Global Offshore Wind Energy Market Size to Reach USD 81 Billion by 2030

Global Offshore Wind Energy Market Size to Reach USD 81 Billion by 2030

A new report by insightSLICE has found that the global offshore wind energy market size was USD 23 billion in 2019 and has predicted that the market will reach USD 81 billion by 2030 at a CAGR of 12 percent.

According to International Energy Agency (IEA), the offshore wind generation turbines with capacities reaching a record level in 2018, increased to 12 MW from 10MW a year earlier. These turbines and built-up plants were expected to garner the lowest winning bids since 2017, providing a major push for growth for the offshore wind energy market.

The report suggests that the growing demand for wind energy generation in the Asia Pacific, the intermittent supply of energy for industries in this region, and the growing demand for renewable energy generation remains a promising horizon for growth in the offshore wind energy market.

Additionally, the UK offshore wind plants in 2025, would produce wind energy at 52 USD/MWh, which is a sign of a major adoption of offshore wind energy technology soon. Similarly, EU auction results are expected to result in 50 percent cost-savings in the next five years, thanks to growing off-scale advantages, economy, and clustering of offshore wind energy plants. And, EU technology in newer regions in near future would likely drive the growth of the offshore wind energy market.

Explaining how wind energy generation is moving towards expansion, the report concludes, that the expansion of new wind energy generation sites is a major positive emerging in the global wind energy market. In the United States, sites have come up in four different states including North Carolina, New Jersey, Maryland, and New York. Moreover, in China, the wind energy generation plant from Taipei reached a capacity of 5.5 GW on its offshore sites. The company has also signed agreements for power purchase up to 1 GW, announcing revised fee structures for tariffs in 2019. Japan has also removed barriers for permissions to ease the way to solve grid connection challenges, promising major growth of large-scale projects in near future. The limitations experienced in grid connection challenges in China and Europe are likely to make way for more expansion for the offshore wind energy generation, as costs remain quite high. Moreover, the new revised goals of wind energy generation by 2030, will drive the accelerated growth of the offshore wind energy market in near future.

Besides, the report indicated the key developments, global & regional sales network, business strategies, research & development activities, employee strength, and key executive, for all the major players operating in the market. 

The report has segmented the global Offshore Wind Energy Market based on Component, Location, Installation, Capacity, Application, and geography.

Based on Component, the global Offshore Wind Energy Market is segmented into Turbine, Substructure, Electrical Infrastructure, Others. And Turbine solely accounted for the maximum share of the revenue of the global market. Also, the industry operators that manufacture wind turbines, are focusing on creating innovative and standardized products, the processes of which involve low installation costs, leading to a rise in the market demand for wind turbines.

Based on Location, the global Offshore Wind Energy Market is segmented into Shallow Water, Transitional Water, Deep Water. Interestingly, the majority of the projects were installed in shallow waters, that is, in waters up to 30 meters. The industry operators prefer shallow waters, because of the ease of installation and lower capital requirement.

Based on geography, the global Offshore Wind Energy Market is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Further, Europe is sub-segmented into Germany, the United Kingdom, Belgium, Spain, and the Rest of Europe. Surprisingly, the region of the UK leads the European Offshore Wind Energy market and is estimated to witness steady growth throughout the forecast period, the region of the UK has added over 5 GW of offshore wind energy to its renewable portfolio since 2015. 

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Bhoomika Singh

Bhoomika is a science graduate, with a strong interest in seeing how technology can impact the environment. She loves covering the intersection of technology, environment, and the positive impact it can have on the world accordingly.