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22. April 2024

Playground for Western OEMs narrowing fast: China’s wind turbine giants gain ground

Chinese wind turbine manufacturers, historically focused on their domestic market, are now rapidly expanding internationally, particularly in regions like the Middle East, Africa, India, Brazil, and Australia. With turbine prices 20-40% lower than their Western competitors, Chinese OEMs are gaining significant traction, as highlighted in a study by Greentech Partners. In 2023, they secured 6.8GW in international orders, a major milestone compared to occasional past installations.

While Western OEMs struggle with high prices, limited market focus, and conservative product launches, Chinese manufacturers are aggressively introducing larger turbines with rotor diameters beyond 240 meters and power ratings exceeding 12MW. Markets outside Europe and the US, which favor large-scale projects and lower bureaucratic hurdles, align well with the Chinese approach.

European and US markets remain challenging for Chinese OEMs due to bankability and maintenance concerns. However, as Chinese products demonstrate performance reliability, their acceptance could grow globally, potentially reshaping the competitive landscape. For Western OEMs, this rapid expansion poses an urgent need to reevaluate their strategies.