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In our rapidly growing global economy, we're facing a serious issue – our natural resources are running out fast, and the environment is suffering irreversible damage. Fossil fuels, like coal and oil, are still widely used, but they are becoming scarcer, and people are getting more concerned about their impact on the environment. Thankfully, there's a positive shift happening as more focus is put on renewable energy sources. Among these, wind power has seen the most significant growth.
Unlike traditional energy sources that harm the environment, wind power is considered more sustainable. The recent boom in the renewable energy sector is mainly due to the increased production and use of wind power. What's interesting is that offshore wind, which means wind turbines located in the sea rather than on land, has become a major player in this game. Offshore wind has some advantages – the wind blows stronger and more consistently over the open sea compared to on land.
As the world invests more in wind power, countries are now in a friendly competition to be the best in harnessing this energy. Companies that make wind turbines are working hard to create better and more efficient models. They're doing this through designing, testing, and manufacturing advanced turbines that can generate more power. This competition has not only led to better technology but also a decrease in the cost of wind power, making it more accessible for everyone.
Several factors are contributing to the growth of wind power. First, there are improvements in the cost and performance of wind power technologies. This means that it's becoming cheaper to produce wind energy, and the technology is getting better at converting wind into electricity. Second, there is a higher demand for renewable energy. People are realizing the importance of using clean energy sources to protect the environment. Lastly, many governments have set renewable portfolio standards, which are rules that require a certain percentage of energy to come from renewable sources. These standards are encouraging the use of wind power.
While the offshore wind market is smaller compared to other types of renewable energy, it's growing faster and proving to be more efficient. Europe is currently the leader in offshore wind, holding a whopping 90 percent of the world's capacity. However, the United States and China are emerging as promising markets. This is because they are implementing projects that are both cheaper and better planned and executed. Moreover, there's increased interest from investors, and governments are providing support to boost the growth of offshore wind.
In conclusion, as the world faces environmental challenges and the need for sustainable energy, wind power, especially offshore wind, is emerging as a powerful and efficient solution. With ongoing improvements in technology, decreasing costs, and increasing support from governments, the future of offshore wind looks promising. It's not just a cleaner alternative; it's becoming a major player in meeting our growing energy needs.
In our rapidly growing global economy, we're facing a serious issue – our natural resources are running out fast, and the environment is suffering irreversible damage. Fossil fuels, like coal and oil, are still widely used, but they are becoming scarcer, and people are getting more concerned about their impact on the environment. Thankfully, there's a positive shift happening as more focus is put on renewable energy sources. Among these, wind power has seen the most significant growth.
Unlike traditional energy sources that harm the environment, wind power is considered more sustainable. The recent boom in the renewable energy sector is mainly due to the increased production and use of wind power. What's interesting is that offshore wind, which means wind turbines located in the sea rather than on land, has become a major player in this game. Offshore wind has some advantages – the wind blows stronger and more consistently over the open sea compared to on land.
As the world invests more in wind power, countries are now in a friendly competition to be the best in harnessing this energy. Companies that make wind turbines are working hard to create better and more efficient models. They're doing this through designing, testing, and manufacturing advanced turbines that can generate more power. This competition has not only led to better technology but also a decrease in the cost of wind power, making it more accessible for everyone.
Several factors are contributing to the growth of wind power. First, there are improvements in the cost and performance of wind power technologies. This means that it's becoming cheaper to produce wind energy, and the technology is getting better at converting wind into electricity. Second, there is a higher demand for renewable energy. People are realizing the importance of using clean energy sources to protect the environment. Lastly, many governments have set renewable portfolio standards, which are rules that require a certain percentage of energy to come from renewable sources. These standards are encouraging the use of wind power.
While the offshore wind market is smaller compared to other types of renewable energy, it's growing faster and proving to be more efficient. Europe is currently the leader in offshore wind, holding a whopping 90 percent of the world's capacity. However, the United States and China are emerging as promising markets. This is because they are implementing projects that are both cheaper and better planned and executed. Moreover, there's increased interest from investors, and governments are providing support to boost the growth of offshore wind.
