Renewable energy is gaining traction across the world, which is expected to encourage growth in the global offshore wind power market. This information was shared by Fortune Business Insights in a report, titled “Offshore Wind Power Market Size, Share and Global Trend by Installation (Fixed Structure, Floating Structure) Capacity (Up to 1 MW, 1 MW to 5 MW, above 5 MW) Application (Shallow Water, Deepwater) and Geography Forecast till 2025.” Germany, Denmark, China, and the U.S. are some of the leading nations in the renewable energy sector. These countries are expected to witness rising investments in offshore wind power projects.
Demand for 1MW to 5MW Capacity is Expected to Rise
Offshore wind power is used in different capacities. Among these, 1MW to 5MW capacity is expected to cover a major share in the global market. This is followed by up to 1MW capacity segment. The demand for an offshore wind turbine is likely to increase in deep water and shallow water. Shallow water is expected to account for a major share in the global market. Installing wind tower especially in lower depth water is easy and helps to reduce capital expenditure.
Increasing Investments in Offshore Wind Projects to Promote Growth in Europe
Europe is expected to lead the global offshore wind power market with an increasing number of investments in offshore wind projects. Furthermore, the region is likely to hold a major share in the global market owing to favorable governments initiatives. Other factors likely to drive the market are energy security initiatives and decarbonization reforms in Europe. The market in the Asia Pacific is anticipated to grow at a considerable rate owing to the overall economic growth. In addition to this, massive wind power potential in countries such as Indonesia, China, and Australia are expected to register growth opportunities by 2025.
Other regions such as Latin America, North America, and the Middle East & Africa are likely to remain strong in the forecast years.
Need to Reduce Carbon Emissions Bodes Well for the Market
“The growth of the market is attributable to rising demand for clean energy across the globe,” said a lead analyst at Fortune Business Insights. “This will further lead to the reduction of carbon emissions and rising demand for generating electricity, which is expected to drive the market,” he added. Governments across the world are planning to take possible initiatives in order to fulfill the rising demand for electricity. This, coupled with a lower installation cost of wind power, is expected to boost the offshore wind power market. This, in turn, is anticipated to augment demand for offshore wind turbines in the coming years.
The demand for sustainable offshore energy can encourage companies to establish offshore wind power plants. The introduction of offshore wind turbines helps to generate electricity, which as a result is expected to evolve the offshore wind power market. The advancements in offshore wind technologies are also anticipated to be a potential growth enabler in the market. These advancements include advanced rotors and onboard sensors in offshore wind turbines.
Mounting Costs Associated with Establishing Power Plants to Restrict Growth
The huge capital cost involved in operating a power plant may inhibit the growth of the offshore wind power market. The onshore wind power installation involves less cost than offshore installation. Presence of alternatives is encouraging companies to focus on other forms of green energy such as biogas, solar, CHP, and others.
Senvion S.A. Partnered with Renexia to Expand its Product Portfolio
In March 2019, Royal Dutch Shell signed an agreement with Eneco and Van Oord to start two offshore wind farm projects with a capacity of 750 MW. Companies are planning to adopt different strategies to strengthen their market share and stay ahead of the competition. For instance, Senvion S.A. joined hands with Renexia in March 2019. The objective was to install an offshore wind farm in the Italian Mediterranean Sea.
Some of the other leading players operating in the global offshore wind power market are MHI Vestas Offshore Wind, Siemens Gamesa Renewable Energy S.A., Adwen, Suzlon Energy Limited, ABB Ltd., Hitachi Ltd., Senvion S.A., Ming Yang Smart Energy Group Co., General Electric, Nordex SE, Envision Energy, and Goldwind.