Wind Turbine Systems

Growth factors include state and federal government incentives, emerging offshore applications and the increasing popularity of systems that are taller, more powerful and more expensive.

US Demand to jump 55% annually through 2018

US demand for wind turbine systems is forecast to reach $18.9 billion in 2018, a nearly nine-fold increase over severely depressed 2013 levels. The market for wind turbines tends to be highly volatile due to its reliance on government incentives. The outlook for wind turbine sales is somewhat muddied by the current lack of major federal incentives, as production tax credits were allowed to expire at the end of 2013. However, sales are still expected to rebound significantly as there are other incentives in play, including feed-in tariff payments and various grants from the Department of Energy. In addition, growth will continue to be driven by the need to meet state-level renewable portfolio standards. Other factors supporting growth include emerging offshore applications and the increasing popularity of systems that are taller, more powerful, and also more expensive.

Texas, California & Iowa to remain growth markets

The Northeast had the lowest installed wind energy capacity in the US in 2013, due primarily to a lack of available land for installations. However, through 2018 growth is expected to benefit from the installation of the nation’s first offshore wind farms. In addition, electricity costs in the Northeast are among the highest in the country, which heightens interest in renewable energy sources. In contrast, the South, in particular Texas, has a lot of available land with strong wind resources for wind farm development. In 2013, Texas had the most installed wind energy capacity, more than double the amount of California and Iowa, the second and third largest state markets, respectively. Growth in wind capacity has been particularly strong in these states due to favorable regulatory environments and strong wind speeds. In addition, Texas also benefits from having most of its electricity run through an intrastate electric grid, which is generally easier to update than interstate grids that are subject to more federal controls. The ongoing trend of constructing wind farms in rural areas and delivering the electricity to population centers will provide further impetus for growth.

Average price per unit to continue rising dramatically

The construction of larger, more powerful utility-scale wind turbine systems has caused the average price per unit of these systems to rise dramatically over the past decade, a trend that is expected to continue for the foreseeable future. These larger systems are built to take advantage of stronger, more consistent winds at higher altitudes, so they require taller towers and longer blades. Additionally, because longer blades add a significant amount of weight to the entire system, there is rising interest in constructing blades from higher value materials, such as carbon fiber, which further boosts value gains.

Study Coverage

This study analyzes the $2.1 billion US wind turbine system industry. It presents historical demand data for 2003, 2008 and 2013, and forecasts for 2018 and 2023 by type (horizontal axis, vertical axis), component (e.g., nacelle, rotor system, towers), application (e.g., electric power generation by utilities, distributed electric power generation) and US region.

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 36 industry players, including General Electric, Vestas Wind Systems and Siemens.

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Table of Contents

INTRODUCTION

EXECUTIVE SUMMARY

MARKET ENVIRONMENT

General

Macroeconomic Trends

Consumer Spending Trends

Demographic Trends

Manufacturers' Shipments

Construction

Building Construction

Nonbuilding Construction

Electric Power Generation

Energy Consumption

Environmental & Other Regulatory Considerations

Government Incentives

State & Municipal

Federal

WORLD MARKET

General

Wind Turbine Systems by Region

Western Europe

North America

Asia/Pacific

Rest of World

Wind Turbine Demand by Leading Countries

WIND TURBINE SYSTEMS

General

Wind Power Systems

Types of Wind Power Systems

Horizontal Axis

Vertical Axis

Wind Turbine System Components

Nacelle

Generator & Power Electronics

Gearbox & Drivetrain

Frame & Cover

Other

Rotor System

Blades

Hub Assemblies

Pitch Mechanisms & Bearings

Nose Cones

Towers

Monopole

Lattice

Balance of System Components

APPLICATIONS

General

Electric Power Generation by Utilities

Owners

Independent Power Producers

Investor-Owned Utilities

Public Utilities

Cooperative Groups

Location

Onshore

Offshore

Distributed Electric Power Generation

On-Grid

Off-Grid

REGIONAL MARKETS

General

Regional Demographic & Economic Trends

Population Patterns

Economic Outlook

Construction Activity

Housing Trends

Regional Demand for Wind Turbine Systems

Northeast

New England