The demand for wind turbines in global market in 2014 will reach 47 GW while the manufacturing capacity will exceed 71 GW, according to a new analysis from Navigant Research.
The global wind turbine manufacturing capacity has exceeded global demand, providing flexibility and cost control.
Due to the oversupply, wind turbine manufacturers have the option of adjusting what components they produce in-house, what is outsourced, and when a blend of both is advantageous for cost, technological, or geographic reasons, says Jesse Broehl, senior research analyst, Navigant Research.
The usual trend seen is that many manufacturing facilities are running at less than full capacity, product innovation, lean manufacturing, as well as outsourcing.
All these factors have directed to a competitive wind industry, able to face the challenges of future wind markets.
The study analyzed wind energy supply chain in detail including more than 500 component and materials suppliers.
The team has found that over the past 2 years cost has reduced due to more flexible sourcing strategies across the wind power supply chain.
This cost reduction enabled better geographic market access, minimizing the risk and ensuring profitability for vendors in the component value chain.
In addition, the report investigates in detail the wide variety and product evolution of wind turbine blades, among many other areas of production.
According to the report summary, many manufacturing facilities that had been built for the growing wind market are running at partial capacity, providing stress on suppliers.
Sabeena Wahid
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