This is part two of EkaLore’s comparison between US/Europe and the Chinese wind power marketplace. This post focuses on the Chinese side of the market.
The highly competitive Chinese domestic market is creating competitive enterprises in the same way that Japanese car producers were driven first by domestic competition and then went on to the global market. China, the largest wind power market in the world, has a few major players splitting 70% or more of the domestic market (including Shanghai Electric, Goldwind, Dongfang, Envision, Ming Yang). Changes in the Chinese domestic market followed subsidy changes in 2020. Intense competition from global enterprises, looking to Chinese investment, have currently attained less than 10% share. A key EU player, Siemens/Gamesa produces wind turbine components in China while ceasing sales in the Chinese market. Global expectations and anticipation of large renewable investments is creating global competitors.
Competition has prompted Chinese enterprises to continue invading global markets. Over the last decade, small ‘showcase’ and demonstration projects positioned Chinese enterprises to become Alien Invaders. Chinese wind enterprises have responded by looking to local-market production (Ming Yang) and selling key components (towers). The EU has acted to restrict Chinese wind turbine tower imports to protect the EU market. Goldwind (less than 15% of revenue is export) exports 60% or more of Chinese wind power revenues. Other Chinese producers also export less than 15% of their products by revenue. Chinese enterprises have identified key opportunities as favored participants in the Chinese “Belt and Road Initiative”. Chinese producers will execute with capital, low-cost production, and technology expertise. Against Alien Invaders EU and US suppliers need expect fierce competition even while favored participants.
Key for each of the competitive enterprises in multiple marketplaces: strong capital base, execution excellence, and pushing results of innovation to customers. Even domestic market champions are not assured that an Alien Invader can’t grab market and margins.
If you are a domestic or European wind power manufacturer and you’d like to chat about how you can better compete consider scheduling a free consultation with a Senior Analyst at Ekalore – www.ekalore.com/contact
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