The global Offshore Wind Energy Market is estimated to be valued at US$23.4 billion 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 installed in bodies of water such as oceans or large lakes. It offers several advantages compared to onshore wind energy, including stronger and more consistent wind speeds, the ability to place turbines further offshore, and reduced visual and noise pollution. With the increasing concern for reducing greenhouse gas emissions and the transition towards clean energy sources, the market for offshore wind energy is experiencing significant growth. Offshore wind energy has emerged as a promising solution to meet the increasing energy demands while mitigating climate change effects.
Market Key Trends:
One key trend in the offshore wind energy market is the growing investments in research and development activities to enhance the efficiency and capacity of wind turbines. Key players in the market such as MHI Vestas Offshore Wind, Siemens Gamesa Renewable Energy, and General Electric Company are focusing on the development of advanced and larger wind turbines to harness more energy from offshore wind farms. These innovations aim to increase the overall power generation and reduce the cost of electricity, making offshore wind energy more competitive with traditional energy sources. The ongoing technological advancements and collaborations between research institutions and wind turbine manufacturers are expected to drive the market growth in the coming years.
The Offshore Wind Energy Market is expected to witness high growth, exhibiting a CAGR of 23.4% over the forecast period of 2019-2027. This growth can be attributed to increasing government initiatives to promote renewable energy sources and the growing demand for clean energy globally.
Threat of New Entrants: The offshore wind energy market poses a moderate threat of new entrants. While the capital-intensive nature of the industry acts as a barrier to entry, the potential for high profit margins attracts new players. Additionally, the high level of expertise required in this sector also acts as a deterrent for new entrants.
Bargaining Power of Buyers: The bargaining power of buyers in the offshore wind energy market is moderate. Buyers have the ability to choose from a variety of suppliers and can negotiate contracts and prices to some extent. However, the limited number of key players in the market gives them some leverage over buyers.
Bargaining Power of Suppliers: The bargaining power of suppliers in the offshore wind energy market is relatively high. The suppliers, which include turbine manufacturers and other equipment providers, have limited competition and can demand higher prices. Additionally, the niche expertise required in this market gives suppliers an advantage.
Threat of New Substitutes: The threat of new substitutes in the offshore wind energy market is low. There are limited alternative energy sources that can match the scale and efficiency of offshore wind energy. Therefore, the demand for this renewable energy source is expected to remain strong.
Competitive Rivalry: The competitive rivalry in the offshore wind energy market is high. The market is dominated by a few key players, such as MHI Vestas Offshore Wind, Siemens Gamesa Renewable Energy, and J.J Cole Collections. These companies compete fiercely to gain market share and secure contracts for offshore wind projects.
The global Offshore Wind Energy Market is expected to witness significant growth, driven by increasing government initiatives and the demand for clean energy. The market is projected to grow at a CAGR of 23.4% over the forecast period, reaching a capacity of 22.6 GW in 2018.
In terms of regional analysis, Europe is currently the fastest-growing and dominating region in the offshore wind energy market. Countries like the UK, Germany, and Denmark have established a strong offshore wind infrastructure and are leading the market in terms of capacity installations.
Key players operating in the offshore wind energy market include MHI Vestas Offshore Wind, Siemens Gamesa Renewable Energy, S.A., J.J Cole Collections, Sinovel Wind Group Co., Ltd, Erndtebrücker Eisenwerk Gmbh & Co. Kg, Northland Power Inc., ABB Ltd., Ming Yang Smart Energy Group Limited, Adwen GmBH, General Electric Company, A2SEA A/S, Nexans, and others. These companies are investing in research and development to enhance their product offerings and gain a competitive edge in the market.
Overall, the offshore wind energy market presents significant opportunities for growth and development. With the increasing focus on renewable energy sources, the market is expected to witness sustained demand and further advancements in technology.