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The Global Offshore Wind Energy Market Share, Trends, Analysis and Forecasts, 2020-2030 provides insights on key developments, business strategies, research & development activities, supply chain analysis, competitive landscape, and market composition analysis.
The global offshore wind energy market size was estimated to be US$ 23 billion in 2019 and expected to reach US$ 81 billion by 2030 at a CAGR of 12%. The growing demand for wind energy generation in Asia Pacific, the intermittent supply of energy for industries in this region, and growing demand for renewable energy generation remains a promising horizon for growth in the offshore wind energy market. According to International Energy Agency, the offshore wind generation turbines with capacities reaching a record level in 2018, increased to 12 MW from 10MW year earlier. These turbines, and built-up plants were expected to garner the lowest winning bids since 2017, providing a major push for growth for the offshore wind energy market. Similarly, EU auction results are expected to result in 50% cost-savings in the next five years, thanks to growing off-scale advantages, economy, and clustering of offshore wind energy plants. The UK offshore wind plants in 2025, would produce wind energy at 52 USD/MWh, which is a sign of a major adoption of offshore wind energy technology in the near future. The rising cost-benefits, and growing adoption of EU technology in newer regions in near future would likely drive growth of the offshore wind energy market.
The expansion of new wind energy generation sites is a major positive emerging in the global wind energy market. In United States, sites have come up in four different states including North Carolina, New Jersey, Maryland, and New York. Moreover, in China, the wind energy generation plant from Taipei, reached capacity of 5.5 GW on its offshore sites. The company has also signed agreements for power purchase up to 1 GW, announcing revised fee structures for tariffs in 2019. Japan has also removed barriers for permissions to ease way to solve grid connection challenges, promising major growth of large-scale projects in near future. The limitations experienced in grid connection challenges in China, and Europe are likely to make way for more expansion for the offshore wind energy generation, as costs remain quite high. Moreover, the new revised goals of wind energy generation by 2030, will drive growth of the offshore wind energy market in near future.
Covid-19 Impact Remains Short Term, Long-Term Prospects Remain Healthy
The covid-19 impact, and growing demand for energy resulted in many onshore construction activities. However, according to the International Energy Agency (IEA), the impact remains a small deviation from the momentum of growth for the offshore activity. The onshore construction slowed during February-April 2020, due to supply chain disruptions. However, the offshore construction remained at its peak, providing a major impetus for growth in the long-term prospect. Furthermore, the agency estimates that wind energy generation prospect will reach 68GW in total with 7.3GW coming from offshore energy generation. This remains an ideal time to invest in offshore wind energy generation as countries like China, and many European countries are phasing out subsidies to create competitive market conditions. The future goal remains a low-cost power generation, to replace the current fuel-based economy, and thanks to rising large turbines, and additional storage capacities, the goal is quickly becoming a reality for many.
Offshore Wind Energy Market Drivers:
Technological advancements are driving the growth of the Offshore Wind Energy market.
The industry operators are focusing on increasing the production of usable energy from renewable sources such as wind and solar power, in order to reduce harmful emissions. The offshore wind energy market players are allotting significant budgets for the project installations and the Research and Development activities that are aimed towards increasing the operational efficiency and product portfolio. The ongoing inclusion of the advanced technologies to improve the current infrastructure is expected to boost the market.
Today, there is a surge in the initiatives put forth by the governments of countries all across the globe.
Globally, various government institutions and policy makers are stepping up their efforts to successfully achieve their targets of harmful emission reduction. The respective governments and market players are investing extensively towards clean energy sources. This has in turn fueled the growth of the Offshore Wind Energy industry as the demand for installation of high capacity offshore wind energy projects is said to witness a significant growth during the forecast period. Governments all across the world are focusing on creating policies and regulations to fuel the growth of offshore wind energy market. In addition to that, the regulatory frameworks, government policies and mandates along with the rapidly declining adoption of wind turbines, will drive the industry growth in the region of North America.
In the Component segment, Turbines dominate the market:
Turbines as a Component of the Offshore Wind Energy Market, accounted for the maximum share of the revenue of the global market. Restructuring across the markets of power production, along with the quick technological developments in the field of aerodynamics are some of the key factors that are boosting the wind turbines market. Additionally, the industry operators that manufacture wind turbines, are focusing on creating innovative and standardized products, the processes of which involve low installation costs, leading to a rise in the market demand for the wind turbines.
The shallow water market holds the majority of the Location segment of the Offshore Wind Energy Market:
A majority of the projects were installed in the shallow waters, that is, in waters up to 30 meters. The industry operators prefer shallow waters, mainly due to its ease of installation and lower capital requirement. However, the market is expected to witness growth in the deep-water projects in the forecast period, where the depth of water is more than 30 meters.
The regional segment is dominated by the Europe market:
The region of UK leads the European Offshore Wind Energy market, and is estimated to witness a steady growth throughout the forecast period.
From 2015 to the present day, the region of UK has added over 5 GW of offshore wind energy to its renewable portfolio. All the different policies and regulations have been implemented by the government of the UK such as Contracts for Difference to ensure the stable long-term returns from projects of electrical infrastructure, therefore decreasing the barriers for new industry participants to enter.
The key market players include MHI-Vestas, Goldwind, General Electric, Furukawa Electric Co. Ltd., Nexans, Siemens Gamesa and Enercon.