GLOBAL WIND TURBINE OPERATIONS & MAINTENANCE … · reference code gdae1098mar | publication date...

REFERENCE CODE GDAE1098MAR | PUBLICATION DATE MARCH 2015

GLOBAL WIND TURBINE OPERATIONS & MAINTENANCE MARKET, UPDATE 2015 – MARKET

SIZE, MAJOR CONTENDERS, TRENDS, AND ANALYSIS TO 2020

Global Wind Turbine Operations & Maintenance Market, Update 2015 – Market Size, Major Contenders, Trends, and Analysis to 2020 2 © GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form.

GLOBAL WIND TURBINE OPERATIONS & MAINTENANCE MARKET, UPDATE 2015 – MARKET SIZE, MAJOR CONTENDERS,

TRENDS, AND ANALYSIS TO 2020

Executive Summary

Global Wind Turbine Operations and Maintenance Market Estimated at $XX Billion in 2014

In 2014, global wind power capacity increased by

XX Gigawatts (GW) to XX GW. Offshore wind

power capacity also grew, with an addition of XX

GW. In the 2006–2014 period, wind power capacity

increased by more than XX GW, and Operations

and Maintenance (O&M) expenditure increased at

a Compound Annual Growth Rate (CAGR) of

XX%, from $XX billion to $XX billion. The main

reasons for rising O&M costs in the wind industry

were the increasing age of wind turbines and the

failure of components such as blades and

gearboxes.

The growth of the O&M market is restrained by the

lack of a skilled workforce and the cost of logistics.

However, the growth of the wind power O&M

market is leading to an increase in companies

providing specialized O&M services for the wind

turbine market, which is decreasing the cost of

O&M services. Based on the above factors, the

wind power O&M market is expected to reach $XX

billion by 2020.

Wind Turbine Operations and Maintenance Market, Global, Market Size ($bn), 2006–2020

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

O&

M m

arke

t siz

e ($

bn)

Onshore Offshore Source: GlobalData

Offshore Wind Power Expected to Account for XX% of Operations and Maintenance Market by 2020

Offshore wind accounted for about XX% of the

total wind O&M market in 2014, with a market size

of $XX billion. Offshore wind attracts higher O&M

costs than onshore wind due to higher turbine

maintenance, high logistics costs and the lack of a

skilled workforce. Although onshore wind also

faces logistics and workforce issues, the impact of

these factors on the offshore segment is greater. It

is estimated that the offshore wind O&M market

will continue to grow and reach $XX billion, or XX%

of the total wind power O&M market, in 2020. The

UK, Germany and China will be largest

contributors to the offshore wind power O&M

market, contributing $XX billion, $XX billion and

$XX billion, respectively.


Table of Contents



1 Table of Contents

1 Table of Contents ....................................................................................................................... 5

1.1 List of Tables .................................................................................................................... 10

1.2 List of Figures ................................................................................................................... 13

2 Introduction ............................................................................................................................... 16

2.1 Wind Power, Technology Definition ................................................................................... 16

2.2 Wind Power, Value Chain ................................................................................................. 16

2.3 Wind Power Operations and Maintenance, Cost Overview ............................................... 17

2.3.1 Wind Turbine Operations and Maintenance, Importance ............................................... 19

2.4 GlobalData Report Guidance ............................................................................................ 20

3 Wind Power Market, Global ...................................................................................................... 21

3.1 Wind Power Market, Global, Overview .............................................................................. 21

