The offshore wind energy market consists of offshore wind turbines installed in water bodies for power generation. Offshore wind energy is emerging as a viable renewable energy source to tackle environmental challenges. Offshore wind projects offer numerous advantages over onshore installations, including access to stronger and more consistent winds and ability to install larger turbines. The offshore wind energy sector is gaining widespread acceptance globally to achieve energy security and carbon emission reduction targets in the coming years.
The Global Offshore Wind Energy Market is estimated to be valued at US$ 33 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Advantages of offshore wind energy including accessibility to stronger winds, larger turbines and less dependency on weather variations have propelled its demand. Offshore locations do not restrict the height of turbines allowing taller towers and rotors to harness optimum wind speeds efficiently. Furthermore, offshore setups possess minimal noise pollution compared to onshore setups contributing to their increased popularity.
Key Takeaways
Key players operating in the offshore wind energy are Siemens Gamesa Renewable Energy, MHI Vestas, Senvion, GE Renewable Energy, Adwen, and Enercon. Siemens Gamesa and MHI Vestas hold the major share currently.
The growing environmental concerns related to carbon emissions and need to transition to clean energy sources is driving the offshore wind energy market. Government policies and investments to meet renewable capacity targets are fueling demand.
Major Offshore Wind Energy Market Growth farm developments are taking place across European countries like UK, Germany, Belgium, Netherlands and Denmark. China, Japan, South Korea and the US are also emerging as lucrative markets with favorable policies and investments in offshore wind projects.
Market Key Trends
Larger turbines with higher capacity blades are a key trend in the offshore wind energy market. Turbine capacity has increased from 3-5 MW a few years ago to 8-10 MW currently. Turbines of 15 MW and above capacity are under development. This allows more power generation at lower per MW costs.
Floating offshore wind farms are gaining traction as the next growth avenue. Unlike traditional fixed-structure farms, floating designs enable development of wind projects in deep waters further away from shore. This significantly expands developable waters and harness stronger offshore winds.
Digitalization and use of AI is another area gaining focus. Advanced monitoring systems, drone inspections, and predictive maintenance through digital twin technologies help improve offshore wind project performance and reduce downtime.
Porter’s Analysis
Threat of new entrants: High capital requirements and experience acts as barrier for new players.
Bargaining power of buyers: Wind turbine manufacturers and project developers have bargaining power over buyers as limited alternative sources for wind energy production exist.
Bargaining power of suppliers: Suppliers of components and materials have bargaining power due to concentrated supplier base and switching costs for buyers.
Threat of new substitutes: Though solar is substituting, but offshore wind has advantage due to continuous power generation.
Competitive rivalry: Intense competition exists among existing wind turbine manufacturers and project developers to gain projects.
Geographical regions in terms of value
Europe accounts for around three-fourth of the total installed Offshore Wind Energy Market Size and Trends capacity worldwide led by countries like Britain, Germany, Belgium, Netherlands, Denmark and Sweden. This is attributed to supportive government policies, proximity to electricity demand centers and suitable weather conditions in the region.
Fastest growing region
Asia Pacific region is expected to be the fastest growing market for offshore wind energy during the forecast period. This is mainly due to increasing investments in wind energy sector especially in China, Taiwan, Japan and South Korea prompted by supportive regulatory policies and to meet renewable energy targets.
Explore More Related Article On- Renewable Energy Technologies Market
For Deeper Insights, Find the Report in the Language that You want.
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
