During the period between 2024 and 2032, the offshore wind energy market is anticipated to increase at a CAGR of 8.2%. Offshore wind energy is the extraction of wind energy from a body of water, such as an ocean, which is converted into electricity and distributed to onshore electrical networks. Denmark established the first offshore wind energy project in 1991. Due to the higher wind velocities in offshore wind farms compared to onshore wind farms, offshore wind energy may produce more power at a more consistent rate than onshore wind energy, and this could contribute to the growth of the offshore wind turbine sector as a whole. A floating wind turbine is a type of offshore wind turbine that is supported by a platform. Offshore initiatives utilizing floating wind turbines are anticipated to aid in the development of numerous deep-water projects.
Due to factors such as the goal to reduce carbon emissions, the depletion of fossil fuels, climate change, etc., there has been a substantial shift toward renewable and green energy in the energy sector. There are numerous government initiatives in place to facilitate the transition to greener energy. Numerous multinational firms are decreasing their carbon footprints in order to contribute to a cleaner planet and greater sustainability. Equinor (Norway) desires a 50 percent reduction in carbon emissions by 2050. The corporation plans to grow its renewable energy activities, especially offshore wind, which could reach 6,000 megawatts within six years and 16,000 megawatts within fifteen years. The total has also reached an agreement with SSE Renewables to purchase a 51 percent interest in the Seagreen 1 offshore wind farm project. It is anticipated that 70 million euros will be invested in this project. According to analysts, offshore wind could create USD 166 billion in new investments and USD $1.7 billion in new tax revenue for the US Treasury by 2023, in addition to supporting USD 80,000 in annual jobs by 2035.
Offshore wind is one of the most promising and environmentally friendly forms of electricity generation. It has a high-capacity factor when compared to related technologies such as solar and onshore wind, but its exorbitant capital costs limit its implementation. Due to the fact that they operate for decades in harsh marine environments, offshore wind energy are susceptible to erosion. Even the most favorable conditions, such as significant wind speeds, can often be damaging to offshore wind energy. Wind turbines, for instance, normally shut down when wind speeds exceed 25 meters per second. As the size of offshore wind farms has increased, so have their construction, transportation, installation, and operation complications. Offshore wind farms have greater logistical difficulties than their onshore counterparts. Wind farms are often located far from the coast and are difficult to reach, particularly during stormy conditions. Therefore, resolving even the most minor technology faults may be complicated and expensive. Other challenging components of the deployment of offshore wind power include resource characterization, grid connections and operation, and the construction of transmission infrastructure, which are far less challenging in other technologies, such as solar and onshore wind. Consequently, the global market is constrained by significant capital expenditures and operating, maintenance, transportation, and logistical concerns.
Browse for report at : https://www.acutemarketreports.com/report/offshore-wind-energy-market
The need for renewable energy will continue to expand due to the dropping costs of technology, the growing desire to reduce CO2 emissions, and the rising energy consumption in developing and undeveloped countries. According to the International Renewable Energy Agency (IRENA), the share of renewables in yearly worldwide energy output must climb from 25% to 86% by 2050 in order to satisfy the goals of the Paris Agreement. To achieve this, the world must invest an additional USD 110 trillion in the sector between 2030 and 2050, compared to the USD 95 trillion that is anticipated to be invested by 2030. This change will result in a noticeable transition from fossil fuels to renewable energy sources. Bloomberg BNEF predicts that USD 13.3 trillion will be invested in new power generation assets between 2019 and 2050, with the expected construction of 15,145 GW of carbon-free plants. Wind and solar energy will account for fifty percent of the world's electricity output by 2050, according to the BNEF.
In terms of components, turbines held the largest market share in 2023. The market segment for offshore wind energy is segmented into the nacelle, rotors and blades, and towers. The turbines atop the tower are responsible for transforming wind energy into electricity.
In 2023, the shallow water market segment held the largest location-based market share. This sector contains the vast bulk of projects. This location is recommended for the establishment of an offshore winery because of the favorable climate and ease of upkeep. It is also easier to install the electrical infrastructure required to run a wind turbine in shallow water. Due to the lower achievable wind speed in shallow water, turbines with a lower MW capacity are installed.
