by The offshore wind market comprises turbines installed in ocean bodies to generate electricity from wind. Offshore wind facilities have larger turbines capable of harnessing stronger and more consistent winds from the sea to produce higher volumes of renewable energy.
The global offshore wind market is estimated to be valued at US$ 63.79 Bn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing environmental concerns around the world have been a key driver for the adoption of offshore wind energy. Offshore wind facilities can generate energy without carbon emissions and help reduce dependence on conventional sources of power that degrade air quality and contribute to climate change. The transition to renewable sources of energy from offshore winds is being propelled by stricter environmental regulations in many countries and the global effort to achieve climate change targets through decreased carbon footprint. Offshore wind projects are expected to expand rapidly over the coming years as awareness rises regarding the benefits of clean resources.
SWOT Analysis
Strength: Offshore wind has a higher capacity factor as turbines extract more energy from stronger and steadier winds. Less land restrictions for installation compared to onshore leads to economies of scale opportunities.
Weakness: High upfront capital costs for project development and infrastructure installation. Complex logistical challenges involved in installation, operation and maintenance of projects located offshore.
Opportunity: Several nations have ambitious targets for offshore wind power to meet decarbonization goals and boost domestic green industries. Technological innovations continue to improve turbine designs for higher productivity and energy yields.
Threats: Dependence on government policies and subsidies. Increased competition from alternative renewable sources like solar PV. Rising costs of materials, equipment and labor can squeeze project economics.
Key Takeaways
The Global Offshore Wind Market Size is expected to witness high growth over the forecast period of 2023 to 2030. Advances in turbine technology coupled with supportive government policies are driving investments in offshore wind capacity additions.
Regional analysis: Europe currently dominates the offshore wind market led by major markets like the UK, Germany, Belgium and the Netherlands. However, Asia Pacific region is witnessing the fastest capacity additions led by China. In the US, several states have set ambitious offshore wind targets which is expected to boost investments in upcoming years.
Key players operating in the offshore wind market are Groupe Danone, Fonterra Co-operative Group Ltd., Proliant Inc., Koninklijke DSM N.V., E.I. DuPont De Nemours and Company, Arla Foods amba, Cargill Inc., Groupe Lactalis S.A., APS BioGroup, and Nestle S.A. Offshore wind project development requires significant investments and the ability to manage complex logistics. Key players focus on strategic partnerships and collaborations to lower costs and risks. Ongoing technology innovation is also critical for market competitiveness.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
