ID: MRFR/E&P/2383-CR | October 2020 | Region: Global | 111 pages
According to the latest report, the Offshore Wind Market size is projected to be worth USD 114.0 Billion by 2027, registering a CAGR of 19.39% during the forecast period (2021 - 2027), The market was valued at USD 39.1 Billion in 2020.
In 2019, according to the reports of Bloomberg New Energy Finance (BNEF), Germany offered to set up auctions for the development of offshore wind turbine to add more than 5 gigawatts so that they can get the altogether capacity of 20 gigawatts by the end of the decades. The global offshore wind market share is estimated to reach USD 114.0 Billion by the end of 2026 with a predicted CAGR of 19.39% during the forecast period. The rise in investment for the development of clean energy is likely to boost the growth of the global offshore wind market during the forecast period. According to (BNEF), the global investment for the development of clean energy was USD 332.1 billion, exceeding over USD 300 billion markets from the last five years. Additionally, the increased rates of emission reduction due to the growth of the economy serve as a great opportunity for the global offshore wind market. Regulatory frameworks and the policies of the government work in favor of the global offshore wind market and it is expected to drive the growth of the market during the forecast period.
This report contains all the information on the global offshore wind market research and the market strengths. The report also contains the culmination of dynamics, segmentation, key players, regional analysis, and other important factors. And a detailed analysis of the global offshore wind market trends and forecast to 2026 is also included in the report.
The prominent companies or the major key players of the global offshore wind market across the globe are focusing on building partnerships and collaborations to gain a competitive circumference. In order to magnify the market trends, the strategies of collaboration have been adopted to increase the efficiency of manufacturing and devaluate the total cost accumulation costs which are likely to boost the growth of the offshore market analysis.
Major Key Players
Covid 19 Analysis
The covid 19 pandemics have affected the global offshore wind market by increasing the delays in the projects. Europe is considered as the leading region of the offshore wind market and it is the most affected by the global pandemic. The disruption in the global trading has restricted the construction of the projects further leads towards increasing CAPEX for the projects. Based on the reports of IEA, the offshore wind market is predicted to witness a higher growth rate, post-pandemic and the major factors for the growth of the market are average LCOE of USD 50/MWh and the rise in the cost competitiveness. However, the government of these markets is willing to increase the volume and target of the offshore market toward 2030, which will ultimately lead towards the maximum offshore installation.
In 2019, Siemens Gamesa Renewable Energy received orders to supply 8 MW offshore wind turbines to the Ørsted 900 MW offshore wind farm in Taiwan.
With the rise in concern about the environment, the major offshore wind market industries are focusing on escalating the production of energy from renewable resources including wind and solar power, for the reduction of harmful emissions. The major key players of the offshore wind market are administrated to develop a magnificent budget for the installation of the projects and R&D activities to enhance the efficiency of the operation and the product portfolio.
There are several ongoing projects incorporated with advanced technology which is likely to improvise the infrastructure of the existing projects which is estimated to boost the growth of the global offshore wind market, during the forecast period.
The global offshore wind market is predicted to witness remarkable growth during the forecast period due to increasing investment in the development of clean energy. According to the reports, the UK government has entrenched the offshore Wind Investment Organization (OWIO) in order to promote investments for sustainable energy resources. The collaboration of the OWIO with the prominent investors for the country’s smooth offshore wind supply chain is likely to create opportunities for various market players and manufacturers.
Huge capital investments and the high maintenance cost are the major restraints of the offshore wind market which leads to the decline of profit. Issues related to logistics are another major hurdle in the growth of the market. Offshore wind turbines are responsible for the harsh marine environment and its more favorable feature like high speeds is considered as a negative factor for the offshore wind turbines.
The lack of easy accessibility due to the installation of the offshore wind turbines far away from the shore makes it difficult to operate mainly in bad weather conditions. The rectification of issues can expensive in terms of transportation, logistics, and maintenance. All these factors are the major challenges that are likely to hinder the offshore wind market growth.
The construction phase of these wind farms is likely to affect marine life and extremely damages the sea mammals, which can be considered as a negative impact. The usage of bubble screens can help in resolving this issue and furthermost, it also helps in reducing the noise pollution generated through these wind energy farms.
Cumulative Growth Analysis
On the basis of the water depth, the global offshore wind market is pronged into up to 30m and 30m above. Among which the 30m segment is expected to hold the majority of the shares due to the installation of the wind towers which is easier in shallow water and altogether decreases the overall cost of the capital.
Moreover, the forecast period is expected to witness a magnificent growth in the 30m above segment and it is predicted to rise from 30% to 50%. This is due to the increase in the investments in the floating offshore wind power projects which are installed in deep water.
