From 2021 to 2028, the global Offshore Wind Energy Market is predicted to grow at a CAGR of 19%, from US$ 23,750 Million in 2020 to US$ 94,215 Million in 2028.

Offshore wind energy is a clean and renewable energy source generated by harnessing the wind's force on the open seas, where it reaches a higher and more constant speed than on land because of the lack of obstacles. Offshore wind energy is an important component of the energy shift. Offshore wind energy has become the cheapest large-scale renewable energy source in recent years, thanks to huge cost reductions. Other renewable energy sources, such as wind energy on land, solar power, and biomass energy, will be required for the energy shift. Offshore wind is a rapidly developing renewable energy technology with the potential to play a significant role in future energy systems. According to the International Energy Agency, offshore wind-generated a small portion of world electricity production in 2018, but it is expected to grow rapidly in the future decades to become a USD 1 trillion industry. Offshore wind has the greatest development potential of any renewable energy technology, but the policy environment must swiftly improve for offshore wind to achieve worldwide Net Zero targets.

Market Dynamics

The global offshore wind energy market is primarily driven by the growing demand for renewable energy sources in power generation. Offshore wind energy is a renewable, limitless, and pollution-free source of electricity. Offshore, there are more wind resources than onshore (up to twice as much as in a medium onshore wind farm). Because the visual and aural impact of being offshore is minimal, substantially bigger areas can be exploited. Offshore wind farms generally have several hundred megawatts of installed capacity as a result of this.

Growing installations projects of offshore wind turbines are one of the important aspects that fuel the industry growth. In deeper seas, the industry continues to strive for larger turbines with a rated capacity of more than 8 MW. The development of offshore wind turbines is continuing to scale up. The Burbo Bank Extension project in the United Kingdom, for example, was the first commercial project to utilize a Vestas 164-meter rotor, 8-MW turbine (V164-8 MW), which was initially prototyped in 2014. Offshore wind energy development has the potential to be a major domestic renewable energy source, particularly for coastal energy demands with limited interstate grid transmission.

However, high costs and difficulties associated with offshore wind turbines are creating hurdles in market growth. On the other hand, rising investments in the research & development of the offshore wind industry are projected to attain a significant impetus during the forecast period. The Wind Energy Technologies Office (WETO) of the US Department of Energy funds research across the country to enable the development and implementation of offshore wind technologies that capture wind resources off the US coasts and convert them to power. The WETO is funding a $41 million national offshore wind R&D collaboration to promote wind plant technology, wind resource, and physical site characterization, and installation, operations, supply chain technology solutions, and maintenance, to help the US offshore wind industry grow.

Market Insights

Installation, water depth, and geography are the three segments that make up the global offshore wind energy market. The installation segment is further bifurcated into the fixed structure and floating structure. Based on the installation, the fixed structure segment acquired a significant amount of share in 2020. This is attributed to relatively shallow water as most offshore wind farms use fixed-foundation wind turbines. Meanwhile, the floating structure is expected to attain substantial growth during the forecast period. Floating wind turbines for deeper waters were still in the development and deployment stages in 2020.

The water depth segment is categorized into up to 30m and above 30m. Among them, up to 30m water depth segment accumulated a considerable market share in 2020 as it is easier to install a wind turbine at a shallower depth. Additionally, offshore wind power is expanding at a faster rate than land-based wind power, and lowering capital costs in the process will stimulate up to 30m segments. Meanwhile, the above 30m segment will witness gradual growth throughout the forecast period.

Offshore Wind Energy Market Regional Overview

Based on regions, the global offshore wind energy market is classified into Asia-Pacific, North America, Latin America, Europe, and the Middle East & Africa. In 2020, the North American region subjugated most of the global offshore wind energy industry share. The market for North America is growing due to increasing investments in wind energy, and the surging need for wind energy. Furthermore, the Asia-Pacific region is likely to attain a substantial growth rate throughout the forecast period. The surge in several offshore wind turbines, increasing consumption of energy due to the growing population is supporting the Asia-Pacific offshore wind energy market.

Global Offshore Wind Energy Segment Analysis

Market By Installation

·         Floating Structure

·         Fixed Structure

Market By Water Depth

·         Up to 30m

·         Above 30m

Offshore Wind Energy Market Competitive Landscape

This section of the report identifies the market's major players. Siemens Gamesa Renewable Energy, S.A., Prysmian Group, Enessere, Suzlon Energy Limited, Vestas, Sumitomo Electric Industries, Ltd., LS Cable & System Ltd., Southwire Company, LLC., goldwind.com, WEG, NORDEX SE, RTS Wind AG, ENVISION GROUP, and smart dolphin Gmbh are the key companies mentioned in the research.

Offshore Wind Energy Market Regional Overview

North America

·         U.S.

·         Canada

Europe

·         U.K.

·         Germany

·         France

·         Spain

·         Rest of Europe

Latin America

·         Brazil

·         Mexico

·         Rest of Latin America

Asia-Pacific

·         China

·         Japan

·         India

·         Australia

·         South Korea

·         Rest of Asia-Pacific

Middle East & Africa

·         GCC

·         South Africa

·         Rest of Middle East & Africa