Offshore wind turbines prove to be more competent than onshore wind turbines due to the more consistent wind speed and direction. Due to this, less number of turbines are required to be installed to generate the same amount of electricity as compared to onshore turbines. Moreover, offshore wind turbines do not interfere with regular land use. These prove to be advantageous with high energy potentials associated with the large areas and the stronger winds. Offshore wind infers better power generation; however, they have higher initial investment, operation, and maintenance costs. Although the fundamentals of technology are the same in both onshore and offshore, the offshore wind technology is expected to witness more advancements than the onshore technology.
Read Report Overview: Offshore Wind Energy Market
The offshore wind energy market is projected to grow from $XX million in the year 2018 to $50,450.9 million by 2023, at a CAGR of XX% from 2018 to 2023. This growth is attributed to the rising demand for renewable energy sources for power generation, increasing investments in the offshore wind energy sector by several companies and government of different countries, and the government initiatives to reduce the carbon footprint. Each region has varied installed capacity of wind power generated on offshore setups. The global offshore wind energy market in terms of installed capacity is projected to grow from XX MW in the year 2018 to 55,835MW by 2023, growing at a CAGR of XX% from 2018 to 2023.
The offshore wind energy turbines require various components to perform the operations efficiently. Some of these components are electrical infrastructure, substructure, and others. Also, sea depth is an important factor while checking for the feasibility of the offshore wind farms because the cost of foundations significantly increases with the increase in depth. The most commonly preferred types of sea depth for installing wind turbines are shallow water (0-30m), transitional water (30-50m), and deep water (50-200m).
The trends of the offshore wind energy market vary across different geographical regions. The offshore wind energy market holds a prominent share in various countries of North America, Europe, Asia-Pacific (APAC), and Rest-of-the-World (RoW). Presently, North America and Europe are at the forefront of the offshore wind energy market, with high market penetration in countries such as the U.S., the Netherlands, the U.K., Spain, Italy, and France, among others. However, during the forecast period, the Asia-Pacific region is expected to display the highest growth rate. Increased awareness about the use of renewable energy mix for power generation is supporting the growth of the offshore wind energy market in the region.
Several industries across the globe such as oil and gas, chemical, and transportation, among others, are dependent on fossil fuels for electricity/power generation. Although these fuels are very effective, they are subjected to depletion in the long run. Moreover, these fossil fuels are the origin of greenhouse gases which further lead to global warming. Thus, the shift from fossil fuels to the renewable sources of energy and the development of clean energy are of utmost importance for effectively dealing with climate change and its effects. This shift would also address the growing electricity demand across the globe. As per the data by International Energy Agency (IEA), the world electricity demand will increase by 70% by 2040 due to the emerging economies of India, China, Africa, the Middle East, and South-East Asia. Moreover, more than 17% of the global population does not have access to electricity, and the majority of the population uses conventional sources for heating and lighting purposes.
Wind energy is considered as the most efficient energy of all the renewable energies available globally. This is because it does not emit toxic substances and wastes and do not contaminate air or water. Wind farms can be based onshore (on land) or offshore (sea or freshwater). As per the data by the World Wind Energy Association (WWEA), 80 countries across the globe are already using wind power on a commercial basis, wherein prominent countries, such as the U.S., Canada, and the U.K. are ranked first, second and eighth, respectively in terms of installed capacity (both onshore and offshore).
The competitive landscape for the offshore wind energy market demonstrates an inclination toward companies adopting strategies such as business expansion, product launch and development, partnerships, joint ventures, and collaboration, and others. The growing market for offshore wind energy is further expected to increase the involvement of companies across different segments of the value chain. MHI Vestas, Siemens Gamesa, GE Renewable Energy, Adwen Offshore Inc., Statoil, Orsted, ABB ltd., Senvion, Sinovel, and Petrofac Inc., among others, are some of the prominent players in the offshore wind energy market.
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The need for more R&D activities and appropriate regulatory environments is a prerequisite for sustained growth of this market. Various government and private research institutes and regulatory bodies and associations are putting in substantial efforts to identify how offshore wind energy can be better utilized for meeting the growing demand for power generation. The technology advancements in various components can provide good growth opportunities to the players in the offshore wind energy market. Moreover, the emergence of wind/solar hybrids, more sophisticated grid management, and increasingly affordable storage are expected to define the future of this commercial fossil-free power sector. The wind power technology is the most competitively priced technology in majority of the markets across the globe.