Offshore wind energy is one of the clean and renewable sources of power generation among a few others which is obtained by the wind force produced on high seas. These winds gain maximum speed in water bodies than on land due to lack of barriers. Mega-structures, that are made of newest technical innovations, are installed on the seabed to make the most of this renewable energy source. There are various types of offshore wind foundations on which turbines can be installed like gravity foundations, suction bucket foundations, monopile foundations, tripod fixed bottom foundations, and jacket foundations. While all these have different shallow depths, almost all of them consist of concrete or steel bases that rest on the seabed.
Growing emphasis on utilizing renewable sources of energy to reduce greenhouse gas emissions is the main factor estimated to drive the growth of the global offshore wind market by 2028. In addition, increasing government initiatives to invest in renewable energy sources like solar and wind energy is expected to further boost the market growth during the analysis timeframe. Moreover, growing adoption of clean energy sources to generate power along with continuous investments in the renewable energy sector are predicted to offer abundant growth opportunities for the offshore wind market during the 2021-2028 forecast period. However, high cost of support structures, turbines, and electrical infrastructure is the main factor projected to impede the market growth by 2028.
Regionally, the offshore wind market in the Asia-Pacific is anticipated to hold the highest market share and gather a revenue of $31,502.2 million by 2028, owing to growing investments in the renewable energy sector. In addition, increasing awareness about the harmful effects of fossil fuel on the environment has led the governments of India, South Korea, and China to adopt clean energy sources. This factor is expected to propel the offshore wind market growth in the Asia-Pacific region during the analysis timeframe.
According to the report published by Research Dive, the global offshore wind market is predicted to gather a revenue of $61,443.7 million, growing rapidly at a CAGR of 12.9% in the 2021–2028 timeframe. Some significant players of the offshore wind market include General Electric, Nexans, Shanghai Electric Wind Power Equipment Co., Goldwind, Nordex SE, DEME, Siemens Gamesa, Vestas, EEW, Envision, and many others.
Covid-19 Impact on the Market:
The onset of the deadly Covid-19 pandemic has wreaked havoc across the world and hurled every business and industry, including the global offshore wind market. Strict lockdowns, social distancing norms, and mobility restrictions imposed by governments across the globe led to industry supply chain disruptions. In addition, manufacturing industries were forced to operate with limited work force that delayed the completion of several offshore wind projects. Furthermore, restrictions on travel also made firms unable to offer maintenance and installation services. These factors greatly led to revenue losses, thus negatively impacting the offshore wind market growth during the pandemic.
Key Developments of the Market:
The prominent organizations operating in the industry are adopting numerous growth strategies & business tactics such as partnerships, collaborations, mergers & acquisitions, and launches to maintain a robust position in the overall market, which is subsequently helping the global offshore wind market to grow exponentially. For instance:
In January 2022, BMS Heavy Cranes, an international leader in servicing renewable energy and infrastructure projects, announced the decision to widen its products range by launching a 3,000mt Ringer Crane which is specially optimized for operations in the wind sector. Ringer Crane can lift components at a height of 225m and heavy structures of 3,000mt at a reduced height. Installing this crane will help the BMS to install next-gen wind turbines both offshore and onshore as well as floating foundations.
In January 2022, Northland Power Inc., a leading Canadian power producer, announced its collaboration with RWE Renewables GmbH, a renowned Germany-based company that focuses on onshore and offshore wind and photovoltaics. The aim of this collaboration is to develop a cluster of three offshore projects in the German water bodies. Out of the entire entity, 49% would be owned by Northland Power while the remaining 51% will be held by RWE Renewables.
In January 2022, Capital Energy, a Spanish renewables manufacturer, announced its decision of partnership with the Maritime Cluster of the Canary Islands. The developer also signed a MoU with an aim to promote the development of offshore wind in the region. In addition, the agreement also states the Spanish developer’s plan to recognize supply chain services required to build offshore projects.