Market Research Report
Global Offshore Wind Energy Market 2020-2026
|Global Offshore Wind Energy Market 2020-2026|
Published: May 3, 2021
Orion Market Research Pvt Ltd
Delivery time: 2-3 business days
Global Offshore Wind Energy Market Size, Share & Trends Analysis Report by Component (Turbine, Electrical Structure, Support Structure, and Others), By Depth of Turbine (Shallow, Transitional, and Deep Water), By Application (Commercial, Industrial, and Household) Forecast 2021-2027
The global offshore wind energy market is anticipated to grow at a CAGR of around 14.6% during the forecast period. A variety of factors such as growing awareness towards green energy, diversified wind energy application, and so on are significantly contributing to the growth of the offshore wind energy market. The market is growing rapidly as offshore winds are much steadier than on land implicating a more reliable source of energy. Offshore wind farms are providing renewable energy without consumption of water and not emitting environmental pollutants or any harmful gases. The future growth of an offshore wind energy market is predicted to increase due to the rising technological advancement and innovation of offshore wind farms and government incentives across the globe. However, some factors are limiting the growth of the market such as technological and economic challenges, lack of energy storage and transportation facility and unpredictable water calamity such as storms. Moreover, the government supportive initiatives and investment related to wind energy generation further projected to create a significant opportunity in the market.
The global offshore wind energy market is segmented based on the turbine of the foundation, depth of turbine and application. Based on the component market is segmented into the turbine, electrical structure, support structure, and others. On the basis of the depth of the turbine, the market is segmented into shallow, transitional, and deep water. Further on the basis of application, the market is segmented into the commercial, industrial, household.
Global Offshore Wind Energy Market Share by Component, 2020 (%)
Source: OMR Global
The turbine segment is projected to dominate the global offshore wind energy market
Among component, the turbine segment is estimated to have a significant share in the global offshore wind energy market. The wind turbines are generally a wind turbine that turns wind energy into electricity using the aerodynamic force from rotor blades which work like an aeroplane wing or helicopter rotor blade. Some of the advantages of wind turbines are that Wind power is cost-effective, the Land-based utility-scale wind is one of the lowest-priced energy sources available today, costing 1-2 cents per kilowatt-hour after the production tax credit. Further, Wind turbine energy does not pollute the environment in the same way that power plants that burn fossil fuels, such as coal or natural gas, do, emitting particulate matter, nitrogen oxides, and Sulphur dioxide, which cause public health issues and economic losses. Additionally, wind is a form of solar energy. Wind turbines are caused by the sun's heating of the atmosphere, the Earth's rotation, and the irregularities on its surface. On existing farms or ranches, wind turbines may be built.
The global offshore wind energy market is further segmented based on geography including North America, Europe, Asia-Pacific, and the Rest of the World. Europe projected to dominate the global offshore wind energy market. Contracts for difference were implemented by the UK government to ensure reliable long-term returns from electrical infrastructure ventures, lowering barriers to entry for industry participants. Moreover, government initiatives
Global Offshore Wind Energy Market Growth, by Region 2021-2027
Source: OMR Global
Asia-Pacific will have considerable growth in the global offshore wind energy market
Geographically, Asia-Pacific is projected to grow significantly in the global offshore wind energy market during the forecast period. Asia-Pacific represents a huge potential for offshore wind in countries such as China, Japan, Korea, and Taiwan. India has set various goals for the offshore wind industry. China is one of the leading countries in offshore wind power generation, with plans to reach 30 GW by 2020, according to the National Energy Agency of China. Japan is developing floating offshore wind energy at a rapid pace, to increase offshore wind power consumption to 20% by 2050, according to the Ministry of Economic Trade and Industry. South Korea and Taiwan are both working to raise wind power generation by 500 MW by 2020 and 4 GW by 2030, respectively. Therefore, the significant production of wind energy in these countries further provides ample opportunity for market growth.
Market Players Outlook
The key players of the offshore wind energy market include ABB Ltd. Siemens AG, Hitachi, Ltd., Vestas Wind System A/S, General Electric Co., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers, and acquisitions, collaborations, and new product launches, to stay competitive in the market. For instance, in December 2020, siemens Gamesa made an announcement that It will provide wind turbines for the Haystack wind farm in Nebraska, which has a capacity of 298 megawatts with Ørsted. Following the global success of their offshore wind energy partnership, this is the first onshore project for both companies in the United States.
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