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Global Offshore Wind Market – Industry Trends and Forecast to 2029

  • OIL, GAS & ENERGY
  • Upcoming Report
  • Jun 2022
  • Global
  • 350 Pages
  • No of Tables: 220
  • No of Figures: 60

Global Offshore Wind Market – Industry Trends and Forecast to 2029

Market Size in USD Billion

CAGR - % Diagram

Diagram Forecast Period 2021–2029
Diagram Market Size (Base Year) USD 32400.00 Million
Diagram Market Size (Forecast Year) USD 95050.24 Million
Diagram CAGR %

Global Offshore Wind Market, By Component (Turbines, Substructure, Electrical Infrastructure), Depth (> 0 ≤ 30 m, > 30 ≤ 50 m, > 50 m), Installation (Fixed Structure, Floating Structure), Location (Shallow Water, Transitional Water, Deepwater), Application (Commercial, Demonstration) – Industry Trends and Forecast to 2029

Market Analysis and Size

The offshore wind industry is expected to grow from 17 to 90 GW over the next decade, with offshore wind power accounting for 15% of the global wind industry. For instance, GE has invested more than $400 million in developing the most powerful offshore wind turbine—an investment that will lower the level cost of energy (LCOE) of offshore wind farms, making offshore wind energy more competitive for our customers. Moreover, offshore wind farms are estimated to undoubtedly play a critical role in meeting the future scaling-up of installed infrastructure for a renewables-based era. In this regard, an appropriate regulatory framework should consider site selection and, as a result, the rules of operation for these wind energy-driven projects. These determinants will significantly aid the market traction over the forecast timeframe.

Global Offshore Wind Market was valued at USD 32,400.0 million in 2021 and is expected to reach USD 95050.24 million by 2029, registering a CAGR of 14.4% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team also includes technological advancements, regulatory framework, PESTEL, porter's five forces analysis, industry standards-at a glance, raw material costs/ operational expenditure-overview, supply chain analysis, vendor selection criteria, pricing analysis, production analysis, and climate chain scenario.

Market Definition

Offshore wind/Offshore wind power (also referred to as offshore wind energy) generates electricity by wind farms in water bodies, most commonly at sea. The electricity generation offshore is high compared to land as the wind speeds are higher near offshores. It is one of the most affordable and environmentally friendly methods of producing electricity. Offshore wind turbines are larger in size and have higher wind speeds than onshore wind turbines, and they possess various advantages.

Report Scope and Market Segmentation

Report Metric

Details

Forecast Period

2022 to 2029

Base Year

2021

Historic Years

2020 (Customizable to 2014-2019)

Quantitative Units

Revenue in USD Million, Volumes in Units, Pricing in USD

Segments Covered

By Component (Turbines, Substructure, Electrical Infrastructure), Depth (> 0 ≤ 30 m, > 30 ≤ 50 m, > 50 m), Installation (Fixed Structure, Floating Structure), Location (Shallow Water, Transitional Water, Deepwater), Application (Commercial, Demonstration)

Countries Covered

U.S., Canada, Mexico, Brazil, Argentina, Rest of South America, Germany, France, Italy, U.K., Belgium, Spain, Russia, Turkey, Netherlands, Switzerland, Poland, Norway, Finland, Rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, U.A.E, Saudi Arabia, Egypt, South Africa, Israel, Nigeria, Algeria, Angola, Ghana, Rest of Middle East and Africa

Market Players Covered

General Electric (U.S.), Vestas (Denmark), Siemens (Spain), Goldwind (China), Shanghai Electric (China), ABB (Switzerland), Doosan Corporation (South Korea), Hitachi Ltd. (Japan), Nordex SE (Germany), EEW Group (Germany), Nexans (France), DEME (Belgium), Ming Yang Smart Energy Group Co (China), Envision (China), Rockwell Automation Inc., (U.S.), Hyundai Motor Company (South Korea), Schneider Electric (France),  Zhejiang Windey Co., Ltd.,.(China), Taiyuan Heavy Industry Co., (China),  Sinovel Wind Group Co., Ltd. (China)