3.2 Wind Power Market, Global, Installed Capacity, 2006–2020 ............................................. 23

3.3 Wind Power Market, Global, Installed Capacity, Share by Country, 2014 .......................... 25

3.3.1 Wind Power Market, Global, Onshore Installed Capacity, Share by Country, 2014 ....... 25

3.3.2 Wind Power Market, Global, Offshore Installed Capacity, Share by Country, 2014 ....... 27

3.4 Wind Power Market, Global, Electricity Generation, 2006–2020 ....................................... 28

3.5 Wind Power Market, Global, Average Turbine Size, 2006–2020 ....................................... 30

3.6 Wind Power Market, Global, Turbine Market Share, 2014 ................................................. 32

3.6.1 Wind Power Market, Global, Onshore Turbine Market Share, 2014 .............................. 32

3.6.2 Wind Power Market, Global, Offshore Turbine Market Share, 2014 .............................. 34

3.7 Wind Power Market, Global, Major Market Trends and Forecasts ..................................... 35


Table of Contents



3.7.1 Global Wind Power Market Consolidation Activity to Increase ....................................... 35

3.7.2 Growing Preference for Large Installations .................................................................... 35

3.7.3 Offshore Wind Market Development to Gain Momentum during Forecast Period .......... 36

3.8 Offshore Wind Power Market, Global, Key Drivers ............................................................ 37

3.9 Offshore Wind Power Market, Global, Key Barriers to Growth .......................................... 38

4 Wind Turbine Operations and Maintenance Market, Global ...................................................... 39

4.1 Wind Turbine Operations and Maintenance Market, Global, Overview .............................. 39

4.2 Wind Turbine Operations and Maintenance Market, Global, Market Size, 2006–2020 ...... 40

4.3 Wind Turbine Operations and Maintenance Market, Global, Share by Market Segment,

2014 and 2020 .................................................................................................................. 41

4.4 Wind Turbine Operations and Maintenance Market, Global, Share of Major Countries, 2014

and 2020 ........................................................................................................................... 42

4.5 Wind Turbine Operations and Maintenance Market, Analysis of Major Components ......... 44

4.5.1 Wind Turbine Operations and Maintenance Market, Inspection Aspects in Major

Components ................................................................................................................. 44

4.5.2 Wind Turbine Operations and Maintenance Market, Causes for Failure of Major

Components ................................................................................................................. 45

4.6 Wind Turbine Operations and Maintenance Market, Global, Number of Repairs, 2006–

2020 .................................................................................................................................. 46

4.7 Wind Turbine Operations and Maintenance Market, Global, Market Forces Analysis ........ 48

4.7.1 Wind Turbine Operations and Maintenance Market, Global, Key Drivers ...................... 48

4.7.2 Wind Turbine Operations and Maintenance Market, Global, Major Restraints and

Challenges ................................................................................................................... 52

4.8 Wind Turbine Operations and Maintenance Market, Global, Market Trends ...................... 53


Table of Contents



4.8.1 Independent Service Providers are Gaining Market Share in Wind O&M Market ........... 53

4.8.2 Innovation in Components to Reduce Wind O&M Cost ................................................. 54

4.8.3 Long-Term O&M Contracts Gaining Momentum ............................................................ 55

4.8.4 Predictive Maintenance through Condition Monitoring System Improves Turbine

Availability .................................................................................................................... 55

4.8.5 Independent Service Providers Entering New Markets and Regions ............................. 56

5 Wind Turbine Operations and Maintenance Market, US ........................................................... 57

5.1 Wind Power Market, US, Overview ................................................................................... 57

5.2 Wind Power Market, US, Installed Capacity, 2006–2020 .................................................. 58

5.3 Wind Power Market, US, Power Generation, 2006–2020 .................................................. 62

5.4 Wind Power Market, US, Average Turbine Size, 2006–2020 ............................................ 64

5.5 Wind Turbine Operations and Maintenance Market, US, Market Size, 2006–2020 ........... 66

5.6 Wind Turbine Operations and Maintenance Market, US, Number of Repairs, 2006–2020 68

5.7 Wind Turbine Operations and Maintenance Market, US, Company Profiles of Major

Operations and Maintenance Service Providers ................................................................ 70

6 Wind Turbine Operations and Maintenance Market, Germany .................................................. 72

6.1 Wind Power Market, Germany, Overview .......................................................................... 72

6.2 Wind Power Market, Germany, Installed Capacity, 2006–2020 ......................................... 73

6.3 Wind Power Market, Germany, Generation, 2006–2020 ................................................... 77

6.4 Wind Power Market, Germany, Average Turbine Size, 2006–2020 ................................... 78

6.5 Wind Turbine Operations and Maintenance Market, Germany, Market Size, 2006–2020 .. 80

6.6 Wind Turbine Operations and Maintenance Market, Germany, Number of Repairs, 2006–

2020 .................................................................................................................................. 83


Table of Contents



6.7 Wind Turbine Operations and Maintenance Market, Germany, Company Profiles of Major


7 Wind Turbine Operations and Maintenance Market, Spain ....................................................... 86

7.1 Wind Power Market, Spain, Overview ............................................................................... 86

