Wednesday 21 June 2017

Wind operations and maintenance market ‘to double by 2025’

The global wind operations and maintenance (O&M) market is forecast to double to around $27.4 billion (£21.7bn) by 2025.

That's according to research and consulting firm GlobalData, which says the predicted compound annual growth rate of 8% from $13.7 billion (£10.8bn) will be driven primarily by ageing turbines and the replacement and repair of parts such as blades and gearboxes.

The company’s latest report states the sector will become increasingly essential as it contributes to value creation, increases turbine availability and improves returns.

China is the largest wind O&M market in the world, accounting for nearly a third of the global market size last year.

It is expected to maintain its leading position, although its predicted share is expected to fall slightly to 27.4% by 2025.

European leader Germany had a 14.3% share of the market in 2016, which is expected to drop to 11.9% over the next eight years.

The report suggests the main reason for key countries losing their market share is the emergence of newer markets, such as India and the UK.

Anchal Agarwal, Power Analyst for GlobalData, said: "Offshore wind attracts higher O&M costs than onshore wind due to higher turbine maintenance, higher logistics costs and a lack of skilled manpower."