Market Research Logo

Offshore Wind Farm Manufacturing Worldwide

The global move to offshore wind farm development is enabling nations to accelerate wind energy adoption while reducing reliance on land-based power grids. Offshore wind turbines are subjected to fiercer winds and require larger turbines than land-based wind initiatives. But these benefits typically can increase the overall cost of offshore manufacturing and maintenance of wind turbines. Capital costs are approximately 30-50% higher than onshore, due to larger machine size and the costs of transporting and installing at sea. These expenses are partially offset by higher energy yields - as much as 30%. But many countries are finding the benefits to offshore outweigh these added expenditures. Offshore wind energy has a reduced effect on the environment and higher wind speeds at sea result in increased energy production.

Leading wind energy producers in Europe, Asia, and the Americas are embracing offshore as an important component of future expansion and adoption of renewable energy use. The first large offshore wind farms are well in development in several European countries. Developing offshore wind can enable these nations to achieve competitive electricity markets, reach a larger degree of energy inde¬pendence, and ensure lower and more predictable overall project costs. This SBI Energy report, Offshore Wind Farm Manufacturing Worldwide explores the revenue generating potential for companies involved in this burgeoning renewable energy area.

Read an excerpt from this report below.


Market Insights: A Selection From The Report


Chapter 3 Global Activities inOffshore Wind Energy

Companies involved in the manufacturing and distribution of products related to offshore wind energy are expecting 2010 to be a highly productive year as many global projects come to fruition and others get underway. Nations eager to accelerate their offshore wind energy commitments have been challenged by weakened economies since late 2008. But with signs that the global recession is waning, coupled with an influx of economic stimulus funds and tax breaks for renewable energy initiatives, manufacturers are preparing for a surge in production of offshore wind turbine components. They are focusing their efforts on shoring up inventories and securing business contracts in regions where offshore wind energy projects are expected to grow during the next five year. This chapter examines the global trends and activities among countries that are embracing offshore wind as a viable renewable energy source. Offshore wind currently accounts for a small amount of the total installed wind power capacity in the world - approximately 8%. But SBI Energy expects that the development of offshore wind farms will grow its share of total installed wind capacity to nearly 40% in some Asian territories by 2015. And that has manufacturers of turbine components and foundations hungry to seize this ocean of opportunity.

So far, manufacturing activity has focused on northern European counties, around the North Sea and the Baltic Sea, where about 20 projects have been implemented. But the expected benefits of higher wind speeds and the lower visual impact of the larger turbines has led many countries, particularly in Europe, to set more ambitious goals for offshore wind initiatives. Although the investment costs are considerably higher for offshore than for onshore wind farms, they are partly offset by a higher total electricity production from the turbines.

Offshore wind power will be vital for Europe’s future as it will help solve the continent’s climate dilemma by exploiting a natural resource that does not emit greenhouse gases and reduces the region’s dependence on costly fuel imports. These reasons for offshore wind farm development have been recognized by the European Commission in its 2008 Communication “Offshore Wind Energy: Action Needed to Deliver on the Energy Policy Objectives for 2020 and Beyond.” Through 2020, according to the Commission, 360 GW of new electricity capacity - 50% of current EU capacity - needs to be built to replace ageing European power plants and meet the expected increase in demand. Europe must use the opportunity created by the large turnover in capacity to construct a new, modern power system capable of meeting the energy and climate challenges of the 21st century while enhancing Europe’s competitiveness and energy independence. By 2020, the EC expects that half of public and private investments in renewable energy will go to offshore wind farms.

In the News

Portugal Matures into Formidable International Trendsetter with Sweeping Clean Energy Initiatives

New York, September 1, 2010 - As countries around the world scramble to create, deploy, and sustain clean energy adoption initiatives, few have done so with the gusto of Portugal.  The country is quickly emerging as a “green” trendsetter due to its determination to reduce its dependence on imported fossil fuels by channeling its wind, solar, and hydropower resources and by improving smart grid capabilities and exploring the use of electric vehicles—even though such clean energy transitions have come at substantial financial costs.

