The Collective Turnover of the Global Wind Turbine Operations Market projected to rise to USD 20.12 billion by 2027
Published | July 2020
The Global WindTurbine Operations Market was valued at USD 12 billion in 2019 and is estimated to reach USD 20.12 billion by 2027, at a CAGR of 8.54% during the prediction period. Wind energy is a renewable source of energy available in abundance in ecology. Wind energy is essentially the adaptation and conversion of wind flow into a beneficial form of energy. The different techniques used for renewable energy include water pumping, wind turbines operations, and windmills for mechanical energy. Wind power is an alternate source of energy generated through the wind flow or air currents with the aid of a wind turbine.
The growth in the wind turbine operations market depends on investment trends in offshore wind turbines, acceptance of the renewable sources of energy, and pressure on supply for electricity. Over the last few years, there has been a significant rise in offshore exploration and production activities, increasing the wind turbine installations in offshore areas internationally. The move is likely to push the global wind turbine operations and maintenance requirements in the future.
The average shelf life of a wind turbine ranges between 20 to 25 years. Thus, old wind turbines deployed before 2000 needs maintenance and repair. However, all wind turbines require proper maintenance after ten years of their use. The growing fixtures and an increasing number of aging turbines across the globe have amplified the request for the upkeep services and eventually drove the market's growth.
The growing requirement to lower the carbon emissions and a shift towards renewable power drive the growth of the market. Additionally, increasing government support and the rising maintenance services providers have helped the market's growth. Nevertheless, the exponentially rising population leads to more demand for power, propelling the market's growth. However, the high cost of the wind turbines and difficult accessibility of maintenance services are the factors impeding growth.
Onshore is the dominating segment based on the type of wind farm
The global wind turbine operations market has been divided into onshore and offshore segments. The onshore segment held a significant chunk of the market, with over 93% of global revenue in 2016. Though offshore turbines offer advanced competence than onshore counterparts, they involve higher fitting costs, consequently pushing operating costs upward. The offshore sector faces various challenges as they are located in remote locations towards the sea. It leads to inconvenience for repair and upkeep and high installation costs.
Favorable government policies and Initiatives
The supportive government policies and significant incentives in favor of a green energy system augmented installations leading to more power generation capacity over the past few tears. The nations, including China, Germany, India, Japan, and France, are committed to reducing their dependence on fossil fuel-based power sources. Many advanced countries in Europe have implemented market-based systems such as competitive auction and feed-in-premium tariffs. China has supported the wind energy sector by preparing promising plans and policies for critical investment in renewable energy. It has developed the Five Year Plan for Energy Transition to reach wind energy consumption to 20% by 2030 and accordingly powered the fitting of new turbines. Furthermore, Japan and India have accepted the feed-in-tariff policy to encourage economies in renewable energy projects.
Effective policies and initiatives to mitigate adverse ecological impact promoted the renewable energy market, assuring a productive development in wind turbines activities.
The technical invention has provided energy-efficient procedures in multiple industries. As a result, there has been a decline in electricity requests from industrial segments in developed countries, including the US. Furthermore, the electricity demand in the housing sector grew at a slower rate than the anticipated one. The wind energy industry was subject to high costs related to operations & maintenance. However, with robust development in the market, industry players focused on optimizing maintenance costs through active tracking of failure statistics and other policies. They supervised the progress of operations & evaluated maintenance activities required at project sites. They have developed reliable and cost-effective conditions and monitoring techniques over the past few years. Many companies deploy cutting-edge technology to determine and sort failure issues. Besides, advanced tools are employed to estimate long-term annual average costs and interruption of turbines. Such tools help recognize components that are on the edge of a being dysfunctional facilitating preventive actions to avoid unforeseen failure.
Asia Pacific is estimated to register the highest growth rate in the market during the projection period
Europe secured a vital portion of the global wind turbine operations market in 2018 due to expanded offshore installation activities across the region. The rising number of offshore wind farms has also enhanced the requirement for overseas wind turbine operations and maintenance services. The UK has the highest share in offshore volume in the entire European region, assuring the development of the regional market in the upcoming period.
The Asia Pacific wind turbine operations market is estimated to record the loftiest growth rate over the prediction timeframe. China has witnessed a substantial rise in wind turbine fittings, and it has planned to grow its offshore wind turbine installations in the future. These factors are likely to further drive the wind turbine operations market in the Asia Pacific region over the estimated period.
Global Wind Turbine Operations Market: Competitive Landscape
The major companies in this market are Gamesa Corporation, GE Wind Turbine, Siemens Wind Power GmbH, Suzlon Group, Nordex SE, UpWind Solutions Inc., Xinjiang Goldwind Science & Technology, Enercon GmbH, and Vestas Wind Systems A/S. and others.