tries. Grid expansion is not always able to keep up with the rate at which wind turbines are growing, and this restricts the industry’s growth. For instance, in China about 25% of the capacity is not connected to the grid. This suggests that if grid expansion is not ramped up in the country in the future, wind industry’s growth could be relatively slower than expected. The availability of appropriate locations for wind farms also is becoming a topic of concern for the wind industry as wind turbines have to be away from population cen-ters. However, this has resulted in the development of offshore wind farms. In addition, the industry is exploring the option of developing ﬂoating wind farms that will be able to operate in greater water depths and experience more consistent wind speed. In recent years, the Spanish and U.S. governments have reduced mon-etary support to the wind power in-dustry, but complete withdrawal has not been seen. Government support in the form of tax rebates, subsides and policy changes have been instrumental in the growth of wind power industry in any country. Therefore, withdrawal of government support could hamper the industry’s growth. Nonetheless, the capacity addition over the next ﬁve years will be compa-rable to the capacity added in the last 10 years. Despite strong growth in capac-ity, it is expected that lubricant demand growth will lag installation growth. Gradual drain interval extension, use of higher MW turbines and penetration of direct drives will have a dampening effect on lubricant demand growth. Forecast Wind Turbine Installation Capacity and Lubricants Demand, 2005 to 2020 Figure 5 | Wind power capacity will be the most signiﬁcant lubricant demand driver in the coming years. quality synthetic lubricants. The entry barrier for a new lubricant supplier is high due to long product-approval pro-cesses. Despite this, in the last ﬁve years the industry has witnessed the entry of mid-tier lubricant manufacturers. CONCLUSION AND OPPORTUNITIES Wind power is a high-growth industry and its lubrication needs are expected to trend in a similar fashion. The in-dustry will drive demand for high-performance lubricants, and suppliers willing to offer product customization and after-sale services will have higher growth prospects. This fast-growth, risk-averse industry will remain at-tractive for the suppliers of synthetic lubricants as wind turbine lubricants have a high penetration of synthetics as compared to other industries. CHALLENGES Growth of offshore and ﬂoating tur-bines will add to the challenges asso-ciated with wind turbine lubrication. Moisture is a big problem in a gearbox because it leads to severe corrosion if not expelled from the system. There-fore, lubricant suppliers need to focus on developing more robust lubricants to help minimizing gearbox failure. Mixing and contamination of grease with dirt and water are common prob-lems reported by wind farm operators. However, these problems are not as common with automatic greasing sys-tems as with manual lubrication. Lu-bricant suppliers should collaborate with farm operators to develop proper training of maintenance professionals to minimize these issues. COMPETITIVE LANDSCAPE The wind turbine lubricants market is highly consolidated and the top ﬁve suppliers account for 85%-90% of the market. The industry is being catered by the leading global lubricant compa-nies such as ExxonMobil, Shell and BP . The advantage these companies have over niche or regional suppliers in-clude OEM-approved products, supply reliability, consistent quality across the globe and capability to produce high-Sushmita Dutta is project lead-energy for Kline. You can reach her at sushmita.dutta@ klinegroup.com. Kline is an international provider of world-class consulting services and high-quality market intelligence for industries including lubricants and chemicals. Learn more at www.klinegroup.com. 19 Gus Grissom, Walter Schirra, Alan Shepherd and Deke Slayton. Glenn is the oldest of the seven.