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)

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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.

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