“Germany is well-regarded as a green energy leader with its hefty share of the total installed wind energy capacity in Europe. But it’s Portugal that has us excited, and we anticipate enormous growth in the country’s generation of wind power due in large part to government stimulus incentives,” says Shelley Carr, publisher of SBI Energy, which released the market study Offshore Wind Farm Manufacturing Worldwide in April 2010.  “Though Portugal’s efforts come at a price, one must remember that this is a region with prodigious wind and water power resources, both of which are widely regarded as the most cost-effective to harness.”

In terms of world numbers for smart meter installations, some industry estimates see a fivefold rise—from roughly $50 million in 2010 to $250 million by 2015.  Much of this huge and rapid increase in smart meter installs will take place in Europe, according to SBI Energy’s Smart Grid and Consumers Other sources reveal that five years ago only 17% of Portugal’s smart grid power originated from clean energy resources, but that number could rise to almost half of the nation’s smart grid power by the end of 2010.

Meanwhile, Portugal is making progress on the electric vehicle front.  “There is tremendous optimism that Portugal could become the first nation with a national network of charging stations for electric cars,” says Carr.  SBI Energy’s Electric Vehicle (EV) Infrastructure Manufacturing reveals that the European-Union sponsored Sagittaire is running demonstrations of hybrid buses in eleven cities across France, Spain, Portugal, Norway, and Italy. In each city, the hybrid-electric bus fleet will be tested under different operational and practical conditions. In addition, Portugal is involved in the Renault-Nissan Alliance’s zero-emissions vehicle initiatives that are sweeping Asia and the United Kingdom, France, Switzerland, Ireland, Israel, Denmark, and Monaco.

And with automakers in Europe planning new business models for electric vehicles and plug-in hybrids before 2011 that could completely overhaul its electric vehicle transportation infrastructure by eliminating the need for gas stations and relinquish fueling responsibilities to utility companies, Portugal has steadfastly proven itself a willing participant and test projects are in development for the country.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets.  SBI Energy also offers a full range of custom research services.  In the News


Six Clean Energy Markets That Will Change Life As We Know It in the Next Five Years

New York, August 26, 2010 - Renewable energy is receiving a big push from the Obama Administration and from governments around the globe. Stimulus packages and government incentives for green technology has created jobs and established new industry, which in turn has sparked a brighter outlook on the world's economy. Going into 2011 and beyond, SBI Energy has identified six clean energies that will not only gain double-digit growth in the next five years, but will also alter the lifestyle we know today.

Green Building Materials and Construction - Traditional construction creates considerable debris which ends up in our landfills, soil and fresh water supply. Furthermore, inefficient materials used in construction produce higher energy bills for the homeowner. The judicious use of recycled materials, lumber that is harvested from sustainable forests, more efficient insulation and windows, and improved construction techniques can drop energy bills for consumers while reducing the need for raw materials simultaneously. Market research performed by SBI Energy forecasts the size of the global green building materials market to grow to over $580 billion by 2015 from about $160 billion in 2010. This represents a growth rate of 21% CAGR which is significant but understandable in light of increasing demand for products that save energy and minimize harmful environmental effects.

Enhanced Oil Recovery EOR refers to a variety of oil producing methods, by which 70% - 90% more oil is produced from oil wells than is typically extracted by conventional oil production methods. Some of the more common EOR methods include steam, gas or chemical injection, which improve the viscosity of the oil, enabling the oil to flow more freely out of the well. More oil indicates lower prices. SBI Energy estimates dollars from EOR will climb steadily with some gentle fluctuations. SBI's analysts calculate the EOR market will experience a compound average growth rate (CAGR) of 63% per year over the 6-year span to total $1.3 trillion in 2015.

Solar Technology - We've all seen the solar panels on residential home roofs and today energy providers are multiplying this concept by installing large solar farms and using concentrated solar power (CSP) technology to supplement power demands. Electricity from CSP technology is generated like conventional electricity, except solar power is used to heat the boiler instead of fossil fuels. Global CSP installations are just getting started and SBI Energy expects to see real growth in the segment beginning in 2012.CSP is the fastest growing segment within the solar technologies, going from $0.7 billion in 2010 to $3 billion in 2014, a CAGR of 42% for the period. Including systems and panels, SBI Energy sees the world solar market growing to $173 billion in 2014 - a CAGR of 28%.