Market Opportunities

  • Increasing Government Policies
  • Surging Developments and Other Energy-Efficient Solution

Various strategies to support growth in offshore wind

There are numerous strategic priorities supported by various focus areas to accelerate and maximize the efficiency, consistency, and sustainability of offshore wind energy deployment. Market players and newcomers can overcome the obstacles by committing to excellence along the offshore wind value chain by surpassing in some foundational and high-value areas. The strategies which can be implemented are discussed as follows:

  • Surge in demand for offshore wind energy and expansion of domestic supply chain at a lower cost by considering the growth of federal offshore wind energy incentives
  •  Minimize the costs of offshore wind energy through technological innovation and versions that aid industry growth and provide cheap electricity across the region
  • Develop siting and regulatory processes by auctioning new lease areas, increasing transparency and certainty, mounting stakeholder engagement, understanding development influences, and facilitating ocean co-use
  • Invest in supply chain expansion, such as custom offshore wind ports and vessels, to build a logistics network and attract additional investment
  • Strategize for well-organized and dependable grid integration to deliver offshore wind energy at a global scale

Offshore Wind Market Dynamics

This section deals with understanding the market drivers, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

  • Wind Energy Offers Various Advantages

Wind energy has numerous advantages, so it is one of the fastest-growing energy sources. This has a significant economic impact in rural areas, which have the majority of the best wind sites. Farmers and ranchers can continue to work the land because wind turbines take up only a small portion of it. Wind power plant owners pay rent to farmers and ranchers to use their land, providing additional income to landowners. Wind energy is abundant and limitless, which also accelerates the market growth.

Additionally, it also employs a vast amount of population. For instance, the wind industry in the United States employs over 100,000 people, and wind turbine technician is one of the fastest-growing jobs in the country. Consequently, these beneficial properties ultimately drive the demand for offshore wind, thus accelerating the market growth.

  • Acceleration of Sustainable and Eco-Friendly Electricity Source

Offshore wind power generates electricity using wind energy through the construction of wind farms in bodies of water. It is one of the most promising, affordable and eco-friendly energy-producing technologies. They are larger, have higher wind speeds than onshore wind turbines, and offer several advantages. Moreover, due to the need to reduce carbon emissions, the depletion of fossil fuels, climate change, and so on, there has been a noticeable shift in the energy sector toward renewable and green energy.

Furthermore, the incorporation of renewable energy sources will drive industry growth. Moreover, factors such as developing a robust commercial and industrial sector base also accelerate the market growth.

Opportunities

  • Surging Developments and Other Energy Efficient Solutions

Furthermore, various developments coupled with the introduction of advanced technologies and energy-efficient solutions by the market players further extend profitable opportunities to the market players in the forecast period of 2022 to 2029. For instance, the development of floating foundations have already proven to be effective even across harsh operating environments. The three main floating foundation concepts are the spar-buoy, semi-submersible, and tension leg platform. There are also variants, such as mounting multiple turbines on a single floating foundation. The increased advancements and innovation by key players offer lucrative growth opportunities.

  • Increasing Government Policies

Several government policies are in place to support the greener energy initiative. Many multinational corporations are taking steps to reduce their carbon footprint in order to contribute to a greener world and long-term sustainability. For instance, Equinor (Norway), aims to cut carbon emissions by 2050. One component of the strategy is to expand its renewable energy businesses, particularly offshore wind, which could reach 6,000 megawatts in six years and 16,000 megawatts in fifteen years. As a result, the boost in various government policies and the regulations associated with greener energy initiatives and reduction in carbon footprint generate various opportunities for the market.