Value Chain Analysis
The global offshore wind market revenue is predicted to grow at a 15.39% CAGR, during the forecast period. According to the reports, the global offshore wind market is segmented on the basis of components location and region. Based on components, the global offshore wind market is segmented into towers, turbines, electrical infrastructure, nacelle, and blades. The turbine is likely to dominate the global offshore wind market during the forecast period because the latest model of turbines is more powerful due to its additional features like larger lengths of blades which is capable of utilizing more wind and produces more electricity and along with that it is also a perfect low-cost substitute of renewable energy generation.
Based on location, the global offshore wind market is segmented into shallow water, transitional water, and deep water. The shallow water segmented has accounted for the largest share in the global offshore wind market. Moreover, the transitional water segment is predicted to register a high CAGR of 10.86% from 2019 to 2026. The wind turbines in the deep water are expensive due to the high-cost maintenance and on the other hand, the development of shallow water is cost-efficient due to good weather conditions.
The market is segmented on the basis of location, region, and component. The global offshore wind market is expected to witness decent growth during the forecast period.
Based on the application, the market is segmented into tower, turbines, electrical infrastructure, nacelle, and blades
Based on the propulsion types, the market is segmented into three types shallow water, transitional water, and deep water
According to the reports, the global offshore wind market has been segmented into North America, Europe, and Asia pacific. Europe is expected to occupy a remarkable amount of share in the global offshore wind market followed by North America. Several favorable initiatives in support of wind projects have been taken to reduce the emission of carbon is the major key factor for the growth of the global market. Furthermost, the cost per megawatt-hour has dropped by 50% in the last few years for wind projects, which contributes to the growth of the global market. North America is predicted to be the second-largest market share for the offshore wind market outlook.
Offshore wind energy is constructed on the ocean bodies’ to harvest wind energy to generate electricity. Offshore wind power uses the inshore water areas including fjords, sheltered coastal areas, and lakes, which are used to harvest wind energy to generate electricity. The rise in the shares of renewable energy is the major factor that is driving the growth of the global offshore wind market.
The following report comprises of
In February 2021, Siemens Gamesa Renewable Energy SA secured a firm order to supply turbines for the 448-MW. The latest offshore order includes the supply of 64 units of the SWT-7.0-154 Direct Drive turbines and a 15-year services and maintenance agreement.
Global Offshore Wind Energy Market: By Component
Global Offshore Wind Energy Market: By Location
Global Offshore Wind Energy Market: By Geography
|Market Size||2027: USD 114.0 Billion|
|CAGR||19.39% CAGR (2020-2027)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Components and Location|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||General Electric (US), Siemens Gamesa Renewable Energy, SA ( Germany), MHI Vestas Offshore Wind (Denmark), Senvion SA (Luxembourg), Doosan Heavy Industries & Construction (South Korea), Suzlon Energy Limited (India), Dong Energy A/S (Denmark), EEW GROUP (Germany), ENERCON GmbH (Germany), Goldwind Wind Energy GmbH (China), ABB (Switzerland), Engie (France), Ørsted A/S (Denmark)|
|Key Market Opportunities||Increasing investment in the development of clean energy|
|Key Market Drivers||Escalating the production of energy from renewable resources|
Frequently Asked Questions (FAQ) :
During the review period, the market is anticipated to surge at a decent rate of 19.85%.
Offshore Wind Market size is projected to be worth USD 121.54 Billion by 2027
The notable companies in the offshore market are Senvion SA (Luxembourg), MHI Vestas Offshore Wind (Denmark), Ørsted A/S (Denmark), Doosan Heavy Industries & Construction (South Korea), Goldwind Wind Energy GmbH (China), General Electric (US), Dong Energy A/S (Denmark), EEW GROUP (Germany), ENERCON GmbH (Germany), Siemens Gamesa Renewable Energy, Suzlon energy Limited (India), ABB (Switzerland), Engie (France), SA (Germany), to name a few.
The segments depending on location are transitional water, deep water and shallow water.
Turbine is the component-based segment can take the lead in the global market.
Increasing investments to develop clean energy, economic surge with high focus on emission reduction and increasing competition between top players are boosting the market growth for offshore around the world.
High cost of construction activities can have a negative impact on the market.
Onshore wind power refers to turbines that are located on land and use wind to generate electricity. Offshore wind power is when wind over open water (typically the ocean) is used to generate electricity.
Offshore wind farms have a higher potential for power generation due to faster and more constant winds, also providing energy at a more stable rate. There are no visual or noise pollution disadvantages as those caused by onshore wind farms.