Offshore Wind Turbines Market
Offshore Wind Turbines Market (Foundation Type: Monopile, Jacket, Tripod, and Floating & Others; Location Proximity: Shallow Water, Transitional Water, and Deep Water; and Capacity: Up to 1 MW, 1-3 MW, 3-5 MW, and Above 5MW) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030
Press Release :
Factory Shutdowns Reduce Uptake of Renewable Energy Due to COVID-19 Outbreak
Travel bans, supply chain pressure, and deferred maintenance of offshore wind turbines are among key challenges faced by wind farm owners during the ongoing COVID-19 pandemic. Lack of manpower to fix the breakdown of wind farms is another challenge that companies in the offshore wind turbines market need to tackle. Moreover, factory shutdowns worldwide have affected the uptake of renewable energy. This led to difficulties in adhering to deadlines for building new projects.
Ongoing travel restrictions are causing a major problem in maintaining optimum performance of offshore wind farms. This issue is quite prominent in the European Union. On the other hand, other countries have been fortunate due to availability of enough domestic service engineers. As such, there is a demand for overseas-based specialists to tackle issues for large O&M (Operation & Maintenance) problems of wind farms.
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Can Rapidly Falling Technology Costs Bolster Adoption of Floating Wind Turbines?
The offshore wind turbines market is estimated to cross the revenue of ~US$ 120 Bn by 2030, as ongoing projects in the offshore wind development pipeline have the potential to generate several thousand megawatts (MW) of electricity. Companies in the offshore wind turbines market are increasing their R&D muscle to design floating wind models that are less bulky and less expensive. Companies and individuals from research institutions, regulatory bodies, investment organizations, and the likes are taking cues from webinars to innovate in offshore wind turbines.
Manufacturers are adapting their production practices according to popular reference turbines before building prototypes. They are tapping into opportunities in new wind resources to make floating wind turbines more cost competitive. Floating wind turbines are anticipated to acquire prominence in Northeastern United States and Pacific regions.
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Design Improvements in Deepwater Offshore Wind Turbines Help Reduce Installation Costs
The global offshore wind turbines market is expected to advance at a striking CAGR of ~8% during the forecast period. As such, deepwater offshore wind turbines hold promising potentials in generating several thousand gigawatts (GW) of electricity, which is capable of lighting electricity systems across the U.S. However, high capitals expenditures associated with substructure and installation expenses are posing a barrier in the large-scale adoption of deepwater offshore wind turbines. Hence, companies in the offshore wind turbines market should collaborate with researchers who are capable of innovating in low-cost solutions for deepwater offshore wind turbines.
Researchers at the National Renewable Energy Laboratory (NREL) have introduced SpiderFLOAT, a scalable offshore floating wind system, which is designed to reduce costs associated with deepwater substructures. Design improvements in deepwater wind systems are anticipated to replace conventional fixed-bottom offshore wind power plants.
Ongoing Planning Regulations for Offshore Wind Creating Revenue Opportunities in U.K.
The U.K. Government has joined the race of completely eliminating greenhouse emissions by the end of 2050. However, there is a need for favorable regulatory policies in order to meet this end goal. Hence, companies in the offshore wind turbines market are exploring untapped business opportunities in Europe to expand the horizons of their revenue streams. As such, the offshore wind farm has become an integral part of the renewable energy uptake in the past couple of years. Moreover, daily intermittency and public resistance to onshore development of wind turbines, owing to inadequate land usage are some of the key factors that are favoring the demand for offshore wind turbines.
Ongoing planning regulations pertaining to offshore wind turbines are predicted to create value-grab opportunities for companies in the U.K. Moreover, the levelized cost of energy (LCOE) for offshore wind is estimated to fall below onshore wind over the next decade, which is another key driver contributing toward the growth of the U.K. offshore wind turbines market.
Non-profit Organizations Generate Funding for U.S. Offshore Wind R&D
Lucrative business opportunities in the U.S. offshore wind turbines market are contributing toward exponential volume growth, which is predicted to reach ~65,000 MW globally by 2030. Moreover, the U.S. National Offshore Wind Research and Development Consortium has announced to sanction US$ 10.3 Mn to 12 shortlisted projects focused toward the advancement of offshore wind R&D. It is being observed that non-profit organizations are collaborating with public and privately owned companies to enhance the offshore wind supply chain and increase research to assess the impact of offshore wind on the electric grid system.
New research projects conducted by companies in the offshore wind turbines market revolve around condition-based maintenance of systems and radar-based wake optimization of offshore wind farms.
