Asia Pacific Wind Turbine Operation & Maintenance Market Size, Share & Industry Analysis, By Type (Scheduled and Unscheduled), By Location (Onshore and Offshore), and Country Forecast, 2024-2032

The Asia Pacific wind turbine operation & maintenance market size was valued at USD 15.38 billion in 2023. The market is projected to grow from USD 17.00 billion in 2024 to USD 33.44 billion by 2032, exhibiting a CAGR of 8.83% during the forecast period.

Wind turbines need to be operated and maintained systems regularly. The process involves the turbine manufacturer, the project owner, the utility dispatcher, and the O&M crews. Operations of wind turbines include administering daily activities such as monitoring performance, controlling operations, and dispatching maintenance crews when necessary for preventive or scheduled maintenance and forced outages or unscheduled maintenance.

With the surging demand for renewable energy in the region, wind energy is becoming a promising sector that can accomplish the already set targets of Asian countries. For instance, China is one of the leading countries investing in renewable energy sources. According to the Global Wind Energy Council (GWEC), in 2023, China added 75 GW of renewable energy, with the bulk coming from 6 GW of offshore wind and 69 GW of onshore wind, leading the global investment.

The COVID-19 pandemic had significantly affected operations worldwide. In several countries, the renewable industry largely depends on imports from other countries, mainly China. Further, the wind industry relies on imports of wind equipment from various countries. Due to the lockdown in multiple countries, major wind equipment makers such as GE, Xinjiang Goldwin, and others faced production shutdowns, causing huge backlogs and delays in order fulfilment. For instance, according to GWEC, wind turbines experienced a decline of 66% in 2020 in the number of new installations.

Asia Pacific Wind Turbine Operation & Maintenance Market Trends

Increasing Focus toward Power Generation through Renewable Energy to Fuel Market Expansion

The demand for electricity in Asia constantly increases with economic development and population growth. As the demand rises, countries increase their electricity capacity by installing new plants or expanding existing plants. Due to environmental requirements, several countries use renewable energy resources, particularly wind energy, to produce electricity. This is expected to boost the growth of the Asia Pacific wind turbine operation & maintenance market.

Climate change and carbon emissions have led many countries to adopt renewable energy to limit carbon emissions and aim to achieve carbon neutrality in the coming years. Changes in the energy industry have increased the adoption of offshore wind energy as one of the most promising renewable energy sources to exploit the rich potential of wind, increasing the market for offshore wind energy in the Asia Pacific region.

According to a March 2023 report by the Australian Energy Market Operator (AEMO), enough renewable energy was available to meet 98.6% of Eastern Australia's total electricity needs - the closest to achieving 100% clean electricity in the history of the grid energy sector in Australia. Further, renewables accounted for 38.9% of the average demand in the National Electricity Market (NEM) in the September quarter of 2023, the most of any third quarter. Carbon dioxide emissions from Australia's largest single-source energy sector recorded a fall of 11% compared to the previous year.

Asia Pacific Wind Turbine Operation & Maintenance Market Growth Factors

Need For Dependable and Cost-Effective Energy Solutions to Accelerate Market Growth

The energy sector is still searching for reliable and cost-effective solutions. Several countries have started investing in the storage and supply of renewable energy due to drastic climate changing situation or increased energy demand. With the growing significance of renewable energy sources, scientists are making great efforts to create advanced technology in this field. In addition, the recent reduction in installation costs has facilitated the growth of the wind turbine maintenance market.

The power generation industry is still looking for reliable and economical solutions. Many countries have started capitalizing on renewable energy storage for future situations or periods of increased energy demand. Countries have also recognized the benefits of renewable energy sources, and as a result, scientists have worked tirelessly to develop technology in these areas. In addition, the drop in installation prices in recent years has pushed the expansion of the wind farm maintenance market.

Promising Renewable Energy Policies and Increasing Investments in Wind Power to Drive Market Growth

Favorable government policies and attractive incentives have been implemented to develop an emission-free electricity system, increasing the annual installed capacity over the last year. Countries such as China, India, and Japan are focusing on reducing their dependence on energy sources based on fossil fuels. Developed countries have concentrated on market-based systems such as competitive auctions and feed-in tariffs. China has supported industrial growth by implementing favorable plans and policies such as the compulsory purchase of renewable energy and the five-year energy transition plan. These plans are anticipated to increase China's wind energy consumption to 20% by 2030, encouraging the installation of new turbines. In addition, Japan and India have introduced feed-in tariff policies to promote investment in renewable energy projects. Supportive policies and initiatives to reduce the environmental impact have significantly boosted the market for renewable energy and resulted in annual turbine installations.