Offshore Wind Farms - Coastal area will have a new view as nations increasingly harness the renewable energy generated by the fierce winds a few miles off their shorelines. During the next five years, SBI Energy expects offshore wind farms to crop up at a much faster pace than land-based turbines. Leading manufacturers of turbines and components are riding the wave of production expected to result from growing interest in offshore projects, such as the recent approvals of Cape Wind in Massachusetts and The Offshore Wind Economic Development Act in New Jersey. Helping them accelerate their offshore initiatives are government cash and tax incentives that promote renewable energy development, particularly in Europe and the U.S. "States are leading the way in off-shore wind development because it spurs economic development, helps to stabilize energy costs, and moves our country towards energy independence in a sustainable fashion," comments Donald Carcieri Governor of Rhode Island. SBI Energy forecasts the global market to grow at a five-year CAGR rate of 11% to reach more than $78 billion. The fastest growth will come from the U.K., which will more than double its offshore market value to reach nearly $5 billion in 2015.

Electric Vehicles - For years the marketing and advertising from government and car companies alike have boldly stated that electric cars will take over the car industry “real soon now.” Now, electric vehicles, in the form of hybrids that combine both gas and electric motors, are finally beginning to do just that. The world populace is accepting hybrid electric vehicles, giving them equal weight as an option in their car purchases. Just how quickly this market will grow depends on several factors including gas prices, government incentives and vehicle price. According to market research from SBI Energy worldwide hybrid electric vehicle sales will double from just under 700,000 units sold in 2009 to 1.5 million passenger hybrid vehicles sold in 2014. Exponential HEV market growth will occur in smaller existing markets such as Europe, Australia and South Korea, and in new markets such as India and China where product sold will increase from 95,000 vehicles in 2010 to 440,000 vehicles in 2014, a phenomenal 47% compound annual growth rate.

Smart Grid Technologies - Implementing and integrating all of the renewable energies is somewhat contingent on the upgrade of our existing dilapidated 100 year old electrical grid to a powerful sophisticated smart grid system. The smart grid can be seen in broad outline as an architectonic structure consisting of three major sectors: grid infrastructure; information and communications technology (ICT); and applications and software (A/S). Despite consumer concerns over privacy and cost regulation, the smart grid will encourage clean energy production and ensure reliable electrical supply to the world through digital grid operation and a distributed network. SBI Energy sees the global smart grid market soaring upward nearly 150% between 2009 and 2014, reaching $171 billion in 2014. Meanwhile, the U.S. market is projected to double over the timeframe to about $43 billion by 2014.

SBI Reports has been leading industrial market research reporting for more than a decade. The brand established SBI Energy to address the complex nature of the Energy and Resources industry. SBI Energy reports capture data vital to emerging energy market sectors on a global scale. Growth of energy technology, manufacturing, construction, transportation and investment is exciting in its innovations and opportunities, and integral to the advancement of security and science. SBI relies upon only the most experienced analysts with excellent credentials, years of industry experience, and the trust of colleagues and peers.

Research for this article is based on the following market studies from SBI Energy:

EOR Enhanced Oil Recovery Worldwide

Electric Vehicle (EV) and Plug-In Hybrid Electric Vehicle (PHEV) Markets Worldwide

Smart Grid and Consumers

Global Green Building Materials and Construction, 2nd Edition<

Offshore Wind Farm Manufacturing Worldwide

U.S. Solar Energy Market World Data, 2nd Edition: PV, Solar Thermal, CSP

# # #

In the News


  

Favorable Wind Blowing for Offshore Wind Energy Markets

New York, April 5, 2010 - During the next five years, the production of offshore wind farms will far outpace the production of land-based wind turbines as nations worldwide increasingly harness the renewable energy generated by the fierce winds blowing a few miles off their shorelines, according to Offshore Wind Farm Manufacturing Worldwide by leading industrial market research firm SBI Energy.

“Our analysts project that total offshore installed capacity will grow at an astounding 92% compound annual growth rate during the next five years to reach more than 79,700 megawatts,” says Shelley Carr, publisher for SBI Energy.