Digital Twin Model Receives Global Recognition for Optimizing Offshore Wind Performance
Since offshore wind turbine systems are subject to harsh conditions in transitional and deepwater proximities, companies are turning toward digital tools to optimize offshore wind performance. These digital tools are acquiring increased popularity in bolstering power production and play an instrumental role in reducing downtime of offshore wind turbines. Digital copies or twins of physical offshore wind farms are facilitating real-time monitoring of wind projects. As such, the California Energy Commission’s Electric Program Investment Charge (EPIC)-an active investor in scientific and technological research, announced to grant US$ 2 Mn to Norwegian engineering company Aker Solutions and to an Oslo-based industrial software company Cognite. Hence, companies in the offshore wind turbines market are acquiring proficiency in digital technologies to avail funding from non-profit organizations.
Companies in the offshore wind turbines market are taking cues from the digital twin model to optimize offshore wind performance in other coastline communities across the U.S. apart from California.
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Longer downtimes of wind turbines are surfacing due to the lack of availability in O&M engineers. Since the installation of deepwater substructures is potentially expensive and challenging due to harsh conditions, companies in the offshore wind turbines market should explore opportunities in the digital twin model technology to overcome limitations. As such, companies are increasing focus in condition-based maintenance to avail funding from non-profit organizations. Scientific collaborations between U.S. companies are paving the way for high-capacity electricity generation among coastal communities of California and other states. Inadequate land usage of onshore turbines has led to offshore turbines emerge as an attractive alternative in Europe.
Offshore Wind Turbines Market: Overview
- Offshore wind power or offshore wind energy is harvested by using offshore wind farms constructed in bodies of water, usually in the ocean or at shallow water locations near to the ocean. Higher wind speeds are available offshore compared to on land; therefore, electricity generation of offshore wind power is higher per amount of capacity installed.
- Monopile foundation type is used on a large-scale in Europe. The seafloor in China is soft. Therefore, the usage of monopole is unsuitable in the country and Asia Pacific. Furthermore, tripods are heavier and more expensive to manufacture than monopole foundation. They are useful in deep waters.
- The first offshore wind project was installed off the coast of Denmark in 1991. Commercial-scale offshore wind facilities have been operating in shallow waters around the world, primarily in Europe and Asia Pacific.
Advantages of Offshore Wind Power Generation over Onshore Wind Power Generation to Drive Global Market
- Offshore wind energy has higher potential of power production as compared to onshore wind energy. It maintains better esthetics and is capable of ensuring wildlife and human habitat conservation in a more efficient manner. Furthermore, higher and more consistent wind speeds in offshore wind farms have the potential to generate more electricity at a steadier rate than their onshore counterparts. This is estimated to be a key driver of the offshore wind turbines market across the globe.
Rapid Advancement in Offshore Wind Technologies to Drive Global Market
- Large capacity offshore wind turbines are now becoming a possibility with advancements in offshore wind technology in Europe, the U.S., and China. China installed more than 2.3 GW offshore wind turbines in 2019. The U.K. followed footsteps of China and in the same year, the country had record installations of 1.8 GW. It was the largest offshore wind market in terms of capacity in the world in 2019.
- Advancements in technology are anticipated to reduce the levelized cost of electricity from offshore wind in the near future. Offshore wind generation costs are following a downward trend. At the median installed cost of $5,000/kW and a 9m/s wind speed, generation costs are just under US$ 192/MWh. This is likely to increase the demand for offshore wind turbines.
High Capital Costs Associated with Offshore Wind Power Generation Projects to Hamper Global Offshore Wind Turbines Market
- High capital costs associated with offshore wind power generation is hampering the global offshore wind turbines market. This trend is expected to continue in the global offshore wind turbines market during the forecast period.
- Cost competitiveness with onshore wind power generation as well as other renewable energy generation technologies is the need of the hour in the offshore wind turbines market
- Rise in prices of commodities, especially steel and other materials, has a major impact on cost escalations. This is estimated to adversely affect the demand for offshore wind turbines during the forecast period. This is projected to hinder the global offshore wind turbines market in the near future.
New Projects in Offshore Floating Wind Turbines Boost Offshore Wind Turbines Market
- Exploration of offshore sites is being carried out in order to enhance profitability of power generation from wind. Unlike onshore sites, offshore sites generally have uninterrupted winds throughout the year. This provides opportunities to the global offshore wind turbines market.
- Shallow- and deep-water spots that are being explored harness the potential for power generation from wind
- Floating wind turbines are equipped with floating platforms to support the entire turbine structure. Conventional offshore plants require fixing of foundations to the seafloor and bolting of massive turbines on them.
- Several new, offshore, floating wind turbine projects are in the prototype phase for testing of their operational feasibility, particularly in India, China, South Korea, the Pacific Islands, and Japan. This is anticipated to augment the offshore wind turbines market in these regions.
