Offshore Wind Power Market

Offshore Wind Power Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Offshore Wind Power Market grew at a CAGR of 10.7% between 2017-2021 and is estimated to be US$ 28,654.7 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 11.4% and is expected to reach a valuation of US$ 84,342.8    Mn by 2032 end.

Throughout the projected period, the market is anticipated to grow in response to rising demand for dependable and continuous power supply from end-use industries such as industrial, telecom, data centers, and maritime.

Market Dynamic

GROWING INVESTMENT IN RENEWABLE ENERGY WILL DRIVE MARKET

Various governments have made numerous initiatives to reduce carbon emissions, reduce dependence on fossil fuels, and support green energy. Different multinational companies are taking initiatives to reduce their carbon footprint to contribute to a greener planet and sustainability.

HIGH INVESTMENT COSTS HAMPER THE MARKET GROWTH

Offshore wind farms have taken advantage of favorable wind conditions, but several challenges have faced them. One of the main problems is the relatively high cost compared with traditional generation technologies, such as coal, natural gas, and nuclear. Another challenge is the large offshore wind farms, leading to high transportation costs and congestion at loading ports. Finally, offshore wind turbines are susceptible to erosion since they operate in harsh marine environments.

THE RISE IN INVESTMENT FROM VARIOUS GOVERNMENTS IN  PROJECTS WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

In the upcoming years, there are expected to be a lot of opportunities for adopting Offshore Wind Power systems due to the worldwide increase in rural electrification projects; Renewable energy demand will continue to rise, owing to the falling technology costs and the increasing need to reduce CO2 emissions. Renewables are expected to provide 25% of worldwide energy generation by 2050.

COVID-19 Impact

The global economic slowdown due to the COVID-19 pandemic has put the wind power industry’s resilience and flexibility to the test. The pandemic continues to wreak havoc on the supply chain of the wind power industry. Europe is one of the main markets for offshore wind energy, and it is also one of the most heavily impacted by COVID-19, which has slowed the continued expansion owing to project delays.

Because of the interruptions to European and global trade, the projects under construction were delayed, resulting in higher CAPEX for such tasks. The market value might not catch up to the pre-COVID-19 value until 2027.

Market Segments Covered in Report

By Component :

• Turbines
• Electrical Infrastructure
• Substructure
• others

By Location :

• Shallow Water
• Transitional Water
• Deep Water

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are Turbines projected to ensure the most revenue during the forecast period?

At 55.0% of the market, Turbines had the greatest revenue share. For increasing output and decreasing installation costs, offshore wind turbines are more beneficial. The manufacturer can use many rotors for one turbine, which is useful for a large number of this type of structure. Larger blades allow to increase power generation, but it also requires highly specialized vehicles to transport these components. Batteries that store energy from the wind helps prevent transportation during night time and allows better performance of turbines at night.

What location for Installation has the highest market?

In 2021, Monopile foundations will be used for depths up to 30 meters and are the most cost-efficient way to build a trench. Conventional steel jacket structures can accommodate water depths of more than 80 meters, but their construction costs can be relatively high and installation time-consuming compared with tripod pile foundations.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the Europe market held a sizeable revenue share of 39.4%. The European market is the largest market among all regions in four continents. It comprises the UK, Germany, and the rest of Europe. To generate more power, governments are also promoting renewable energy sources. Europe also has the most installed capacity for offshore wind power generation through its coasts compared to other regions.
• The demand for energy in the US will grow by 10.0%. This is due to the population and a growing economy. The market size of offshore wind energy in the US is $300 billion, estimated to increase by 2020. US companies, too, are investing in the offshore wind industry.

Competition Analysis

Major corporations are utilizing organic and inorganic development tactics to strengthen their position in the market. Diversification is a strategy used when an organization wants to increase their overall sales with various products. This helps attract more customers, thus increasing profits.

Some of the key developments that have taken place in the Offshore Wind Power Market include:

• In November 2021, the UK announced a $218 million investment to construct floating buildings in Wales and Scotland.
• In January 2022, Italy revealed plans to construct a 495 MW floating structure with 33 15 MW turbines.

A list of some of the key suppliers present in the market are:

• Siemens Gamesa
• Prysmian Group
• Nexans, Sumitomo Electric
• General Electric
• Enessere, LS Cable & System
• Vestas, Goldwind
• Nordex
• Global Energy (Group)
• Senvion
• RTS Wind
• Vattenfall
• ENVISION Group
• NSW Cable
• Clipper Windpower
• Enercon
• JDR Cable
• Zhejiang Windey

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.