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The floating wind turbine market size is forecast to increase by USD 7.2 billion at a CAGR of 80.08% between 2023 and 2028. The sustainable energy market is witnessing significant growth in the adoption of floating wind turbines due to several driving factors. Favorable government regulations encourage the construction of wind farms in offshore locations, leading to the expansion of the market. The decline in the levelized cost of energy (LCOE) for wind energy generation makes floating wind turbines a cost-effective solution for generating electricity, reducing greenhouse gas emissions and carbon footprint. However, competition from alternative renewable energy sources, such as solar and onshore wind, poses a challenge to the market's growth. To stay competitive, market players must focus on innovation and efficiency to reduce the LCOE of floating wind turbines and improve their performance in harsh oceanic conditions.
Floating wind turbines have emerged as a promising solution to harness wind energy from deep and shallow waters, contributing significantly to the shift towards sustainable power sources. Wind energy, as a renewable and green alternative to fossil fuels, plays a crucial role in mitigating climate change and reducing carbon emissions. Wind Farms and Wind Energy: Wind farms, with their extensive installations of wind turbines, have become a cornerstone of the renewable energy sector. Floating wind turbines expand the reach of wind energy production to offshore sites, where traditional wind turbines cannot operate.
Moreover, these turbines offer an effective solution for energy generation in deep water areas, reducing dependence on fossil fuels and contributing to sustainable energy consumption. Renewable Energy and Green Energy: The global focus on renewable electricity generation and green energy sources has intensified in recent years. Floating wind turbines provide a viable option for meeting the increasing demand for electricity consumption while reducing the carbon footprint. By utilizing wind energy from deep and shallow waters, these turbines contribute to the reduction of greenhouse gases and the overall decrease in carbon emissions. Foundation Technologies: Two primary foundation technologies are employed in floating wind turbine installations: spar-buoy foundations and tension-leg platform (TLP) foundations.
Furthermore, three buoy foundations use a vertical buoy to support the turbine, while TLP foundations use a series of tensioned cables to secure the turbine to the seabed. Semi-submersible foundations are also used in some cases. Each foundation technology offers unique advantages depending on the water depth and site conditions. Deep Water and Shallow Water: Floating wind turbines are designed to operate in both deep and shallow waters. Deep water installations offer higher wind speeds and potential energy output, while shallow water sites may have lower installation costs and easier access for maintenance. Floating wind turbines provide a flexible solution for wind energy production in various water depths, expanding the reach of renewable energy sources.
Moreover, the energy Costs and Sustainable Energy: As energy costs continue to rise and the importance of sustainable energy becomes increasingly apparent, floating wind turbines offer a cost-effective and eco-friendly solution. These turbines enable the expansion of wind energy production to offshore sites, reducing reliance on fossil fuels and contributing to a more sustainable energy mix. Conclusion: Floating wind turbines represent a significant advancement in the renewable energy sector, offering a flexible and effective solution for harnessing wind energy from deep and shallow waters. By reducing dependence on fossil fuels and contributing to the reduction of greenhouse gases, these turbines play a crucial role in mitigating climate change and promoting sustainable energy consumption.
Similarly, the ongoing advancements in floating wind turbine technology promise a promising future for this innovative energy source.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The large-scale segment is estimated to witness significant growth during the forecast period. The market encompasses the production and deployment of wind turbines that are not fixed to the seabed but instead, float on the water surface. These innovative renewable energy solutions are gaining significant traction as sustainable power sources, particularly in the development of wind farms and wind energy projects. Large-scale floating wind turbines, which have a capacity exceeding 8 MW, are a rapidly expanding segment within this market. The large-scale segment is a substantial and swiftly progressing portion of the renewable energy sector. These turbines, with their high capacity, are specifically designed for large-scale offshore wind farms and deep-water floating applications.
Moreover, the ability to harness stronger and more consistent winds found further offshore, where traditional fixed-bottom turbines are not feasible, is a primary reason for their increasing popularity. Advancements in technology have enabled the design and installation of larger turbines on floating platforms, fueling the growth of The market. These technological developments include advancements in materials, engineering, and construction techniques, which have made it possible to create larger, more efficient turbines that can operate effectively in floating conditions. In summary, the large-scale market represents a significant and growing portion of the renewable energy sector, driven by technological advancements that enable the deployment of larger, more efficient turbines in offshore wind farms and deep-water applications.
