Offshore Wind Turbine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Offshore Wind Turbine Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The offshore wind turbine market is expected to grow at a CAGR of more than 18% during the forecast period 2020-2025. The market studied is expected to witness a significant growth due to rising energy demand coupled with increasing share of renewables in the power generation mix, efforts to reduce the reliance on fossil fuel-based power generation, regulations on energy efficiency, regulations to ensure efficiency and utilization of energy. However, adoption of clean energy source like solar and other alternatives are likely to hinder the growth of the market.

Key Highlights

• Technological improvements such as increased-capacity of wind turbines, floating wind turbines, and 3D printing, have brought the overall cost of offshore wind power to lowest level and opened up new offshore locations such as deep water that were previously inaccessible due to lack of investment and technology. These developments are accelerating the adoption of wind power worldwide and are expected to provide a significant opportunities for the players to enter the untapped regions of the market.
• Moreover, the integration of artificial intelligence, internet of things, robotics, and data analytics in offshore wind turbines is expected to enable advanced condition monitoring and predictive maintenance which result in increased efficiency and reduced operational and maintenance costs, which is likely to provide opportunity to a growth in the deployment of offshore wind turbines in coming future.
• Europe is the largest offshore wind turbine market owing to the largest offshore wind power installed capacity in 2018.

Key Market TrendsRising Investments In Deep Water Offshore Wind Turbine Is Expected To Drive The Market

• As demand for energy is rising, major countries and companies are turning toward adoption of renewable energy in order to provide clean energy. The adoption for offshore wind energy with advance technology attracted the countries and companies to invest in the sector.
• By location of deployment, the offshore industry is expected to remain the driver of the global wind turbine industry investments during the forecast period, owing to declining costs and improved technology.
• The offshore wind industry witnessed major investments in 2018, as it accounted for USD 25.6 billion, which was 11% more than the previous year’s investment. The major projects in offshore wind power included the 950 MW Moray Firth East array in the North Sea, which involved an estimated investment of USD 3.3 billion. Apart from that, China started the construction of 13 offshore wind farms, estimated to require around 11.4 billion.
• Apart from this recently, the companies have been able to install taller wind turbines due to improvements in the wind turbine materials used, which allows the turbines to exploit higher altitude winds. Also, these new turbines have larger blades and, hence, are able to sweep more area than the smaller turbines. The growing size of the wind turbines has helped lower the cost of wind energy, indicating that it is economically competitive with fossil fuel alternatives, in some locations such the United states, Germany, France, etc. These recent trend to drive the offshore wind turbine market during the forecast period.

Europe to Dominate the Market Growth

• Europe accounted for largest share of offshore wind power installated capacity in 2018. According to the European Union, Europe represents a quarter of global installations of the total wind market.
• Europe (primarily North Sea countries) is likely to be at the helm of the offshore wind market worldwide until 2020, followed by China. Considering all new expected additions between 2017-2020, wind power will account for more than half of new renewable energy installations during that period in the EU (Wind 52%, Solar PV 37%, Bioenergy 7%, Hydro 4%).
• Although around 80% of the total offshore wind installations are in the European waters, the governments of the European region, particularly in North Sea area have set an ambitious target for the installation of offshore wind farms in their respective territorial waters. The UK has the highest share of offshore wind capacity (48.1%) that has received government consent to construct, followed by Germany (24.6%), Sweden (8%), and Denmark (4.6%). Besides Sweden, projects in North Sea countries are expected to be constructed within the immediate outlook.
• A total of 65.6 GW of projects are currently in the planning phase. As a result, the offshore market will grow at a higher rate over the coming years and North Sea countries are expected to see significant capacity additions.
• This, in turn, is expected to present Europe as an excellent business destination for players involved in the offshore wind farm business during the forecast period.

Competitive Landscape

The offshore wind turbine market is moderately fragmented due to many companies operating in the industry. Some of the key players in this market includeVestas Wind Systems A/S, Siemens Gamesa Renewable Energy SA, General Electric Company, Nordex SE,Senvion SA , Suzlon Energy Ltd, Xinjiang Goldwind Science & Technology Co. Ltd., Guodian United Power Technology Company Limited, Enercon GmbH, Envision Energy Limited, Hitachi, Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Vestas Wind Systems A/S
Siemens Gamesa Renewable Energy SA
General Electric Company
Nordex SE
Senvion SA
Suzlon Energy Ltd
Xinjiang Goldwind Science & Technology Co. Ltd.
Guodian United Power Technology Company Limited
Enercon GmbH
Envision Energy Limited
Hitachi, Ltd.

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