In recent years, the manufacturers of wind turbines have mainly dealt with the significant challenges involved with supplying the ever growing market with new machines. As the installed base has grown, the need for service has climbed at an above-average pace. To gain a share of this highly profitable business, companies need suitable business models as well as professional processes and structures. But such organizational actions frequently have not been taken. The Oliver Wyman study “Wind Power 2020: Boom-Market Service” identifies areas for action and provides solutions.
The world market for operations & maintenance (O&M) of onshore wind-power stations will more than quintuple over the next 10 years and reach €27 billion. The service business will rise roughly twice as fast as the rapidly growing business with new units. In Europe alone, service volume will nearly triple, climbing from today’s level of less than €3 billion to about €8 billion in 2020. In the process, it will make up approximately 40 percent of total business. Presuming a level of profitability for the wind-service business that is comparable to that generally achieved in the mature sectors of mechanical engineering, the service business will generate about 75 percent of profits by 2020 in Europe.
To capture the profit potential offered by service, manufacturers need dedicated business models that focus on the O&M business. Potential competition comes from component suppliers as well as independent service providers. Large utilities have also started to insource part of the O&M operations. No player group has gained a clear competitive edge so far. Now it is time to act!