Offshore Wind Turbines Market: Current Analysis and Forecast (2021-2027)
Wind turbines generate electricity from wind that passes through the turbine's blades. The wind's kinetic energy is then captured by the blades through rotation and is converted into mechanical power. Offshore wind turbines are much larger in size (in range of 5 to 10 MW per turbine) as against 2-3 MW of an onshore wind turbine. While the cost per MW for offshore turbines are higher because of stronger structures and foundations needed in marine environment, the desirable tariffs can be achieved on account of higher efficiencies of these turbines after development of the eco system. Also, constant advancements in Offshore Wind Turbines have been made in the turbine technology for augmenting the turbine capacity and generating more energy, with an emphasis on achieving significant cost reductions. Higher-capacity wind turbines have larger swept areas and produce more power for the same resource quality, thereby generating higher wind farm output levels. The market growth is attributed to higher potential of power production as compared to onshore wind energy, technological advancements in offshore foundations, and increasing investments & favorable policies for offshore wind power generation globally. However, some of the restraints in the market include High manufacturing & maintenance costs of Offshore Wind Turbines system & Logistics and supply chain issues for larger turbine structures are some factors impeding the growth of this market all over the world.
Based on water depth type, the market is segmented into Shallow Water (up to 30 m), Transitional Water (30 m to 60 m) and Deep Water (> 60 m). The Shallow Water (up to 30 m) segment grabbed XX% market share of the Global Offshore Wind Turbines Market and gathered revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027 due to shallow-water regions being ideal for building the foundation for wind towers, on account of the higher convenience offered by them over the deep and transitional-water installations.
Based on installation, the market is segmented into Fixed & Floating. In 2020, the fixed segment dominated the Offshore Wind Turbines Market and accounted for XX% market share. This segment will witness a considerable CAGR of XX% during the forecast period (2021-2027F) owing to the ease of operation and cost-effectiveness.
Based on turbine capacity, the market is classified into Up to 3 MW, 3 MW to 5 MW and > 5 MW. The > 5 MW segment generated revenue of USD XX billion in 2020. The segment is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027.
For a better understanding of the market adoption of Offshore Wind Turbines, the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada, Rest of North America), Europe (Germany, France, Italy, Spain, United Kingdom, Denmark and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea and Rest of APAC), and Rest of World. Europe constitutes the largest market for the industry and generated revenue of USD XX billion in 2020 on account of the largest share of offshore wind power installed capacity in 2020 & favorable government policies in countries, such as UK, Denmark, Netherlands, which are driving clean energy usage.
Some of the major players operating in the market include Nordex SE, Siemens Gamesa Renewable Energy SA, Vestas Wind Systems A/S, Ørsted A/S etc. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.