Welcome

Welcome to official website of PRES

Wind O&M market to reach US$19 million by 2020

With wind energy capacity growing at a rapid pace, the value of the operations and maintenance (O&M) market is expected to increase from US$3 billion in 2008 to US$19 billion by 2020, says GlobalData.

According to Wind Operations & Maintenance Market, 2013 Update, more than 191 GW of wind power capacity was added between 2008 and 2012, which has drastically increased O&M expenditure from US$3 billion to US$7 billion in the same period, demonstrating a compound annual growth rate (CAGR) of 15.6%.

Offshore wind energy will continue to attract higher O&M costs in comparison to onshore wind, reaching a market size of US$5 billion, or a 29% share of the total O&M market in 2020.

Currently, the US is the largest O&M market in the world, but GlobalData expects that China will surpass it to become the leader in O&M expenditure, with a 24.7% share of the market by 2020.

“Higher turbine maintenance, high logistics costs and a lack of skilled manpower make offshore wind services more challenging than the onshore equivalent, said Prasad Tanikella, GlobalData’s senior analyst. “Although onshore wind also faces similar issues, the impact of these factors on the offshore segment is more significant.”

According to the report, the growth in the wind industry’s O&M cost is largely due to the increasing age of wind turbines and the failure of components such as blades and gearboxes.

“This increase in market size is leading to a rise in the number of companies providing specialized wind turbine O&M services, which is in turn bringing the benefit of lower costs to consumers,” added Tanikella.

Comments are closed.