Global wind power investments are predicted to rise from $70 billion in 2013 to $101 billion by the end of 2020. The new report, “Global Wind Turbine Value Chain – Production, Market Share, Competitive Landscape and Market Size to 2020,” also finds that installed capacity should rise from around 364.9 GW in 2014 to 650.8 GW by 2020. Although demand is on the rise, says Global Data who authored the report,” there may be a low growth rate for wind turbine components over the forecast period.
Wind turbine manufacturers produced approximately 11 percent of wind turbine gearboxes, 48 percent of rotor blades and 43 percent of generators in-house in 2013. Meanwhile, 10 percent, 62 percent and 37 percent of gearboxes, rotor blades and generators, respectively, were manufactured in-house in 2006.
Prasad Tanikella, GlobalData’s Senior Analyst covering Power, said, “Depending on wind power component supplies, turbine manufacturers make strategic decisions over whether or not to produce the equipment in-house. Some of the major manufacturers, such as Enercon and Vestas, prefer to develop components within their business structure, to avoid issues with quality control and design confidentiality.”
Tanikella cautions that constant growth in the global wind power market is forcing turbine manufacturers to seek multiple component suppliers to ensure smooth production. Indeed, several long-term agreements are currently being drawn up between turbine manufacturers and their suppliers. As such, component prices are decreasing thus the predicted low growth rate for component manufacturers.