Wind Turbine Companies Set for Continued M&A as Chinese Companies Take the Lead
March 23 2016 - 3:00AM
FTI Consulting, Inc. (NYSE:FCN), the global business advisory firm
dedicated to helping organisations protect and enhance their
enterprise value, today announced the release of FTI Intelligence’s
latest renewable energy publication, the Global Wind Market Update
– Demand & Supply 2015 report.
The report finds that Western wind turbine manufacturers are
gearing up for more M&A activity as the challenge of Chinese
competitors continues. Overall, the global wind industry enjoyed a
second consecutive record breaking year, as companies installed
63GW of new capacity, compared to 51.5GW in 2014. China led the way
with 30.04GW, almost half the total, and Chinese companies take
eight out of the top 15 places in FTI Intelligence’s ranking of the
top wind turbine OEMs. Chinese manufacturer Goldwind became the
world’s largest supplier of turbines, replacing historic market
leader Vestas.
More than 99 percent of Chinese companies’ installations were in
their home market in 2015, while Western companies such as Vestas,
GE Enercon, Gamesa and Siemens continued to dominate in
international markets. The top five companies combined accounted
for almost 76 percent of the global market, excluding China. FTI
Intelligence expects Chinese companies to increase their
international market share in the next five to 10 years, however,
helped by favourable government policies and an anticipated
slowdown of installations in China during 2016.
Western turbine suppliers benefited strongly from the global
boom in installations, with margins and share prices at buoyant
levels. However, FTI Intelligence expects global installations to
fall by 15 percent in 2016 and Western companies will face intense
price competition both from their peers and Chinese competitors.
M&A activity surged in 2015, with the merger of Germany’s
Nordex with Spain’s Acciona Windpower, as well as the completion of
GE’s acquisition of Alstom. Germany’s Siemens, currently ranked
fourth, is in talks to acquire Spain’s Gamesa, in fifth place, in a
move that would create a market-leading European giant.
“Chinese companies made up eight out of the leading 15 OEMs as
well as the top 15 wind farm owner-operators in 2015, but their
outstanding performance has been primarily driven by the market
growth at home,” says Feng Zhao, Senior Director in the FTI-CL
Energy practice. “With China’s market expected to grow at a steady,
but less spectacular rate during the 13th Five-Year Plan period
(2016-2020), we can expect to see Chinese companies increasingly
challenging outside their home market, encouraged by favourable
government policies.”
“Despite booming installations, competition in the global wind
market is more intense than ever, and Western turbine manufacturers
are getting ready for the future by stepping up M&A activity,”
explains Aris Karcanias, Managing Director at FTI Consulting and
Co-Lead of the Company's Clean Energy practice. “Only those
companies that can leverage global supply chain economies and tap
into high-growth markets around the world will be able to compete
at the very top of the market.”
Key findings in the Global Wind Market Update – Demand &
Supply 2015 report include:
- Detailed rankings for turbine OEMs. A graphic accompanying this
release is available
at http://www.globenewswire.com/NewsRoom/AttachmentNg/ced854bc-6d00-4da2-a44c-99c53514abc4
- Detailed wind farm owner-operators and trends of wind project
ownership.
- Forecasts for the wind market from 2016 through 2025 including
tailor-made country profiles for established and emerging
markets.
- Evaluations of technology segmentation and technology
trends.
The
Global Wind Market Update – Demand & Supply 2015 report will be
released in four parts starting with the Supply Side Analysis 2015,
followed by Demand Side Analysis 2015, Technology and Project
Owner-Operators. This report is part of a series of data-driven
market intelligence publications evaluating competitive markets,
policy, finance, technology and business models across the energy
spectrum. The report is authored by members of the FTI-CL Energy
practice, a cross-practice team of energy experts from both FTI
Consulting and its subsidiary, Compass Lexecon.
To learn more about the FTI Intelligence report, please visit
www.fti-intelligence.com or contact us at
fti-intelligence@fticonsulting.com.
FTI Intelligence – Data Driven Market
Intelligence
FTI Intelligence provides a clean energy subscriptions service.
This service is a series of data-driven market intelligence
publications evaluating competitive markets, policy, finance,
technology and business models across the energy spectrum. Derived
from our comprehensive databases, local knowledge, and the opinions
of leading industry experts and an extensive network of
professionals, these publications deliver a powerful combination of
strategic insight and reliable market forecasts for both
established and emerging markets.
The views expressed in this work do not necessarily represent
the views of the publisher, its management or employees, and the
publisher is not responsible for, and disclaims any and all
liability for the content of statements written by the authors of
this work.
About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm
dedicated to helping organisations protect and enhance enterprise
value in an increasingly complex legal, regulatory and economic
environment. With more than 4,600 employees located in 28
countries, FTI Consulting professionals work closely with clients
to anticipate, illuminate and overcome complex business challenges
in areas such as investigations, litigation, mergers and
acquisitions, regulatory issues, reputation management, strategic
communications and restructuring. The Company generated $1.78
billion in revenues during fiscal year 2015. For more information,
visit www.fticonsulting.com and connect with us on Twitter
(@FTIConsulting), Facebook and LinkedIn.
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