7.2 Wind Power Market, Spain, Installed Capacity, 2006–2020 .............................................. 87

7.3 Wind Power Market, Spain, Generation, 2006–2020 ......................................................... 91

7.4 Wind Power Market, Spain, Average Turbine Size, 2006–2020 ........................................ 93

7.5 Wind Turbine Operations and Maintenance Market, Spain, Market Size, 2006–2020 ....... 95

7.6 Wind Turbine Operations and Maintenance Market, Spain, Number of Repairs, 2006–2020

....................................................................................................................................... 97

7.7 Wind Turbine Operations and Maintenance Market, Spain, Company Profiles of Major


8 Wind Turbine Operations and Maintenance Market, UK ......................................................... 101

8.1 Wind Power Market, UK, Overview ................................................................................. 101

8.2 Wind Power Market, UK, Installed Capacity, 2006–2020 ................................................ 102

8.3 Wind Power Market, UK, Generation, 2006–2020 ........................................................... 106

8.4 Wind Power Market, UK, Average Turbine Size, 2006–2020 .......................................... 107

8.5 Wind Turbine Operations and Maintenance Market, UK, Market Size, 2006–2020 ......... 109

8.6 Wind Turbine Operations and Maintenance Market, UK, Number of Repairs, 2006–2020 ....

..................................................................................................................................... 112

8.7 Wind Turbine Operations and Maintenance Market, UK, Company Profiles of Major

Operations and Maintenance Service Providers .............................................................. 114

9 Wind Turbine Operations and Maintenance Market, China ..................................................... 116

9.1 Wind Power Market, China, Overview ............................................................................. 116


Table of Contents



9.2 Wind Power Market, China, Installed Capacity, 2006–2020 ............................................ 117

9.3 Wind Power Market, China, Generation, 2006–2020....................................................... 121

9.4 Wind Power Market, China, Average Turbine Size, 2006–2020 ...................................... 122

9.5 Wind Turbine Operations and Maintenance Market, China, Market Size, 2006–2020 ..... 124

9.6 Wind Turbine Operations and Maintenance Market, China, Number of Repairs, 2006–2020

..................................................................................................................................... 127

9.7 Wind Turbine Operations and Maintenance Market, China, Company Profiles of Major


10 Wind Turbine Operations and Maintenance Market, India ....................................................... 130

10.1 Wind Power Market, India, Overview .............................................................................. 130

10.2 Wind Power Market, India, Installed Capacity, 2006–2020 .............................................. 131

10.3 Wind Power Market, India, Generation, 2006–2020 ........................................................ 135

10.4 Wind Power Market, India, Average Turbine Size, 2006–2020 ........................................ 137

10.5 Wind Turbine Operations and Maintenance Market, India, Market Size, 2006–2020 ....... 139

10.6 Wind Turbine Operations and Maintenance Market, India, Number of Repairs, 2006–2020 ..

..................................................................................................................................... 141

10.7 Wind Turbine Operations and Maintenance Market, India, Company Profiles of Major


11 Appendix................................................................................................................................. 145

11.1 Abbreviations .................................................................................................................. 145

11.2 Bibliography .................................................................................................................... 146

11.3 Market Definitions ........................................................................................................... 146

11.4 Methodology ................................................................................................................... 146

11.4.1 Assumptions................................................................................................................ 147


Table of Contents



11.4.2 Coverage .................................................................................................................... 148

11.4.3 Secondary Research ................................................................................................... 148

11.4.4 Primary Research ....................................................................................................... 149

11.5 Disclaimer ....................................................................................................................... 149

1.1 List of Tables

Table 1: Wind Power Market, Global, Installed Capacity (GW), 2006–2020 ............................................... 25

Table 2: Wind Power Market, Global, Onshore Cumulative Installed Capacity, Share by Country (%), 2014

................................................................................................................................................... 26

Table 3: Wind Power Market, Global, Offshore Cumulative Installed Capacity, Share by Country (%), 2014

................................................................................................................................................... 28

Table 4: Wind Power Market, Global, Generation (TWh), 2006–2020 ........................................................ 30

Table 5: Wind Power Market, Global, Average Turbine Size (MW), 2006–2020 ......................................... 32

Table 6: Wind Power Market, Global, Onshore Turbine Market Share (%), 2014 ....................................... 33

Table 7: Wind Power Market, Global, Offshore Turbine Market Share (%), 2014 ....................................... 34

