Offshore Wind Energy is one of the alternative energy sources that has been around for a while, but only in the last few years has it started to become very popular. Offshore Wind Energy reduces the countries’ dependence on foreign oil. It uses large amounts of power to move machinery and propel wind turbines to generate electricity. Offshore Wind Energy is generally used to produce electricity as well as to supply the energy needed for offshore operations such as drilling. It is produced by turbines which are mounted on the ocean floor, rather than on land. Moreover, it is a great alternative to wind-generated power, because it is much cleaner and produces less pollution
The global offshore wind energy market is estimated to account for 188.35 GW in terms of volume by the end of 2027, witnessing a CAGR of 23.4% during the forecast period (2020-2027)
Growing demand for a renewable source of energy in order to reduce reliance on fossil fuels is driving the growth of the offshore wind energy market. According to the Center for Climate and Energy Solutions, renewables made up 26.2 percent of global electricity generation in 2018. That’s expected to rise to 45 percent by 2040. Most of the increase will likely come from solar, wind, and hydropower. Moreover, growing awareness regarding the negative environmental impact of using conventional fuel such as global warming for generating energy is also estimated to spur the growth of the offshore wind energy market
Increasing environmental concerns coupled with the growing population is creating demand for more energy without compromising on future demand. This in turn is boosting the demand for an alternate and clean source of energy which is fostering the growth of the offshore wind energy market. According to the United Nation, the world’s population is expected to increase by 2 billion persons in the next 30 years, from 7.7 billion currently to 9.7 billion in 2050.
Continuous launch of innovative products in the field of the offshore wind energy market in order to meet the growing consumer need is projected to bring bright market opportunities. For instance, in February 2021, Vestas has launched a new offshore wind turbine – the V236-15.0MW –featuring the industry’s largest windswept area and rotor diameter, as well as the highest nominal power rating. The giant turbine has a rotor diameter of 236 meters and a wind-swept area of 43,743m2
Increasing investment in the developed countries for the deployment of new energy projects is estimated to offer lucrative opportunities. According to the latest WindEurope data, Europe raised €26.3bn to finance 7.1 GW of new offshore wind capacity in 2020. The UK, Netherlands, Germany, and France all saw final investment decisions for major new offshore wind farms.
The growing adoption of growth strategies such as partnership and agreement by the key manufacturer is an emerging trend in the market. For instance, in September 2020, bp and Equinor form a strategic partnership to develop offshore wind energy in the US. The aim of this partnership is to have developed 50GW of renewable power by 2030. Thus, the growing focus of key players to deploy more clean energy sources is expected to favor the growth of the offshore wind energy market.
Increasing deployments of the nearshore project have gained significant traction in recent years and this is one of the major trends in the market. Such projects have a higher potential for grid connectivity and are more economical when compared to the projects installed across high water depths, thus expanding the market size. Additionally, ongoing identification of potential sites for offshore project and shifting focus toward the development of utility-scale projects is again expected to support the growth of the offshore wind energy market