The offshore wind energy market involves the generation of electricity from wind turbines installed in oceans or other water bodies. Offshore wind is considered a viable renewable energy source due to stronger and steadier winds available offshore compared to on land. Offshore wind farms provide a large amount of clean energy without emissions. The high initial setup and installation costs of offshore wind projects are supported by various government incentives and policies promoting renewable energy.
The global offshore wind energy market is estimated to be valued at US$ 33 billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players: Key players operating in the offshore wind energy market are Siemens Gamesa Renewable Energy, General Electric, Vestas Wind Systems, Sinovel Wind Group, Goldwind, and Shanghai Electric Wind.
Key opportunities: Increased investments from government and private entities to achieve green energy targets provide key opportunities in the offshore wind energy market. Carbon neutral goals of various countries will boost the demand for clean power generation using offshore wind farms.
Global expansion: Leading market participants are actively expanding their presence across major Offshore Wind Energy Market Growth like Europe, China, the US, and other Asia Pacific countries to cater to the growing electricity needs worldwide through renewable energy sources.
Market drivers
Increasing investments in renewable energy sources is a major driver for the offshore wind energy market. Government policies and subsidies in favor of clean energy development and strict emission regulations are prompting more investments in harnessing the huge offshore wind power potential. Favorable wind conditions in coastal regions enable larger-scale and competitively priced power projects compared to onshore counterparts. This makes offshore wind energy an attractive option for replacing coal and gas-fired power generation.
PEST Analysis
Political: The political environment supports renewable energy targets across Europe and Asia Pacific regions favoring growth of the offshore wind energy market. Governments offer subsidies and provide political stability through renewable energy policies.
Economic: Strong economic growth across Europe and Asia coupled with declining component costs are creating demand for clean energy solutions. Offshore wind projects add jobs and investments in coastal communities.
Social: Rising global population and economic growth is increasing energy needs. Social awareness about environmental protection is favoring renewable offshore wind adoption.
Technological: Advancements in turbine designs, offshore substructures, installation and grid connectivity solutions are improving project viability. Bluetooth monitoring systems and drones enhance O&M efficiency.
The European region accounts for the largest share of the Offshore Wind Energy Market Size and Trends in terms of value. Countries such as the UK, Germany, Denmark, Belgium and Netherlands have built extensive offshore wind capacity over the past decade supported by strong coastal winds and government incentives. These nations have set ambitious renewable targets and policies to cultivate domestic supply chains. Britain alone has over 10 GW of operational offshore wind capacity concentrated along its eastern seaboard and plans to quadruple it by 2030.
The Asia Pacific region is expected to be the fastest growing market during the forecast period primarily driven by China. The country aims to install over 30 GW of offshore wind capacity by 2025. Chinese provinces with long coastal lines such as Jiangsu, Guangdong, Fujian and Shandong are emerging as manufacturing and project development hubs. Other major Asian markets include Japan, South Korea and Vietnam who are investing aggressively in offshore wind auctions and related infrastructure to meet carbon neutral goals.
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