In conclusion, as the world faces environmental challenges and the need for sustainable energy, wind power, especially offshore wind, is emerging as a powerful and efficient solution. With ongoing improvements in technology, decreasing costs, and increasing support from governments, the future of offshore wind looks promising. It's not just a cleaner alternative; it's becoming a major player in meeting our growing energy needs.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | Floating foundation wind farms are permitting access to better wind resources |
| Market Dynamics | Increasing global investments in renewable energy are likely to drive the market Favorable government policies across all regions |
Offshore Wind Market Highlights:
Global Offshore Wind Market Size & Share
Offshore Wind Market Size was valued at USD 31.8 billion in 2023. The offshore wind market industry is projected to grow from USD 35.33 Billion in 2024 to USD 88.24 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.01% during the forecast period (2024 - 2032). Due to the growing interest in reducing the global carbon footprint and the increased need for renewable energy sources, the market is anticipated to grow. Government bodies and electricity companies' increased efforts to minimize carbon emissions are the key market driver enhancing market growth. Additionally, it is predicted that the installation of turbines will increase internationally, propelling the market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
July 2024: General Electric (GE) announced the launch of its new Haliade-X 14 MW offshore wind turbine, designed to enhance efficiency and reduce the cost of energy.
Offshore Wind Market Trends
- Growing public and private investment to boost the market growth
Governments in several nations are taking the required steps to minimize carbon emissions. Pushing governments to spend money on renewable energy sources like wind and solar. Therefore, there has been a huge increase in the amount of electricity produced by wind energy in recent years. By 2022 and 2030, the Indian Union Ministry of New and Renewable Energy (MNRE) wants to install 5 GW and 30 GW offshore capacity. The World Economic Forum projects that by 2040, the offshore wind market will be worth $1 trillion. Therefore the ongoing public and private investment in the market has enhanced the offshore wind market CAGR across the globe in recent years.
Figure 1: Renewable energy consumption from 200 to 2022 in exajoules
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The government has implemented several policies to help the transition to greener energy. Equinor (Norway), for instance, wants to cut its carbon emissions in half by 2050. Developing its renewable energy businesses, especially offshore wind, which may reach 6,000 megawatts in six years and 16,000 megawatts in 15 years, is a part of the plan. According to estimates, offshore wind could support 80,000 employment annually by 2035 and generate USD 166 billion in new investments and USD 1.7 billion in new tax income for the US Treasury by 2022. Thus the rapidly expanding renewable energy sector is another factor driving the growth of the offshore wind market revenue.
Offshore Wind Market Segment Insights:
Offshore Wind Components Insights
The Offshore Wind Market segmentation, based on components, includes turbine, tower, blades, electrical infrastructure and nacelle. The turbine segment dominated the market with respect to the Offshore Wind Market revenue. To lower the installation costs, numerous turbines are installed simultaneously on the same site using wind turbines, which are electricity generators. The turbines are situated in big lakes and oceans. Cathodic protection can be used to stop corrosion.
The second fastest-growing segment in the offshore wind industry is the nacelle sector. The worldwide wind turbine nacelle sector is anticipated to be driven by technological advancements in the design of wind turbine materials, such as glass composites, to reduce the cost of maintenance and installation. Smaller, less expensive, and simpler to carry and assemble components are built using contemporary glass composites.
November 2021: Vestas, a wind turbine manufacturer, announced the first-ever modular nacelle design that allowed for customization. The product reduces time to market and simplifies various operations, construction, and maintenance processes. The manufacturer also says that the next product's modularized nacelle units may be transferred over rail systems, bridge heights, and tunnels with far less specialist handling. This creation has further broadened the growth opportunity for the offshore wind industry.
Offshore Wind Location Insights
The Offshore Wind Market data has been bifurcated by location into shallow water, transitional water and deep water. The market is predicted to be led by the shallow water sector, which is estimated to have the greatest revenue share in 2021. The majority of energy initiatives are carried out in shallow water. Shallow water tower installation is easier to complete and costs less money.
Figure 2: Offshore Wind Market, by Location, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the offshore wind industry is the deepwater sector. The deep-water wind turbine sector is primarily driven by improvements in wind technology and increased investments in the development of floating wind turbines. Hence, rising offshore wind applications in deep water positively impact the market growth.
