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The offshore wind power market size is estimated to grow at a CAGR of 17.59% between 2022 and 2027. The size of the market is forecast to increase by USD 30,744.65 million. The growth of the market depends on several factors, including the rise in global energy demand, the rising government support, and the declining LCOE of wind power generation.
This report extensively covers market segmentation by type (monopile, jacket, and others), product type (fixed structure and floating structure), and geography (Europe, APAC, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The rise in global energy demand is notably driving the market growth, although factors such as competition from alternative energy sources may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Offshore Wind Power Market Driver
The rise in global energy demand is the key factor driving global offshore wind power market growth. According to the International Energy Agency (IEA), in 2021, the global economy grew at a rate of 6.0% as compared to 2020. There was strong growth in the global energy demand due to robust economic growth. As a result, in 2021, the global energy demand grew by 4.6% compared with 2020. This growth in energy demand was mainly propelled by countries such as China, the US, and India, which accounted for nearly 70% of this growth. Moreover, according to the IEA, the global electricity demand increased twofold during 1990-2022 and has outpaced the growth in the demand for other fuel sources.
Compared with 2017, the global demand for electricity is expected to grow twofold compared with the global energy demand, which is expected to rise by more than 25% by 2040. This growth in electricity demand is being propelled by emerging economies such as India and China. Additionally, the global population is expected to grow significantly during the forecast period. Hence, with the growth of the population and the resulting increase in economic activities, electricity demand is expected to grow significantly during the forecast period.
Significant Offshore Wind Power Market Trends
The rising popularity of clean energy technologies is the primary trend in the global offshore wind power market. Owing to the rapid growth in the global demand for electricity and the extensive use of fossil fuels such as coal and natural gas to fulfill the demand, there has been substantial growth in global carbon dioxide (CO2) emissions resulting from fuel combustion. Moreover, electricity and heat generation have been the largest sources of CO2 emissions and accounted for more than 42% of the global CO2 emissions in 2022.
Hence, there has been a rising demand for clean energy sources globally to reduce carbon emissions. Thus, there has been a rise in the adoption of renewable energy sources for power generation, which has been boosting wind power generation. Wind and solar power registered a double-digit growth rate in 2021, mainly propelled by China, Europe, and the US. Hence, with the rising adoption of clean energy sources, the market is expected to grow during the forecast period.
Major Offshore Wind Power Market Challenge
The competition from alternative energy sources is a major challenge to the global offshore wind power market growth. Despite the rapid growth in the adoption of renewable energy sources such as offshore wind power generation, the use of fossil fuels such as oil, coal, and natural gas still accounts for a substantial portion of the global energy mix. Moreover, clean coal technologies such as supercritical and ultra-supercritical coal-fired power plants have been further boosting the operations and sustenance of coal-fired power plants. Many countries prefer using fossil fuels rather than renewable energy sources due to the abundance of fossil fuels.
The cost of establishing a renewable energy farm for producing power is substantially high, and the power output from renewable energy sources is not on par with that from fossil fuels. Hence, the preference for non-renewable energy sources is high in the market. Moreover, power generation using coal (conventional as well as clean coal technologies) and natural gas accounts for a significant portion of the global energy mix, which is expected to hinder the growth of the market during the forecast period.
Key Offshore Wind Power Market Customer Landscape
The 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 growth strategies.
Global Offshore Wind Power Market Customer Landscape
Vendors 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.
capeholland.com - The company is into offshore wind power generation business with complete solutions and experience in various projects. Also, Through this segment, the company offers offshore wind power generation business-related complete solutions.
The Offshore Wind Power market report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the monopile segment will be significant during the forecast period. The monopile offshore wind structure is made up of a cylindrical steel tube and has a relatively simple design wherein the tower is supported by the monopile either directly or through a transition piece. The monopile runs down into the seabed. The penetration of the monopile can be adjusted based on the seabed and environmental conditions. Monopile is the most commonly used foundation structure in the market, owing to its ease of installation in shallow-to-medium water depths ranging from 0 to 98.42 feet (0 to 30 meters). These factors will facilitate segment growth during the forecast period.
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The monopile segment was valued at USD 12,504.42 million in 2017 and continue to grow by 2021. There are several variations of monopiles, such as drilled monopiles and drilled concrete monopiles. A drilled monopile structure consists of a fixed steel monopile with concrete in a deep drilled hole inside the seabed rock. Such an arrangement helps keep the weight of the foundation relatively low. As a result, the foundation can be towed to the site using a normal tugboat and lifted into place by a relatively low lifting capacity. On the other hand, drilled monopiles consist of prefabricated concrete monopiles, which are installed using a vertical drilling technique and eliminate the use of a transition piece. Hence, owing to the advantages of monopile structures, technological advances, and the rapid deployment of monopile structures across the world due to the presence of prominent vendors with requisite technological expertise, the market is expected to grow significantly during the forecast period.
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Europe is estimated to contribute 53% 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. In Europe, the UK registered the highest share of offshore wind installations, followed by Germany. However, as the prices of international offshore wind power have reduced by more than 50%, the auctions for offshore wind power are expected to resume, and tariffs are anticipated to reduce to around $0.18 per kW in the upcoming projects. Hence, the rapid deployment of renewable energy sources in the region, the technological developments reducing the cost per unit of offshore wind power, and the government initiatives to boost the efficiency of offshore wind farms are expected to support the growth of the market in Europe during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for Europe. However, in 2021, the European markets appeared to have come out of the initial impact of the COVID-19 pandemic and are on their way to recovery. For the first time, the European Union has generated more electricity through renewable sources when compared to fossil fuels. This will have a positive impact on the market in Europe. Furthermore, the region has been working on the transition to wind power generation through investment and strategy formulation in order to achieve its 2030 climate and energy security targets. Such developments are expected to boost offshore wind power in the region, which, in turn, will propel the growth of the regional market in focus during the forecast period.
The Offshore Wind Power market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Offshore Wind Power Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.59% |
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Market growth 2023-2027 |
USD 30,744.65 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.14 |
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Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 53% |
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Key countries |
US, Japan, UK, Germany, and Belgium |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
CAPE Holland BV, China Steel Corp., Dongfang Electric Corp., Doosan Corp., Erndtebcker Eisenwerk GmbH and Co KG, General Electric Co., Hyosung Heavy Industries Corp., Hyundai Heavy Industries Co. Ltd., JDR Cable Systems Ltd., Lamprell Plc, Nexans SA, NKT AS, Nordex SE, Senvion Wind Technology Pvt. Ltd., Siemens Gamesa Renewable Energy SA, Sinovel Wind Group Co. Ltd., Verdict Media Limited, Vestas Wind Systems AS, Xinjiang Goldwind Science and Technology Co. Ltd., and Prysmian Spa |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, 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 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 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 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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