Candle in the wind: Revenue is set to decline as the RET review has delayed projects

The Wind Farm Construction industry provides engineering, procurement and construction services for wind power generation projects. The industry has benefited from government intervention to boost use of renewable energy sources and reduce reliance on carbon-emitting fossil fuels. The Renewable Energy Target (RET) compels electricity generators and retailers to increase the share of power generated from renewable sources. Following a review, in June 2015, the Federal Government scaled back the RET target for 2020 from 41,000 gigawatt hours (GWh) to 33,000 GWh. As a result, investment on wind projects has been volatile over the past five years.While industry performance has been volatile, the industry has grown significantly over the past decade...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 13-18
-0.1%
Forecast Growth 18-23
Profit
Employment
1,244
Businesses
38
Market Share of Companies

Industry Threats & Opportunities

  • Reactivation of delayed projects has boosted industry revenue in the current year
  • Intense price competition in renewable energy certificate trading has kept profit margins tight
  • Trends for larger scale wind farms may prompt revenue volatility and industry consolidation
  • Industry Report - Industry Products Chapter

    The industry constructs wind farms of varying sizes. Larger projects are more technically complex and have more procurement requirements, making the construction of large-scale wind farms the industry's central activity. The construction process involves approximately eight stages and can take up to five years to develop, with the final two stages involving construction and commissioning, and the other stages progressing from initial research to approval and financial commitment.Large-scale wind farm constructionThe construction of large-scale wind farms has been the industry's fastest growing area of activity, increasing as a share of revenue over the past five years. This segment contributes an estimated 68.8% o...purchase to read more.

    Additional Insights for the Wind Farm Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wind Farm Construction Industry are

  • Having links with suppliers
  • Highly trained workforce
  • Good project management skills
  • IBISWorld analysts also discuss how external factors such as World price of steaming coal and Demand from wind and other electricity generation in the Wind Farm Construction industry impact industry performance..

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    What's in this report

    What is the Wind Farm Construction Industry?

    Industry companies construct wind farms, which are collections of wind turbines in a particular area. These farms produce and sell electricity to utilities and other customers. Maintenance, repair and operation of wind farms are excluded from the industry’s activities.

    Industry Products
  • Small-scale wind farm construction
  • Medium-scale wind farm construction
  • Large-scale wind farm construction
  • Industry Activities
  • Small-scale wind farm construction
  • Medium-scale wind farm construction
  • Large-scale wind farm construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of steaming coal
  • Demand from wind and other electricity generation
  • Electricity service price
  • Domestic price of iron and steel

  • Current Performance
  • Renewable generation markets
  • Competition
  • Profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Demand trends
  • Technology trends
  • Table: Wind Farm Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wind Farm Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wind and Other Electricity Generation

  • Key Selling Industries
  • Engineering Consulting
  • Finance
  • Industrial Machinery Manufacturing

  • Products & Services
  • Large-scale wind farm construction
  • Medium-scale wind farm construction
  • Small-scale wind farm construction
  • Chart: Wind Farm Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Owner-operators
  • Private energy developers
  • Public generators
  • Private generator-retailers
  • Chart: Major Market Segmentation for the Wind Farm Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Wind Farm Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wind Farm Construction Industry

  • Industry Globalization
    Downer EDI Limited,
  • Table: Downer EDI Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Wind Farm Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Wind Farm Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Gigawatt Hours (Gwh)
  • 1 gigawatt is equal to 1000 MW of electrical power. Over a full year at 100% capacity 1MW of power production is equal to 8.76 GWh (1 year = 8760 hours), but most plants do not run at 100%.
  • Megawatt (Mw)
  • A unit equivalent to one million watts of electrical power.
  • Roaring Forties
  • Strong westerly winds found in the southern hemisphere, typically between the latitudes of 40 and 50 degrees.
  • Watt
  • The most basic unit of power, equal to one joule of work per second.
  • Wind Turbine
  • Technology used to capture kinetic energy from wind resources and translate it to electricity.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Wind Farm Construction market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Wind Farm Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Wind Farm Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Wind Farm Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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