As a result of favorable legislative mandates in emerging nations, the offshore wind energy business from > 0 to 30 m in depth is expected to increase by roughly 9 % by 2031. In addition, major government efforts to support the deployment of wind energy are also contributing to the rise of this market category. Europe's wealth of sea basins allows it to dominate the offshore wind investment market. In 2021, the EU really invested over €41 billion ($43.5 billion) in new wind farms. The majority of the funds were used to finance a record-breaking 25 GW of new capacity.
As energy demand rises, major countries and corporations are adopting renewable energy sources, particularly wind energy, which may supply clean energy. Numerous nations and organizations have made substantial investments in the utilization of offshore wind energy utilizing enhanced technologies. In addition, technological advancement has enabled turbine equipment manufacturers to limit the increase in turbine cost (USD/kW) and manage the decrease in turbine mass (kg/kW), allowing turbine growth to continue beyond 12 MW. The weight decrease has raised the chance that the installation of floating-type offshore wind energy will increase. Floating platforms contributed significantly to the total installed capacity of offshore wind energy, which reached 35 GW in 2020 due to technological advancements and cost reductions. In January 2023, Repower Renewable declared its intention to construct a 495 MW floating offshore wind farm in Italy at a cost of approximately EUR 1.5 billion. On floating foundations, 33 wind turbines, each with a 15 MW capacity, are intended for the project. In addition, in November 2021, the government of the United Kingdom announced funding of $218 million for the development of floating offshore wind facilities in Scotland and Wales. The funds will be used to generate 1 GW of sustainable energy from floating offshore wind energy by 2030. As a result of the aforementioned factors, it is predicted that the floating foundation segment of the offshore wind energy market would experience substantial growth throughout the forecast period.
European waterways are home to around 85 percent of the world's offshore wind farms. Governments in the European region, particularly in the North Sea region, have set an ambitious aim for the development of offshore wind farms in their respective national waters. In 2020, Europe added 2,918.0 MW of offshore wind capacity. The Netherlands (1,493 MW), Belgium (706 MW), the United Kingdom (483 MW), Germany (219 MW), and Portugal all contributed to this surge (17 MW). Off the coast of Aberdeenshire, Scotland, the Kincardine floating offshore wind farm with a 50 MW capacity was commissioned in October 2021. It is projected that the project will generate up to 218 GWh of electricity annually, enough to power approximately 55,000 Scottish households. In 2020, eight new offshore wind projects received the Final Investment Decision (FID), and development is projected to begin in the years that follow. The project's total investment cost is USD 29.67 billion. Consequently, these recent developments are anticipated to make Europe an attractive business destination for offshore wind farm industry participants during the projection period.
Significant fragmentation characterizes the offshore wind energy business. Siemens Gamesa Renewable Energy SA, Vestas Wind Systems AS, Xinjiang Goldwind Science Technology Co., Ltd., rsted AS, and E. ON SE are among the industry's top companies. Globally, offshore wind energy are a highly competitive sector. Numerous prominent entities are involved in the development and distribution of these turbines. Players in the offshore wind turbine industry are boosting their research and development efforts to build lightweight and cost-effective floating wind models. Energy research associations are also making attempts to innovate. With advances in offshore wind technology, offshore wind energy with bigger capacities are getting closer to being a reality, especially in China, the United States, and a few regions of Europe. China installed more than 2,3 gigawatts of offshore wind energy in 2019, while the United Kingdom installed 1.8 gigawatts. Future technological developments are anticipated to reduce the price of electricity generated by offshore winds. Future expansion of the offshore wind energy market will be driven by the increasing advantages of offshore wind energy over onshore wind energy. Vestas, Enercon GmbH, General Electric, Nordex S.E, Suzlon Energy Limited, and Siemens Gamesa Renewable Energy S.A. and Other Notable Players are a few of the major companies in the offshore wind energy market.