Guiding the accelerated interest in offshore wind initiatives are government cash and tax incentives that promote renewable energy development, particularly in Europe and the United States. In addition, the ongoing improvement in the quality of offshore wind products that can withstand stronger gusts, reduce maintenance cycles, and reduce the shipping expenses of turbines to offshore job sites are also vital to the market’s future. Meanwhile, offshore wind manufacturers will fuel growth by finding ways to reduce costs associated with offshore projects, which will subsequently attract greater investment from governments and private energy companies.

The current $47 billion total for offshore wind manufacturing represents 8% of the combined $566 billion global offshore and land-based wind energy manufacturing industry, a solid performance considering the challenges of financing offshore wind farms due to the lingering financial crisis.

Offshore manufacturing represents a sizeable percentage of total wind energy manufacturing for several nations, including India (20%) and China (17%). However, the U.S. has thus far approached offshore manufacturing conservatively with only 2% of its sales going to offshore production.

China is currently the global leader in generating sales for offshore wind energy manufacturing initiatives, garnering a 61% share of the market. Not surprisingly, multinational manufacturers are responding to the rapid growth of China’s offshore market by building turbine factories in the country, according to SBI Energy analyst Darren Bosik. Conversely, European-based companies lead the world in onshore wind energy manufacturing with a 34% market share.


Offshore Wind Farm Manufacturing Worldwide investigates the global activities affecting the development of offshore wind farms, such as public policy affecting growth and innovative developments in products and technologies. The report includes market value of offshore wind energy manufacturing by country, 2006 to 2015, including manufacturing of turbines, turbine components, and seabed foundation materials. Profiles of key offshore wind turbine manufacturers are also provided.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services. p>

