The offshore wind energy market size accounted for US$ 23,750 Million in 2020 with a considerable CAGR of 19% throughout the forecast period from 2021 to 2028.
Offshore wind energy is the energy taken by the force of the winds at sea, which is transformed into electricity and supplied into the electricity network onshore. This technology is used to produce electricity through the wind using wind turbines constructed by the coastline of oceans and lakes. Offshore wind energy is beneficial as it is generation of energy from renewable sources. Moreover, the energy is generated at superior speed offshore as compared to onshore, which positively impacts the market growth of offshore wind energy. Offshore wind power is a continuously renewable and immeasurable energy source, and the transmission of wind into power generates no harmful greenhouse gas emissions. Furthermore, as governments and industries work to tackle climate change and reduce greenhouse gases, offshore wind energy will play a fundamental role in future electricity generation.
Market Growth Drivers:
• High cost of installation and the effectiveness of offshore wind power for mass power generation will create hurdle in the market
Offshore Wind Energy Market Report Coverage:
|Market||Offshore Wind Energy Market|
|Market Size 2020||US$ 23,750 Mn|
|Market Forecast 2028||US$ 94,215 Mn|
|CAGR||19% During 2021 - 2028|
|Analysis Period||2017 - 2028|
|Forecast Data||2021 - 2028|
|Segments Covered||By Installation, By Water depth and By Geography|
|Regional Scope||North America, Europe, Asia Pacific, Latin America, and Middle East & Africa|
|Key Companies Profiled||Siemens Gamesa Renewable Energy, S.A., Enessere, Vestas, Prysmian Group, Southwire Company, LLC., LS Cable & System Ltd., Sumitomo Electric Industries, Ltd., goldwind.com, RTS Wind AG, WEG, NORDEX SE, ENVISION GROUP, smart dolphin Gmbh, Suzlon Energy Limited and among others.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
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Offshore Wind Energy Market Dynamics
Increasing demand for renewable sources in power generation
Increasing demand for renewable sources in power generation will drive the growth of the offshore wind energy market. Additionally, rising energy consumption and enhancement in environmental concerns regarding exhaustion of natural resources are the major factors growing demand for renewable sources in power generation. However, surging demand for offshore wind installation is on the rise due to the accessibility of advanced technology and turnkey solutions offered by various service providers. Also, the rising demand for clean energy is likely to drive the offshore wind energy market across the globe during the forecast period.
Rising investments in the expansion of offshore wind energy infrastructure will fuel the offshore wind energy market
Rising investments in the development of deep-sea offshore wind energy projects along with the quick technological advancements are set to augment the business landscape. However, the private & public spending for the development & expansion of utility-scale projects with ongoing identification of potential sites for offshore wind projects will provide momentum to the overall industry expansion. Moreover, developing investments towards the expansion of sustainable energy platforms including floating and fixed offshore wind projects will further propel the adaption of this technology. In addition, engineering, procurement, construction and installation companies, oil and gas companies, wind turbine manufacturers, and other corporate investors are already investing in this sector, along with infrastructure funds, institutional investors, and export credit agencies are some of the major factors pouring the market share. Furthermore, enhancing the capacity utilization factor for energy generation in an economical & efficient manner by the robust R&D and investment by various energy and power companies in offshore wind energy will be fuel the growth of the offshore wind energy market.
Offshore Wind Energy Market Segmentation
The offshore wind energy market is segmented based on installation, water depth, and region.
Market by Installation
Among the installationsegment, fixed offshore structure segmentdominated the market share in 2020. Floating structure are relatively new in nature and is projected to show fast growth during the forecast period.
Market by Water depth
The up to 30m water depth segment is accounted to witness significant growth rate during the forthcoming years, due to rising expansion of the offshore wind power,Installing wind tower within lower depth is easier and reduces capital costs at the equivalent time. But also, the trend in the global market potential is anticipated to shift towards the deep-water installation where water depth is more than 30 meters that will expand the segmental growth.
Offshore Wind Energy Market Regional Overview
Middle East & Africa
North America region contributed for the largest offshore wind energy market share in 2020
Among all-region, North America is anticipated to have the largest market share over the forecast period, owing to rising demand for wind energy and growing investment in the wind energy sector in North America. In addition, the Canada and U.S. are prominent contributing economies in wind energy. The U.S Department of energyfunded US$ 21 million in December 2020 for innovative offshore wind energy technologies in three different projects in the US. Moreover, the prominent presence of key players in North America is boosting the growth of the offshore wind energy market in this region. Furthermore, Asia Pacific is expected to expand its market share during the forthcoming years.According to the Global Wind Energy Council (GWEC), China has been leading the offshore wind energy installation three years in a row with asinstallation of 3 GW of offshore wind capacity alone while the global offshore wind energy installed capacity in 2020 stood at 6 GW. Also, the rapid infrastructural enhancement and the progress of offshore wind energy projects across Europe, especially in Netherlands and Belgium will have augmented growth of the offshore wind energy market.
The prominent players of the energy offshore wind energy market involve Siemens Gamesa Renewable Energy, S.A., Enessere, Vestas, Prysmian Group, Southwire Company, LLC., LS Cable & System Ltd., Sumitomo Electric Industries, Ltd., goldwind.com, RTS Wind AG, WEG, NORDEX SE, ENVISION GROUP, smart dolphin Gmbh, Suzlon Energy Limited and among others.
The estimated value of Offshore Wind Energy Market in 2020 was accounted to be US $ 23,750Mn.
The projected CAGR of Offshore Wind Energy during the analysis period of 2021 to 2028 is 19%.
The prominent players of the energy offshore wind energy market involveSiemens Gamesa Renewable Energy, S.A., Enessere, Vestas, Prysmian Group, Southwire Company, LLC., LS Cable & System Ltd., Sumitomo Electric Industries, Ltd., Goldwin, RTS Wind AG, WEG, Nordex SE, Envision Group, smart dolphin Gmbh, Suzlon Energy Limited and among others.
North America held the dominating share for Offshore Wind Energy during the analysis period of 2021 to 2028
Asia Pacific region exhibited fastest growing CAGR for Offshore Wind Energy during the analysis period of 2021 to 2028
Increasing demand for renewable sources in power generation, the rising demand for clean energy, and rising investments in the expansion of offshore wind energy infrastructure will fuel the offshore wind energy market.
Based on installation segment, fixed offshore structure segment held the maximum share of the Global Offshore Wind Energy Market in 2020.