by The global offshore wind market is estimated to be valued at US$ 41.8 Billion In 2022 and is expected to exhibit a CAGR of 15.68% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The offshore wind market involves the generation of electricity from wind farms located in bodies of water, typically in the ocean. Offshore wind farms have numerous advantages over onshore wind farms, including higher wind speeds, larger turbine capacities, and less visual and noise pollution. With the increasing need for clean and renewable sources of energy to combat climate change, the offshore wind market is witnessing significant growth. Offshore wind farms provide a sustainable energy solution that helps reduce carbon emissions and meet the growing power demand.
Market Key Trends:
One key trend in the offshore wind market is the increasing deployment of floating wind turbines. Unlike traditional fixed-bottom turbines, floating turbines can be installed in deeper waters, opening up more potential sites for wind farm development. Floating wind turbines utilize advanced technology and can be positioned in areas with higher wind speeds, resulting in higher electricity generation. This trend is expected to drive the growth of the offshore wind market, as it allows for greater expansion and accessibility of offshore wind energy.
Porter’s Analysis
Threat of New Entrants: The Offshore Wind Market faces a moderate threat of new entrants due to the high barriers to entry. The capital-intensive nature of the industry, along with the need for specialized knowledge and technology, makes it difficult for new players to enter the market. Additionally, existing companies have already secured long-term contracts and established relationships with key stakeholders, further deterring new entrants.
Bargaining Power of Buyers: The bargaining power of buyers in the offshore wind market is moderate. While there is a limited number of buyers who have the financial resources and expertise to engage in offshore wind projects, their demand for renewable energy is growing. Buyers have the power to choose from a range of suppliers, increasing competition among key players.
Bargaining Power of Suppliers: Suppliers in the offshore wind market have a moderate bargaining power. The industry relies on a few key suppliers for specialized equipment and technology, but these suppliers face the challenge of meeting the increasing demand for offshore wind installations. Suppliers’ bargaining power is affected by their ability to manage costs and provide quality products and services.
Threat of New Substitutes: The threat of new substitutes in the offshore wind market is low. Offshore wind is a well-established and proven technology for generating renewable energy. Alternatives such as solar and onshore wind have their own advantages but cannot fully replace offshore wind due to its capacity to generate higher energy outputs and its ability to tap into strong and consistent winds.
Competitive Rivalry: The competitive rivalry in the offshore wind market is high. Key players in the market are constantly seeking technological advancements and innovations to gain a competitive edge. Additionally, the market is witnessing the entry of new players, intensifying the competition. The focus is on cost reduction, efficiency improvement, and project development to secure contracts and retain market share.
Key Takeaways
The global offshore wind market is expected to witness high growth, exhibiting a CAGR of 15.68% during the forecast period (2023-2030). This growth can be attributed to increasing environmental concerns, government initiatives to promote renewable energy, and advancements in offshore wind technology. The market is projected to reach a value of US$ XX billion by 2030.
In terms of regional analysis, Europe is expected to be the fastest-growing and dominating region in the offshore wind market. Europe has been at the forefront of offshore wind installations, with countries like the UK, Germany, and Denmark leading the way. The region’s favorable regulatory framework, supportive government policies, and vast potential for offshore wind energy generation contribute to its dominance in the market.
Key players operating in the offshore wind market include MHI Vestas, Siemens AG, General Electric, ABB Ltd., EEW Group, Nexans, and A2SEA A/S. These players have a strong market presence and are actively involved in project development, technology innovation, and strategic collaborations to strengthen their foothold in the market. These key players are expected to play a significant role in the growth and development of the offshore wind market in the coming years.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