  • Executive Summary
    • Global Offshore Wind Market Value Exceeds $46 Billion
      • Table Global Market Value of Onshore and Offshore Wind Energy Manufacturing, 2010 (in $ millions)
    • Market Value of Offshore Foundation Manufacturing
    • Strong Potential for Offshore Wind Energy Manufacturing
      • Table Earnings of Offshore MW Installed, 2010 to 2015, by Region (in $ per MW)
    • The Global Offshore Wind Energy Picture
      • Table Total Offshore and Onshore Wind Energy Installed Capacity, by Region, 2007 to 2010 (in MW)
      • Table Global Forecast of Offshore Wind Energy Generating Capacity, by Region, 2010 to 2015 (in MW)
    • Europe's Long-term Commitment Lies Offshore
      • Table Share of Total European Installed Wind Energy Capacity, 2006 to 2010 (in MW)
      • Table Total European Offshore Wind Power Installations, 2010 to 2015 (in MW)
    • U.S. Grows Interest in Offshore Wind Energy
    • China is Leading Asia's Offshore Efforts
      • Table Offshore Wind Energy Capacity Installed in Asia, 2010 to 2015 (in MW)
    • Offshore Wind Farm Development Challenges
      • Offshore Wind Research Developments
    • Wind Turbine Product Innovation
      • Innovations in Electricity Grid Integration
    • U.S. Offshore Wind Farm Innovations
      • Innovations in Offshore Foundations
    • Offshore Market will Reach $78.5B by 2015
      • Table Global Market Value of Offshore Wind Energy Manufacturing, by Region, 2010 to 2015 (in $ millions)
  • Introduction and Overview
    • Report Scope
    • Methodology
    • Terminology
    • Wind Turbine Components
      • Table Turbine Component Weights and Costs
    • Birth of an Offshore Wind Farm
      • Maintenance Requirements
      • Structural and Connection Requirements
      • Foundation Requirements
      • Future Foundation Designs
  • Global Activities in Offshore Wind Energy
    • Consumption of All Renewable Energy
      • Table Global Consumption of Energy by Type and Country Group (in Quadrillion BTUs)
      • Table Renewable Energy Consumption by Energy Use Sector and Energy Source in, 2002-2010 (Quadrillion BTUs)
      • Table Electricity Generation Capacity, by Source and Region, 2009 and 2015 (GwH)
    • The Global Offshore Wind Energy Picture
      • Table Total Offshore and Onshore Wind Energy Installed Capacity, by Region, 2007 to 2010 (in MW)
      • Table Global Forecast of Offshore Wind Energy Generating Capacity, by Region, 2010 to 2015 (in MW)
      • Table Global Share of Installed Offshore Wind Energy Capacity, 2010 and 2015
      • Table Global Onshore Wind Energy Installed Capacity, by Region, 2010 to 2015
      • Table Global Onshore Wind Energy Share of Total Installed Capacity, 2010 and 2015
      • Table CAGR of Total Wind Energy Installed Capacity, by Region, 2010 to 2015 (in MW)
      • Table Share of Total Wind Energy Installed Capacity by Region, 2010 and 2015
    • Europe's Long-term Commitment Lies Offshore
      • Table Share of Total European Installed Wind Energy Capacity, 2006 to 2010 (in Megawatts)
      • Table European Wind Installation Specifications
      • Table Total European Offshore Wind Power Installations, 2010 to 2015 (in MW)
      • Table European Offshore Wind Energy Capacity Growth, 2010 to 2015
      • Table Offshore and Onshore Installed Capacity in Europe
      • Table Total Europe Installed MW of Wind Energy, 2007, 2008 and 2010
      • Table Offshore and Onshore Wind Energy Installations in Europe, 2010 to 2015
    • U.S. Grows Interest in Offshore Wind Energy
      • Table Top States with Cumulative Wind Power Capacity, 2007 to 2010 in Megawatts)
      • Table Total North American Offshore Wind Energy Capacity, 2010 to 2015 (in MW)
      • Table CAGR of Onshore Wind Energy Capacity in North America, 2010 and 2015 (in MW)
      • Trends Affecting Offshore Growth in the U.S.
    • China is Leading Asia's Offshore Efforts
      • Table Offshore Wind Energy Capacity Installed in Asia, 2010 to 2015(in MW)
      • Table Installed Wind Power Capacity in Asia, 2006 to 2010 (in MW)
      • Table Total Wind Energy Capacity Installed in Asia, 2010 and 2015 (in MW)
      • Table Total Onshore Wind Energy Capacity Installed in Asia, 2010 and 2015 (in MW)
  • The Global Offshore Wind Energy Market
    • Table Global Market Value of Onshore and Offshore Wind Energy Manufacturing, 2010 (in $ millions)
    • Table Growth of Global Offshore Wind Energy Manufacturing Market Value, 2006 to 2010 (in $ millions)
    • Offshore Manufacturing is Small Percentage of Total Wind Energy Market
      • Table NAICS Codes and Descriptions of Wind Turbine Components
      • Table NAICS Codes and Descriptions of Wind Turbine Subcomponents
      • Caveat to Using the 6-digit NAICS Codes
    • Imports and Exports of Wind Turbine Components
      • Table Total U.S. Shipments of Wind Turbine Subcomponents, 2006 to 2010 (in millions)
      • Shipment Value of Wind Turbine Components