The rise in environmental protocols encourages the power generation industry to switch to cleaner and more environmentally friendly energy sources in Asia. Several Asian countries focus on developing renewable energy generation to reduce the dependence on traditional energy sources. Wind energy is one of the substantial renewable energy sources that can meet many of the world's energy production challenges. According to GWEC, the total wind power capacity in Asia has been estimated to reach up to 519 GW in 2024, with addition of nearly 82 GW of capacity in 2023, representing an increase of almost 18.7%. Therefore, considerable wind energy development requires effective monitoring and maintenance at regular intervals. As a result, increasing investment in wind energy will likely increase the demand for wind turbine operation & maintenance services.

RESTRAINING FACTORS

Fluctuations in Raw Material Prices and Maintenance Costs May Create Challenges for Market Expansion

Steel is a key factor in the building of wind turbines. The terms and conditions of the contract with steel producers can last from one to several years, completely dictating the price of the raw material. In India, steel opened at USD 521.8 in the first week of June 2024, showing a downward trend of 0.48%. Steel, a metal polished by hand for centuries, remains the most important and versatile choice in manufacturing.

In addition, the cost of the finished product fluctuates due to variations in the price of steel. The price of the final product increases due to a rise in the raw material costs of production. Furthermore, due to this variability, the financial performance of the foremost wind turbine operations and maintenance market players may be adversely affected. This may hinder the Asia Pacific wind turbine operation & maintenance market growth potential during the forecast period.

Asia Pacific Wind Turbine Operation & Maintenance Market Segmentation Analysis

By Type Analysis

Driving Demand For Rising New Installation And Reconstruction Of Old Wind Turbines Are Dominated By Unscheduled Type

By type, the Asia Pacific wind turbine operation & maintenance market is segmented into scheduled and unscheduled.

The unscheduled segment is set to dominate the market during the forecast period. It involves responding to any unexpected event, ranging from minor activities, such as resetting sensors or circuit breakers, to significant repairs, such as removing a nacelle from a tower to replace the yaw gear. In November, 2022, Tianjin Sure Energy started developing lubricants for the unscheduled maintenance of wind turbine and got its first client as ExxonMobil to do the work. Further, experts recommended utilizing SpectraSyn Elite™ metallocene polyalphaolefin (mPAO) 150 and 300 base oils, providing high performance over a wide temperature range, shear stability over long drain intervals, and low-temperature properties for smooth starting in cold weather.

In the scheduled type, regular and planned maintenance is done and recorded at the scheduled time. They are pre-planned and cost less as compared to unscheduled maintenance types. Therefore, it is growing steadily in the market.

In February 2024, Cyan Renewables, Seraya Partners’ portfolio company, shared plans to build Siemens Gamesa's first service vessel (SOV) in Asia to facilitate wind turbine maintenance for the Hai Long offshore wind projects in Taiwan. The contract will start in 2026. SOV will operate 73 SG 14-222 DD offshore wind turbines at the Hai Long offshore wind farm located approximately 50 kilometers off the coast of Changhua County, Taiwan.

By Location Analysis

Rising Installation Of Onshore Wind Turbine In The Asia Pacific Region To Grow The Demand For Onshore Location

Based on location, the Asia Pacific wind turbine operation & maintenance market is segmented into onshore and offshore

The onshore segment dominates the market. Onshore turbines require low investment owing to the economic cost structure compared to offshore turbines, which is one of the leading factors for the dominance of the segment across the region. In addition, onshore wind power has become the region's most valued renewable energy source and accounts for a considerable market share. This is due to its low cost compared to offshore wind power, combined with the simple installation process and reduced greenhouse gas (GHG) emissions.

Several offshore wind farms/projects are in the planning and approval phase in the Asia Pacific. Offshore wind turbine installation needs capital more as compare to onshore. Further, the geological examination and scietific discoveries plays crucial role in offshore wind turbine installations. Due to these reasons, offshore locations are lagging in the wind turbine O&M market.  In March 2024, Siemens Gamesa signed a contract with Marco Polo Marine’s Taiwan subsidiary company PKR offshore to serve offshore wind projects in South Korea and Taiwan. The agreement is signed up until 2026 and can be extended to 2030.

COUNTRY INSIGHTS

Based on country, the Asia Pacific wind turbine operation & maintenance market is divided into China, India, Japan, South Korea, Australia, and the rest of Asia Pacific.

China stood amongst the leading nations in investing in renewable sources, particularly wind energy, and consequently dominating the Asia Pacific wind turbine operation & maintenance market share. As per the National Energy Administration (NEA), China set a target to increase power generation from 55% from solar and 21% from wind plants to around 15.3% of total power consumption in 2023.

