Offshore Wind Market Overview: According to a comprehensive research report by Market Research Future (MRFR), “Offshore Wind Market Research Report Information, by Components, Location and Region – Forecast till 2027” the market size is projected to be worth USD 121.54 Billion by 2027, registering a CAGR of 19.85% during the forecast period (2021 – 2027), The market was valued at USD 39.1 Billion in 2020.
COVID-19 Impact on the Offshore Wind Market
The onset of COVID-19 significantly accelerated the offshore wind industry. Rise in renewables was reassuringly robust amid coronavirus crises. The dependency on fossil-fired electricity could have dramatically been reduced if there was no bounce-back in electricity demand. However, offshore wind market players faced various problems ranging from obtaining components required to develop offshore wind and receiving components and delivering end products to attracting workers from quarantines.
Besides, coronavirus-driven lockdown put a brake on the component and device production, spiking product prices and lowering market demand. Nevertheless, the good news is that the offshore wind industry is rapidly returning to normal, witnessing the steadily increasing energy demand, especially from the industrial sectors. The offshore wind market value is projected to pick up following the uplift of the lockdown in many countries.
The offshore wind market is experiencing increasing strategic deals, such as expansion, mergers & acquisitions, collaboration, and product launches. Major players also make strategic investments in research and development activities and fostering their expansion plans.
For instance, recently, on July 06, 2021, Swancor Renewable Energy (SRE – Taiwan), a leading offshore wind developer, announced its partnership with Yeong Guan Energy, Tien Li Offshore Wind Technology, and J&V Energy Technology to develop its portfolio of offshore wind projects in Miaoli jointly.
The partnership called “Taiwan Team” combines the leading development, supply chain, technology, construction, and O&M expertise. The consortium unites the expertise required for Taiwan to achieve its ambition of developing offshore wind projects and localizing the supply chain.
Improved Offshore Wind Efficiency Contributes to Sustainable Wind Power Development
The offshore wind market outlook appears extremely positive. The strong market growth attributes to the rising global energy demand and the escalating urbanization rate across emerging regions. Besides, rising advances in technologies, alongside the need to provide a clean and highly efficient energy supply, are major tailwinds for the market.
Long-term research centers with industry partners, the research community, and the government would contribute to offshore wind power development. Therefore, research and development becomes crucial to ensure lower costs, less environmental impact, and improved operating models for wind power projects. Moreover, significant R&D investments in developing new green projects contribute to offshore wind.
Emerging markets worldwide provide untapped opportunities for the offshore wind market. Besides, significantly rising pollution levels due the rapid industrialization and urbanization in developing regions offer lucrative market opportunities. Growing government mandates and policy updates, alongside increasing renewable power generation, fosters the offshore wind market size.
Prohibitive Initial Installment and Maintenance Costs Hamper Market Growth
Costs associated with initial installment and maintenance of offshore wind infrastructure restrains the market growth and affects sales. Also, the vast investments required to implement wind power technologies pose challenges for market growth. However, offshore wind technology providers are increasingly focusing on reducing the overall cost of services. This would support the market growth throughout the assessment period.
The offshore wind market is segmented based on components, location, water depth, and regions. The component segment is sub-segmented into towers, turbines, electrical infrastructure, nacelle, blades, and others. Similarly, the location segment is sub-segmented into up to 30m and 30m above. Among these, the 30m segment holds the largest market share.
The water depth segment is sub-segmented into shallow water, transitional water, and deep water. By region, the analysis is segmented into the Americas, Europe, Asia Pacific, and the rest-of-the-world.
Europe holds a remarkable amount of the global offshore wind market share. Factors such as the rise in renewable energy sources, resurging economy, and growing technological advances & population drive the offshore wind market growth. Besides, several favorable initiatives supporting wind projects and reducing carbon emission, alongside falling prices of wind energy per megawatt-hour, are major offshore wind market trends.
Furthermore, significant expansion of the industrial sector and the presence of leading global players in the region increase the offshore wind market size. The region is projected to maintain its leading position throughout the review period.
Segmentation of Market covered in the research:
Information by Components (Turbine, Tower, Blades, Electrical Infrastructure and Nacelle), by Location (Shallow Water, Transitional Water and Deep Water) and by Region (North America, Europe and Asia-Pacific)
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