World Market for Turbines to Reach $133 Billion in 2014

The world market for turbines and related products (turbine-based engines, generators and generator sets) is projected to increase 6.1 percent per year through 2014 to $133 billion.  Growth will be driven by the wind turbine sector, which consistently exceeded industry growth estimates over the 2004-2009 period.  China doubled its installed wind power generation capacity in 2009, with the US also seeing stellar growth in new capacity. These and other trends, including market share and product segmentation, are presented in World Turbines, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Through 2014, the large turbine engine segment will also post strong gains, supported by increases in aircraft manufacturing as a result of surging demand from heavily populated developing countries such as China and India in both commercial and military applications.  Because Boeing (based in the US) and Airbus (based in France) account for the vast majority of global commercial aircraft manufacturing, their introduction of new aircraft models will support demand for turbine engines in the developed regions in which they are headquartered.

Growth in demand for turbines and related products in China will remain well above the global average through 2014, although it will decelerate considerably from the better than 30 percent yearly gains registered between 2004 and 2009.  The Asia/Pacific region will expand its share of world turbine demand from 29 percent in 2009 to 32 percent in 2014.  The strongest percentage gains in regional demand will be seen in Central and South America and the Africa/Mideast region, although both regions combined will account for just seven percent of global turbine and related product demand in 2014.

Turbine demand in the US will grow 5.5 percent annually through 2014, with more rapid gains hindered by the fact that 2009 was such a strong year for US wind turbine sales.  Of the total installed wind power generation capacity in the US at the end of 2009, almost 30 percent was added in that year.  Demand in Western Europe will grow 4.0 percent per year through 2014.  The West European wind energy sector is the most mature in the world and will post relatively modest gains through 2014 in spite of a booming offshore sector and significant onshore wind turbine replacement demand in several countries.  Wind power currently supplies about 20 percent of electricity demand in Denmark; 15 percent in Spain and Portugal; eleven percent in Ireland; and eight percent in Germany.  These rates are unheard of in other regions of the world. 

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.