Growth in Wind Energy to Boost Operations, Maintenance Market
20 Aug, 2013
With wind energy capacity growing at a rapid pace, the value of the operations and maintenance (O&M) market is expected to increase from $3 billion in 2008 to $19 billion by 2020, says research and consulting firm GlobalData.
According to the company’s latest report *, more than 191 GW of wind power capacity was added between 2008 and 2012, which has drastically increased O&M expenditure from $3 billion to $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 $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.
Prasad Tanikella, GlobalData’s Senior Analyst, says: “Higher turbine maintenance, high logistics costs and a lack of skilled manpower make offshore wind services more challenging than the onshore equivalent. 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,” concludes Tanikella.
The report furnishes information on global market size of wind Operations and Maintenance (O&M) market, market share by company type (original equipment manufacturers, independent service providers and in-house), O&M market share by onshore - offshore wind market segments and key company profiles. This report was built using data and information sourced from proprietary databases, primary and secondary research, and in-house analysis conducted by GlobalData’s team of industry experts.
GlobalData is the premier source of actionable insight into the energy and healthcare industries. With the combined expertise of more than 1,000 researchers, market analysts and consultants, we provide high-quality, accurate and transparent industry insight that helps our clients to achieve growth and increase business value.
For further details, please Contact Us.