Offshore Wind Energy Market Shows huge Potential for Growth by 2022

Wind power generation is the harnessing of kinetic energy from the wind and its conversion into electric energy. This is achieved through the utilization of wind turbines to generate electricity. Energy in the wind turns three propeller-like blades around a rotor.

According to the report, global offshore wind energy market was valued at USD 20.3 billion in 2016 and is expected to reach USD 57.2 billion in 2022, growing at a CAGR of 16.2% between 2017 and 2022.   

Wind power generation is the harnessing of kinetic energy from the wind and its conversion into electric energy. This is achieved through the utilization of wind turbines to generate electricity. Energy in the wind turns three propeller-like blades around a rotor. The rotor is connected to the main shaft, which spins the generator to produce electricity. Onshore wind energy has been utilized for many years however, offshore wind energy is a relatively newer phenomenon.

A large number of offshore wind energy projects are under planning and construction phase. Advantages of offshore wind energy installations include an overall reduction in project capital expenditure and unhindered primary fuel (wind) required for energy generation since wind speeds are high at offshore than onshore.

Growing share of renewable energy is expected to drive the global offshore wind energy market. Increasing awareness about climate change and technological development are expected to further boost the market. However, high costs, risks, and supply chain bottlenecks related to offshore wind energy projects are expected to hamper the growth of the market.

Global wind energy market is segmented on the basis of foundation type and water depth. On the basis of foundation type, global wind energy market is segmented into monopile, jacket, tripod, and floating. Monopile foundations held the leading share of global wind energy market. These type of foundations are easy to construct and relatively cheaper than other types. However, monopolies are not suited for deepwater projects. During the forecast period, floating type foundations are expected to grow at the fastest rate. Offshore floating foundations are advantageous over fixed structures in terms of the total cost incurred in installation and production. On the other hand, traditional offshore plants need fixing of foundations to the seafloor and bolting of massive turbines on them, which can hamper the ecology as well.

On the basis of water depth, the global wind energy market is segmented into shallow water and deep water. Currently, most of the offshore wind energy projects are based in shallow water. Constructing a shallow water offshore wind farm incurs lesser efforts and overall project cost. However, the share of deepwater offshore wind energy projects is expected to increase during the forecast period. Most of the offshore wind energy projects across the globe are constructed in a water depth of up to 40 meters. However, numerous plans are being carried out to construct wind farms in water depths of more than 50 meters. Offshore wind farms in deep water are more efficient and generate more power owing to faster wind speeds.

Europe dominated the global offshore wind energy market in 2016. Countries such as the U.K., Germany, Denmark, Netherlands, Belgium, and Sweden among others are leading players in Europe offshore wind energy market. Asia Pacific followed Europe in terms of offshore wind energy cumulative installed capacity. China is the leading player in Asia Pacific offshore wind energy market. China is expected to grow at the fastest rate across the globe. Japan, South Korea, and India among others are expected to further boost the market during the forecast period. The U.S. is also expected to witness numerous offshore wind energy projects during the forecast period. Some other countries including Finland, Ireland, Spain, Norway, and Portugal are also expected to boost the global offshore wind energy market during the forecast period.

Some of the major players involved in the global offshore wind energy market include Northland Power, Enercon GmbH, Siemens Wind Power, Gamesa Corporacion Technologica S.A., Guodian United Power Technology Company Ltd, Nordex S.E., Vestas Wind Systems A/S, Upwind Solutions Inc., Suzlon Group, Xinjiang Goldwind Science & Technologies Co. Ltd, GE Wind Energy, China Ming Yang Wind Power, Dong Energy, and Sinovel among others.

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