The wind turbine market fell 15.9% in 2010 to $42.3 billion, while new global installations fell by 0.3%, finds a new report from SBI Energy.
In sharp contrast, the global wind turbine market nearly tripled in value between 2006 and 2009, climbing to $50.3 billion, according to the report. New wind turbine installations grew at a slightly slower pace, rising from 15.1 GW installed to 38.2 GW in just four years.
‘The disparity between market value and new installations is due to China, which accounted for half of all new installs, but at prices close to 40% lower than the rest of the world," says SBI Energy analyst Norman Deschamps. "The recession in 2009 cut into new orders, slowed production and depressed pricing.’
Unlike last year, wind turbine market growth this year is largely due to a strong showing in the U.S. and Indian wind turbine markets. Meanwhile, relatively slight growth will take place in China and Germany, while a previously core market in Spain will continue its decline.
Despite gains so far this year, profits are anticipated to decline for many manufacturers, particularly in China, as low turbine prices continue to eat away at margins. After the substantial drop in 2010, the wind turbine market will recover in 2011, climbing 5.1% to reach $44.5 billion, the firm forecasts.
The report predicts that China and the U.S. will continue to be the top markets for wind turbine sales through 2020. From representing just over half the market in 2010, the two countries will still be responsible for 45.4% of the wind turbine market in 2020. During the next decade, the U.S. will expand its overall share of the market, while China's market share will drop significantly, the report adds.
More information on SBI Energy's report can be viewed here.