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Offshore Wind Energy Market Is Estimated To Witness High Growth Owing To Rapid Electrification Of Remote Areas

Offshore Wind Energy Market Is Estimated To Witness High Growth Owing To Rapid Electrification Of Remote Areas

Offshore wind energy utilizes wind farms constructed in bodies of water, usually in the ocean on the continental shelf, to generate electricity from wind. Offshore wind turbines are typically larger than their onshore counterparts and utilize advanced technologies to harness wind energy in harsh marine environments. Offshore wind projects offer several advantages such as access to stronger and more consistent winds, ability to deploy larger turbines capable of generating more electricity, and reduced opposition from local communities. The growing demand for cleaner and renewable sources of electricity as well as need to provide power to islands and remote coastal settlements are driving the global deployment of offshore wind farms.

The global offshore wind energy Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The rapid electrification of remote areas and islands presents a major market opportunity for offshore wind energy. Several small island nations and territories lack access to conventional power infrastructure due to geographical isolation. Developing offshore wind farms can help provide a clean, cost-effective and reliable source of renewable electricity to such remote locations. While onshore wind and solar photovoltaic systems may also be deployed, offshore wind energy has certain advantages like access to stronger winds and ability to build larger capacity offshore projects. Tapping into this market opportunity can accelerate the adoption of offshore wind energy globally and support electrification drives around the world. Development of floating offshore wind technologies specifically makes offshore wind a more viable option to power remote island communities and offshore oil/gas platforms.

Porter's Analysis

Threat of new entrants: The offshore wind energy market requires large capital investments and long lead times for development, reducing the threat of new entrants. However, supportive regulations and tax incentives in some regions have increased competition.

Bargaining power of buyers: Utilities and large corporates are the major buyers in this market. Their bargaining power is high due to the increasing choice of renewable energy sources available.

Bargaining power of suppliers: Turbine OEMs and turbine component suppliers have considerable bargaining power due to their technological expertise and dominance in the market.

Threat of new substitutes: Emerging renewable sources like solar PV are potential substitutes but offshore wind energy has distinct advantages in reliability and scalability.

Competitive rivalry: The market is growing competitively with leading global turbine OEMs vying for larger market shares through innovations and expansion into new geographic markets.

SWOT Analysis

Strengths: Advancing turbine technologies have increased efficiencies and reduced costs. Supportive regulations in Europe and Asia have boosted investments.

Weaknesses: High infrastructure costs, dependence on weather conditions, and operational challenges in marine environments. Low familiarity remains a barrier in some markets.

Opportunities: Untapped potential in growing Asia and Americas markets. Emerging larger and floating turbine models will open up new offshore zones.

Threats: Delays or cuts in renewable subsidies and tariffs pose risks. Environmental concerns around project installations need addressing.

Key Takeaways

The global Offshore Wind Energy Market Share is expected to witness high growth over the forecast period driven by supportive government policies and climate change commitments.

Regional analysis: Europe currently dominates the market led by countries like the UK, Germany, Belgium, and the Netherlands. However, Asian markets like China, Japan, South Korea, and Taiwan are emerging rapidly with ambitious targets. North America is also seeing increased investments driven by growing adoption in the US.

Key players: Key players operating in the offshore wind energy market include Arlo Technologies Inc., Ring (owned by Amazon), Nest (owned by Google, a subsidiary of Alphabet Inc.), Wyze Labs Inc., Logitech International S.A., Blink Home Security (owned by Amazon), D-Link Corporation, TP-Link Technologies Co., Ltd., Ezviz (a subsidiary of Hikvision), Reolink Digital Technology Co., Ltd., Zmodo Technology Corporation, Canary Connect Inc., Netgear Inc., Eufy Security (a division of Anker Innovations), Swann Communications Pty Ltd. Leading global turbine suppliers like Siemens Gamesa, Vestas, and GE Renewable Energy are expanding their offerings. National champions also play an important role.

For more insights, read- https://www.ukwebwire.com/offshore-wind-energy-market-trends-size-and-share-analysis/

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