[221+ Pages Report] According to Facts & Factors, the global offshore wind energy market size in terms of revenue was valued at around USD 39.14 billion in 2023 and is expected to reach a value of USD 177.22 billion by 2032, growing at a CAGR of roughly 18.27% from 2024 to 2032. The global offshore wind energy market is projected to grow at a significant growth rate due to several driving factors.
Offshore wind energy is a form of power generation where wind turbines are installed in large bodies of water, usually oceans or large lakes, to harness the kinetic energy of wind and convert it into electricity. These installations are typically placed far from shore to capitalize on the more consistent and stronger winds found at sea, compared to those on land. Offshore wind farms have the advantage of reduced visual and noise impacts on communities and often encounter fewer objections than onshore installations.
The technology behind offshore wind includes larger turbines and foundations anchored to the ocean floor, which can be significantly more complex and expensive than those used on land. However, the higher wind speeds accessible offshore make these turbines more efficient, producing more energy per unit than their onshore counterparts.
As a crucial part of the transition to renewable energy, offshore wind helps reduce carbon emissions and reliance on fossil fuels, contributing to energy security and environmental sustainability. The field is advancing rapidly, with innovations in turbine technology and floating platforms that allow for deployment in deeper waters, expanding the potential for future offshore wind development.
The global offshore wind energy market is segmented based on component, location, depth, and region.
Based on Component, the global offshore wind energy market is divided into turbine, support structure, electrical infrastructure, and others. The turbine is the most critical component, converting wind energy into electrical energy. It comprises the rotor (blades and hub), nacelle (housing for generating components), and tower. Continuous advancements in turbine technology, such as larger blade designs and higher capacity turbines, drive the market. The focus on reducing the levelized cost of energy (LCOE) motivates innovations like enhanced aerodynamic efficiency and reliability in harsh marine environments??.
Support structures, such as monopiles, jacket foundations, and floating platforms, anchor the turbines to the seabed or float them on the surface. They must withstand marine conditions and support the weight and dynamic loads of the turbines. The choice of structure depends on water depth, seabed condition, and environmental impact considerations. Innovations in design to accommodate deeper waters and reduce costs are key market drivers??.
Electrical Infrastructure segment includes all electrical components necessary for collecting and transmitting the electricity generated by turbines back to shore. Key elements are underwater cables, substations, and transformers. Developments aim to improve the efficiency and reliability of power transmission systems, reduce energy loss, and ensure compatibility with existing grid infrastructure. The expansion of offshore wind installations increases demand for robust and efficient electrical infrastructure?.
On the basis of Location, the global offshore wind energy market is bifurcated into deep water, shallow water, and transitional water. Deep water locations are defined as areas where the water depth exceeds 60 meters. These locations typically require floating wind turbines because traditional fixed-bottom structures are not feasible.
Floating turbines represent a rapidly growing segment due to their ability to tap wind resources in deep offshore environments previously inaccessible. This segment faces challenges such as higher costs and more complex maintenance, but advances in technology are gradually overcoming these barriers??.
Shallow water locations are those where the depth is less than 30 meters. Most existing offshore wind farms are located in shallow waters using fixed-bottom structures like monopiles and jacket foundations. This is the most established segment with proven technology and lower installation and maintenance costs compared to deeper water projects. The market is driven by easier access and lower technical complexity, making these projects more cost-effective and quicker to deploy??.
Transitional water locations are characterized by depths ranging from 30 to 60 meters. These areas typically use fixed foundations but may start incorporating floating structures as the technology matures. Transitional waters offer potential for expansion as they can utilize both traditional and innovative technologies. Challenges here include balancing cost and technical feasibility, especially as depths approach the upper limit of fixed-bottom capabilities.
Report Attribute |
Details |
Market Size in 2023 |
USD 39.14 Billion |
Projected Market Size in 2032 |
USD 177.22 Billion |
CAGR Growth Rate |
18.27% CAGR |
Base Year |
2023 |
Forecast Years |
2024-2032 |
Key Market Players |
Bergey Windpower, Clipper Windpower, Enercon, Enessere, Envision, General Electric, Goldwind, Hitachi, IMPSA, JDR Cable, LS Cable & System, Nexans, NKT A/S, Nordex, Northland Power, NSW Cable, Prysmian Group, RTS Wind, Senvion, Shanghai Electric, Siemens Gamesa, Southwire LLC, Sumitomo Electric, Suzlon Energy, Vattenfall, Vestas, Zhejiang Windey, and Others. |
Key Segment |
By Component, By Location, By Depth, and By Region |
Major Regions Covered |
North America, Europe, Asia Pacific, Latin America, and the Middle East &, Africa |
Purchase Options |
Request customized purchase options to meet your research needs. Explore purchase options |
Europe is the leader in offshore wind energy, with a well-established infrastructure and the highest number of installed offshore wind farms. Countries like the United Kingdom, Germany, and Denmark are pioneers, hosting some of the world's largest offshore wind projects. The European market benefits from strong governmental support, robust funding mechanisms, and advanced technology. The North Sea is particularly suited for offshore wind developments due to its favorable wind conditions and shallow waters.
Asia-Pacific region is experiencing the fastest growth in offshore wind capacity, led by countries such as China, South Korea, and Taiwan. China, in particular, has rapidly scaled up its installations, aiming to lead in renewable energy production. Asia-Pacific benefits from governmental ambitions to decrease reliance on fossil fuels, significant coastlines, and increasing local expertise in offshore wind installations.
North America has a relatively untapped offshore wind market, with significant potential along the East Coast of the U.S. States like Massachusetts, New York, and New Jersey are beginning to invest heavily in offshore wind projects. The market is supported by state-level renewable energy targets and federal backing. However, it is still in the early stages of development compared to Europe and Asia.
Rest of the World, including Latin America and parts of Africa, are in the early stages of exploring offshore wind energy. These areas have vast untapped potential due to extensive coastlines and growing energy needs. The growth in these regions is hindered by a lack of regulatory frameworks and infrastructure but holds a long-term potential for development. The growth rate is less defined due to the nascent stage of offshore wind projects but is expected to increase as global efforts to combat climate change intensify.
Some of the main competitors dominating the global offshore wind energy market include;
The global offshore wind energy market is segmented as follows:
Copyright © 2023 - 2024, All Rights Reserved, Facts and Factors