Offshore Wind Energy Market Size, Share, Growth, And Industry Analysis, By Type (Up to 1 MW, 1-3 MW, 3-5 MW and 5 MW and Above), By Application (Shallow Water and Deep Water), Regional Insights, and Forecast 2024 To 2031

Offshore Wind Energy Market Report Overview

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The global offshore wind energy market size was USD 5 million in 2022 and is expected to reach USD 18.49 million in 2031, exhibiting a CAGR of 15.5% during the forecast period.

Offshore wind energy is the term used to describe the production of electricity using wind turbines positioned on water, usually in coastal or offshore sites. It is a type of renewable energy that uses wind energy more extensively than onshore wind farms to generate electricity.

On average, offshore wind turbines are substantially larger than their onshore equivalents. They are set up on either stationary foundations or floating platforms that are moored to the seafloor. Monopiles, jackets, and gravity-based structures are examples of fixed foundations, whereas floating constructions are made to remain stable in deeper waters where fixed foundations would not be appropriate.

COVID-19 Impact: Pandemic Hamper the Demand of Offshore Wind Energy to Market Growth

The global Covid-19 pandemic has been unprecedented and staggering, with the offshore wind energy market experiencing Higher than anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic has had both direct and indirect impacts on the offshore wind energy sector. The pandemic caused disruptions in the construction activities of offshore wind projects. Travel restrictions, supply chain disruptions, and social distancing measures led to delays in manufacturing, transportation, and installation of wind turbines and related infrastructure. Projects faced challenges in mobilizing personnel and equipment, resulting in construction delays and potential cost overruns.

Latest Trends

"Increasing Turbine Sizes Will Drive Market Growth "

Offshore wind turbines continue to increase in size, with larger rotor diameters and higher power capacities. This trend enables greater energy production and improved cost-effectiveness by capturing more wind energy per turbine. Larger turbines also contribute to reducing the overall number of turbines needed for a project, simplifying installation, and reducing maintenance requirements.

Offshore Wind Energy Market Segmentation

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• By Type Analysis

According to type, theoffshore wind energy market can be segmented into Up to 1 MW, 1-3 MW, 3-5 MW and 5 MW and above.

In terms of type, natural Up to 1 MW is anticipated to be the largest segment during the forecast period.

• By Application Analysis

Based on application, the offshore wind energy market can be shallow water and deep water.

In terms of application, the shallow water market is projected to hold an offshore wind energy market share through 2028.

Driving Factors

"Declining Costs Will Boost Market Growth "

The cost of offshore wind energy has been declining steadily over the years, making it increasingly competitive with other forms of energy generation. Technological advancements, economies of scale, improved project designs, and streamlined installation and maintenance processes have contributed to cost reductions. As costs continue to decrease, offshore wind becomes a more attractive option for energy generation.

"Renewable Energy Targets and Climate GoalsWill Fuel Market Growth"

Governments around the world have set renewable energy targets and committed to reducing greenhouse gas emissions to mitigate climate change. Offshore wind energy plays a crucial role in achieving these goals, as it is a clean, renewable energy source with significant potential for large-scale electricity generation. Strong policy support and commitments to clean energy have driven the growth of offshore wind projects.

Restraining Factors

"Grid Connection Challenges Will Impede Market Growth"

Offshore wind farms require robust and efficient grid connection infrastructure to transmit the generated electricity to onshore grids. Developing adequate transmission systems, including subsea cables and onshore substations, can be complex and costly. Grid connection challenges, including limited grid capacity, grid congestion, and lack of grid infrastructure in suitable offshore locations, can hinder the development of offshore wind projects.

Offshore Wind Energy Market Regional Insights

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"The Europe Region will Dominate Market Due to Strong Demand of Wind Supply Chain"

Europe has been a global leader in offshore wind energy development. Countries such as the United Kingdom, Germany, Denmark, the Netherlands, and Belgium have made significant progress in deploying offshore wind farms. The region benefits from strong policy support, favorable wind resources in the North Sea, and a well-established offshore wind supply chain. Europe aims to expand offshore wind capacity as part of its clean energy transition and has set ambitious targets for offshore wind installation.

The Asia-Pacific region is emerging as a promising market for offshore wind energy. Countries such as China, Taiwan, South Korea, and Japan have made significant investments in offshore wind projects. These countries have substantial coastlines and abundant wind resources. Rapid industrialization, growing energy demand, and commitments to decarbonization are driving offshore wind development in the region. China, in particular, has become a major player in the offshore wind industry, with ambitious targets for capacity installation.

Key Industry Players

"Adoption Recycling Services by Key Players Influencing Market Development"

The top key players in the offshore wind energy market areSiemens, MHI Vestas, ABB, General Electric, EEW Group. Most of the top players hold the offshore wind energy market share. In addition, the strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the offshore wind energy market growth in the competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession of market shares by the key players stimulates the offshore wind energy market.

LIST OF TOP OFFSHORE WIND ENERGY COMPANIES

• Siemens (Germany)
• MHI Vestas (Denmark)
• ABB (Switzerland)
• General Electric (U.S.)
• EEW Group (Germany)
• A2Sea (Denmark)
• Nexans (France)
• Adwen Offshore (Spain)
• Equinor (Norway)
• Orsted (Denmark)
• Senvion (Germany)
• Sinovel (China)

Report Coverage

This report examines an understanding of the offshore wind energy market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.