The offshore wind market comprises onshore and offshore components including wind turbine transformers, towers, nacelles, generators and blades that are installed in the sea, oceans or lakes to produce electricity from wind energy. Offshore wind power provides cleaner energy at a lower average cost compared to onshore counterparts and have higher capacity factors owing to greater availability of strong and persistent winds.

The global offshore wind market is estimated to be valued at US$ 80 Billion in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 To 2028.

Key Takeaways

Key players operating in the offshore wind market are Siemens Gamesa Renewable Energy, General Electric, Vestas, Senvion, Adwen and Goldwind. These players are focusing on developing larger and more efficient turbines to reduce costs.

The offshore wind market offers lucrative opportunities owing to rising focus on renewable energy integration. Countries across Europe and Asia are formulating policies and targets to boost offshore wind power installations to reduce fossil fuel dependency and carbon emissions. The global offshore wind capacity installation is expected to witness strong Offshore Wind Market Growth especially in China, UK, Germany and Taiwan. Rising investments in offshore wind projects across emerging markets will further drive the global expansion of the offshore wind market during the forecast period.

Market drivers

Increasing dependency on renewable sources for energy due to implementation of strict environmental regulations globally is a key driver boosting the offshore wind market growth. The offshore wind energy provides a predictable energy source with strong and consistent winds available throughout the year. This leads to a higher capacity factors of offshore wind farms compared to onshore wind farms. Favorable government policies and incentives encouraging wind power production has accelerated the adoption of offshore wind turbines over the last few years.

PEST Analysis

Political: Changes in government policies related to renewable energy sources can impact the Offshore Wind Energy Market Regional Analysis. Subsidies and tax incentives promoting investments in cleaner sources of energy boost adoption.

Economic: The overall economic conditions along with rise in energy demand and stable power prices drive the consumption of offshore wind energy. Cost reduction due to technological advancements and economies of scale facilitate market growth.

Social: Increasing public awareness about climate change and emphasis on sustainability is prompting industries and individuals to use renewable energy options like offshore wind. This helps gain social acceptance.

Technological: Advancements in engineering designs of turbine components, digitalization, automation and use of big data enable superior performance of wind turbines leading to higher energy output even in deeper waters. This improves project viability and attracts investments.

The offshore wind market in terms of value is currently concentrated in European regions like North Sea and Baltic Sea due to the early adoption and supportive policies. Countries including the UK, Germany, Belgium, Denmark and the Netherlands have expanded their offshore capacities significantly over the past decade accounting collectively for over 20 GW capacity.

The Asia Pacific region is poised to be the fastest growing market during the forecast period led by China. The Chinese government aims to install over 30 GW of offshore wind capacity by 2025. Other emerging economies like Taiwan, South Korea and Japan are also actively promoting offshore wind power generation to achieve their decarbonization goals. North America and Latin America are still at a nascent stage but initiatives are being taken to develop projects in regions such as the east coast of USA and Gulf of Mexico.

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