Positive Mood Prevails in International Wind Energy Market

An increasingly positive assessment of the world-wide market situation in both, the onshore and offshore segments, is reflected by the results of the most recent WindEnergy trend:index (WEtix) survey which was conducted among representatives of the global wind industry. By now more than 4,000 wind industry experts from all parts of the value chain have taken part in the survey which has been held semi-annually since 2018. The overall expectations regarding the future development of the industry are positive. The participating experts believe there are still many technological opportunities to be explored, seeing excellent international market perspectives. Survey participation remains high and stable, and the rate of completely answered questionnaires is increasing. Representativeness continues to be high, as well. This means that the WEtix index, which is jointly compiled by WindEnergy Hamburg, the world’s leading expo for onshore and offshore wind energy, and wind:research, the leading wind energy market research institute, has firmly established itself as the industry's global barometer of mood.

“The WEtix survey provides all wind energy experts with an excellent opportunity to share their assessments of the industry's current and future situation. We are pleased that this opportunity has been receiving such a great response. It provides a means to capture the mood in the context of international perspectives in a manner that is normally possible only at the world’s leading wind industry expo itself," emphasised Bernd Aufderheide, President and CEO, Hamburg Messe und Congress GmbH which organises WindEnergy Hamburg. "Positive messages reflecting a global view, such as this one, are of exceptional importance for the market at this time."

Overall the share of completely answered questionnaires has been growing: In the third survey, approximately 65per cent of responding market experts answered the full set of questions. The distribution of response rates across countries and regions reflects the market volume in the respective country or region, accounting for the onshore and offshore segments. This is one of the indicators for high representativeness. In general, distributions have remained more or less the same, with the onshore segment gaining ground.

Assessments of global (onshore and offshore) wind market showing upward trend

In this year's survey the participating experts see the current international environment for onshore wind energy in a much more positive light than in 2018. Germany is an exception as conditions are being judged even more critically this year than before. Conditions in the offshore segments are receiving increasingly positive assessments this year, especially so in Asia but also in North America. In Germany these values are decreasing, if less markedly than in the onshore segment and overall still on the positive side.

Regarding the assessment of the global market, the overall mood in onshore wind energy is by and large positive (refer to fig. 2); and in some regions, such as Asia and North America, the spring 2019 values have clearly improved compared to 2018. The mood in Germany has worsened whereas the European trend is more positive. The high level of the mood in offshore wind energy is impressive; this positive trend is especially noticeable in North America, Asia and the rest of the world (ROW). The assessments given for the German market are less positive, however the downward trend is not as dramatic here as in the onshore segment.

The survey participants were also asked for their assessment of the future development. While expectations for the future of the onshore market in Asia or ROW were trending slightly downwards in 2018, they are now significantly more optimistic. Similarly, assessments for North America are much more positive than in 2018. In Germany stakeholders are not placing very much hope in the market, based on past tenders.

The outlook on the offshore segment in Asia, North America and Europe for the year 2021 is characterised by a strong positive trend (refer to fig. 2). Similarly, the market development for the ROW received more optimistic assessments, as well. The mood in Germany has stabilised compared to 2018.

High expectations for further optimisation potential

Regarding the optimisation potential through digitalisation the participating experts share a strong sense of anticipation: last year's high results have risen even further (refer to fig. 3). There is a significant increase in the offshore wind segment in the current survey. There are high to very high expectations of cost savings enabled by new technologies; the values for the onshore segment have remained nearly unchanged whereas the offshore results have topped their high 2018 levels in the spring 2019 survey.

For a complete listing of WEtix results, including additional statements and forecasts as well as the respondents' industry affiliation please go here.

About the WEtix survey:

The respondents’ activities continue to be primarily in the onshore segment, with nearly twice as many responses as from offshore. About 40per cent of respondents are active in both market segments. The survey participants are primarily manufacturers, most of them producing turbines. Other activity areas represented based on their respective market share include operation and maintenance, project development, installation and others. Nearly three fourths of participating companies are mainly focused on Germany and/or Europe. North America, Asia and the rest of the world place similarly. As in previous surveys, a large portion of responding wind energy experts (about one fourth) hold a management position. Furthermore, nearly 15per cent of respondents work in sales while close to 12per cent are involved in research and development. More than half of responding companies engage in O&M business activities, among others. Moreover, nearly half participate in project development activities, and more than 38per cent are manufacturers. Main activities within manufacturing are distributed relatively evenly, with the majority focused on making turbines and rotor blades, as could be expected.