The global wind turbine market continues to undergo structural shifts along the supply chain due to a significant drop in wind turbine orders in mature markets. The resulting
The chart shows the international flow of wind turbine components.
overcapacity has implications across the supply chain, challenging component manufacturers, whose strategies were defined in an era of growth and surging demand.
Component suppliers across the globe face similar technological challenges: Meeting the needs of larger average turbine sizes while looking to increase output, reduce component size and weight, and facing reliability and logistical issues. Combined with growing competition and onerous global economic recovery, these companies have been met with mixed fortunes.
Wind Turbine Supply Chain Strategies: 2011 to 2025 is said to be a guide for understanding shifts in the increasingly competitive global wind supply chain. The study analyzes wind-turbine component market trends within the context of the global wind-turbine industry, focusing on each of the main components: blades, bearings, gearboxes, towers, generators, and power converters. IHS EER’s new study analyzes the following trends:
Asia becomes new focus of supply chain: In a highly competitive, oversupplied global wind market, a growing number of entrenched players have begun to shift production to Asia to capture growing opportunities. Last year, the region accounted for nearly 55% of all wind turbine capacity deliveries, 88% of which were to China. Consequently, Chinese and Indian wind markets are increasingly defining component player positioning. Lower manufacturing costs, skilled labor, and higher productivity will let component suppliers in these markets serve Europe and North America.
Near term uncertainty plagues European players: Several European tower and converter suppliers have become acquisition targets, while gearbox manufacturer Moventas recently filed for corporate restructuring. While the industry agrees that long-term market fundamentals remain and future expansion will occur, current volatility in local demand is casting doubts over how to ensure a return to growth after 2011.
North America suppliers squeezed: Pressed by wind turbine manufacturers to keep costs low, US component suppliers are grappling to cut costs and manage margin erosion as commodity prices continue to increase. While overcapacity exists in towers and blades, new investments
IHS emerging energy research
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