Restraints/Challenges

  • High Capital Costs

The high capital cost prevents the implementation of offshore wind even after having a high capacity factor compared to related technologies such as solar and onshore wind. Offshore wind turbines are prone to erosion because they operate in harsh marine environments for decades. Even the most advantageous characteristics, such as high wind speeds, can become a disadvantage for offshore wind turbines. Moreover, offshore wind farms face more logistical challenges in general. Wind farms are typically located far from the shore and are difficult to access, particularly in bad weather. As a result, even minor technical issues can be difficult and costly to resolve. As a result, the global offshore wind market is hampered by high capital costs and maintenance, transportation, and logistics issues.

  • Impact on Local Wildlife

Like all energy sources, wind projects can alter the habitat on which they are built, which may affect the suitability of that habitat for certain species. For instance, the birds and bats have died after colliding with spinning turbine blades. Although the research is ongoing to develop and improve solutions to reduce the impact of wind turbines on these species, the impact of offshore wind on local wildlife cannot be ignored. This leads to increased concerns regarding the conservation of local wildlife and thus, is projected to hamper the overall market expansion.

  • Dearth of Technical Expertise

The failure rates of various components of a fixed-base offshore wind turbine have been evaluated. Electrical systems have the highest annual failure rates exceeding 0.5 in some cases, with an average downtime of around 2 days per failure. This is a result of various technical complications that further requires skilled professionals. Moreover, improved analysis techniques for combined wind and wave loading present on FOWT installations, adaptation of current manufacturing techniques to improve the performance of turbine blades and optimization of power cabling connections for deepwater offshore operations also further necessitates the requirement of experts and professionals. The shortage of technical expertise will additionally pose as a serious challenge to the growth of the offshore wind market.

This offshore wind market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the offshore wind market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Offshore Wind Market

The outbreak of coronavirus had a negative impact on the offshore wind market, as the pandemic has had a significant impact on wind power industry's supply chain. The economy has slowed as most countries around the world imposed nationwide lockdowns to prevent the virus from spreading further. The economic slowdown caused by the pandemic has put the resilience and flexibility of the wind power industry to the test. According to the World Bank, the pandemic has caused deep recessions and is expected to have a long-term impact on the global economy due to decreased investment and disruptions in global trade and supply chains. In addition to this, the social financing guidelines and lockdown measures have caused supply chain disruption and project construction delays, affecting the commissioning of renewable energy projects, biofuel facilities, and renewable heat investments. Restrictions on business activities, travel, and border closures have significantly reduced energy demand in transportation and industry, reducing consumption of bioenergy and other renewables. Emerging macroeconomic challenges may force the cancellation or postponement of investment decisions for large and small-scale projects. All of these factors can jeopardize projects, even if they are advanced. For instance, Europe is a major market for offshore wind energy, and it has been particularly hard hit by COVID-19, which has slowed further expansion due to project delays. Projects under construction were delayed due to European and global trade disruptions, resulting in higher CAPEX for such projects. The International Energy Agency predicts that post-pandemic offshore wind energy will grow faster than onshore wind.

On the brighter side, renewable energy has the potential to revitalize the economy by creating "green" jobs, ensuring energy security, and increasing resilience. Making energy transition a part of the overall recovery strategy allows nations to build the much-needed capacity to absorb shocks from pandemics or other disruptions. Therefore, with the help of these strategies the market is estimated to grow at a rapid pace post COVID.

Recent Development

  • In May 2021, GE Renewable Energy announced the completion of the Turbine Supply, Service, and Warranty contracts for the Dogger Bank offshore wind farm's third and final phase. The Turbine Supply Contract confirms that GE Renewable Energy will supply 87 Haliade-X 14 MW offshore wind turbines, marking the first commercial commitment for this nameplate.
  • In May 2021, Siemens Gamesa was the preferred supplier for the 1,044 MW Hai Long offshore wind project. Siemens Gamesa Renewable Energy and customer Hai Long Offshore Wind Project (Hai Long) have expanded their strong collaboration to 1,044 MW.
  • In May 2020, Siemens Gamesa installed the nacelle of its SG 14-222 DD offshore wind turbine prototype at its test facility in sterild, Denmark. The lightweight nacelle, weighing 500 tonnes, is said to allow Siemens Gamesa to use a safer tower and foundation substructure than a heavier nacelle.

