The offshore wind energy market is expected to reach market value of USD 137 billion by 2030, with a CAGR of 19% between 2022 and 2030. The market is experiencing significant growth driven by the increasing demand for sustainable energy sources and the advancements in wind turbine technology. In addition, the growing preference for sustainable energy sources is another significant factor contributing to the industry's growth.
One of the prominent trends in the offshore wind energy market is the technological advancements in wind turbine technology, which is expected to support the industry's growth throughout the forecast period. The offshore wind industry had a record year for deployment in 2021, with 17,398 MW of new projects commissioned, pushing the global installed capacity over 50 GW. This expansion was mainly attributed to China, which installed 13,790 MW in a single year, more than any previous year's capacity installed by the entire world.
In summary, the global offshore wind energy market is witnessing significant growth, and it presents a promising investment opportunity for investors looking for sustainable energy sources. The market's key drivers include the increasing demand for energy, the rising inclination towards sustainable energy sources, and the advancements in wind turbine technology.
Offshore Wind Energy Market Report Key Highlights
Offshore wind energy is a sustainable form of energy that captures the force of winds at sea to generate electricity, which is then fed into the onshore power grid. This technology involves the use of wind turbines installed along the coastlines of oceans and lakes. Offshore wind energy has several advantages over onshore wind energy. For one, it generates energy from renewable sources, which is essential for reducing greenhouse gas emissions. Additionally, offshore wind power has a faster rate of energy generation than onshore wind power, which is a significant advantage for the growth of the offshore wind energy market. Another advantage of offshore wind power is that it is a continuously renewable and unquantifiable energy source, meaning that it can be harnessed without any harmful greenhouse gas emissions.
Global Offshore Wind Energy Market Dynamics
Offshore Wind Energy Market Report Coverage
|Market||Offshore Wind Energy Market|
|Offshore Wind Energy Market Size 2021||USD 29 Billion|
|Offshore Wind Energy Market Forecast 2030||USD 137 Billion|
|Offshore Wind Energy Market CAGR During 2022 - 2030||19%|
|Offshore Wind Energy Market Analysis Period||2018 - 2030|
|Offshore Wind Energy Market Base Year||2021|
|Offshore Wind Energy Market Forecast Data||2022 - 2030|
|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||Enessere, Sumitomo Electric Industries, Ltd., Siemens Gamesa Renewable Energy, S.A., Vestas, goldwind.com, Prysmian Group, ENVISION GROUP, LS Cable & System Ltd., RTS Wind AG, smart dolphin GmbH, WEG, NORDEX SE, Southwire Company, LLC., and Suzlon Energy Limited.|
||Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Regulation Analysis|
Offshore Wind Energy Market Insights
The adoption of offshore wind energy is also being driven by favorable government policies around the world, including subsidies, tax credits, and feed-in tariffs, which promote investment in renewable energy projects. Governments are also encouraging the development of offshore wind energy infrastructure through initiatives like auctions, tenders, and regulatory frameworks. For instance, the European Union has set a target of achieving 60 GW of offshore wind energy capacity by 2030, which is expected to drive the growth of the offshore wind energy market in the region. Additionally, the United States government has set a target of installing 30 GW of offshore wind energy by 2030, which is expected to boost the adoption of offshore wind energy in the country.
However, the high capital cost of offshore wind energy projects and logistics concerns, such as the transportation and installation of equipment, are key factors restraining the market growth. The low cost of conventional energy generation, particularly in emerging economies, is also hindering the adoption of offshore wind energy. Nevertheless, there are significant opportunities for growth in the offshore wind energy market, particularly in emerging nations that are focusing on developing their renewable energy infrastructure. Furthermore, there is a growing focus on deeper installation projects, which will enable the industry to tap into new offshore wind energy resources and expand the market's reach.
Offshore Wind Energy Market Segmentation
The worldwide offshore wind energy market is split based on installation, water depth, and geography.
Offshore Wind Energy Market By Installation
According to our offshore wind energy industry analysis, the fixed structure generated significant revenue in 2021 and is expected to do so again between 2022 and 2030. Because of its low cost and ease of operation, fixed structures are the most popular installation type for offshore wind energy. The fixed structure segment currently controls the global offshore wind energy market share, with floating structure still in its initial stages; however, based on intended and forthcoming projects, the floating structure type is expected to grow rapidly in the coming years.
Offshore Wind Energy Market By Water Depth
According to our offshore wind energy market forecast, up to 30m water depth is currently holding a significant market revenue because installation is much easier and reduces capital expenditure. However, with recent advancements and increased investments in floating offshore wind energy projects for deeper locations, certain factors are likely to gain traction for water depths above 30 metres.
Offshore Wind Energy Market Regional Outlook
The Middle East & Africa (MEA)
Europe Recorded Noteworthy Market Share for Global Offshore Wind Energy
It is worth noting that in 2021, Europe set a new record by installing 3 GW of new offshore wind capacity, which brought its total capacity to 25 GW. The United Kingdom remained the largest market in Europe, with a total installed capacity of 10.4 GW, followed by Germany with 7.7 GW. The Netherlands, Belgium, and Denmark are also key markets in the region. The European Commission has set a target of increasing offshore wind capacity to at least 60 GW by 2030, which will further drive the growth of the offshore wind energy market in the region.
In North America, the United States is expected to be the dominant market, with several large-scale offshore wind projects in the pipeline. The US government has set a target of installing 30 GW of offshore wind capacity by 2030, which is expected to drive investments and growth in the industry. The first large-scale offshore wind farm in the US, Vineyard Wind, is expected to come online in 2024, with a capacity of 800 MW.
In Asia Pacific, China is expected to continue leading the offshore wind energy market, with the government targeting 40 GW of offshore wind capacity by 2025. Japan and South Korea are also emerging markets for offshore wind energy, with several large-scale projects in development. The Asia-Pacific region is expected to account for a significant share of global offshore wind energy installations in the coming years.
Offshore Wind Energy Market Players
The global offshore wind energy companies profiled in the report include Enessere, Sumitomo Electric Industries, Ltd., Siemens Gamesa Renewable Energy, S.A., Vestas, goldwind.com, Prysmian Group, ENVISION GROUP, LS Cable & System Ltd., RTS Wind AG, smart dolphin GmbH, WEG, NORDEX SE, Southwire Company, LLC., and Suzlon Energy Limited.
The global offshore wind energy market size in 2021 was accounted USD 29 Billion.
The projected CAGR of offshore wind energy market during the analysis period of 2022 to 2030 is 19%.
The prominent players of the global Offshore Wind Energy market are 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, and Suzlon Energy Limited.
Europe held the dominating offshore wind energy during the analysis period of 2022 to 2030.
Asia-Pacific region exhibited fastest growing CAGR for offshore wind energy during the analysis period of 2022 to 2030.
Growing investments in renewable energy, increasing global demand for renewable sources in power generation, and favorable government policies throughout the world drives the growth of global offshore wind energy market.
Based on installation, fixed structure segment is expected to hold the maximum share offshore wind energy market.