Table 8: Wind Power Market, Global, Share of Offshore Wind in Cumulative Capacity (%), 2012–2020 ..... 37

Table 9: Wind Turbine Operations and Maintenance Market, Global, Market Size ($bn), 2006–2020 ......... 41

Table 10: Wind Turbine Operations and Maintenance Market, Global, Share by Market Segment (%), 2014

and 2020 ..................................................................................................................................... 42

Table 11: Wind Turbine Operations and Maintenance Market, Global, Share by Major Country (%), 2014 and

2020............................................................................................................................................ 43

Table 12: Wind Turbine Operations and Maintenance Market, Inspection Aspects in Major Components .... 44

Table 13: Wind Turbine Operations and Maintenance Market, Cause of Failure .......................................... 45

Table 14: Wind Turbine Operations and Maintenance Market, Global, Number of Repairs, 2006–2020 ....... 48

Table 15: Wind Turbine Operations and Maintenance Market, Global, Component Annual Failure Rate ...... 51


Table of Contents



Table 16: Wind Repairs Market, Global, Major Independent Service Providers ............................................ 54

Table 17: Wind Power Market, US, Installed Capacity (GW), 2006–2020 .................................................... 61

Table 18: Wind Power Market, US, Electricity Generation (TWh), 2006–2020 ............................................. 63

Table 19: Wind Power Market, US, Average Turbine Size (MW), 2006–2020 .............................................. 65

Table 20: Wind Turbine Operations and Maintenance Market, US, Market Size ($bn), 2006–2020 .............. 67

Table 21: Wind Turbine Operations and Maintenance Market, US, Number of Repairs, 2006–2020 ............ 69

Table 22: Wind Turbine Operations and Maintenance Market, US, Company Profiles of Major Operations

and Maintenance Service Providers ............................................................................................ 70

Table 23: Wind Power Market, Germany, Installed Capacity (GW), 2006–2020 ........................................... 76

Table 24: Wind Power Market, Germany, Electricity Generation (TWh), 2006–2020 .................................... 78

Table 25: Wind Power Market, Germany, Average Turbine Size (MW), 2006–2020 ..................................... 80

Table 26: Wind Turbine Operations and Maintenance Market, Germany, Market Size ($bn), 2006–2020 ..... 82

Table 27: Wind Repairs Market, Germany, Market Volume of Rotor Blades, Gearboxes and Generators

(GW), 2006–2020 ........................................................................................................................ 84

Table 28: Wind Turbine Operations and Maintenance Market, Germany, Company Profiles of Major

Operations and Maintenance Service Providers........................................................................... 85

Table 29: Wind Power Market, Spain, Installed Capacity (GW), 2006–2020 ................................................ 90

Table 30: Wind Power Market, Spain, Electricity Generation (TWh), 2006–2020 ......................................... 92

Table 31: Wind Power Market, Spain, Average Turbine Size (MW), 2006–2020 .......................................... 94

Table 32: Wind Turbine Operations and Maintenance Market, Spain, Market Size ($m), 2006–2020 ........... 96

Table 33: Wind Repairs Market, Spain, Market Volume of Rotor Blades, Gearboxes and Generators (GW),

2006–2020 .................................................................................................................................. 98

Table 34: Wind Turbine Operations and Maintenance Market, Spain, Company Profiles of Major Operations

and Maintenance Service Providers ............................................................................................ 99

Table 35: Wind Power Market, UK, Installed Capacity (GW), 2006–2020 .................................................. 105

Table 36: Wind Power Market, UK, Electricity Generation (TWh), 2006–2020 ........................................... 107


Table of Contents



Table 37: Wind Power Market, UK, Average Turbine Size (MW), 2006–2020 ............................................ 109

Table 38: Wind Turbine Operations and Maintenance Market, UK, Market Size ($bn), 2006–2020 ............ 111

Table 39: Wind Repairs Market, UK, Market Volume of Rotor Blades, Gearboxes and Generators (MW),

2006–2020 ................................................................................................................................ 113

Table 40: Wind Turbine Operations and Maintenance Market, UK, Company Profiles of Major Operations

and Maintenance Service Providers .......................................................................................... 114

Table 41: Wind Power Market, China, Installed Capacity (GW), 2006–2020 .............................................. 120

