MAKE: O&M Revenue Will Exceed $19 Billion By 2024

Posted by NAW Staff on July 17, 2015 No Comments
Categories : New & Noteworthy

Revenue in the wind turbine operations and maintenance (O&M) sector will exceed $19 billion by 2024, according to a new report from MAKE Consulting.

According to MAKE, worldwide turbine installations have surpassed 350 GW, with post- warranty service opportunities increasing rapidly, given that approximately 50% of new turbine installations have occurred over the past five years. This growing and diverse fleet of wind turbines represents a substantial business opportunity for companies across the entire O&M value chain, especially as pressures mount to make future wind-plant operations less expensive, more reliable and more productive, MAKE explains.

As such, interest in the O&M market has escalated across the globe due to fluctuating demand for new turbine installations and a need to seek out new profit pools. A sustained assault on the aftermarket has yielded a number of new product offerings and value chain iterations, all aimed at maximizing profit and building market share, notes MAKE.

Regionally, the rapidly growing installed base in the Asia Pacific (APAC) region and the shifting service strategies of Chinese and Indian asset owners are expected to provide a significant growth opportunity over the next decade. APAC's total O&M revenue opportunity is set to eclipse that of the Americas by 2017, based largely on the tremendous growth in installations.

MAKE says that the need to unlock the power of data is becoming more pronounced, as asset owners seek to leverage vast data libraries in an effort to implement cost optimization strategies and predict future failures of major components. In today's market, upgrades and retrofits for increased energy production and improved reliability have taken hold globally, while low-cost, up-tower repair technologies have become commonplace. Automation in asset management, component inspection and repair techniques is evolving and offers a glimpse into the O&M market of tomorrow.

The wind turbine O&M market is the most dynamic sector within the global wind energy market, and O&M strategy development will be central to achieving competitive differentiation.

Leave a Comment