- Fixed offshore platforms for windmill installations require fixed foundations. These foundations vary with seabed conditions and environmental factors.
- Offshore floating turbines are, thus, advantageous over fixed structures in terms of the total cost incurred in installation and production
Recent Developments, Expansions, Acquisitions, and New Contracts in Offshore Wind Turbines Market
- In June 2020, Siemens Gamesa Renewable Energy S.A., a manufacturer of wind turbines, announced that it had bagged a contract to supply 100 units of its 14 MW turbines for an offshore wind project in the U.K. The 1.4 GW Sofia offshore wind farm, developed by innogy, a Germany-based energy company, can power more than one million homes with clean energy on completion. Furthermore, as part of the order by innogy, Siemens Gamesa will provide service and maintenance of turbines.
- The offshore sector in the U.S. made significant progress in offshore wind generation. The country’s total offshore wind procurement targets increased from 9.1 GW in 2018 to 25.4 GW in 2019, as New York and New Jersey upgraded their offshore targets. More states in the U.S. are striving to increase their offshore wind targets. Furthermore, six states selected more than 6 GW of offshore wind through state-issued solicitations as of December 2019. More solicitations are expected to be issued in New York and New Jersey in 2020.
Asia Pacific Highly Lucrative Region of Offshore Wind Turbines Market
- Europe led the global offshore wind turbines market in 2019, owing to significant demand for clean energy generation in the region. Currently, Europe has offshore wind capacity of 22,066 MW from 5,047 grid-connected wind turbines across 12 countries. Four new offshore wind projects reached Final Decision Investment (FID) in four different countries in 2019, with construction likely to start in the next few years. This is expected to boost the offshore wind turbines market in the region.
Highly Competitive Global Offshore Wind Turbines Market
- The global offshore wind turbines market is highly competitive. Several large players are engaged in manufacture and supply of offshore wind turbines. Large OEMs are generally vertically integrated and have their own supply chain for components. These held significant share of the global offshore wind turbines market in 2019.
- Key players operating in the global offshore wind turbines market are
- Enercon GmbH
- Siemens Gamesa Renewable Energy S.A.
- General Electric
- Nordex S.E.
- Xinjiang Goldwind Science & Technology Co., Ltd.,
- Scheidt & Bachmann GmbH
- Suzlon Energy Limited.
- Guodian United Power Technology Company Ltd
- Ørsted A/S
Offshore Wind Turbines Market – Scope of the Report
The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global offshore wind turbines market in order to accurately gauge its growth potential. The study presents detailed information about important drivers, restraints, and key trends that are creating a landscape for growth of the global offshore wind turbines market in order to identify opportunities for market stakeholders. The report also provides insightful information about how the global offshore wind turbines market would expand during the forecast period of 2020 to 2030.
The report offers intricate dynamics about different aspects of the global offshore wind turbines market, which aids companies operating in the market in making strategic decisions. TMR’s study also elaborates on significant changes that are anticipated to configure growth of the global offshore wind turbines market during the forecast period. It also includes key indicator assessment that highlights growth prospects for the global offshore wind turbines market and estimates statistics related to the market in terms of volume (MW) and value (US$ Mn).
This study covers detailed segmentation of the global offshore wind turbines market, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global offshore wind turbines market, wherein various developments, expansions, and winning strategies practiced by these players have been presented in detail.
Key Questions Answered in TMR’s Report on Offshore Wind Turbines Market
The report provides detailed information about the global offshore wind turbines market on the basis of comprehensive research on various factors that are playing a key role in accelerating growth of the global market. Information mentioned in the report answers path-breaking questions for companies that are currently operating in the global market and are looking for innovative methods to create a unique benchmark in the market so as to help them design successful strategies and make target-driven decisions.
- Which key segment of the global offshore wind turbines market would emerge as a major revenue generator for the market during the forecast period?
- How are prominent market players successfully earning revenues in the global offshore wind turbines market?
- What would be the Y-o-Y growth trend of the global offshore wind turbines market between 2019 and 2030?
- What are the winning imperatives of leading players operating in the global offshore wind turbines market?
Research Methodology – Offshore Wind Turbines Market
The research methodology adopted by analysts for compiling the report on the global offshore wind turbines market is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global offshore wind turbines market.
During the primary research phase, analysts have interviewed market stakeholders, investors, brand managers, vice presidents, and sales & marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global offshore wind turbines market.
For secondary research, analysts have scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global offshore wind turbines market.
Offshore Wind Turbines Market – Segmentation
TMR’s research study assesses the global offshore wind turbines market based on foundation type, location proximity, capacity, and region. The report presents extensive market dynamics and progressive trends associated with different segments and how they are influencing growth prospects for the global offshore wind turbines market.