Table 42: Wind Power Market, China, Electricity Generation (TWh), 2006–2020 ....................................... 122

Table 43: Wind Power Market, China, Average Turbine Size (MW), 2006–2020 ........................................ 124

Table 44: Wind Turbine Operations and Maintenance Market, China, Market Size ($bn), 2006–2020 ........ 126

Table 45: Wind Repairs Market, China, Market Volume of Rotor Blades, Gearboxes and Generators (GW),

2006–2020 ................................................................................................................................ 128

Table 46: Wind Turbine Operations and Maintenance Market, China, Company Profiles of Major Operations


Table 47: Wind Power Market, India, Onshore Installed Capacity (GW), 2006–2020 ................................. 134

Table 48: Wind Power Market, India, Electricity Generation (TWh), 2006–2020 ......................................... 136

Table 49: Wind Power Market, India, Average Turbine Size (MW), 2006–2020 ......................................... 138

Table 50: Wind Turbine Operations and Maintenance Market, India, Market Size ($bn), 2006–2020 ......... 140

Table 51: Wind Repairs Market, India, Market Volume of Rotor Blades, Gearboxes and Generators (GW),

2006–2020 ................................................................................................................................ 142

Table 52: Wind Turbine Operations and Maintenance Market, India, Company Profiles of Major Operations


Table 53: Abbreviations ............................................................................................................................ 145


Table of Contents



1.2 List of Figures

Figure 1: Wind Power Market, Value Chain ................................................................................................ 17

Figure 2: Wind Turbine Operations and Maintenance Market, Global, Wind Farm Operation and

Maintenance Costs...................................................................................................................... 18

Figure 3: Wind Power, Project Life ............................................................................................................. 19

Figure 4: Wind Power Market, Global, Cumulative Installed Capacity (GW), 2006–2020 ............................. 23

Figure 5: Wind Power Market, Global, Annual Installed Capacity (GW), 2006–2020 ................................... 24

Figure 6: Wind Power Market, Global, Onshore Cumulative Installed Capacity, Share by Country (%), 2014

................................................................................................................................................... 26

Figure 7: Wind Power Market, Global, Offshore Cumulative Installed Capacity, Share by Country (%), 2014

................................................................................................................................................... 27

Figure 8: Wind Power Market, Global, Electricity Generation (TWh), 2006–2020 ........................................ 29

Figure 9: Wind Power Market, Global, Average Turbine Size (MW), 2006–2020 ......................................... 31

Figure 10: Wind Power Market, Global, Onshore Turbine Market Share (%), 2014 ....................................... 33

Figure 11: Wind Power Market, Global, Offshore Turbine Market Share (%), 2014 ....................................... 34

Figure 12: Wind Power Market, Global, Share of Offshore Wind in Cumulative Capacity (%), 2012–2020 ..... 36

Figure 13: Wind Turbine Operations and Maintenance Market, Global, Market Size ($bn), 2006–2020 ......... 40

Figure 14: Wind Turbine Operations and Maintenance Market, Global, Share by Market Segment (%), 2014

and 2020 ..................................................................................................................................... 42

Figure 15: Wind Turbine Operations and Maintenance Market, Global, Share by Major Country (%), 2014 and

2020............................................................................................................................................ 43

Figure 16: Wind Turbine Operations and Maintenance Market, Global, Number of Repairs, 2006–2020 ....... 47

Figure 17: Wind Turbine Operations and Maintenance Market, Global, Component Annual Failure Rate ...... 50

Figure 18: Wind Power Market, US, Cumulative Installed Capacity (GW), 2006–2020 .................................. 59

Figure 19: Wind Power Market, US, Annual Installed Capacity (GW), 2006–2020......................................... 60

Figure 20: Wind Power Market, US, Electricity Generation (TWh), 2006–2020 ............................................. 62


Table of Contents



Figure 21: Wind Power Market, US, Average Turbine Size (MW), 2006–2020 .............................................. 64

Figure 22: Wind Turbine Operations and Maintenance Market, US, Market Size ($bn), 2006–2020 .............. 66

Figure 23: Wind Turbine Operations and Maintenance Market, US, Number of Repairs, 2006–2020 ............ 68

Figure 24: Wind Power Market, Germany, Cumulative Installed Capacity (GW), 2006–2020......................... 74

Figure 25: Wind Power Market, Germany, Annual Installed Capacity (GW), 2006–2020 ............................... 75

