Banking on long-term growth, turbine manufacturers push capacity investments while bracing for slower 2009 Cambridge, Massachusetts, February 27, 2009 - Emerging Energy Research's annual Wind Turbine Market Share Update reveals a 2008 global turbine market in which high demand and supply chain backlogs offered plenty of room for all: established players averaged installation growth of more than 50%, while several newer players saw installations jump by 100% and more. Although the landmark year helped new competitors such as Sinovel, Dongfang, and Clipper make modest inroads into the leaders' market share, the turbine market remains dominated by Vestas, GE, Gamesa, Enercon, Suzlon, and Siemens who, as a group, accounted for 70% of last years' installations.
Buoyed by 2007's bursting order books, turbine manufacturers installed almost 11 GW more turbines in 2008 than in the previous year - totaling nearly 30 GW of turbines activated during the year, almost double the volume in 2006, with the US and China accounting for 48% of that amount. "The battle for market share is expected to intensify in 2009-2010 as the economic slowdown continues and as local suppliers in the United States and China ramp production," says Keith Hays, EER Research Director.
With more than 15 turbine vendors scrambling to take business from the big six, players with diversified order books are best positioned to grow in 2009 as the slowdown will be felt most acutely in the US, a market that weighs heavily in the order books of the major vendors. At the same time, China remains less impacted by the recession; steady performance can be expected from China's growing number of local turbine suppliers as well as global players-such as Vestas, Nordex, and Gamesa-with an existing foothold in that market.
Investments and plant capacity expansion point to a collective optimism on the part of many manufactures for the long-term market, despite their expectations for modest growth in 2009. "The industry saw record installations in 2008 even though new production facilities had not yet come on line in the US and China, " said Hays. "With an improving market in 2010, manufacturers with capacity expansion plans, such as Acciona, Gamesa, Suzlon, Siemens, and Vestas, will be well-positioned for the recovery, although full utilization will depend on their ability to demonstrate flexibility in pricing and delivery terms."
Emerging Energy Research has been tracking the global turbine market since 2003. EER's Global Wind Turbine Market Share Update is developed annually by our Wind Energy Advisory research team and uses on-the-ground research combined with extensive access to key players in global wind energy industry.
Exhibit: 2008 MW Installed Wind Turbine Market Share
About Emerging Energy Research Emerging Energy Research is a leading industry advisory firm providing unrivaled balance and perspective on the world's clean and renewable energy markets. Based in Cambridge, MA and Barcelona, Spain, EER works with more than 1,000 stakeholders across the industry, providing research-based advice, support, and analysis to executives and key decision-makers including utilities, developers, independent power producers, technology promoters, manufacturers, and investment companies.