April 21, 2024
Offshore Wind Market

Offshore Wind Market Propelled by Growing Renewable Energy Needs

Offshore wind energy is generated using turbines installed in ocean environments. Offshore wind power provides clean energy and has higher output due to strong and steady winds. The growing need for renewable energy sources is driving the offshore wind market.

The Global Offshore Wind Market Size is estimated to be valued at US$ 40 Billion in 2023 and is expected to exhibit a CAGR of 5.0% over the forecast period 2023-2028, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The growing need for renewable energy among nations is one of the major trends driving the offshore wind market. Many countries are focusing on developing renewable energy capacity in order to reduce carbon emissions from conventional power sources. Offshore wind energy provides a sustainable alternative to fossil fuel-based power generation. With stricter environmental regulations, demand for clean and green sources of energy is increasing. This is fueling investments in offshore wind farms across the globe.

SWOT Analysis

Strength: Offshore wind energy has strong and reliable winds that allow for increased energy production. Turbines can be placed far from shore in deep waters where winds are strongest and most consistent.
Weakness: High initial investment and infrastructure costs associated with offshore foundations, transmission cable to shore, and installation. Challenges around operation and maintenance due to projects being located offshore.
Opportunity: Governments supporting development of offshore wind with favorable renewable energy policies and investment in new projects. Growing demand for clean and renewable energy sources provides opportunities for expansion.
Threats: Financial and economic instability could reduce investments. Environmental organizations oppose offshore wind farms citing concerns about impacts on wildlife, fisheries, and ocean ecosystems. Delays and increased costs from project approval and permitting processes pose threats.

Key Takeaways

The global offshore wind market is expected to witness high growth over the forecast period.

The region leading in the offshore wind market currently is Europe. Germany, UK, Belgium, Netherlands, and Denmark have heavily invested in new offshore wind capacity. Over half of new global offshore wind capacity added in the past two years was located in European waters.

Key players operating in the offshore wind market include Siemens Gamesa, MHI Vestas, S envia, GE Renewable Energy, Adwen, and Orsted. Orsted is currently the world’s largest offshore wind developer and operator with projects in Europe and Asia. Siemens Gamesa and MHI Vestas are major turbine suppliers for offshore projects. S envia focuses on offshore substation platform design and manufacturing.

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