Global Offshore Wind Market Scope

The offshore wind market is segmented on the basis of component, depth, installation, location and application. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

  • Turbines
  • Rating
    • ≤ 2 MW
    • > 2 to ≤ 5 MW
    • > 5 to ≤ 8 MW
    • > 8 to ≤ 10 MW
    • > 10 to ≤ 12 MW
    • > 12 MW
  • Installation
  • Floating
  • Axis
  • Horizontal (HAWTs)
  • Up-wind
  • Down-wind
  • Vertical (VAWTs)
  • Component
  • Blades
  • Towers
  • Others
  • Fixed
  • Axis
  • Horizontal (HAWTs)
  • Up-wind
  • Down-wind
  • Vertical (VAWTs)
  • Component
  • Blades
  • Towers
  • Others
  • Substructure
  • Electrical Infrastructure
  • Wires and cables
  • Substation
  • Others

Depth

  • 0 ≤ 30 m
  • 30 ≤ 50 m
  • 50 m

Installation

  • Fixed Structure
  • Floating Structure

Location

  • Shallow Water
  • Transitional Water
  • Deepwater

Application

  • Commercial
  • Demonstration

Offshore Wind Market Regional Analysis/Insights

The offshore wind market is analyzed and market size insights and trends are provided by country, component, depth, installation, location and application as referenced above.

The countries covered in the offshore wind market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Poland, Norway, Finland, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Nigeria, Algeria, Angola, Ghana, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Europe dominates the offshore wind market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the focus towards upgrading their aging electrical infrastructure coupled with the promotion of power generation through renewable energy sources by the governments within the region.

On the other hand, Asia-Pacific is estimated to show lucrative growth over the forecast period of 2022-2029, due to the high installations of offshore wind power in China. Favorable government policies, various subsidies and incentive schemes, and strong regulatory and policy frameworks will aid in the acceptance of wind energy in the economy.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Offshore Wind Market Share Analysis

The offshore wind market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to offshore wind market.

Some of the major players operating in the offshore wind market are

  • General Electric (U.S.)
  • Vestas (Denmark)
  • Siemens (Spain)
  • Goldwind (China)
  • Shanghai Electric (China)
  • ABB (Switzerland)
  • Doosan Corporation (South Korea)
  • Hitachi Ltd. (Japan)
  • Nordex SE (Germany)
  • EEW Group (Germany)
  • Nexans (France)
  • DEME (Belgium)
  • Ming Yang Smart Energy Group Co (China)
  • Envision (China)
  • Rockwell Automation Inc., (U.S.)
  • Hyundai Motor Company (South Korea)
  • Schneider Electric (France)
  • Zhejiang Windey Co., Ltd., (China)
  • Taiyuan Heavy Industry Co., (China)
  • Sinovel Wind Group Co., Ltd. (China)


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Research Methodology:

Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.

The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.

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FREQUENTLY ASK QUESTIONS

Offshore Wind Market to grow at a CAGR of 14.4% by forecast 2029.
Offshore Wind Market value to reach USD 95050.24 million by forecast 2029.
The major players operating in the market are General Electric (U.S.), Vestas (Denmark), Siemens (Spain), Goldwind (China), Shanghai Electric (China), ABB (Switzerland), Doosan Corporation (South Korea), Hitachi Ltd. (Japan), Nordex SE (Germany), EEW Group (Germany), Nexans (France), DEME (Belgium), Ming Yang Smart Energy Group Co (China), Envision (China), Rockwell Automation Inc., (U.S.), Hyundai Motor Company (South Korea), Schneider Electric (France), Zhejiang Windey Co., Ltd.,.(China), Taiyuan Heavy Industry Co., (China), Sinovel Wind Group Co., Ltd. (China).
The countries covered in the offshore wind market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Poland, Norway, Finland, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Nigeria, Algeria, Angola, Ghana, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
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