As the demand for renewable sources of energy and wind power technology increases, the wind turbine towers market will grow by more than $7 billion (£4.2 billion) globally in the next six years, according to research. However, insufficient grid structure could hamper growth.
According to figures from GlobalData the wind turbine towers market is expected to increase from $12.1 billion (£7.4 billion) in 2013 to $19.3 billion (£11.8 billion) in 2020. This gives a compound annual growth rate of 6.9%.
Over the forecasted period the global wind power capacity is expected to double, reaching 688 gigawatts (GW) in capacity by 2020. This will be driven by increased popularity and institutional support from across the world.
Harshavardhan Reddy Nagatham, GlobalData’s analyst covering alternative energy, said, “The growth of the wind turbine market is directly related to that of the wind energy market, which is heavily influenced by favourable government policy, rising environmental concerns, increasing demand for power, and the uncertain supply and prices of energy from conventional sources.”
However, insufficient grid infrastructure and a shortage of skilled workers represent major barriers to growth and could lead to project delays, poor quality services and impede growth in the medium-term, the report added.
Nagatham commented, “The existing grid infrastructure is very poor and urgent modifications need to be made in order to accommodate the specific characteristics of wind power. Its upgrade also requires a substantial amount of investment in terms of financial resources and time.”
According to the report, China had the largest amount of wind turbine towers installed in 2013, reaching a market share of 47.4%. The US, which ranked second, trailed behind China with a share of just 7.5% in comparison.
Last year the UK was described at the most attractive country for offshore wind investment, and the fifth most attractive for renewable energy, by Ernst & Young. However, the organisation added that competing visions and strategies within the government posed serious questions among investors.
PA Consulting Group also ranked 30 different countries in the renewable and conventional energy sectors. Overall the UK ranked sixth place but onshore and offshore wind received the highest marks.