The Asia-Pacific wind turbine tower market is expected to suffer a compound annual growth rate of -10.5% despite maintaining its status as a global leader, says a report by GlobalData.
Titled “Wind Turbine Towers, Update 2016 – Global Market Size, Average Price, Competitive Landscape and Key Country Analysis to 2020”, the report states that the value of the market is expected to decrease from $9.62bn in 2015 to $5.5bn in 2020.
Decline of the tower market is in line with the global market, which is expected to decline from $17.2bn in 2015 to $14.5bn by 2020. GlobalData’s Analyst covering power Rahul Khatri attributes the decline to falls in wind capacity addition and prices of towers.
Wind capacity addition in China was 33GW in 2015, which is 86.5% of the Asia-Pacific region and 49.6% of the global addition during that year. Annual capacity addition in China is expected to fall between 2016 and 2020 as the country is forecast to add just 22GW of the planned 250GW by 2020.
In addition, the market is expected to face significant hurdles in terms of lack of sufficient grid infrastructure. Existing infrastructure is already being upgraded and new facilities are being developed to meet demand. These limitations place significant constraints on the entire value chain of the market, as well as increasing development time, the report adds.
The exceptional growth rate of the market has also placed massive pressures on wind turbine component manufacturers. With existing players increasing capacity and new players entering the market, the sudden growth has strained the supply chain.