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The wind turbine decommissioning services market size is estimated to grow at a CAGR of 13.86% between 2023 and 2028. The market size is forecast to increase by USD 1.72 billion. The growth of the market depends on several factors, such as the significant reductions in LCOE due to reduced capital costs, the increase in the number of aging wind farms, and the regulations supporting wind decommissioning. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
This report extensively covers market segmentation by application (onshore and offshore), type (large, medium, and small), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Wind Turbine Decommissioning Services Market Forecast 2024-2028
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Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
LCOE for wind power comprises the installation costs and the capacity factor of the energy production. However, innovations in wind power systems have enhanced the efficiency of power generation and led to significant reductions in LCOE due to reduced capital costs.
Moreover, as onshore wind power is competing strongly with conventional power technologies, there is a shift in focus to technological developments in the offshore segment to command margins. Therefore, due to the decreasing LCOE, the decommissioning cost thus, accounts for a smaller proportion. Therefore, with the increase in the capacity of the wind turbine, the decommissioning costs are reduced which is positively impacting the market. Hence, such factors drive the market growth during the forecast period.
There has been a shift from the use of fossil fuels to renewable energy sources such as wind, solar, and geothermal to fulfill the demand for energy as well as to achieve economic, social, and environmental development in a sustainable manner. Therefore, there has been a rise in investments in the renewable energy sector.
Moreover, this is primarily due to technological innovations, which have reduced the overall capital expenditure due to the increased power generation efficiency of the systems. For example, the installation cost of solar photovoltaics (PV) has reduced drastically, thereby reducing the consumption levels of fossil fuels and increasing the adoption of solar power generation. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
One of the main challenges is the decommissioning of wind farms which is highly complex and commands high levels of technical expertise. In addition, during the decommissioning operations, several human and environmental safety issues need to be considered.
Moreover, the operations must comply with the legislative norms. Furthermore, the process of decommissioning is unique to each site, depending on the site characteristics and time, type of structures involved, components used, current market trends, and contractual terms. Hence, unclear government regulations and a lack of expertise in wind turbine decommissioning in APAC are expected to hinder the market growth during the forecast period.
The onshore segment is estimated to witness significant growth during the forecast period. One of the main factors that fuel the global wind turbine decommissioning services market is the end of wind energy subsidies. For example, in Germany, the wind farms that were commissioned before April 2000 are entitled to receive a fixed feed-in tariff in 2020, regardless of the age of the asset. In addition, the plunging of wind power prices, along with the absence of wind subsidies, will affect the profit margins of the wind farm operators.
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The onshore segment was the largest segment and was valued at USD 909.85 million in 2018. Therefore, the owners of the farms, which were commissioned prior to 2000, are likely to opt for decommissioning services. Moreover, SEPA recommends the removal of the onshore wind farm infrastructure to avoid environmental impacts such as carbon loss and pollution of water bodies. a long-term aftercare program needs to be established to monitor the long-term risk to the environment. Therefore the the aging wind farms and increased regulations by agencies guiding the decommissioning process are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
Based on type, the segment is classified into large, medium, and small. Large segments are becoming more prevalent in the global wind turbine decommissioning services market. In addition, larger, more efficient turbines are replacing older, less efficient ones when they become inoperable, requiring specialist decommissioning services. Moreover, large turbines are more economically feasible and provide more energy output. In addition, they usually range in size from 2 to 6 megawatts. Therefore, the need for decommissioning services for larger turbines is fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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Europe is estimated to contribute 32% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. Some of the main countries that are contributing to the market growth in Europe include Germany, Spain, and the UK. In addition, wind power supports the country's transition to low-carbon-based electricity generation. For instance, Germany has been the leading country in Europe in terms of wind power capacity installations over the years. Moreover, Germany is increasing its onshore and offshore wind turbine installations to shift from the use of fossil fuels to renewable energy sources. Furthermore, in Spain, the electricity generated from wind power accounted for 20% of the total electricity produced from renewable sources in the country in 2020. Therefore, such factors are expected to drive market growth in Europe during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global wind turbine decommissioning services market witnessed a significant slowdown due to the steady decline in demand from end-users in Europe. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of wind turbine projects in the region. Such factors are expected to drive the market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
A1Wind: The company offers wind turbine decommissioning services with complete packages and takes away all wind turbine components, and manages all logistics and transportation.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Aggreko Plc, Belson Steel and Scrap, Cadeler, Deltares, DEME NV, EOS Engineering and Service Co. Ltd., General Electric Co., Intertek Group Plc, Jack up Barge B.V., NIRAS AS, Oceaneering International Inc., Principle Power Inc., Ramboll Group AS, ReBlade, Secure Energy Services, SgurrEnergy, Wilh. Wilhelmsen Holding ASA, Wind Decom, and Xinjiang Goldwind Science and Technology Co. Ltd.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The wind turbine decommissioning services market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Wind Turbine Decommissioning Services Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.86% |
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Market Growth 2024-2028 |
USD 1.72 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
13.52 |
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Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 32% |
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Key countries |
US, Saudi Arabia, China, Germany, and Denmark |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
A1Wind, Aggreko Plc, Belson Steel and Scrap, Cadeler, Deltares, DEME NV, EOS Engineering and Service Co. Ltd., General Electric Co., Intertek Group Plc, Jack up Barge B.V., NIRAS AS, Oceaneering International Inc., Principle Power Inc., Ramboll Group AS, ReBlade, Secure Energy Services, SgurrEnergy, Wilh. Wilhelmsen Holding ASA, Wind Decom, and Xinjiang Goldwind Science and Technology Co. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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