The global offshore wind operations and maintenance (O&M) market is expected to grow 16% annually to reach $12bn by 2029 and China is set to become the largest market by then, a Wood Mackenzie report shows.
According to the report Europe remains the biggest O&M market by region, reaching $6.6bn by 2029, while rapidly expanding markets in Asia and US could bring new challenges and opportunities for domestic industry as well as international investors.
“We expect to see O&M strategies developed for highly subsidised projects featuring near shore and smaller turbines evolving to fit the new market landscape characterised by large turbines and waning subsidies. As the overall O&M market grows, these changes will open new opportunities for both existing and new players in the offshore wind sector,” said Shimeng Yang, senior analyst at Wood Mackenzie.
Wood Mackenzie reckons as manufacturers dedicate more resources to O&M services for newer and larger turbine models, the ageing turbine fleet represents a significant opportunity for independent service providers as well as in-house expertise, and China is expected to overtake the UK’s position as the world’s largest single offshore wind O&M market with 41 GW of growth throughout the 2020s leading to a total of 49 GW capacity, equivalent to $2bn of opex opportunities by 2029.
“China’s young and rapidly growing fleet will require sweeping changes in asset management strategy to deal with massive uptake throughout the 2020s,” Yang added.