Visit windpowermonthlyevents.com for the latest on our upcoming conferences and webcasts

O&M global market predicted to grow to $19 billion by 2020

WORLDWIDE: The operations and maintenance (O&M) market will increase by more than six-fold from $3 billion in 2008 to $19 billion by 2020 according to a new report by Globaldata.

As turbines age, service needs grow (Pic:Repower/Jan Oelker)
As turbines age, service needs grow (Pic:Repower/Jan Oelker)

The findings also anticipate China to surpass the current biggest O&M market in the world, the US, to become the leader in O&M expenditure, with a 24.7% share of the market by 2020.

The report, Wind Operations & Maintenance Market, 2013 Update, by research firm Globaldata, shows the growth in wind power has increased O&M expenditure from $3.5 billion in 2008 to $7.3 billion in 2012 demonstrating a compound annual growth rate of 15.6%.

In 2012 Germany, the largest European O&M market, accounted for 12.9%, with Spain, the second largest, accounting for 10.7% of the global market. The UK, which accounted for 7.2%, is due to emerge as the largest wind O&M market because of the increased offshore capacity it is expected to install, accounting for 15.6% of the global market by 2020.

The report states offshore wind accounted for 8% of the wind O&M market in 2012 and it estimates the sector will grow to 29% in 2020, reaching $5.6 billion with the UK, Germany and China being the largest contributors.

"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," said Globaldata senior analyst Prasad Tanikella.

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

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Only [DAYS_LEFT] days Subscribe Now

Left of your Windpower Monthly free trial

Your free trial Subscribe Now

to Windpower Monthly has expired

Windpower Monthly Events

Search more than 4,500 companies in the Windpower Directory

Latest Jobs