Market Trends of Europe Direct Drive Wind Turbine Industry
This section covers the major market trends shaping the Europe Direct Drive Wind Turbine Market according to our research experts:
Offshore Segment to Register Higher Growth
- The installation of wind farms in offshore is becoming lucrative because of the higher wind speed in comparison to on the land. So, offshore wind power generation capacity is higher per the amount of capacity installed.
- The European industry has a 40% share of all wind turbines sold globally and provides the lion's share of Europe's EUR 35 billion renewable exports. Europe leads the world in offshore wind with over 90% of offshore wind farms.
- In 2019, Europe connected 502 new offshore wind turbines to the grid across 10 projects. This brought 3,627 MW of new (gross) additional capacity.
- PMSG technology is more preferable technology over EESG as it is more reliable for offshore related applications and is lighter in weight. The growing size of the wind turbines has helped lower the cost of wind energy, indicating that it is economically competitive with fossil fuel alternatives.
- Europe wants to meet its binding target for a 20% renewable energy share by 2020, EU countries must inevitably accelerate offshore wind development.
- Europe dominated the market with 59.9% of global annual offshore wind energy generation capacity at the end of 2018.
- Moreover, Siemens Gamesa Renewable Energy as of 2019, the company has installed more than 1000 wind turbines in offshore region equipped with direct drive system.
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Germany to Dominate the Market
- The installed wind capacity in Germany increased to 60.822 GW in 2019 from 55.58 GW in 2017. The increase in wind capacity has been primarily dominated by the increase in Europe installed capacity.
- According to IRENA, Germany is poised to become Europe's dominant offshore wind market, accounting for more than 50% of onshore and 60% of offshore wind installations by 2050.
- In 2019, the Levelized cost of energy for offshore and onshore wind power had been estimated as USD 0.125/KWh and USD 0.062/KWh respectively.
- Moreover, the various company are investing in Europe through a joint venture or agreement. In 2019, Siemens Gamesa Renewable Energy, the company has installed more than 1000 wind turbines in the offshore region equipped with a direct drive system.
- Out of the total 225 billion kWh generated from renewable in Germany; offshore wind farms generated 19.4 billion KWh in 2019, holding a significant share of 9%. These ongoing developments and the current growth in the offshore wind turbine direct-drive systems business during the forecast period.
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