficiency and durability. The wind industry's focus on reducing carbon emissions and mitigating climate change further boosts the market's growth. Other renewable energy sources, such as solar, hydro, and energy storage, are also contributing to the market's expansion. Vestas, a leading wind turbine manufacturer, is a significant player in this market. The onshore and offshore wind sectors require regular operation and maintenance, creating opportunities for businesses in this field. Wind conditions, shaft, electrical energy, vertical axes, horizontal axes, wind farm, rotor, drive motor, and fossil fuels are other related factors influencing the market's trends. 

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Market Challenges

• Wind turbine gearboxes are a significant technical challenge and expense for wind farm operators, service providers, and vendors. With a standard wind turbine lifespan of around 20 years, most gearboxes only last five to eight years due to surface erosion and cracking, necessitating frequent repairs or replacements. The cost of a gearbox accounts for approximately 10% of the initial capital expenditure for turbine installation. However, replacement costs can be significantly higher due to service disruption, refurbishment expenses, and additional overheads such as transportation, crane rentals, and labor charges. These factors can result in replacement costs ranging from a quarter to over half a million dollars, depending on turbine capacity, size, and location. Managing gearbox failures in wind farms can be challenging due to the high number of turbines. In unsubsidized markets, the cost of procuring and replacing gearboxes can pose financial challenges. Gearbox failures lead to a substantial increase in overall operational and maintenance costs for wind power projects, acting as a bottleneck for the wind energy industry. Furthermore, wind turbine generators encounter design-related challenges, including inadequate insulation between the hub and slip rings, breaking or loosening of rotor-end windings, and generator failure due to voltage spikes. Additionally, environmental factors, particularly high wind speeds, can impact generator performance and operations, leading to structural damage and, in some cases, turbine scrapping.
• The Wind Turbine Gearbox market faces significant challenges in the offshore wind sector due to the unique conditions of offshore wind farms. Extreme wind conditions and exposure to saltwater can negatively impact gearbox performance. The offshore segment accounts for a growing share of the global wind capacity, driven by the shift towards renewable energy sources for power generation and reducing carbon emissions in response to climate change. Emerging economies in Asia, particularly ASEAN and APAEC, are investing heavily in wind energy. However, the high cost of offshore wind and the complexity of offshore wind turbines pose challenges. Wind turbines use either vertical or horizontal axes, driven by a rotor and a drive motor. Gearboxes, such as planetary and spur, are crucial components for converting rotational motion into electrical energy. Major gearbox manufacturers include Vestas, Flender, Moventas, Wind Prime, Innergex Renewable Energy, Boswel Spring Wind, and Dana Motion Systems. Despite these challenges, the market is expected to grow due to the increasing demand for renewable energy and the need to reduce reliance on fossil fuels. Operation and maintenance costs remain a concern, particularly for offshore wind farms. Onshore wind farms continue to dominate the market but offshore wind is gaining traction.

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Segment Overview

This wind turbine gearbox market report extensively covers market segmentation by

1. Type
• 1.1 Replacement
• 1.2 New
2. Application
• 2.1 Onshore
• 2.2 Offshore
3. Geography
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Replacement- The Wind Turbine Gearbox Market is experiencing significant growth due to the increasing demand for renewable energy sources. Key players in this market include Siemens Gamesa, Vestas, and GE Renewable Energy. These companies manufacture and supply gearboxes for wind turbines, which convert the rotational energy from the turbine blades into usable electricity. The market's growth is driven by government initiatives to reduce carbon emissions and the falling cost of wind energy. Additionally, advancements in gearbox technology, such as larger gear ratios and improved efficiency, are increasing the competitiveness of wind energy and boosting market growth.

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Learn and explore more about Technavio's in-depth research reports

The global Wind Turbine Components Market is experiencing robust growth, driven by the increasing demand for renewable energy. Key components such as blades, generators, and nacelles are vital for efficient wind turbine operations. The global Wind Power Market is projected to expand significantly, with technological advancements and government initiatives supporting clean energy adoption. Major players in the industry are focusing on innovation and sustainability, aiming to reduce costs and enhance performance. This growth trajectory underscores the pivotal role of wind power in the global energy transition.

Research Analysis

The Wind Turbine Gearbox Market refers to the demand for gearboxes used in wind turbines to increase the rotational speed of electrical generators. These gearboxes transmit power from the rotor, which is driven by the wind, to the generator shaft. The gearbox design depends on the type of wind turbine, with vertical axis and horizontal axis designs using different configurations. Environmental conditions, loading, and failure rate are crucial factors affecting the design and selection of wind turbine gearboxes. Industrialization and urbanization have boosted the demand for wind energy, with business sectors like wind, solar, hydro, energy storage, offshore wind, ASEAN, and APAEC driving market growth. Wind turbines generate electrical energy by converting wind kinetic energy into mechanical energy, which is then transformed into electrical energy by the generator. The gearbox plays a vital role in this process, with components like planetary drives, helical gears, and drive motors ensuring efficient power transmission. The market for wind turbine gearboxes is expected to grow significantly due to the shift away from fossil fuels and the increasing focus on operation and maintenance to minimize downtime.

Market Research Overview

Wind Turbine Gearboxes are essential components of wind turbines, responsible for increasing the rotational speed of the rotor to generate electrical energy. They consist of shafts that transmit power from the rotor to the generator. The gearboxes operate under heavy loading and harsh environmental conditions, which can lead to failure and require significant investment for replacement or maintenance. Industrialization and urbanization have boosted the demand for renewable energy sources, including wind energy, leading to the expansion of wind farms both onshore and offshore. Offshore wind projects, in particular, have gained momentum due to their potential to generate large amounts of wind capacity. Wind conditions play a crucial role in the design and performance of wind turbine gearboxes. The offshore segment, with its challenging environmental conditions, presents unique challenges for gearbox manufacturers. Emerging economies, driven by their need to reduce carbon emissions and mitigate climate change, are also investing heavily in wind energy. Wind turbine gearboxes can be categorized into planetary gearboxes and spur gearboxes. Planetary gearboxes offer higher torque density and efficiency, while spur gearboxes are simpler and more cost-effective. Other key components include the rotor, drive motor, and electrical energy storage systems. The wind energy sector competes with traditional energy sources like fossil fuels. Operation and maintenance costs, including gearbox replacement, are significant challenges for wind energy. However, advances in technology, such as vertical and horizontal axis wind turbines, are helping to address these challenges and improve the competitiveness of wind energy. Major business sectors, including ASEAN and APAEC, are investing in wind energy projects. Key players in the wind turbine gearbox market include Flender, Moventas, Wind Prime, Dana Motion Systems, and Stork Gears. Notable wind farm projects include the Dulacca Wind Farm, Karara Wind Farm, Innergex Renewable Energy, and Boswel Spring Wind.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Type
• Replacement
• New
• Application
• Onshore
• Offshore
• Geography
• APAC
• Europe
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio