Offshore wind turbines produce clean renewable energy by harnessing the power of wind blowing over large bodies of water such as oceans and seas. Offshore wind energy provides a reliable source of power for coastal communities without the emission of greenhouse gases or pollution. Advancements in turbine design and floating turbine technology have helped harness wind energy more efficiently even in deep waters. The Global Offshore Wind Market Size is estimated to be valued at US$ 40 Billion in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Technological advancements is one of the key trends driving the growth of the offshore wind market. Manufacturers are constantly innovating turbine designs to increase efficiency and energy output. Larger rotor diameters and higher tower heights allow turbines to access stronger and more consistent winds farther away from the shore. Floating offshore wind technologies are also gaining popularity for installing turbines in deep waters where traditional fixed-structure foundations cannot be used. This opens up new potential for offshore development worldwide. Developments in materials science are helping reduce capital and operating costs as well. With continuous technological progress, the economics of offshore wind power will continue to improve, accelerating its adoption around the globe.
Segment Analysis
The global offshore wind market is dominated by the shallow water (up to 30 meters depth) segment. Shallow waters allow for easier access for construction and maintenance activities compared to deep waters. Furthermore, the cost of developing offshore wind projects is lower in shallow waters due to factors such as lower foundation cost. Thus, shallow water projects are more economically feasible currently, thereby accounting for the bulk of installations globally.
Key Takeaways
The global offshore wind market is expected to witness high growth over the forecast period supported by declining costs of technology and strong government policy support for transition to renewable sources of energy.
The European market continues to lead the offshore wind space, with countries like UK, Germany, Belgium and the Netherlands installing significant capacities over the past years. The UK has emerged as the largest European offshore wind market and is expected to witness robust growth over the forecast period supported by government initiatives. In Asia Pacific region, China has ambitious targets for offshore wind and has emerged as the largest market outside of Europe in recent years.
Key players operating in the offshore wind market are Siemens Gamesa, MHI Vestas, Senvion, Adwen, Orpheus Energy, General Electric, ABB, Nexans and Prysmian Group. Among these, Siemens Gamesa and MHI Vestas are the global leaders with dominant market shares. The companies are investing heavily in research and development of larger turbine sizes to reduce project LCOE.
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