Chinese Wind Market Set for High Growth with off-Shore Wind Energizing Prospects

February 4, 2011

Research and Markets has announced the addition of Frost & Sullivan’s new report “Chinese Wind Market” to their offering.

This study covers the state of the Chinese Wind Market, examining Chinese wind resources, pricing, technology, legislation, end-users, value chain, industry challenges and drivers and restraints for growth. Following from these, market forecasts are estimated by two different segmentations,namely installed location and application. The forecast is further subsegmented by installed capacity. In addition, an in-depth analysis of the competitive situation including vendors’ market shares is performed, along with detailed profiles of the key vendors in the industry. The base year is 2009 with forecasts running through 2016

Research Overview

This Frost & Sullivan research service titled Chinese Wind Market provides overall market growth, revenue analysis, market share analysis, competitive structure, industry challenges, market drivers and restraints, and pricing trends. In this research, Frost & Sullivan’s expert analysts thoroughly examine the following markets: on-shore and off-shore systems.

Market Overview

Chinese Wind Market Set for High Growth with Off-shore Wind Energizing Prospects

The Chinese wind market is expected to experience high growth rates between 2010 and 2016. However, the growth rate in terms of total revenues and total installed capacity is expected to decrease. The huge potential, especially for the off-shore market, is poised to attract increasing investments. High demand for wind energy and strong governmental support are the major forces attracting investments from all over the world for the Chinese wind market. The total installed capacity had doubled for five consecutive years since 2005. This spectacular result can be attributed to strong governmental backing for green energy, especially wind energy. The growth rate for total revenues and total installed capacity is gradually shrinking for the on-shore wind market. The off-shore wind market and small and medium wind power system will likely become the next economic growth points in the future, notes the analyst of this research service. Investors are expected to shift the focus of attention from on-shore segment to the off shore wind arena.

The Chinese wind market has been experiencing explosive growth rate for five years. Product quality starts to become an issue clouding the market landscape for Chinese manufacturers. All parts and components have to face extreme weather conditions for 20 to 30 years. In particular, off-shore wind turbines have to withstand the harmful effects of typhoons and sea water. Thus, product quality has become a critical criteria for manufacturers in the off-shore wind segment.

Another aspect curtailing market progression is the high level of competition. More than 80 manufacturers are in the fray for the Chinese wind market. Fierce competition is leading to rapidly decreasing selling price for wind energy systems, resulting in low profits for manufacturers. Only manufacturers with competitive advantages, such as technology innovation and production differentiation, would prevail. The high degree of competition can be attributed to the absence of industry regulations and standards. The low threshold to market entry has encouraged many multi-level companies that lack innovative ability to venture into this arena. This is likely to restrain the healthy development of the Chinese wind market. However, industry standards and regulations that will be issued in the future will provide a sound environment for the industry to grow.

Large-scale manufacturers such as Sinovel Wind Group Co., Ltd., Goldwind Science & Technology Co., Ltd., and Dongfang Electric Corporation are strongly entrenched in the market. Smaller companies do not have the wherewithal to compete with them on the basis of technology, price, and marketing channels. Many small size companies may be forced to face the prospect of acquisition by large-scale enterprises, concludes the analyst. With consolidation, the competitive structure for the Chinese wind market will likely become more orderly and robust.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

* On-shore systems

* Off-shore systems

Key Topics Covered:

* 1. Executive Summary

* 2. Market Overview

* 3. Integrated Industry

* 4. Market Analysis

* 5. Competitive Analysis

* 6. Industry Challenges

* 7. Market Forecast by Segmentation