The wind turbine rotor blade market is expected to register at a CAGR of approximately 8.38% during the forecast period, 2020-2025. The growing number of offshore wind energy installations have been reducing the cost of wind energy, and the increasing number of aging wind turbines are expected to drive the wind turbine rotor blade market during the forecast period. However, factors, such as the associated high cost of transportation and cost competitiveness of alternate clean power sources, like solar power, have the potential to hinder the market growth in the coming years.
- The onshore segment accounted for the highest market share, with over 65% in 2018, and it is expected to dominate the market during the forecast period.
- The wind power industry has been in demand for cost-effective solutions, and a highly efficient product has the potential to change the dynamics of the industry. There were instances where old turbines were replaced, not because of the damage but due to the availability of more efficient blades in the market. Hence, technological developments present themselves as opportunities for the wind turbine rotor blade market.
- At the regional level, Asia-Pacific dominated the wind turbine rotor blade market in 2018, with the majority of the demand coming from countries, like China, India, and Australia.
Key Market Trends
Onshore Segment Accounted for the Highest Market Share
- The onshore wind power industry has dominated the wind turbine rotor blade market and has emerged as one of the most valued renewable energy sources worldwide and is expected to continue its dominance over the forecast period.
- The cumulative onshore installed wind power capacity reached 568.4 GW in 2018, with an addition of 8.9% to the previous year’s capacity. China, the United States, Germany, and India dominated the onshore wind power market in 2018.
- The total onshore installed wind power capacity is expected to reach 619 GW by 2023, with the majority of the growth coming from the developing markets in the Middle East & Africa, South America, and Southeast Asia.
- Moreover, the cost of onshore wind power generation has reduced significantly. It has been driven by the reduction in capital investments due to better turbine designs and economies of scale, increased capacity factors due to technological advancements in equipment and wind power plant design, and the augmented product life of wind turbines.
- Additionally, in 2015, onshore wind required an average of EUR 2 million of financing for each MW of capacity installed in Europe. By 2018, this number had reduced to EUR 1.4 million per MW. This, in turn, is expected to boost the number of onshore wind installations in Europe in the coming years and further drive the demand for wind turbine rotor blades.
- Therefore, factors, such as the decline in onshore wind CAPEX and supportive government policies and targets, are expected to increase the number of wind power plants across the world in the coming years. This, in turn, is expected to directly impact the onshore wind turbine rotor blade market during the forecast period.
Asia-Pacific to Dominate the Market
- The Asia-Pacific region is the regional hotspot for the wind turbine rotor blade market, owing to governmental support, numerous incentives, and national targets. In 2018, the total installed wind power capacity in the region reached 261.15 GW, representing an increase of 11.40% over the previous year. The offshore wind power industry in the region registered a significant growth rate of 61.2% in 2018 from a year earlier.
- As of 2018, China held the largest installed wind power capacity in the world. The Chinese onshore wind market installed 21.2 GW in 2018 and has been the leading market since 2008. In the offshore wind market, China had installed 1.8 GW in 2018, taking the lead for the first time, followed by the United Kingdom.
- The Government of China has been actively promoting renewable infrastructure development to curb pollution and reduce the share of thermal power in the country’s power generation profile. It is likely to drive the growth of wind power projects in the country, which, in turn, is expected to drive the wind turbine rotor blade market during the forecast period.
- As of 2018, India’s installed wind power capacity stood at 35.13 GW. The number of new installations has slowed down in the country, as the industry has been adapting to the original method of determining tariff, i.e., wind power auction. However, the future looks bright, as the government aims to install about 60 GW of wind power by 2022.
- The Ministry of New and Renewable Energy has been pushing for offshore wind power development. In early 2019, MNRE announced a draft offshore wind energy policy. After that, a Memorandum of Understanding (MOU) for setting up a joint venture company (JVC), to execute the country’s first offshore demonstration project, was signed by the Union Ministry of New and Renewable Energy (MNRE), National Institute of Wind Energy (NIWE), and a consortium of public sector agencies.
- South Korea’s state-owned National Oil Corporation (KNOC) has been planning to develop a 200 MW floating offshore wind project 58 km off Ulsan City. Floating turbines are considered the next step in conquering wind resources in deep coastal waters where fixed turbines cannot be built.
- Therefore, factors, such as upcoming wind power projects, along with supportive government policies and regulations in different countries across the region, are expected to increase the demand for wind turbine rotor blades over the forecast period.
The wind turbine rotor blade market is fragmented with a large number of players involved in the market, including TPI Composites SA, LM Wind Power (a GE Renewable Energy business), Siemens Gamesa Renewable Energy SA, Vestas Wind Systems A/S, and Enercon GmbH.
Some of the major players in the wind turbine industry, like the end-user sector for rotor blades, are also significant players in the market, indicating major backward integration in the market. Some of these players are Vestas, Siemens, and LM Wind Power (a GE Renewable Energy business).
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