The global wind turbines market is expected to peak at $81bn in 2019 and witness a dip to $71.21bn in 2020, according to a report by GlobalData.
Titled ‘Wind Turbines Market, Update 2016 – Market Size, Competitive Landscape, Key Country Analysis, and Forecasts to 2020’, the report attributes this growth to technological developments that have established wind as one of the most reliable sources of power.
Declining costs of windpower generation, financial incentives from governments, and increasing environmental concerns have further aided the growth of the industry.
Country-wise, China is expected to lead with a market share of 26% in 2020, followed by Germany with 10%. China is increasing its installed capacity from renewable energy sources due to the continuous increase in demand for electricity.
Despite the growth, expiration of production tax credits (PTC) in the US in 2020 is expected to have a negative impact on the global wind turbine market, notes Swati Gupta, GlobalData’s Analyst covering Power.
The PTC will remain in effect until 2016. After this, incremental reductions in value will take place up to January 2010. For example, projects that begin in 2017 will get 80% credit, while those that start in 2018 receive 60% and those starting in 2019 will get 40%.
The complete phase-out of PTC after 31 December 2019 is expected to drive capacity additions between 2016 and 2019 to take advantage of the credit extensions before they expire, adds Gupta.