Candle in the wind: Dwindling government support will hurt demand for new turbines

The Wind Turbine Manufacturing industry has benefited from state and federal renewable energy policies over the past five years. A majority of states require utilities to generate a portion of their electricity from renewable sources, including wind. In addition, the federal renewable electricity production tax credit (PTC) subsidizes energy producers based on the amount of renewable energy they generate. However, turbine purchases have been timed to benefit from federal tax incentives, which have been inconsistent and caused significant volatility over the period. The PTC is set to be phased out completely after 2019...purchase to read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 12-17
-18.7%
Forecast Growth 17-22
Profit
Employment
43,760
Businesses
75

Industry Threats & Opportunities

  • Evolution of wind turbines, and the potential rise of offshore wind in the coming years, has led to mergers
  • The vast majority of wind turbine installations contain domestically manufactured parts
  • Employment is anticipated to fluctuate in response to changes in demand
  • Industry Report - Industry SWOT Analysis Chapter

    The Wind Turbine Manufacturing industry is in the decline stage of its life cycle. Industry value added, which measures its contribution to the overall economy, is projected to decline at an annualized rate of 12.2% over the 10 years to 2022. US GDP, by contrast, is forecast to grow an annualized 2.0% during the same period. This indicates that the industry is rapidly falling as a share of the overall economy, largely due to the scheduled expiration of government renewable energy incentives, which have been the primary driver of demand for wind turbines over the past decade. The expiration of these incentives is anticipated to lead downstream utilities to frontload their purchases of wind turbines before their final year in 2019, after which demand will precipitously decline...purchase to read more.

    Additional Insights for the Wind Turbine Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wind Turbine Manufacturing Industry are

  • Ability to negotiate successfully with regulator
  • Ability to pass on cost increases
  • Optimum capacity utilization
  • IBISWorld analysts also discuss how external factors such as Regulation for the Wind Power industry and Value of utilities construction in the Wind Turbine Manufacturing industry impact industry performance..

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    What's in this report

    What is the Wind Turbine Manufacturing Industry?

    The Wind Turbine Manufacturing industry manufactures wind turbine blades, towers, generators and related parts. Industry operators also provide maintenance and support services for installed wind turbines.

    Industry Products
  • Nacelles
  • Rotors and hubs
  • Towers
  • Other electronic components
  • Industry Activities
  • Manufacture wind turbine nacelles
  • Manufacture wind turbine blades
  • Manufacture wind turbine towers
  • Wind turbine repair and maintenance
  • Manufacture wind turbine components
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Regulation for the Wind Power industry
  • Value of utilities construction
  • Electric power consumption
  • Price of natural gas
  • Trade-weighted index

  • Current Performance
  • Production tax credit drives investments
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry structure
  • Overseas and offshore
  • Uncertain future
  • Table: Wind Turbine Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wind Turbine Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Agriculture, Forestry, Fishing and Hunting
  • Electric Power Transmission
  • Wind Power
  • Consumers

  • Key Selling Industries
  • Aluminum Manufacturing
  • Circuit Board & Electronic Component Manufacturing
  • Engine & Turbine Manufacturing
  • Iron & Steel Manufacturing
  • Semiconductor & Circuit Manufacturing
  • Steel Framing
  • Steel Rolling & Drawing

  • Products & Services
  • Nacelles
  • Towers
  • Rotors and hubs
  • Other electronic components
  • Chart: Wind Turbine Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Government policy
  • Power consumption

  • Major Markets
  • Projects with capacity of more than 200W
  • Projects with capacity between 150 and 200 MW
  • Projects with capacity between 100 and 150MW
  • Projects with capacity between 50 and 100W
  • Projects with capacity between 10 and 50MW
  • Projects with capacity of less than 10MW
  • Chart: Major Market Segmentation for the Wind Turbine Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Wind Turbine Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wind Turbine Manufacturing Industry

  • Industry Globalization
    Siemens AG, General Electric Company, Vestas Wind Systems A/S,
  • Table: Siemens AG - financial performance
  • Table: General Electric Company - financial performance
  • Table: Vestas Wind Systems A/S - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wind Turbine Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wind Turbine Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Electric power consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Kilowatt Hour
  • A unit of energy measurement, equal to one kilowatt expended over one hour.
  • Nameplate Capacity
  • The highest possible output of a wind turbine based on its technical attributes.
  • Ptc
  • The abbreviation given to the Wind Power industry's production tax credit that provides operators with 2.2 cents per kilowatt hour produced.
  • What Our Customers Say

    Why buy this report?

    The Wind Turbine Manufacturing Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wind Turbine Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wind Turbine Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wind Turbine Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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