        • Table Share of U.S. Shipment Value of Wind Turbine Subcomponents, 2006 and 2010 (in millions)
        • Table U.S. Domestic Imports of Wind Turbine Subcomponents, 2006 to 2010 (in millions)
        • Table Share of U.S. Domestic Imports of Wind Turbine Subcomponents, 2009 vs. 2010
        • Table Growth of U.S. Domestic Exports of Wind Turbine Subcomponents, 2002 to 2008 (in millions)
      • Trade Value of Wind Energy Components Used in Offshore Manufacturing
        • Table U.S. Market Value of Subcomponents Used to Manufacture for Offshore Wind Turbines (in $ millions)
        • Table Total Market Value of U.S. Wind Turbine Manufacturing, 2006 vs. 2010 (in $ millions)
        • Table U.S. Shipments of Subcomponents Used to Manufacture Offshore Wind Turbines (in $ millions)
        • Table U.S. Shipments of Offshore Wind Energy Components Expressed as a Percentage
      • China is Greatest Exporter of Fans and Blowers
        • Table Country Share of U.S. Domestic Imports of Industrial Fans and Blowers for Offshore Wind Farm Manufacturing, 2006 vs. 2010 (in $ millions)
        • Table Country Share of U.S. Domestic Imports of Turbine and Generator Sets used for Offshore Wind Energy, 2006 vs. 2010 (in $ millions)
      • Imports of Measuring and Controlling Devices
        • Table U.S. Imports of Measuring and Controlling Devices Used for Offshore Wind Energy Manufacturing, 2006 and 2010 (in $ millions)
        • Table U.S. Import Value of Motors and Generators Used for Offshore Wind Energy Manufacturing, 2006 and 2010
    • Market Value of Offshore Foundation Manufacturing
      • Table Global Market Value of Offshore Wind Energy Foundation Manufacturing, by Type of Foundation, 2009 vs. 2010 (in $ millions)
      • Table Global Market Value of Offshore Wind Energy Foundation Manufacturing, by Region, 2009 vs. 2010 (in $ millions)
      • Table Global Market Value of Offshore Wind Energy Foundation Manufacturing by European Country , 2009 vs. 2010 (in $ millions)
    • Strong Potential for Offshore Wind Energy Manufacturing
      • Table Earnings of Offshore MW Installed, by Region, 2010 to 2015 (in $ per MW)
      • Employment Outlook
        • Table Percent Distribution of Employment and Establishments in Machinery Manufacturing by Sector, 2006
        • Table Number of Current and Projected U.S. Jobs in Turbine Manufacturing, 2006 and 2016
        • Table Total U.S. Employees in Turbine Subcomponent Manufacturing
        • Table European Employment Forecast for Onshore and Offshore Wind Energy Initiatives,
    • Offshore Market will Reach $78.5B by 2015
      • Table Global Market Value of Offshore Wind Energy Manufacturing, 2010 to 2015 (in $ millions)
      • Table Global Forecast of Offshore Wind Energy Manufacturing, 2010 and 2015 (in $ millions)
      • Table Global Share of Market Value of Offshore Wind Energy Manufacturing, 2010 and 2015
      • Table Projected Market Value of Offshore Wind Energy Foundation Manufacturing, 2009, 2010 and 2015 (in $ millions)
      • Table Global Market Value of Offshore Wind Energy Foundation Manufacturing by Region, 2009, 2010 and 2015 (in $ millions)
      • Table Projected Market Value of Offshore Wind Energy Foundation Manufacturing in Europe, 2009, 2010 and 2015
      • Table Total Global Market Value of Offshore Wind Energy Manufacturing, 2010 and 2015 (in $ millions)
  • Competitive Profiles
    • GE Energy
      • Overview and Performance
        • Table General Electric Revenues, 2004 to 2009 (e) (in $ billions)
      • Research & Development
    • Mitsubishi Heavy Industries
      • Overview and Performance
        • Table Mitsubishi Heavy Industries Revenues, 2008 and 2009, by Division (in $ billions)
      • Significant Developments
    • Siemens Power Generation
      • Overview and Performance
        • Table Siemens AG Revenues, 2008 to 2009, by Business Unit (in $ billions)
      • Significant Developments
    • Suzlon Energy
      • Overview and Performance
      • Key Strategic Markets
    • Gamesa
      • Overview and Performance
    • Vestas
      • Overview and Performance
    • Offshore Wind Turbine Specialists
  • Product Innovation and Public Policy
    • Offshore Wind Farm Development Challenges
      • Table Manufacturer Developments in Offshore Turbines
      • Offshore Wind Research Developments
    • Wind Turbine Product Innovation
      • Future Component Product Innovations
      • Turbine Research & Development
      • Innovations in Electricity Grid Integration
      • Legalities of Site Selection
      • Environmental Impacts Assessed
      • Germany Lays Undersea Cable
        • Table Key Technical Data for the Borwin1 Wind Farm
      • Cluster Concept Used
    • U.S. Offshore Wind Farm Innovations
      • University-led Offshore Wind Research
      • Innovations in Offshore Foundations
      • Federal Incentives
    • Public Relations Woes for Wind Energy
      • AWEA Defends Wind Turbines

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report