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The global offshore wind power market size, on the basis of installed capacity, is projected to reach 94 GW by 2026, exhibiting a CAGR of 19.2% during the forecast period. Wind energy accounted for 4.8% among renewables, with China leading the world with an installed capacity of 185 GW, reports BP. IRENA predicts that Asia will dominate offshore wind installations by 2030 with an installed capacity exceeding 100 GW led by China and India.
The global offshore wind power market size, on the basis of installed capacity is projected to reach 94 GW by 2026, exhibiting a CAGR of 19.2% during the forecast period. Growing share of wind power in renewable energy capacity will be the central growth driver for this market in the coming few decades. According to a report by the London-based BP oil and gas multinational, consumption of renewables in 2018 rose by 14% from 2017 levels and 9% of the world’s electricity needs were met by renewables in the same year.
Wind energy accounted for 4.8% among renewables, with China leading the world with an installed capacity of 185 GW, reports BP. Further, the International Renewable Energy Agency (IRENA) projects that offshore wind could contribute to 17% of the total global wind energy installations by 2050. The IRENA believes that scaling up offshore wind installations should continue at the historical annual rate of around 12%. These numbers will drive the offshore wind power market trends in the forthcoming decade.
According to the new Fortune Business Insights™ report, titled “Offshore Wind Power Market Regional Forecast, 2019-2026”, based on installed capacity, the size of the market was at 23 GW in 2018.
Limitations Posed by Offshore Structures May Inhibit Growth
While offshore wind energy capacity is rising at a steadfast pace worldwide, these structures are not without their fair share of disadvantages. For instance, offshore wind farms can seriously damage marine ecosystems, though the full extent of the harm they can cause has not been comprehensively assessed. These structures are immensely difficult to build in waters running deeper than 200 feet. Thus, these installations would escalate labour and maintenance costs for the operator.
Further, open seas are volatile and intense hurricanes, waves, or storms can severely damage the wind farms. In addition to these factors, laying of undersea cables to transmit electricity can prove to be extremely expensive. However, a cost-benefit analysis shows that despite the discouraging initial costs, the rate of return on investment will be high as the world is steadily shifting to renewables to meet its energy needs.
Asia-Pacific to Hold the Largest Growth Potential in the Market; Europe to Experience Stable Rise
Among regions, Asia-Pacific is projected to lead the offshore wind power market share during the forecast period owing to the fact that China and India are fast-emerging as major renewable energy hubs of the world. IRENA predicts that Asia will dominate offshore wind installations by 2030 with an installed capacity exceeding 100 GW led by China and India.
Besides these two countries, South Korea, Japan, and Vietnam are anticipated to offer lucrative growth prospects in this market. In Europe, UK, Germany, Spain, and France are leading the offshore wind power market revenue, while North America is making significant strides in this market.
The offshore wind power market forecast says that key players are actively entering into strategic partnerships to broaden their business horizons. These collaborations are also helping companies to expand their global presence in this market.