Report Description

Global offshore wind turbine market was valued at USD28.20 billion in 2021 and is anticipated to project robust growth in the forecast period with a CAGR of 13.75% due to high investment and development in the power industry.

A wind turbine is a device that converts wind kinetic energy into electricity. Wind turbines are implemented in water bodies to generate electricity from the wind over open water, called offshore wind turbines. Wind turbine blades turn between 13 and 20 revolutions per minute, depending on technology, at a constant or variable velocity, with the rotor's velocity varying about the wind's velocity to achieve greater efficiency. Further, owing to the larger structures and complex logistics of installing the towers, offshore wind turbines are capital-intensive and are significantly more expensive to build than onshore wind farms. The data collected by the vane and anemometer positioned at the top automatically aligns the wind turbine to fully use the wind's kinetic energy.

Adoption of Sustainable Development Driving Market Growth

Rising concerns about climate change encourage individuals, commercial and government setups to adopt alternatives that generate cleaner energy with no or lesser carbon emissions. Offshore wind turbines harness wind energy and convert mechanical energy into electrical energy. In the complete process, no carbon emission is recorded; thus, energy generation from wind turbines is deemed a cleaner fuel. Thus, the energy produced through offshore wind turbines acts as a catalyst to promote sustainable development and fulfill future generation demands.

Increasing Investments in Renewable Energy Boosting Market Demand

The demand for oil and gas firms to adjust their investment plans to the requirements of clean energy transitions is intensifying. This includes agreements to minimize oil and gas emissions or invest in new sectors such as clean power or sustainable fuels. Innovation in the energy business is nothing new; energy use has evolved throughout history. Recent evidence of this trend in the United States includes a loss in coal use and a decrease in oil demand, while renewable sources such as wind, solar, geothermal, and hydropower have gained market share. The U.S. Energy Information Administration (EIA) projects that renewable energy is expected to account for 28% of the world's energy consumption by 2050, up from 15% in 2018. Thus, global emphasis on renewable energy is expected to boost the global offshore wind turbine market.

R&D in Offshore Wind Turbines and Power Industry

Over the years, industry professionals have collaborated to reduce the entire capital expenditure connected with offshore wind farms and optimize manufacturing efficiency to realize economies of scale. The major firms in the worldwide offshore wind turbine market are doing research and development related to the increasing size of turbine blades, which would increase the efficiency of wind turbines. The increasing size of the wind turbine blade enhances the power production capacity of each wind turbine. It minimizes the total number of wind turbines required to achieve the desired energy output from a wind farm. Increasing the wind turbine size may decrease the project's total capital cost. Another instance reflecting an emphasis on R&D is the U.S. Department of Energy (DOE) approved USD20.5 million for collaboration to perform research and development (R&D) to solve technology impediments and reduce offshore wind costs and hazards in the United States. The National Offshore Wind Research and Development Consortium is a non-profit public-private partnership dedicated to advancing offshore wind technology in the United States through high-impact research projects and cost-effective and responsible development that maximizes economic benefits.

Green Hydrogen Production

The offshore wind turbine is utilized to produce environmentally friendly hydrogen. In several projects, the offshore wind turbine produces environmentally friendly hydrogen. For example, as part of the AquaVentus/AquaDuctus project, Shell, Gasunie, RWE, CASCADE, Equinor, Ørsted, and Boskalis use 10 gigawatts (GW) of offshore wind energy to make green hydrogen, which is intended to bring to Europe via pipeline. It is projected that a growing preference for environmentally friendly hydrogen will drive the market for offshore wind turbines. The growing interest in environmentally friendly forms of energy has put pressure on governments and energy businesses (mainly oil and gas companies) to give serious thought to alternative forms of power that are both environmentally friendly and efficient in terms of energy use.

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Market Segmentation

The global offshore wind turbine market is segmented based on installation type, turbine capacity, region and by company. Based on installation type, the market is further fragmented into fixed and floating. Based on turbine capacity, the market is segmented into Up to 3 MW, 3 MW to 5 MW, and > 5 MW. The market analysis also studies the regional segmentation divided among the Asia-Pacific, Europe, North American, Middle East & African, and South America. The Europe offshore wind turbine market stood at USD14.20 billion in the year 2021 and is projected to grow at a CAGR of 13.05% during the forecast period.  While the United States offshore wind turbine market stood at USD2.89 billion in the year 2021 and is projected to grow at a CAGR of 10.33% during the forecast period.

Company Profiles

Ørsted A/S, GE Renewable Energy, ABB Ltd., Vestas Wind Systems A/S, Siemens Gamesa, Schneider Electric SE, Nordex SE, Equinor ASA, Envision Group