The global market for wind operations & maintenance is expected to grow from just over $13.7 billion in 2016 to an impressive $27.4 billion by 2025, according to new analysis from research and consulting firm GlobalData.
The new report from GlobalData, Wind Turbine Operations & Maintenance Market – Global Market Size, Trends, and Key Country Analysis to 2025, updates an analysis done just a year ago, and expands the analysts’ forecast out to 2025. Specifically, GlobalData explains that wind turbine operation & maintenance (O&M) will become more and more important as wind turbines age and failure of components such as blades and gearboxes continues, helping to maintain value creation from wind farms, increase turbine availability, and improve returns.
In August of 2016, GlobalData predicted that the wind turbine O&M market would reach $17 billion by 2020, up from a value of $10 billion in 2015. At the time, GlobalData explained that “technological developments have paved the way for more effective and reliable equipment and machinery,” which has resulted in the wind industry becoming one of the world’s fastest-growing energy sources.
Unsurprisingly, given the fantastic growth of the wind industry we saw in 2016 and through the first quarter of 2017, GlobalData has updated its figures and forecast out to 2025. Specifically, GlobalData found that the O&M sector value in 2016 reached $13.7 billion, and by 2025 would reach around $27.4 billion, at a compound annual growth rate of 8.0%.
“Offshore wind accounted for just over 8% of the total wind O&M market in 2016, and is expected to contribute 18.4% by 2025,” explained Anchal Agarwal, Power Analyst for GlobalData.
“This is because the technology is increasingly being explored across the world, for its high yield, due to stronger and more consistent winds in comparison to onshore; and has the scope to construct massive Gigawatt-scale projects.
“Indeed, offshore wind attracts higher O&M costs than onshore wind due to higher turbine maintenance, higher logistics costs, and a lack of skilled manpower.”
Again, unsurprisingly, GlobalData confirms that China is the largest wind O&M market in the world, accounting for 30% of the global market size in 2016, and will only see its value share drop to 27.4% in 2025. China installed more than 23 gigawatts (GW) of wind energy in 2016, nearly half the global total of new wind capacity that was brought online that year, and expanded its cumulative wind energy capacity out to 168.7 GW. Continuing growth in the Chinese wind energy sector will only provide more work for O&M contractors through to 2025 — backed up by an existing large installation base, far-reaching government plans for more wind power, and strict environmental laws which in turn rely on increased renewable energy capacity additions.
The United States marks the second largest wind O&M market, with a share of 14.6% in 2016, which is expected to remain around the same through the forecast period. Germany accounted for 14.3% of the O&M market share in 2016, and is expected to hold on to a market share of around 11.9% in 2025. The UK and India are both expected to grow, and result in the other markets shrinking slightly, with India’s O&M share growing from 5.6% in 2016 to 6.4% in 2025, and the UK’s share will grow from 5.3% to 7.1% over the same period.
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...