Offshore Wind Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe’s offshore wind market accounted for USD 11.05 billion in 2021 and is expected to exhibit a significant CAGR of 43.2 percent growth during the study period. According to the European Union, Europe accounts for one-fourth of all market installations worldwide. Therefore, Europe (particularly the nations bordering the North Sea) is set to dominate the offshore wind industry. Around 85% of all offshore wind installations worldwide are located in European waters. The development of offshore wind farms within each nation's territorial waters has been established as an ambitious goal by the governments of the European region, notably those in the North Sea region. Further, the German offshore wind market held the largest market share, and the UK offshore wind market was the fastest-growing market in the European region.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Offshore Wind Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia Pacific’s offshore wind market accounts for the second-largest market share. Implementing pro-renewable energy government policies by developing countries like China, India, and Japan, among others, may be related to the industry's growth in the Asia Pacific. China is a global leader, with more than 40% of the world's offshore wind capacity. Of China's 18,000 km of coastline, more than 3 million square kilometers are suitable for offshore renewable energy development. Moreover, China's offshore wind market held the largest market share, and the India offshore wind market was the fastest-growing market in the Asia-Pacific region.
The North American offshore wind market is expected to grow at the fastest CAGR from 2022 to 2030. Favorable government regulations, rising investment in wind power projects, and the declining cost of wind energy are major contributors to the rise. The government and utilities across the country are increasingly looking at wind power as a solution to the nation's growing need for an affordable, dependable, clean, and diverse electricity supply. For instance, United States President announced a bold plan to install 30 gigawatts (GW) of offshore wind power by 2030, which would deliver sustainable energy to 10 million homes, support 77,000 jobs, and encourage private investment throughout the supply chain. Moreover, the US offshore wind market held the largest market share, and the Canadian offshore wind market was the fastest-growing market in the region.
Offshore Wind Key Market Players & Competitive Insights
The market will continue to grow as major market players invest heavily in R&D to diversify their product offerings. In addition to major market developments such as new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations, market participants are involved in many strategic efforts to grow their global footprint. If competitors in the offshore wind industry want to develop and survive in a tough environment where competition and the market are expanding, they must offer products at competitive costs.
Local production to lower operational costs is one of the key business tactics manufacturers use in the global offshore wind industry to help clients and increase the market sector. Recently, the offshore wind industry has made major contributions to medicine. Offshore wind market major players, such as General Electric (US), Ørsted A/S (Denmark), ABB (Switzerland), and Senvion SA (Luxembourg), are investing in R&D to increase customer demand.
Hecate Energy is a pioneer in developing and operating renewable energy projects and storage solutions, specializing in solar and wind energy, high-efficiency natural gas, and energy storage. It is headquartered in Chicago, Illinois. They are experts in renewable energy and energy storage projects, from planning to building and operation. In May 2021, Hecate Independent Power Limited (HIP), a renewable energy project firm established in the United States, announced the HIP Atlantic Project, which will deploy about 10 GW of floating and fixed wind power in the North Atlantic, UK. The project, which is expected to cost roughly USD 30 billion or GBP 21 billion, will connect offshore farms to the national grid network.
Also, GE Renewable Electricity is a branch of General Electric based in Boulogne-Billancourt, Greater Paris, France, focusing on producing renewable energy. Its product offering comprises wind (onshore and offshore), hydroelectric, and solar (concentrated and photovoltaic) power generation solutions. It is the world's largest manufacturer of wind turbines. In May 2021, GE Renewable Energy announced that the Turbine Supply, Service, and Warranty contracts for Dogger Bank C, the Dogger Bank offshore wind farm's third and final phase, have been finalized. The Turbine Provide Contract confirms GE Renewable Energy's commitment to supply 87 Haliade-X 14 MW offshore wind turbines, marking the first commercial commitment for this type. Offshore wind energy turbines, marking the first commercial commitment for this nameplate.
Key Companies in the offshore wind market include
- 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)
Offshore Wind Industry Developments
April 2021: Siemens Gamesa Renewable Energy SA has received a definite order to supply turbines for the 1.4 GW Sofia Offshore Wind Farm, which will be located in the North Sea. The project will include the installation of 100 turbines, the first of which will be SGRE's 14MW Direct Drive offshore wind turbines.
February 2021: Vestas has introduced the V236-15.0MW offshore wind turbine, which features the industry's largest wind-swept area, rotor diameter, and greatest nominal power rating. The massive turbine will have a rotor diameter of 236 meters and a wind-swept surface of 43,743 square meters. The second largest wind turbine in the industry, GE's Haliade-X, has a rotor diameter of 220 meters and a wind-swept area of 38,013 meters.
Offshore Wind Market Segmentation:
Offshore Wind Components Outlook
- Turbine
- Tower
- Blades
- Electrical Infrastructure
- Nacelle
Offshore Wind Energy Location Outlook
- Shallow Water
- Transitional Water
- Deep Water
Ocean Winds Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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