OFFSHORE WIND MARKET ANALYSIS

Offshore Wind MarketSize and Trends

Global Offshore Wind Market was valued at US$ 41.8 billion in 2022. The offshore wind market industry is projected to grow from US$ 47.4 billion in 2023 to US$ 131.4 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 15.68% during the forecast period (2023 - 2030). 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 made by governments and electrical providers to reduce carbon emissions. Also, it is anticipated that the installation of turbines would rise globally, driving the market.

Figure 2. Global Offshore Wind Market (%), By Location, 2022

Among the three locations by the depth of offshore wind turbines, shallow water offshore wind turbines dominated the market, due to cost-effectiveness and easy maintenance. Due to favorable weather conditions in Europe, shallow-water wind turbines are majorly installed in the region. On the basis of components, turbine components are the major contributor to the growth of the offshore wind market. Different components of turbines such as the tower, rotator, blade, and nacelle have the highest share of the capital cost. Larger the turbine, the more energy it produces when it rotates.

Global Offshore Wind Market: Growth drivers

• Increasing global investments in renewable energy are likely to drive the offshore wind market

There has been a noticeable shift in the energy sector toward renewable and green energy due to factors, such as the need to reduce carbon emissions, depletion of fossil fuels, climatic change, etc. Various government policies are in place to support the initiative toward greener energy. Many multinational companies are taking initiatives to cut down their carbon footprint to contribute to a greener planet and sustainability. For instance, Equinor (Norway) aims to cut its carbon emissions by half by 2050. Apart of the plan is to develop its renewable energy businesses, particularly offshore wind, which may reach 6,000 megawatts in six years and 16,000 megawatts in 15 years. Another example is the energy giant Total entered into an agreement with SSE Renewables to acquire a 51% stake in its Seagreen offshore wind farm project. Total is anticipated to invest Euro 70 million for this project.

• Highly fragmented market dominated by major market players

The market for offshore wind power is highly fragmented with the presence of lots of competitive players around the world. Some of the leading players are Siemens Gamesa, MHI Vestas Offshore Wind, Senvion, Adwen Offshore, ABB, GE Renewable Energy, Ming Yang Smart Energy, Nordex Group, Goldwind, Envision Energy, Suzlon Group, and Hitachi.