Offshore Wind Market: Current Analysis and Forecast (2023-2030)

Offshore wind is the clean, renewable energy created by utilizing the power of the wind that is generated on the high seas, where it can reach greater and more consistent speeds than on land owing to the absence of impediments. Mega-structures are erected on the seabed and outfitted with the most recent technological advancements to maximize the use of this resource. Numerous governments are taking the necessary actions to reduce carbon emissions. encouraging financial investment by governments in renewable energy sources like wind and solar. As a result, the quantity of power generated by wind energy has significantly increased in recent years. For instance, the Indian Union Ministry of New and Renewable Energy (MNRE) aims to install 5 GW and 30 GW of offshore capacity by 2022 and 2030, respectively.

The offshore wind market is expected to grow at a skyrocketing rate of around CAGR of 12% from 2023-2030 due to a rise in global investments in renewable energy. Many multinational corporations are making efforts to reduce their carbon footprint to help the environment and promote sustainability. For instance, in November 2020, Equinor (Norway) wants to reduce its carbon emissions in half. Developing its renewable energy businesses, especially offshore wind, which may reach 6,000 megawatts in 6 years and 16,000 megawatts in 15 years by 2050.

Based on installation, the market is bifurcated into fixed structure and floating structure. The floating structure is expected to capture a considerable market share in 2022. This is mainly owing to a rising scope for growing projects in deep water, where the high wind speed creates a much more favorable environment for operation leading to the high rise in the offshore wind energy market.

Based on component, the market is segmented into turbines, electrical infrastructure, substructure, and others. The turbine segment held an extensive share of the offshore wind market in 2022. The turbine segment is further classified into nacelle, rotors and blades, and tower. Turbines are placed on the tower and are mainly responsible for harnessing wind energy to produce power. Major companies are working on supplying and constructing turbines to enhance the productivity of the wind farm. For instance, in May 2021, the third and final phases of the Dogger Bank offshore wind farm's contracts for turbine supply, service, and warranty have been finalized, according to a statement from GE Renewable Energy.

Based on location, the market is segmented into shallow water (up to 30 m), transitional water (30 m to 60 m), and deep water (> 60 m). Shallow water is expected to have an influential growth rate in the forecasted period. As shallow water is comparatively easier, the establishment of electrical infrastructure while setting up a wind turbine. Due to comparatively less wind speed available in shallow water, turbines with less MW capacity are installed in this region.

For a better understanding of the market adoption of offshore wind, the market is analyzed based on its worldwide presence in countries such as North America (United States, Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of APAC), and Rest of World. Europe is expected to grow with a robust CAGR during the forecast period. Europe is the world's leader in offshore wind. Europe is home to some of the world's most favorable conditions for offshore wind power generation, including strong winds, deep waters, and a high demand for renewable energy. In recent years, there has been a growing trend towards the use of offshore wind power in Europe. This is because offshore wind power is a highly efficient and cost-effective way to generate renewable energy, and it can help reduce Europe's dependence on fossil fuels and mitigate the effects of climate change. Offshore wind power is typically generated using large wind turbines that are installed on offshore platforms or foundations. These turbines can be placed in a variety of locations, including shallow waters near the coast and deeper waters further offshore. In Europe, offshore wind power is typically generated in the North Sea, which is home to some of the world's most favorable conditions for offshore wind power generation. The North Sea is home to several offshore wind farms, which are typically located in shallow waters near the coast. For instance, in April 2022, to make the offshore wind farms in the North Sea into what Belgium's energy minister called "Europe's biggest green power plant," nine European nations have committed to increasing their capacity there by eight times before 2050.

Some of the major players operating in the market include: Siemens Gamesa Renewable Energy, S.A, Vestas, Goldwind, Ørsted A/S, E.ON SE, General Electric, Shanghai Electric, Doosan Enerbility, DEME, Envision Group.