Offshore Wind Energy Market: Snapshot
Offshore wind energy is characterized by a number of advantages in comparison to onshore wind energy. Higher wind speeds can be harnessed within offshore environments and this is a prime factor providing impetus to the overall market for offshore wind energy. In this market, cost reductions are seen across the entire value chain, starting from cabling cost, installation expenditures, and turbine costs. The amount of cost reductions taking place in the market between 2014 and 2022 would depend on the predicted annual capacity additions within the offshore wind energy sector. Thus, offshore wind energy technology will have to continuously compete with other types of renewable energy technologies in addition to its own onshore counterpart.
The global offshore wind energy market is predicted to touch 52,120.9 MW in 2022, from 7,045.4 MW in 2013, rising at a remarkable CAGR of 25.0% over the forecast period. In terms of annual installations, the market is predicted to touch 7,228 MW by 2022, starting from 1,629.4 MW in 2013, expanding at a whopping 19.60% CAGR over the forecast period. The growing advantages of offshore wind energy over onshore counterpart will provide impetus to the development of the market for offshore wind energy. In addition, regulatory frameworks and promising incentive mechanisms for offshore wind energy sector are raising investments and fuelling capacity additions. This factor will positively impact the development of the global offshore wind energy market.
Increasing Investor Confidence Due to Growing Utilization of Project Financing to Bode Well for Market
Furthermore, the growing use of project financing within offshore wind energy projects is predicted to raise investor confidence and will expedite capacity additions, thus driving the overall market. New offshore projects utilizing floating wind turbines are poised to result in numerous project development activities within deep-water locations. This is a key opportunity seen in the market for offshore wind energy. On the other hand, the increasing capital costs involved in projects are impeding brisk capacity additions in the market, thus inhibiting market development.
Huge Investments in Offshore Wind Energy Sector to Bring European Offshore Wind Energy Market at Forefront
In terms of geography, the market is categorized into North America, Europe, Asia Pacific, and Rest of the World (RoW). Amongst these, Europe emerged as the only region which has heavily made investments in making the offshore wind energy sector and is trailed by Asia Pacific. In Asia Pacific, China has emerged as a key nation that has made particular targets in offshore wind energy projects. On the other hand, other regions such as North America and RoW are still to make and commission utility-scale offshore wind energy projects. The European offshore wind energy market has evolved over many years and has countries such as Germany, Denmark, Belgium, and the UK as top market leaders. In the coming years, though robust development rates in installation are predicted to take place in Asia Pacific, still the bulk of installations is predicted to happen in Europe. In this region, nations such as France, the UK, the Netherlands, and Germany are poised to augment the development within annual capacity additions in this sector.
The prominent players in the global offshore wind energy market are China Ming Yang Wind Power, Suzlon, Nordex, Dong Energy, GE Wind Energy, Sinovel Win, Gamesa, Siemens, and Vestas, among others.
The global offshore wind energy market is projected to demonstrate healthy growth in the coming few years. The rising focus on renewable energy around the world will drive the wind energy sector significantly. Furthermore, many countries are planning to add to their wind power production capacity, while other countries are planning to establish new wind farms. The growing opportunities in the global offshore wind energy market are attracting major investments from domestic and international firms.
Moreover, these opportunities in the global offshore wind energy market are also projected to generate several job opportunities. Broadly, the global offshore wind energy market is segmented on the basis of region. The key regions evaluated in the global offshore wind energy market are North America, Europe, Asia Pacific, and Rest of the World (RoW).
The research study on the global offshore wind energy market delivers a comprehensive analysis of the major deals in the industry along with their impact on the industry in the coming few years. Some of the key deals analyzed in the global offshore wind energy market report are: Joint venture between Vestas and Mitsubishi, joint venture between Areva and Gamesa, and Siemens’ acquisition of A2SEA.
Overview of the Global Wind Energy Market
The global offshore wind energy market benefits from the numerous advantages it holds over its onshore counterpart. Furthermore, the favorable incentive mechanism and regulatory framework is fuelling investment and accelerating capacity additions in the global offshore wind energy market. Another key market driver of the global offshore wind energy market is the rising utilization of project financing in offshore wind energy projects.
Propelled by these factors, the global installed capacity in the offshore wind energy market is projected to expand at a healthy CAGR of 25.0% during the forecast period from 2014 to 2022. In 2013, the installed capacity of the global offshore wind energy market was noted at 7,045.4 MW and by 2022, it is projected to be 52,120.9 MW.
Presently, Germany is a strong contender in the global offshore wind energy market and accounts for 30% of European offshore wind farms. Location is a key advantage for Germany’s growth in the European offshore wind energy market. After Europe, Asia Pacific is the largest market for offshore wind energy. China in Asia Pacific is the only nation that has a separate target allotment in terms of offshore wind energy installations.
Even though the global offshore wind energy market will expand substantially in the coming few years, it will be challenged by a few factors. The presence of bottlenecks in the supply chain will constrain brisk project development activities in the offshore sector. Moreover, the global offshore wind energy market will be challenged by the high capital costs associated with projects.
Companies mentioned in the research report
The key companies in the global offshore wind energy market operate at a domestic and global level. Some of the key players operating in this market are China Ming Yang Wind Power, Nordex, Suzlon, Dong Energy, Sinovel Win, GE Wind Energy, Gamesa, Vestas, and Siemens. Players in the global offshore wind energy market will benefit from the opportunity of new offshore projects that use floating wind turbines.
Major regions analyzed under this research report are:
- North America
- Asia Pacific
- Rest of the World
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments