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The global wind turbine operation and maintenance market size was valued at USD 33.61 billion in 2021. The market is projected to grow from USD 36.27 billion in 2022 to USD 63.82 billion by 2029, exhibiting a CAGR of 8.4% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with wind turbine operation and maintenance experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global wind turbine operation and maintenance market exhibited a growth of 8.2% in 2020 as compared with 2019.
Wind turbine's operation and maintenance are vital to the wind energy industry. These services help reduce the failure rate and avoid downtime during power outages. Several wind turbine components, such as gearboxes, sensors, electrical systems, control systems, and generators, are critical and vulnerable to failure. Sudden breakdown of any equipment in the turbine leads to high downtime and affects productivity. Thus, the need for operation and maintenance at regular intervals is increasing. Several governments across the globe are promoting wind energy as an alternative energy source. This is expected to positively influence the wind turbine operation and maintenance market growth in the forthcoming years.
Continuous Operation & Maintenance Services in Wind Renewable Energy Operation Resulted in Positive Growth
In several countries, renewable energy development is highly dependent on imports from manufacturing countries, mainly China. Subsequently, the wind renewable energy industry relies on imports of wind energy components and equipment from various countries. Crucial wind energy raw materials and components, such as rotors, blades, and others, in the U.S. are imported from Europe and China. Nationwide lockdown and travel bans in several countries in Europe and Asia Pacific have resulted in a decline in wind turbine production, leading manufacturers, such as General Electric, Goldwind, and others, accompanying huge backlogs and delays in order processing. For instance, as per the Wind Europe report, the wind turbine industry has reported a decline of almost 30% in 2020.
However, even the outbreak of COVID-19 has lowered the production of wind turbine manufacturing, but the existing wind turbines have continued their operations to maintain a constant energy supply. In various European countries, employees were permitted to carry out their tasks, resulting in continuous wind turbine operation & maintenance services. For example, Beatrice, Scotland’s most extensive offshore energy, currently runs with only essential control room employees, two staff members at a time. Additionally, Beatrice has developed protocols to ensure safety protocols for operation & maintenance crews. Subsequently, digital technologies, such as analytics for failure forecasting and remote monitoring and operational planning platforms, have benefited asset owners.
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Increasing Adoption of Renewable Energy for Power Generation to Fuel Market Growth
The electricity demand is rising continuously due to rise in population. As the demand increases, countries are increasing their electricity capacity by installing new plants or expanding their existing energy plants. Due to environmental regulations, various companies are using renewable energy sources to generate electricity, particularly solar and wind power, which ultimately increases market growth.
The increasing climate change and carbon emissions have resulted in various countries adopting renewable energy to curb carbon emissions and pursue carbon neutrality in the coming years. The shift in the energy sector has increased the adoption of offshore wind power as one of the most promising renewable energy sources to harness the energy from the rich potential of wind, which has accelerated the offshore wind power market in North America, Asia Pacific, and European countries. For example, On June 30, 2021, Atlantic Shore won an award from the New Jersey Board of Public Utilities to develop an offshore wind power project to power over 700,000 homes.
Advancement in Operation and Maintenance Technology to Favor Growth
Wind turbine operation and maintenance is any process designed to maintain wind turbines in an unstable operating condition. The wind turbine parts are expensive, and lubrication is required to achieve the turbine’s maximum efficiency and output. In the past, the plant operators manually performed maintenance and repair of wind turbines. The turbine inspection was carried out by the operator using cranes. The manual system could not detect the component failure at the early stage, which could lead to a complete loss of the turbine. This also increases operation and maintenance costs and leads to lower efficiency of wind turbines.
This drives the majority of companies to work toward the development of new and innovative technologies to make tedious operations & maintenance tasks more accessible and cost-effective. Wind energy developers are looking for innovative and contemporary techniques to reduce operating and maintenance costs.
The wind industry is leaning toward automation, innovative technology, AI, and data analysis for effective and efficient maintenance of wind turbines without human intervention. Wind turbine operations and maintenance are evolving significantly in the wind industry as various technologies and advanced software have propelled the wind turbine operations & maintenance market. The introduction of various advancements, such as mobile IoT technology, advanced condition monitoring, database management, and analytics, played a significant role in the global market.
Favorable Renewable Energy Policies & Rising Investment in Wind Energy to Drive Market Growth
Increasing environmental regulations are driving the power generation industry to switch to cleaner and more environment-friendly energy resources. Several countries worldwide are focusing on developing renewable power generation to reduce their dependence on conventional sources for power generation. Furthermore, investments in wind, solar and other renewable energy sources are constantly increasing.
Wind power is one of the most important renewable energy sources with the potential to solve global power generation challenges. Total global wind power capacity has reached up to 837 GW to date, with nearly 94 GW of the capacity added in 2021 globally. Therefore, such a huge wind capacity development requires regular monitoring and maintenance. The growing investment in installing and operating wind energy will likely drive the market growth for wind turbine operation and maintenance services.
Further, the main driver behind the growth of the wind power industry is the rising government initiatives and policies for clean energy development. In various countries such as Germany, the U.K, the U.S., Japan, and China, feed-in tariffs (FIT), tax credits, electricity balance mechanism, investment, and others are the main energy policies & subsidies explicitly targeting the wind energy sector to maintain the required demand for electricity. For example, in the U.S., the Federal Business Energy Investment Tax Credit (ITC) allows new wind turbine owners to receive a tax credit equal to 30% of the value of the turbine/facility. Such policies from the government are likely to increase the wind energy installation, resulting in the demand for maintenance & operation of wind turbines.