Figure 26: Wind Power Market, Germany, Electricity Generation (TWh), 2006–2020 .................................... 77

Figure 27: Wind Power Market, Germany, Average Turbine Size (MW), 2006–2020 ..................................... 79

Figure 28: Wind Turbine Operations and Maintenance Market, Germany, Market Size ($bn), 2006–2020 ..... 81

Figure 29: Wind Turbine Operations and Maintenance Market, Germany, Number of Repairs, 2006–2020 ... 83

Figure 30: Wind Power Market, Spain, Cumulative Installed Capacity (GW), 2006–2020 .............................. 88

Figure 31: Wind Power Market, Spain, Annual Installed Capacity (GW), 2006–2020..................................... 89

Figure 32: Wind Power Market, Spain, Electricity Generation (TWh), 2006–2020 ......................................... 91

Figure 33: Wind Power Market, Spain, Average Turbine Size (MW), 2006–2020 .......................................... 93

Figure 34: Wind Turbine Operations and Maintenance Market, Spain, Market Size ($bn), 2006–2020 .......... 95

Figure 35: Wind Turbine Operations and Maintenance Market, Spain, Number of Repairs, 2006–2020 ........ 97

Figure 36: Wind Power Market, UK, Cumulative Installed Capacity (GW), 2006–2020 ................................ 103

Figure 37: Wind Power Market, UK, Annual Installed Capacity (GW), 2006–2020....................................... 104

Figure 38: Wind Power Market, UK, Electricity Generation (TWh), 2006–2020 ........................................... 106

Figure 39: Wind Power Market, UK, Average Turbine Size (MW), 2006–2020 ............................................ 108

Figure 40: Wind Turbine Operations and Maintenance Market, UK, Market Size ($bn), 2006–2020 ............ 110

Figure 41: Wind Turbine Operations and Maintenance Market, UK, Number of Repairs, 2006–2020 .......... 112

Figure 42: Wind Power Market, China, Cumulative Installed Capacity (GW), 2006–2020 ............................ 118

Figure 43: Wind Power Market, China, Annual Installed Capacity (GW), 2006–2020 .................................. 119

Figure 44: Wind Power Market, China, Electricity Generation (TWh), 2006–2020 ....................................... 121


Table of Contents



Figure 45: Wind Power Market, China, Average Turbine Size (MW), 2006–2020 ........................................ 123

Figure 46: Wind Turbine Operations and Maintenance Market, China, Market Size ($bn), 2006–2020 ........ 125

Figure 47: Wind Turbine Operations and Maintenance Market, China, Number of Repairs, 2006–2020 ...... 127

Figure 48: Wind Power Market, India, Cumulative Installed Capacity (GW), 2006–2020 ............................. 132

Figure 49: Wind Power Market, India, Annual Installed Capacity (GW), 2006–2020 .................................... 133

Figure 50: Wind Power Market, India, Electricity Generation (TWh), 2006–2020 ......................................... 135

Figure 51: Wind Power Market, India, Average Turbine Size (MW), 2006–2020 ......................................... 137

Figure 52: Wind Turbine Operations and Maintenance Market, India, Market Size ($bn), 2006–2020 ......... 139

Figure 53: Wind Turbine Operations and Maintenance Market, India, Number of Repairs, 2006–2020 ........ 141




Introduction

2 Introduction

2.1 Wind Power, Technology Definition

Wind energy is the conversion of wind flow into a useful form of energy, such as power production,

through turbines, water pumping, and windmills. A wind turbine gathers kinetic energy and converts

it into electricity for residential, commercial and industrial purposes. Wind power is a clean source

of energy, as it does not emit carbon dioxide (CO2). It is classified into onshore and offshore.

Onshore wind is the market segment where wind turbines are erected on land, and offshore wind is

the market segment where wind turbines are erected in the sea or ocean on a foundation.

2.2 Wind Power, Value Chain

The key factors that govern wind power project economics are the purchase of raw materials and

components; manufacturing and assembly; project development; financing; Engineering,

Procurement and Construction (EPC); and Operations and Maintenance (O&M). These activities

include various non-recurring expenses such as preparatory costs, the purchase of wind turbines,

the construction of civil and electrical infrastructure, initial investment for site assessment,

environmental studies and government approval. Other recurring expenses include the service,

maintenance and operation of wind farms, insurance and warranty, local taxes and daily

management. The following figure shows the components of the wind power value chain.