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The large-scale segment was valued at USD 55.00 million in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European market is projected to experience substantial expansion throughout the forecast period. Notable European countries driving this market include the United Kingdom, France, and Norway. In the UK, prime locations for floating wind farms are situated off the coast of Scotland, characterized by deep waters and favorable geology and metocean conditions suitable for the deployment of floating wind turbines. Additionally, the southwest region of the UK presents promising opportunities for floating wind technology. France boasts suitable sites for floating wind projects in the Mediterranean and Atlantic waters off its coastline, enabling developers to harness the high wind speeds in these areas. These locations offer significant potential for the renewable energy sector as Europe pursues net zero ambitions and strives for industrial-scale renewable energy supply.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Favorable government regulations for floating wind turbines is the key driver of the market. In the pursuit of clean energy, the energy sector in the United States and globally is shifting towards renewable sources such as wind power, solar photovoltaics (PV), and hydropower. The market, a subset of offshore wind energy, is still in its infancy but gaining traction due to government support. To accelerate the development of floating offshore wind projects, various subsidies and funding mechanisms are being implemented. For instance, the UK government aims to expand its offshore wind energy capacity to 40 Gigawatts (GW) by 2030. Several governments have already invested in demonstration projects to showcase the potential of floating wind turbines. These initiatives are crucial for reducing carbon emissions and lowering energy costs in the long run. The clean energy sector's future relies on continuous innovation and investment in advanced technologies like floating production storage vessels (FPSVs) for offshore wind energy.
The decline in LCOE of wind power generation is the upcoming trend in the market. The global market for wind energy, specifically offshore wind energy, has experienced significant growth due to technological innovations and international efforts to transition to clean energy sources. One such advancement is the utilization of Tension-leg platform foundations for floating wind turbines, which has expanded the reach of wind energy generation into deeper waters. This expansion has led to increased competition with traditional energy sources, such as fossil fuels.
Furthermore, cost reductions in wind turbine operations and maintenance, as well as decreasing turbine costs, have resulted in competitive pricing in the wind turbine market. Consequently, the levelized cost of energy (LCOE) for wind energy has decreased, making it a more economically viable option. Recent bids in Europe and North America for wind energy projects at lower price per kWh have intensified the competitiveness of projects scheduled for commissioning in the upcoming years.
Competition from alternative technologies is a key challenge affecting the market growth. The global market for sustainable energy, specifically floating wind turbines, is gaining traction as the world seeks to reduce electricity consumption from greenhouse gas-emitting sources and decrease carbon footprints. However, the construction of wind farms using this technology comes with a higher initial investment compared to traditional wind energy methods. Despite this, the intermittent nature of renewable energy sources, such as wind, should not be overlooked. According to the International Energy Agency (IEA), fossil fuels continue to dominate the global electricity generation landscape due to their abundance and lower upfront costs.
For instance, Indonesia, with its renewable energy ambitions, may still rely on coal for the next decade as its primary energy source. The shift towards renewable energy is essential to mitigate environmental concerns, but the challenge lies in balancing the high capital expenditure and inconsistent power output from renewable sources against the reliability and affordability of fossil fuels.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Doosan Corp.: The company offers floating wind turbine products such as WinDS3300 and WinDS5500, and 8MW class large-capacity offshore wind turbines.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Floating wind turbines are revolutionizing the wind energy sector by enabling energy generation in deep water locations, previously inaccessible for traditional wind farms. Sustainable power sources like wind energy are increasingly becoming the preferred choice to combat climate change and reduce carbon emissions, as the world moves towards net zero ambitions. Renewable energy and green energy are gaining traction in the industrial-scale energy market, replacing fossil fuels and their substantial carbon footprint. Wind farm construction in deep waters is made possible by innovative technologies such as spar-buoy foundations, tension-leg platforms (TLPs), and semi-submersible foundations. Floating offshore wind is a promising solution for meeting electricity consumption demands in commercial and industrial sectors, particularly in regions with cerulean winds.
Moreover, the clean energy sector is witnessing a swell in demand for floating wind turbines due to their ability to generate renewable energy supply at an industrial scale. Energy costs are expected to decrease as the technology matures, making floating wind energy a competitive option for meeting energy demand. The commercial viability of floating wind energy is further enhanced by the integration of floating production and solar energy storage vessels. The future of energy generation lies in the hands of sustainable energy sources, and floating wind turbines are set to play a significant role in this transition.
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Market Scope |
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Report Coverage |
Details |
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Page number |
192 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 80.08% |
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Market Growth 2024-2028 |
USD 7.19 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
79.36 |
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Regional analysis |
Europe, Asia, North America, and Rest of World (ROW) |
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Performing market contribution |
Europe at 61% |
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Key countries |
UK, Japan, Norway, France, and Portugal |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BW Group, Doosan Corp., Eaton Corp. Plc, Electricite de France SA, EnBW Energie Baden Wurttemberg AG, ENERCON GmbH, Envision Group, Equinor ASA, General Electric Co., Hitachi Ltd., Ming Yang Smart Energy Group Ltd., Mitsubishi Heavy Industries Ltd., Naval Group, Nordex SE, Orsted AS, Principle Power Inc., SBM Offshore NV, Siemens AG, Vestas Wind Systems AS, and Xinjiang Goldwind Science and Technology Co. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Additional Value/Volume Data
6 Five Forces Analysis
7 Market Segmentation by Capacity
8 Market Segmentation by Type
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Opportunity/Restraints
12 Competitive Landscape
13 Competitive Analysis
14 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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