December 6, 2023

Offshore Wind Energy Market is Estimated to Witness High Growth Owing to Increasing Investments in Renewable Energy Sources

Market Overview:

 

The Offshore Wind Energy Market is estimated to be valued at US$ 23.4 Bn in 2022 and is expected to exhibit a CAGR of 23.4% over the forecast period 2019-2027, as highlighted in a new report published by Coherent Market Insights. Offshore wind energy refers to the generation of electricity from wind farms built in bodies of water, typically in the ocean. It is a rapidly growing segment of the renewable energy industry due to its potential for large-scale electricity production. Offshore wind energy has various use cases, including powering remote islands, improving grid reliability, and reducing carbon emissions. The market for offshore wind energy is driven by the increasing investments in renewable energy sources and the growing global demand for clean and sustainable energy solutions.

Market Dynamics:

 

The Offshore Wind Energy Market is driven by two primary factors. Firstly, the increasing investments in renewable energy sources by governments and private organizations worldwide are fueling the growth of the market. The shift towards clean and sustainable energy solutions, coupled with favorable government policies and incentives, are driving the demand for offshore wind energy. Secondly, the growing global demand for clean energy, driven by increasing environmental concerns and the need to reduce carbon emissions, is creating ample opportunities for market growth. Offshore wind energy offers a reliable and efficient source of renewable energy, contributing to the reduction of greenhouse gas emissions and combating climate change. The market is expected to witness significant growth in the forecast period due to these drivers.

 

Segment Analysis:

 

The offshore wind energy market can be segmented based on location and capacity. In terms of location, the market can be divided into shallow water and deep water projects. Shallow water projects dominate the market, holding the major share. This can be attributed to factors such as cost-effectiveness, ease of installation, and accessibility. Shallow water projects allow for easier maintenance and repair operations, which further adds to their advantage.

PEST Analysis:

Political: The political landscape plays a significant role in the development of the offshore wind energy market. Government policies and regulations regarding renewable energy targets and incentives greatly influence the growth of the market.

Economic: The economic factors affecting the market include the cost of installation, operation, and maintenance of offshore wind farms. The availability of subsidies and financial incentives can have a positive impact on market growth.

Social: Increasing awareness about climate change and the need for clean energy sources have led to a greater acceptance of offshore wind energy among the general public. Social factors such as public opinion and activism also play a role in shaping the market.

Technological: Technological advancements in turbine design, foundation structures, and installation techniques have significantly improved the efficiency and cost-effectiveness of offshore wind energy projects. Innovation in grid integration and storage solutions also contributes to the development of the market.

Key Takeaways:

 

The global Offshore Wind Energy Market is expected to witness high growth, exhibiting a CAGR of 23.4% over the forecast period. This growth is primarily driven by increasing government support and investments in renewable energy projects. For example, countries like the UK, Germany, and China have set ambitious targets for offshore wind energy capacity, which is expected to drive market growth.

In terms of regional analysis, Europe is the fastest-growing and dominating region in the offshore wind energy market. This can be attributed to the favorable government policies, strong regulatory framework, and vast offshore wind resources available in countries like the UK, Germany, and Denmark.

Key players operating in the offshore wind energy market include MHI Vestas Offshore Wind, Siemens Gamesa Renewable Energy, J.J Cole Collections, Sinovel Wind Group Co., Ltd, and Erndtebr├╝cker Eisenwerk Gmbh & Co. Kg, among others. These key players contribute to the market through technological advancements, strategic partnerships, and extensive research and development activities.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it