Published: August 2020 | Report Code: PE12067 | Available Format: PDF | Pages: 217
The offshore wind turbine market size was $24,683.3 million in 2019. This market thrives on factors such as the implementation of favorable government policies in several countries, huge investments being made in renewable energy sources, and constant technological advancements in offshore plants.
The declining global economy on account of COVID-19 has had a negative impact on the offshore wind turbine industry. The slowdown in the market can be primarily owed to the disruptions in the supply chain. The supply of raw materials and components from China was interrupted in February 2020 due to the closure of manufacturing units, to curtail the spread of coronavirus.
However, as governments are now lifting the restrictions on manufacturing and international trade, the market is expected to beginning recovering from the end of 2021.
The shallow-water-depth wind installation category generated the highest revenue, under the water depth segment, in the market for offshore wind turbines in 2019, and the trend will continue in the coming years. This is because shallow-water regions are ideal for building the foundation for wind towers, on account of the higher convenience offered by them over the deep and transitional-water installations.
The fixed category, within the installation segment of the offshore wind turbine market, accounted for the major share in 2019, and it is expected to retain its dominance during 2020–2026. This is credited to the various benefits offered by fixed installations over floating installations, such as higher economic feasibility and easier commissioning and decommissioning. Moreover, unlike the cables of floating wind power installations, those of fixed wind plants remain in situ as the impact of currents and waves is weaker on them.
The 3 MW-to-5 MW category, under the turbine capacity segment, is predicted to lead the market for offshore wind turbines till 2026. Companies around the world are investing huge amounts in setting up 3 MW-to-5 MW wind turbines due to the high electricity generation capacity of these turbines. Additionally, the low operating costs of these wind towers, on account of their low maintenance costs, are also boosting their popularity across the world.
APAC will register the highest number of windmill installations on lakes, seas, and oceans due to the rising number of government initiatives aimed at promoting offshore wind. Moreover, the APAC offshore wind turbine market growth can be attributed to the soaring energy demand and increasing focus on reducing the dependence on fossil fuels for energy generation.
Furthermore, the government of China aims to deploy 400 Gigawatts (GW) of wind energy across the country by 2030. A rapid surge in the number of proposed projects has been propelled by the individual goals of Guangdong, Fujian, and Jiangsu of attaining a 2-GW, 2-GW, and 3.5-GW offshore wind power capacity, respectively, which were met in 2019.
Moreover, the country’s National Energy Administration announced that the offshore wind power price in 2019 and beyond will be determined by competitive actions, instead of feed-in-tariffs, to reduce costs and amplify competition in the industry. This cost reduction, the announcement of targets of deploying wind energy plants by several Chinese provinces, and rapid supply chain improvements are predicted to push up the deployment rate of offshore windmills in the APAC region, which will, in turn, propel the expansion of the market.
Unlike the present times, the energy generated from offshore wind turbines was quite expensive in the last decade. The offshore wind turbine market witnessed the installation of a large number of smaller turbines in earlier times for meeting the required energy demand. Since then, constant advancements have been made in the turbine technology for augmenting the turbine capacity and generating more energy, with an emphasis on achieving significant cost reductions. Higher-capacity wind turbines have larger swept areas and produce more power for the same resource quality, thereby generating higher wind farm output levels.
Before 2018, most of the available wind turbines for offshore applications were of single-digit MW capacity. In September 2018, MHI Vestas Offshore Wind A/S developed the first wind turbine with a double-digit capacity — V164-10.0 MW. The launch of this turbine indicated a rise in the focus toward the production and development of higher-capacity turbines.
Manufacturers across the globe are focusing on technological advancements to offer better offshore foundations. Such initiatives have led to the opening up of new geographical areas for the establishment of wind energy farms. The global offshore wind energy capacity was 4,888 MW in 2018, with 46 MW of operational projects and 38 announced projects.
The offshore wind turbine market undergoes constant development as it is at a developing stage. For example, ‘Hywind’, the first 30 MW demonstration project, commissioned in October 2017, is now successfully operating in the U.K. Such developments in the industry have unleashed the potential of deep-water wind power, which is highly relevant for countries that have a limited land area.
Investments in the offshore wind energy sector have augmented in recent times, due to the surging awareness about the advantages of renewable sources of energy. Moreover, the limited availability of fossil fuel reserves is encouraging many governments and private organizations to focus on non-conventional and clean energy sources for generating power.
Moreover, fossil-fuel-based energy has serious environmental implications and poses potential risks with regards to waste disposal. Furthermore, governments all over the world are increasingly minimizing the traditional energy supply and making huge investments in green energy sources for meeting future energy demands.
|Base Year (2019) Market Size||$24,683.3 million|
|Report Coverage||Market trends, regulatory landscape, Porters five forces analysis, value chain analysis, revenue estimation and forecast, segmentation analysis, regional and country breakdown, company share analysis, companies’ strategic developments, competitive analysis, company profiling|
|Market Size by Segments||Water depth, installation, turbine capacity, geography|
|Market Size of Geographies||U.S., Canada, Germany, U.K., Denmark, Netherlands, Belgium, Japan, China, India, Vietnam, South Korea, Brazil, Mexico|
|Secondary Sources and References (Partial List)||American Wind Energy Association, Bureau of Ocean Energy Management, Energy Information Administration, Engie SA, Environmental and Energy Study, Global Wind Energy Council, International Energy Agency, International Renewable Energy Agency|
The offshore wind turbine market is partially consolidated in nature, with the presence of market players such as MHI Vestas Offshore Wind A/S, Siemens Gamesa Renewable Energy S.A., and Envision Energy.
In recent years, players in the industry have entered into partnerships and agreements, in order to collectively enhance their market coverage. For instance:
The Offshore Wind Turbine Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2026.
Based on Water Depth
Based on Installation
Based on Turbine Capacity
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