Frost & Sullivan’s analysis forecasts that global personal protective equipment (PPE) revenues in the wind energy industry will reach US$514.6mn by 2025, up from US$409.2mn in 2020, growing at a CAGR of 4.7%
The industry growth is driven by an increase in wind farm installation and maintenance services and resultant employment opportunities, growing awareness about wind energy PPE, riskier work environments, and stringent regulatory compliances.
Europe is the largest market for wind energy PPE, constituting nearly 44.4% revenue market share in 2020. However, with the expected increase in offshore and onshore farms and employment opportunities, the Asia-Pacific region is expected to have the highest growth rate and expand its revenues from US$123.6mn in 2020 to US$157.2mn in 2025.
Wind energy PPE includes above-the-neck, respiratory, hand, foot, and fall protection, along with protective clothing. Among these, fall protection PPE is the largest and fastest-growing product segment. It is expected to have a CAGR of 5.1% from 2020 to 2025.
“COVID-19 stalled the demand for PPE in the wind energy industry due to the temporary delay in wind farm installations. With economies expected to slowly recover and a renewed interest in environment-friendly and sustainable sources of electricity generation, the demand for PPE in the wind energy industry is expected to rise,” said Anjan Roy, senior research analyst, chemicals, materials and nutrition practice, Frost & Sullivan.
“Offshore wind farms and electric power grids are expected to further enhance PPE usage. Offshore wind turbines can produce more electricity, owing to the steady wind, but the construction, repair, and maintenance require more manpower than the traditional onshore wind turbine, thus driving the usage of PPE in the industry.”
“Tax and financial incentives along with favourable renewable portfolio standards (RPS) play a critical role in driving wind energy, correspondingly increasing the PPE usage across the world. In the US, all construction on wind energy systems started by 31 December 2020, can either receive the federal Business Energy Investment Tax Credit (ITC) or the federal Renewable Electricity Production Tax Credit (PTC). In China, regulators approved subsidy-free projects of 11.4 GW of wind energy in 2020. And the UK has lifted its ban on subsidizing new onshore wind farms, allowing floating offshore wind projects, in a new auction scheme announced in June 2020,” Roy added.
To expand revenue generation prospects, PPE manufacturers should explore these strategic recommendations:
Above-the-neck protection: Major manufacturers will grow by consolidating their positions in existing markets as well as through mergers and acquisitions in unexplored regions. The future for above-the-neck PPE lies in more customised and integrated solutions with multiple functionalities integrated into a single product. Technology will also drive the market with an increasing preference for more advanced active communication ear muffs, custom-moulded earplugs, protective eyewear, and smart helmets.
Respiratory Protection: The development of filter technology has resulted in the rising adoption of non-woven filters in respiratory protection that are expected to replace plastic filters. Increasing awareness of the ill effects of silica and the implementation of respirable crystalline silica standard (29 CFR 1926.1153) are expected to positively influence the volume demand for respiratory protection.
Protective Clothing: This segment is expected to be driven by reusable fire-resistant (FR) clothing because it is comparatively more cost-efficient. In addition, there is an increasing preference for inherent FR clothing over treated FR clothing because the protective capability of inherent clothing does not diminish over time, even after numerous washes.
Hand Protection: Product innovation and diversified product offerings will help market participants remain competitive. Technical innovation includes gloves made of high-performance polyethylene (HPPE), which offers superior grip and protection.
For further information on this analysis, The Global PPE Market in the Wind Energy Industry is being Driven by Government Incentives and Initiatives, visit: http://frost.ly/5ax.