In Australia, Bass Strait is attractive place for the offshore installation of wind turbines in the country but due to highly crucial crude oil extraction in the region with 40% of natural gas supply to eastern Australia has made it difficult to for new installations. In May 2024, Australia approved six projects to explore the feasibility of building wind farms in waters off its south coast to increase its use of renewable energy to meet its net-zero emissions goal by 2050. The 12 projects, including proposals from wind giants Orsted, Opens a New Tab, and Iberdrola Opens a New Tab, would have 25 gigawatts (GW) of generating capacity outside Victoria. This capacity is more than the country’s current capacity and is required to replace coal power.

Japan has initiated a Green Growth Strategy, which increases the renewable share of power generation target to triple 50% by 2050, building on its current target of 22-24% by 2030. The growing net zero carbon emission trend around the region has made Japan important for the Asia Pacific wind turbine O&M market. With 4,437 MW of wind installations as of 2020, including 65 MW of offshore wind, wind energy is becoming a mainstream source of support for Japan to reach its net-zero target and decarbonize its heavy industries, such as steel manufacturing and shipping.

KEY INDUSTRY PLAYERS

General Electric is One of the Major Players Owing to Several Investments in the Region

General Electric is one of the leading companies in the world in terms of providing high-tech industrial solutions, with over 331 manufacturing plants located around the world. The company has long-standing experience in developing cogeneration systems and consistently strives to advance distributed generation technologies in renewable energy. General Electric has operations in Australia, Singapore, China, and India.

Further, In September 2022, Goldwind secured a new deal with Masdar, Abu Dhabi Future Energy Company to supply 111 units of GW155-4.5MW turbines, the largest of its kind in Uzbekistan and in Central Asia. Moreover, The agreement with Masdar, Abu Dhabi Future Energy Company, will see the supply of 111 GW155-4.5MW to the Zarafshan wind farm in the Navoi region in central Uzbekistan. The project delivery was scheduled to start in the third quarter of 2022 and completed by the end of 2024. Once built and in operation, it will significantly improve the local power mix, powering 500,000 Uzbekistan households and displacing 1.1 million tons of carbon dioxide annually. The project will help Uzbekistan achieve the goal of increasing the proportion of green electricity to 25% by 2030.

List of Top Wind Turbine Operation & Maintenance companies in Asia Pacific/ List of Top Wind Turbine Operation & Maintenance Companies:

• Deutsche Windtechnik AG (Germany)


• Australian Wind Services (Australia)


• General Electric (U.S.)


• Siemens Energy (Germany)


• Vestas (Denmark)


• GoldWind (China)


• Suzlon Energy Limited (India)


• Alpha Offshore Services (Denmark)


• Professional Wind Services (Australia)


• Worley Sea (Australia)

KEY INDUSTRY DEVELOPMENTS:

• In January 2024, Abukuma South Wind Power LLC chose GE Vernova's onshore wind business as the supplier for the Abukuma South Wind Power wind farm in Iwaki City and Hirono Ward, Fukushima, Japan. Abukuma South Wind Power inked a turbine supply contract with Kandenko, EPC, to supply 28 units of GE Vernova 3.2-103 turbines1 producing approximately 90 megawatts (MW) of power and also entered a long-term entire service contract with GE Vernova.


• In September 2022, Vestas, in collaboration with Mercury, received a 43 MW order for the Kaiwera Downs wind farm in New Zealand. The project includes ten V136-4.2 MW wind turbines with a 4.3 MW operating system, delivered and installed by Vestas. Upon completion, Vestas will enter into a 30-year Active Output Management 5000 maintenance and service contract (AOM5000) to optimize energy production while providing Mercury with long-term business certainty for the wind farm.


• In September 2022, Goldwind signed a new contract with Abu Dhabi Future Energy Company Masdar to supply 111 units of the GW155-4.5MW turbine, the largest of its kind in Uzbekistan and Central Asia. In addition, Abu Dhabi Future Energy Company's contract with Masdar will supply 111 GW155-4.5 MW to the Zarafshan wind farm of central Uzbekistan in the Navoi region. It supplies electricity to 500,000 households in Uzbekistan and displaces 1.1 million tons of carbon dioxide annually.


• In June 2021, Suzlon Group secured a new order to develop 252 MW wind power projects from CLP India. As a part of the project, the company will work on supply, foundation, erection, and commission, along with the operation and maintenance of 120 units of wind turbine generators.


• In August 2020, GE Renewable Energy announced that it had received the contracts to operate and construct the 209 MW Murra Warra II wind farm in Victoria, Australia. The wind farm uses 38 GE Cypress 5.5-158 wind turbines and produces enough renewable energy to offset 500,000 tons of carbon dioxide emissions yearly.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, feed and gasifier types, and leading product applications. Besides, the report offers insights into the latest market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to grow in the market in recent years.

REPORT SCOPE & SEGMENTATION