Introduction

2.4 GlobalData Report Guidance

The report begins with an executive summary, which provides a snapshot of the key indicators

in the global wind O&M market.

The “Introduction” section gives an overview of wind power technology, the value chain and

wind O&M.

The “Wind Power Market, Global” section details global wind power developments (onshore

and offshore) from 2006 to 2014 and the expected market trends from 2015 to 2020. The

chapter includes a global wind overview and covers installed capacity, installed capacity share

by major country, and turbine market share. The section also highlights present and future

market trends in the global wind power market.

The “Wind Turbine O&M Market, Global” section provides a detailed analysis of the global wind

O&M market from 2006 to 2014 and the expected market trends from 2015 to 2020. The

chapter includes a global market overview and covers market size, share by market segment

(onshore and offshore), and the key drivers, restraints and challenges in the global wind O&M

market. The section also highlights major current and future market trends in the global wind

O&M market.

The next consecutive sections provide detailed analysis of the six major global wind O&M

markets: the US, Germany, Spain, the UK, China and India. Each section provides an overview

of the wind power market and covers installed capacity trends from 2006 to 2020, the average

size of turbines, and O&M market size. They also calculate the market for repairing wind

turbine components, during the 2006–2020 period.




Wind Turbine Operations and Maintenance Market, Global

4.2 Wind Turbine Operations and Maintenance Market, Global, Market Size, 2006–2020

The global wind O&M market grew at a CAGR of XX% between 2006 and 2014, from $XX billion to

$XX billion. Aging wind turbines and increasing turbine installations owing to financial incentives,

capital subsidies and tax rebates, as well as the failure of components, were the major drivers of

the increase. On the other hand, growth was restrained by the lack of a skilled workforce and the

cost of logistics. Against this backdrop, the global wind O&M market is estimated to reach $XX

billion in 2020, registering a CAGR of XX%.

The onshore wind O&M market grew from an estimated $XX billion in 2006 to $XX billion in 2014.

Although there will be a drop in the share of the global onshore wind O&M market, it will rise to $XX

billion in 2020 at a forecast CAGR of XX%. The offshore wind market will grow from an estimated

$XX billion in 2014 to $XX billion in 2020, at a CAGR of XX%.

Figure 13: Wind Turbine Operations and Maintenance Market, Global, Market Size ($bn), 2006–2020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

O&

M m

arke

t siz

e ($

bn)

Onshore Offshore

Source: GlobalData


Wind Turbine Operations and Maintenance Market, US



5.6 Wind Turbine Operations and Maintenance Market, US, Number of Repairs, 2006–2020

Failure rates vary among wind turbine components, meaning that the number of repairs required

fluctuates depending on capacity additions and on a specific component’s failure rate. The

following chart shows the estimated number of repairs needed by the major components, namely

generators, gearboxes, and rotor blades, in the US during the 2006–2020 period.

Figure 23: Wind Turbine Operations and Maintenance Market, US, Number of Repairs, 2006–2020

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Num

ber o

f rep

airs

Generators Gearboxes Rotor blades

Source: GlobalData


Wind Turbine Operations and Maintenance Market, US



Table 21: Wind Turbine Operations and Maintenance Market, US, Number of Repairs, 2006–2020

Year Generators Gearboxes Rotor blades

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Source: GlobalData


Appendix



11 Appendix

11.1 Abbreviations

Table 53: Abbreviations CAGR Compound Annual Growth Rate

CMS Condition Monitoring System

CO2 carbon dioxide

DDT Direct Drive Train

EEG German Renewable Energy Sources Act (Erneuerbare Energie Gesetz)

EPC Engineering, Procurement and Construction

FiT Feed-in Tariff

FTC Federal Tax Credits

GBI Generation-Based Incentive

GES Global Energy Services

GW Gigawatt

ISP Independent Service Provider

kWh kilowatt hour

M&A Mergers and Acquisitions

MIIT Ministry of Industry and Information Technology

MW Megawatt

MWh Megawatt hours

O&M Operations and Maintenance

OEM Original Equipment Manufacturer

PTC Production Tax Credits

R&D Research and Development

ROC Renewable Obligation Certificates

RPS Renewable Portfolio Standards

SCADA Supervisory Control and Data Acquisition

Source: GlobalData


Appendix



11.2 Bibliography

AWEA (2011). Wind Turbine Operation and Maintenance. American Wind Energy Association.

