OFFSHORE WIND ENERGY MARKET ANALYSIS

Offshore Wind Energy MarketSize and Trends

Global offshore wind energy market size is expected to reach US$ 70.38 Bn by 2031, from US$ 33.98 Bn in 2024, exhibiting a compound annual growth rate (CAGR) of 12.9% during the forecast period (2024-2031)

The market is predicted to expand as a result of rising demand for renewable energy sources and growing interest in lowering the world's carbon footprint. The main factor accelerating market expansion is the increased efforts that are made by governments and electrical providers to reduce carbon emissions. Also, it is anticipated that the installation of turbines would rise globally, thus driving the market growth.

Market Trends:

Gradual shift towards large wind turbines with higher capacity: The global offshore wind energy market has been experiencing a gradual shift towards the adoption of large wind turbines with higher capacities. Developers and manufacturers have been installing turbines with greater blade lengths and rotational diameters to capture more wind. This allows them to generate more electricity per turbine and helps to reduce the levelled cost of energy. For example, the largest offshore wind turbines being installed have blade lengths over 100 meters and capacities around 0.010-0.012 GW each. The common turbines had ratings around 0.006 GW. This shift is due to advances in turbine technology that have made it feasible to manufacture and transport much taller towers and longer blades offshore. It has also been driven by commitments from various governments and companies to increase renewable energy usage. By opting for fewer but higher capacity turbines, project developers are able to reduce installation and cable laying costs on a per Giga Watt basis. This helps improve project economics and lowers the risk profile for investors. It also decreases operational and maintenance costs over the lifetime of wind farms. For turbine manufacturers, the demand for these large turbines allows them to benefit from economies of scale in production.

Increasing adoption of floating offshore wind technology: Increasing adoption of floating offshore wind technology is significantly influencing the global offshore wind energy market. Floating offshore wind is an emerging renewable technology that enables the installation of offshore wind turbines in deep waters, where bottom-fixed foundations are not feasible. This allows offshore wind farms to be set up further from the coast and in areas with stronger and steadier wind speeds. As a result, floating offshore wind farms have the potential to harness more energy. Several pilots and demo projects have already shown the technical and economic viability of floating wind technology.

Many large offshore wind markets are investing heavily in floating wind as the next stage of their offshore developments. According to the International Renewables Agency, floating offshore wind capacity worldwide will grow to over 25 GW by 2030. This is led by major European markets like France, Spain, Portugal, and Norway that have announced large commercial-scale projects. The U.K. Government has set a target of 1GW of floating wind by 2030. Several wind turbine makers are developing larger multi-GW turbines that are optimized for floating installations.