Offshore Wind Power Market Size 2024-2028

The offshore wind power market size is estimated to increase by USD 33.96 billion, at a CAGR of 17.17% between 2023 and 2028. Market expansion in the wind power generation sector is underpinned by several key factors. There is a notable increase in global energy demand, propelling the adoption of wind energy as a sustainable solution. Governments worldwide are increasingly supportive, offering incentives and regulatory frameworks that favour renewable energy development. Moreover, the decreasing Levelized Cost of Energy (LCOE) for wind power enhances its competitiveness in the energy mix. However, challenges persist, including competition from alternative energy sources, environmental concerns, and the substantial capital required for offshore wind projects. Despite these obstacles, the market remains dynamic, driven by ongoing advancements in technology, evolving energy needs, and the commitment to reducing carbon footprints globally. As the industry navigates these challenges.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

By Type

The market share growth by the monopile segment will be significant during the forecast period. The monopile offshore wind structure is made up of a cylindrical steel tube and has a relatively simple design wherein the tower is supported by the monopile either directly or through a transition piece. The monopile runs down into the seabed. The penetration of the monopile can be adjusted based on the seabed and environmental conditions. Monopile is the most commonly used foundation structure in the market, owing to its ease of installation in shallow water depths ranging from 0 to 98.42 feet (0 to 30 meters). These factors will facilitate segment growth during the forecast period.

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The monopile segment was valued at USD 13.48 billion in 2018. There are several variations of monopiles, such as drilled monopiles and drilled concrete monopiles. A drilled monopile structure consists of a fixed steel monopile with concrete in a deep drilled hole inside the seabed rock. Such an arrangement helps keep the weight of the foundation relatively low. As a result, the foundation can be towed to the site using a normal tugboat and lifted into place by a relatively low lifting capacity. On the other hand, drilled monopiles consist of prefabricated concrete monopiles, which are installed using a vertical drilling technique and eliminate the use of a transition piece. Hence, owing to the advantages of monopile structures, technological advances, and the rapid deployment of monopile structures across the world due to the presence of prominent companies with requisite technological expertise, the market is expected to grow significantly during the forecast period.

Key Regions

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Europe is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In Europe, the UK registered the highest share of offshore wind installations, followed by Germany. However, as the prices of international offshore power have reduced by more than 50%, the auctions are expected to resume, and tariffs are anticipated to reduce to around USD 0.18 per kW in the upcoming projects. Hence, the rapid deployment of renewable sources in the region, the technological developments reducing the cost per unit, and the government initiatives to boost the efficiency of offshore farms are expected to support the growth of the market in Europe during the forecast period.

Market Dynamics and Customer Landscape

The market is booming, driven by the increasing electricity demand and the shift towards clean energy infrastructure. Despite occasional challenges like cable failure and environmental concerns, the industry thrives on continuous technological advancements and supply chains. With significant investment pouring in and installed capacity steadily rising, offshore farms and projects are becoming integral to meeting energy demand sustainably. Leading industry players are pushing boundaries with innovative floating foundation types and cutting-edge ocean energy technologies. As the world embraces renewable power sources, offshore wind turbines, especially in salt water environments, are set to play a pivotal role in shaping the future of production and addressing global environmental challenges.  

Key Market Driver

The market experiences significant growth driven by the electricity demand globally. As per the International Energy Agency (IEA), economic growth in 2021 led to a 4.6% increase in global demand, notably fuelled by countries like China, the US, and India. The global electricity demand has doubled since 1990, outpacing other fuel sources. Forecasts indicate a twofold increase in electricity demand by 2040, driven by emerging economies and population growth. This escalating demand underscores the importance of investing in offshore wind projects and advancing technological advancements in floating foundation types and ocean energy technologies to meet the demand sustainably while addressing environmental concerns and ensuring a clean energy infrastructure.

Significant Market Trends

The rising popularity of clean energy technologies is the primary trend in the global market. Owing to the rapid growth in the global demand for electricity and the extensive use of fossil fuels such as coal and natural gas to fulfill the demand, there has been substantial growth in global carbon dioxide (CO2) emissions resulting from fuel combustion. Moreover, electricity and heat generation have been the largest sources of CO2 emissions and accounted for more than 42% of the global CO2 emissions in 2022.

Hence, there has been a rising demand for clean sources globally to reduce carbon emissions. Thus, there has been a rise in the adoption of renewable sources for power generation, which has been boosting wind power generation. Wind and solar power registered a double-digit growth rate in 2021, mainly fuelled by China, Europe, and the US. Hence, with the rising adoption of clean sources, the market is expected to grow during the forecast period.

Major Market Challenge

The competition from alternative energy sources is a major challenge to global market growth. Despite the rapid growth in the adoption of renewable energy sources such as offshore wind power generation, the use of fossil fuels such as oil, coal, and natural gas still accounts for a substantial portion of the global energy mix. Moreover, clean coal technologies such as supercritical and ultra-supercritical coal-fired power plants have been further boosting the operations and sustenance of coal-fired power plants. Many countries prefer using fossil fuels rather than renewable energy sources due to the abundance of fossil fuels.

Moreover, the cost of establishing a renewable energy farm for producing power is substantially high, and the power output from renewable energy sources is not on par with that from fossil fuels. Hence, the preference for non-renewable energy sources is high in the market. Moreover, power generation using coal (conventional as well as clean coal technologies) and natural gas accounts for a significant portion of the global energy mix, which is expected to hinder the growth of the market during the forecast period.

Key Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

CAPE Holland BV- The company focuses on offshore wind power generation business with complete solutions and experience in various projects. Also, They offer offshore wind power generation business-related complete solutions.

The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• China Steel Corp.
• Dongfang Electric Corp.
• Doosan Corp.
• Erndtebcker Eisenwerk GmbH and Co KG
• General Electric Co.
• Hyosung Heavy Industries Corp.
• Hyundai Heavy Industries Co. Ltd.
• JDR Cable Systems Ltd.
• Lamprell Plc
• Nexans SA
• NKT AS
• Nordex SE
• Senvion Wind Technology Pvt. Ltd.
• Siemens Gamesa Renewable Energy SA

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.

• Type Outlook
  • Monopile
  • Jacket
  • Others

• Product Type Outlook
  • Fixed structure
  • Floating structure

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

Moreover, the market is flourishing due to advancements in technology and supportive policies and regulations worldwide. With increasing global demand for renewable power, offshore wind energy emerges as a sustainable source of energy. Projects like floating offshore wind farms and deep-water installations demonstrate the industry's commitment to innovation and efficiency. Companies like Haizhuang Wind Power are pioneering Typhoon-Resistant Wind Turbine and floating platform technologies, expanding installed capacity in various water depth categories. Despite challenges such as high capital costs and environmental concerns, the market continues to grow, driven by the quest for energy-efficient solutions and achieving zero-emission missions. As the supply chain strengthens and technological advancements enhance energy production, offshore wind power remains a crucial component in meeting renewable targets and ensuring a sustainable power future for the planet.

Additionally, the market is experiencing rapid growth, driven by advancements in technological innovation and the global shift towards renewable energy sources. Projects range across various capacity categories and include deep-water installations and floating offshore wind farms, utilizing floating foundation types for efficient component installation. With a focus on efficiency and technological advancement, companies are developing typhoon-resistant turbines and optimizing rotor diameter for enhanced performance in salt-water environments. As governments set ambitious renewable targets and enforce rules and regulations, the industry strives for a zero-emission mission, positioning it as a leading solution in the quest for sustainable ocean energy technologies.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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