Global Offshore Wind Market was valued at US$ 41.8 billion in 2022. The offshore wind market industry is projected to grow from US$ 47.4 billion in 2023 to US$ 131.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.68% during the forecast period (2023 - 2030). The market is predicted to expand as a result of rising demand for renewable energy sources and growing interest in lowering the world's carbon footprint. The main factor accelerating market expansion is the increased efforts made by governments and electrical providers to reduce carbon emissions. Also, it is anticipated that the installation of turbines would rise globally, driving the market.
Global Offshore Wind Market: Regional Insights
Europe accounted for the highest offshore wind energy market shares in 2022. This huge market share can be attributed to the growing investments in renewable energy coupled with favorable government policies. Various key offshore renewable power companies in Europe, such as Vestas, ABB, Siemens, and Nordex SE, are anticipated to boost the market's growth. Furthermore, EWI supports offshore wind energy market development and a research & development program for renewable power. Additionally, various countries across Europe are increasing their focus on upgrading their electrical infrastructure, and the government in these nations is promoting the use of renewable energy for power generation. Thus, this is driving the growth of the market. Additionally, the Asia Pacific market is predicted to have the highest CAGR over the forecast years. The adoption of favorable government policies regarding renewable energy throughout rising nations such as China, India, Japan, among others, might be linked to the market expansion in the Asia Pacific region. China is a worldwide leader and provides more than 40% of the world's offshore wind capacity, according to the Global Wind Energy Council's 2019 report. Over 3 million square kilometers of China's 18,000 km of coastline are ideal for offshore renewable energy development. This offers the area tremendous prospects for offshore wind energy market expansion.
Figure 1. Global Offshore Wind Market (%), By Region, 2022
Global Offshore Wind Market: Growth drivers
There has been a noticeable shift in the energy sector toward renewable and green energy due to factors, such as the need to reduce carbon emissions, depletion of fossil fuels, climatic change, etc. Various government policies are in place to support the initiative toward greener energy. Many multinational companies are taking initiatives to cut down their carbon footprint to contribute to a greener planet and sustainability. For instance, Equinor (Norway) aims to cut its carbon emissions by half by 2050. Apart of the plan is to develop its renewable energy businesses, particularly offshore wind, which may reach 6,000 megawatts in six years and 16,000 megawatts in 15 years. Another example is the energy giant Total entered into an agreement with SSE Renewables to acquire a 51% stake in its Seagreen offshore wind farm project. Total is anticipated to invest Euro 70 million for this project.
The market for offshore wind power is highly fragmented with the presence of lots of competitive players around the world. Some of the leading players are Siemens Gamesa, MHI Vestas Offshore Wind, Senvion, Adwen Offshore, ABB, GE Renewable Energy, Ming Yang Smart Energy, Nordex Group, Goldwind, Envision Energy, Suzlon Group, and Hitachi.
|Base Year:||2022||Market Size in 2023:||US$ 47.4 Bn|
|Historical Data for:||2017 to 2021||Forecast Period:||2023 to 2030|
|Forecast Period 2023 to 2030 CAGR:||15.68%||2030 Value Projection:||US$ 131.4 Bn|
MHI Vestas, Siemens AG, General Electric, ABB, Ltd., EEW Group, Nexans, and A2SEA A/S.
|Restraints & Challenges:||
Global Offshore Wind Market: Market Restraints
Offshore wind is one of the most promising and eco-friendly energy-producing technologies. Though it has a high-capacity factor compared with related technologies such as solar and onshore wind, its huge capital cost is deterring its implementation. Offshore wind turbines are susceptible to erosion, as they operate for decades in harsh marine environments. Sometimes, even the most advantageous features, such as high wind speeds, become a negative factor for offshore wind turbines. For instance, the turbines tend to shut down when the wind speed exceeds 25 m/s. As the size of offshore wind farms has increased over time, challenges related to construction, transportation, installation, and operation have also increased. Challenges associated with logistics, in general, are a greater task in offshore wind farms. Wind farms are usually located very far from the shore and are difficult to access, especially in bad weather conditions. Hence, rectifying even the smallest technical issue could be tricky and costly. Other challenging factors in offshore wind power deployment relate to resource characterization, grid interconnection and operation, and the development of transmission infrastructure, which are much simpler in other technologies, such as solar and onshore wind. Thus, the high capital costs and issues associated with operations, maintenance, transportation, and logistics restrain the global market.
Figure 2. Global Offshore Wind Market (%), By Location, 2022
Among the three locations by the depth of offshore wind turbines, shallow water offshore wind turbines dominated the market, due to cost-effectiveness and easy maintenance. Due to favorable weather conditions in Europe, shallow-water wind turbines are majorly installed in the region. On the basis of components, turbine components are the major contributor to the growth of the offshore wind market. Different components of turbines such as the tower, rotator, blade, and nacelle have the highest share of the capital cost. Larger the turbine, the more energy it produces when it rotates.
Global Offshore Wind Market: Recent Developments
Global Offshore Wind Market: Key Players
Some of the major players in the global offshore wind market are MHI Vestas, Siemens AG, General Electric, ABB, Ltd., EEW Group, Nexans, and A2SEA A/S.
Definition: Offshore wind provides the electrical energy on the continental shelf to harvest the wind energy. Wind speed is generally stronger and steady at the offshores than on the land. Offshore wind turbines are also located near coastal areas eliminating the need for new overland transmission lines.
Offshore wind energy is the generation of electrical energy by the installation of wind turbines at sea. The wind blows faster and steadily at the sea than on land or onshore areas, that result in more stable and higher yield of energy. The main advantage of the offshore wind energy production is that it contributes to achieve the goal for renewable energy, not consume water and do not emit environmental pollutants or greenhouse gases and helps to reduce the global warming.
Major drivers propelling the global growth of the offshore wind market include the rising demand for electricity and increasing awareness about the greenhouse gases. According to the International Energy Outlook 2016, the global energy demand is set to increase from 268 mboe/d in 2013 to 399 mboe/d by 2040. Renewable energy sources are the fastest growing energy sources which in turns drives the global offshore wind market. Government regulations and current policies regarding fossil fuel use, globally energy related carbon dioxide emissions are expected to increase to 45 billion metric tons in 2040, according to U.S Energy Information Administration (EIA), therefore with increase in concerns about the greenhouse gases there is rise is demand for the renewable sources of energy which in turns drives the offshore wind market.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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