Available from: http://dev.awea.org/learnabout/publications/upload/O-M-PPR_1-pager-3.pdf

ISET (2009). Wind Energy Report 2008. Institut für Solare Energieversorgungstechnik.

Available from:

http://windmonitor.iwes.fraunhofer.de/wind/download/Windenergie_Report_2008_en.pdf

11.3 Market Definitions

Historical period: 2006–2014

Base year: 2014

Forecast period: 2015–2020

Global: The countries included in the GlobalData capacity and generations database. These

countries constitute more than 99% of global wind power capacity.

Others: Includes countries other than the US, China, India, Germany, Spain and the UK.

11.4 Methodology

GlobalData’s dedicated research and analysis teams consist of experienced professionals with

advanced statistical expertise and marketing, market research and consulting backgrounds in the

energy industry.

GlobalData adheres to the codes of practice of the Market Research Society (www.mrs.org.uk) and

Strategic and Competitive Intelligence Professionals (www.scip.org).

All of GlobalData’s databases are continuously updated and revised. The following methodology

has been followed for the collection and analysis of data presented in this report.


Appendix



11.4.1 Assumptions

The average turbine size (MW) trend is analyzed by studying a sample of around 21,000 wind

farm assets covered in the Power Database.

The total wind power project cost has been calculated based on the weighted average of

onshore and offshore annual capacity and the assumption that the share of onshore turbine

cost is 70% of the total project cost and the share of offshore turbine cost is 40% of the total

project cost.

11.4.1.1 To Calculate Capacity Available for O&M Contracts

The duration of short-term, medium-term and long-term contracts are two years, five years and

10 years respectively.

50% of the wind farms will opt for a medium-term O&M contract and 50% will opt for a long-

term O&M contact after the initial warranty expires.

Wind farms with O&M contracts that end when the turbines are aged 10–15 years will have a

medium-term contract of five years. Wind farms with O&M contracts that end after the turbines

reach 15 years of age will have an O&M contract until the end of their life.

11.4.1.2 To Calculate the Capacity of Turbines Requiring Component Repairs

The life span of a wind turbine is taken as 25 years.

The annual frequency of failure for rotor blades is taken as 0.2, for gearboxes as 0.14 and for

generators as 0.125.

The frequency of failure for wind turbine components is considered the same for onshore and

offshore turbines.


Appendix



11.4.2 Coverage

The objective of updating GlobalData’s coverage is to ensure that it represents the most up-to-date

vision of the industry possible.

Changes to the industry taxonomy are built on the basis of extensive research of company,

association and competitor sources.

Company coverage is based on three key factors: market capitalization; revenues; and media

attention and innovation and market potential.

The estimated revenues of all major companies, including private and governmental, are gathered

and used to prioritize coverage.

Companies which are making the news, or which are of particular interest due to their innovative

approach, are prioritized.

GlobalData aims to cover all major news events and deals in the alternative energy industry,

updated on a daily basis.

11.4.3 Secondary Research

The research process begins with exhaustive secondary research using internal and external

sources to obtain qualitative and quantitative information relating to each market. The secondary

research sources that are typically referred to include, but are not limited to:

Company websites, annual reports, financial reports, broker reports and investor presentations

Industry trade journals and other literature

Internal and external proprietary databases

National government documents, statistical databases and market reports

News articles, press releases and web-casts specific to the companies operating in the market


Appendix



11.4.4 Primary Research

GlobalData conducts hundreds of primary interviews a year with industry participants and

commentators in order to validate its data and analysis.

A typical research interview fulfills the following functions:

Provides first-hand information on the market size, market trends, growth trends, competitive

landscape and future outlook

Validates and strengthens secondary research findings

Further develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews as well as face-to-face

interviews for each market, category, segment and sub-segment across geographies. The

participants who typically take part in such a process include, but are not limited to:

Industry participants: VPs, business development managers, market intelligence managers

and national sales managers

Outside experts: Valuation experts, research analysts and key opinion leaders specializing in

the alternative energy industry

11.5 Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any

form by any means, electronic, mechanical, photocopying, recording or otherwise without the prior

permission of the publisher, GlobalData.

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