High Cost of Operation and Maintenance of Wind Turbine is Likely to Affect Market Growth
Operation and maintenance are crucial for the wind turbine's smooth and extended life. The operation and maintenance cost is very high for wind turbines, accounting for almost 30% of the total wind turbine cost, which is one of the major factors hindering market growth. After installing the wind turbine, it is necessary to check turbines regularly to avoid typical failures.
Without proper maintenance, power breakdown is high, ultimately hindering several essential functionalities. Thus, making operation and maintenance crucial for both onshore and offshore wind farms. The cost is a huge issue for these activities as the cost of wind turbine operation and maintenance is quite high and accounts for almost 25-30% of the total wind turbine cost. However, companies operating in the market constantly work to reduce costs.
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Unscheduled Type to Hold Dominant Wind Turbine Operation and Maintenance Market Share due to Crucial Role in Sudden Breakdowns of Wind Turbines
Based on type, the market is divided into scheduled and unscheduled. The unscheduled segment dominated the market due to the initiation of unscheduled maintenance during operation emergencies such as equipment failures and wind turbines' breakdowns due to the harsh environment.
Scheduled maintenance is generally carried out at planned intervals to maintain the smooth operation of wind turbines. Typically, scheduled wind turbine operation and maintenance is usually completed twice a year, resulting in 12 to 18 hours of downtime for each maintenance event. Based on this factor, the scheduled wind turbine operation & maintenance type will likely experience significant growth in the forthcoming years.
Onshore Location Dominates the Market Due to Highest Number of Installation
Based on location, the market is segmented into onshore and offshore. The onshore segment dominated the global market in 2021. Due to the economic cost structure, onshore services require comparatively fewer investments than offshore segments, resulting in a maximum number for onshore wind turbine installation. According to the GWEC Wind Turbine Market Research Report 2021, the CAGR for onshore wind in the next five years will be 6.1%, with an average annual installation of 93.3 GW. In total, 466 GW will likely be built in 2022-2026.
The offshore segment is projected to grow at a faster pace during the forecast period. The offshore sector faces numerous challenges due to remote locations in the sea, with lower accessibility for repair and maintenance and high installation costs, impacting segmental growth.
Europe Wind Turbine Operation and Maintenance Market Size, 2021 (USD Billion)
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Europe Holds the Largest Market Share Owing to Increasing Offshore & Onshore Installation
The market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The top five markets for new installations of wind turbines were China, the U.S., Brazil, Vietnam, and the U.K. in 2021, which made up 75.1% of global installations.
Europe holds the dominant market share, owing to the highest number of offshore wind farms as operations and maintenance of offshore wind turbines play an essential role in developing offshore wind farms.
Further, the market accounts for a sizable share in Asia Pacific, owing to an explosive growth of installations in China, India, and other countries.
Subsequently, North America’s wind turbine operation and maintenance service is driven by the record installation in the U.S. Further, the Production Tax Credit (PTC) remains the primary driver to support the U.S. onshore wind growth in the coming years.
In Latin America, wind power already had very competitive prices. Private auctions or bilateral PPAs have emerged as an alternative mechanism to government auctions to drive growth. Considering the systematic and radical energy transition from fossil fuels to renewable energy and low-carbon solutions is imperative. It will likely offer a unique window of opportunity for wind energy installations.
As per GWEC Wind Energy Report, an average of 3.2 GW of new capacity is expected to be added each year in the Middle East & Africa in the forthcoming years, primarily driven by growth from South Africa, Egypt, and Morocco in Africa and Saudi Arabia in the Middle East.
Major Players are Concentrating on Enhancing their Business Capacities with Increasing Wind Energy Installation and Service Collaboration
The global market’s competitive analysis is primarily dominated by OEMs' key players, which provide installation, operations, and maintenance services.
Vestas, Siemens Gamesa Renewable Energy S.A., GE Renewable Energy, Suzlon Energy Limited, Goldwind, Nordex SE, and ENERCON GmBh are significant market players. These companies invest in developing innovative technologies to make tedious operation and maintenance tasks more accessible and cost-effective.
For example, in April 2022, GE Renewable Energy collaborated with Alfanar to supply and install 15 wind turbines at wind farms near the municipalities of Miranda de Arga and Berbinzana across the Navarre region in Spain. The project is planned to be completed by 2023 and includes a full services agreement for 15 years.
Vestas has more than 151 GW of wind turbines, including 7 GW offshore in more than 84 countries. The company currently has 117 GW of wind turbines under service.
An Infographic Representation of Wind Turbine Operation and Maintenance Market
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The research report presents a comprehensive industry assessment by offering valuable insights, facts, industry-related information, and historical data. Several methodologies and approaches are adopted to make meaningful assumptions and views to formulate the report.
Value (USD Billion)
By Type, Location, and Region
Fortune Business Insights study shows that the global market was USD 33.61 billion in 2021.
The global market is projected to grow at a CAGR of 8.4% in the forecast period.
The market size of Europe stood at USD 13.50 billion in 2021.
Based on type, the unscheduled segment holds the dominating share in the global market.
The global market size is expected to reach USD 63.82 billion by 2029.
The key market drivers are the adoption of clean energy along with growing government policies for clean energy.
The top players in the market are GE, Siemens, Vestas, Enercon, and Goldwind.
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