GlobalData: Offshore to Contribute 18.4% to Wind O&M Market by 2025
- Business & Finance
The global wind operations and maintenance (O&M) market is set to grow from just over USD 13.7 billion in 2016 to around USD 27.4 billion by 2025, representing a compound annual growth rate (CAGR) of 8.0%, according to GlobalData.
The company’s latest report states that the O&M of a wind farm is essential as it contributes to value creation, increases turbine availability, and improves returns. Aging wind turbines and the failure of components such as blades and gearboxes are the major driver of the burgeoning market.
Anchal Agarwal, Power Analyst for GlobalData, explains: “Offshore wind accounted for just over 8% of the total wind O&M market in 2016, and is expected to contribute 18.4% by 2025. This is because the technology is increasingly being explored across the world, for its high yield, due to stronger and more consistent winds in comparison to onshore; and has the scope to construct massive Gigawatt-scale projects.
“Indeed, offshore wind attracts higher O&M costs than onshore wind due to higher turbine maintenance, higher logistics costs, and a lack of skilled manpower.”
China is the largest wind O&M market in the world and accounted for 30% of the global market size in 2016. GlobalData expects that the country will maintain its leading position, with a share of 27.4% in 2025. Increasing installations of wind power will provide opportunities for O&M in the forecast period. A large installation base, government plans, and strict environmental laws are the major drivers for the growth of the country’s wind power market.
The US is the second-largest wind O&M market, with a share of 14.6% in 2016, and is also expected to maintain its position in 2025. Germany – the largest European wind O&M market – accounted for 14.3% of the global market in 2016, and is expected to hold an 11.9% share in 2025. The major reason for key countries losing their market share is the emergence of newer markets, such as India and the UK. India’s share of the global wind O&M market is expected to increase from 5.6% in 2016 to 6.4% in 2025, while the UK’s share will increase from 5.3% to 7.1% over the same period.