Offshore Wind Turbine Market Research, 2031
The global offshore wind turbine industry was valued at $17.8 billion in 2021, and offshore wind turbine market size is projected to reach $39.2 billion by 2031, growing at a CAGR of 8.28% from 2022 to 2031.
Wind energy has established itself as a key source of renewable energy globally. Its demand is predicted to skyrocket over the next decade owing to stringent government regulations, as well as increase in awareness of environmental issues.
With rise in concern about the environment, the major market industries are focusing on escalating the production of energy from renewable resources, including wind and solar power, for the reduction of harmful emissions. The major key players of the market are administrated to develop a magnificent budget for the installation of projects and R&D activities to enhance the efficiency of the operation and the product portfolio. There are several on-going projects incorporated with advanced technology, which is likely to improvise the infrastructure of existing projects that is estimated to boost the global offshore wind turbine market growth during the forecast period.
Huge capital investments and high maintenance cost are the major restraints of the market, which leads to the decline of profit. Issues related to logistics are another major hurdle in the growth of the market. Offshore wind turbines are responsible for the harsh marine environment and its more favorable feature like high speeds is considered as a negative factor for the growth of the offshore wind turbine market. The rectification of issues is expensive in terms of transportation, logistics, and maintenance. All these factors are the major challenges that are likely to hinder the offshore wind turbine market growth.
The offshore wind turbine market is segmented on the basis of capacity, application, and region.
On the basis of capacity, the global offshore wind turbine market is segmented into small (less than 10MW), medium (10-100MW), and large (greater than 100MW). On the basis of application, the market is segmented into industrial, commercial, and residential. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe and North America.
The major companies profiled in this report include, Enercon Gmbh, General Electric, Goldwind, Nordex SE, Regen Powertech, Sinovel Wind Group, Suzlon Energy Limited, Zhejiang Windey, VESTAS, and Siemens Energy. Rapid urbanization and industrialization has fuelled the demand for power, which led to increase in the investment in the solar-based renewable power plants. This led to the development for the offshore wind turbine market. Additional growth strategies, such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership in the development of the innovative products from manufacturers have helped attain key developments in the global offshore wind turbine market trends.
By Region
Asia-Pacific region to hold highest market share till 2031
Asia-Pacific occupies the largest part of the offshore wind turbine market share and consists of countries, such as China, India, Japan, South Korea, Australia, and Rest of Asia-Pacific. The China is the world’s largest consumer of electricity from solar power generation, having produced over 306.56 gigawatts in 2021. According to Rystad Energy, the installed capacity of renewable energy in this region is expected to jump from 517 GW in 2020 to 815 GW by 2025. The presence of many developing and under-developed countries is also the most populated region across the globe. It is also a home to a significant number of megacities with the ever-increasing population. It is expected to have the largest urban population by 2050.
The Asia-Pacific dominates the market with considerable revenue share. This is attributed to rise in concern from governments across emerging nations, such as China, India, and South Korea, regarding zero emission norms. Moreover, key players such as GE and Mitsubishi Hitachi Power Systems, Ltd. are making significant contribution in the growth of the offshore wind turbine market. Technological advances and lower costs of capital have propelled renewables into the mainstream energy market. Furthermore, the boom of green investments in Asia-Pacific and the ambitious policies dominate the global renewable energy in terms of capacity, technology development, and energy demand. The above mentioned initiatives are major factors driving the growth of the market in the region during the forecast period.
By Capacity
Large (Greater than 100MW) to be the most lucrative segment till 2031
The large (greater than 100MW) segment dominates the global offshore wind turbine market. Offshore wind turbine with exhibiting power 100 MW and above is majorly used for heavy industrial applications and power generation, including chemical, pharmaceutical, and other heavy industries. Large-scale wind farms are used to provide power supply to various utilities through grid support. In 2021, 73.35% of the offshore wind farm installations are of large scale capacity over 100MW. Most of these installations are undertaken by some of the major manufacturers operating in the market including, Toshiba Power, Vestas Wind Energy, GE Renewable Energy, Siemens Gamesa, and Andritz Group. The presence of above mentioned factors are expected to provide ample opportunities for the development of the market.
The industrial segment dominates the global offshore wind turbine market. The industrial application segment accounted for 40% of total offshore wind turbine market revenue; owing to increase in demand for renewable energy sources in heavy industrial manufacturing sectors have boosted the utilization of offshore wind turbine as an auxiliary power source. Furthermore, the presence of benefits such as stabilizes electric prices over a long period of time, and can be paired with alternative energy storage systems such as hydrogen fuel cell. In developing countries, the market is currently dependent on government support and subsidy schemes. Moreover, manufacturing and installation costs of large offshore wind turbines are capital-intensive, which restricts its end use in small- and medium-sized projects. The number of investors is expected to increase gradually, which helps improve installation costs, thereby driving the growth of the market.
COVID-19 Analysis:
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturing companies led to the decline in the demand for solar-related equipment in most of the countries across the globe, which led to decline in demand for the offshore wind turbine market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.
After the global vaccination, the government of various countries has taken initiatives to increase the investment in the renewable energy related industries, especially solar and wind power systems. The increase in the investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above mentioned activities and change in policies due to the outbreak of the COVID-19 pandemic are expected to have positive impact on the development of the offshore wind turbine market forecast.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the offshore wind turbine market analysis from 2021 to 2031 to identify the prevailing offshore wind turbine market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the offshore wind turbine market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global offshore wind turbine market trends, key players, market segments, application areas, and market growth strategies.
Offshore Wind Turbine Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 39.2 billion |
 Growth Rate | CAGR of 8.3% |
 Forecast period | 2021 - 2031 |
 Report Pages | 299 |
 By Capacity |
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 By Application |
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 By Region |
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 Key Market Players | Goldwind, Siemens AG, NORDEX SE, ReGen Powertech, VESTAS, Zhejiang Windey Co., Ltd., General Electric, SINOVEL WIND GROUP, Enercon Gmbh, Suzlon Energy Limited |
Analyst Review
The global offshore wind turbine market is likely to gain traction during the forecast period as a result of government regulations and investments that are aimed at developing offshore wind resources through investing in the offshore wind farms.
Rapid industrialization and growth of the renewable energy sector are the key factors attributed to the leading position of Asia-Pacific. The huge potential in Asia-Pacific to set up offshore renewable wind power generation plants through power transmission and distribution networks is expected to provide lucrative opportunities to leading offshore wind turbine manufacturers.
Increase in investments in renewable energy and surge in demand for the electricity due to rapid urbanization contribute toward the market growth. Moreover, increase in concerns about rise in prices, depletion of fossil fuels resources globally, and rise in awareness among the people regarding harmful effects of greenhouse gases such as carbon dioxide on the environment are the key driving factors of the offshore wind turbine market. According to the Global Wind Energy Council (GWEC), more than 80% of offshore wind farms are installed in European countries. Rapid development in developing countries and various infrastructure plans by the countries have resulted in high demand for electricity. Thus, these factors together are anticipated to open new avenues for the market.
Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue in the market during the forecast period, followed by Europe, North America, and LAMEA.
Increase in demand for renewable and sustainable energy and technological advancements for development of more reliable and efficient offshore wind turbines are the key factors boosting the Offshore Wind Turbine Market growth
Government initiatives to explore alternative sources of energy is the Main Driver of Offshore Wind Turbine Market
Enercon Gmbh, General Electric, Goldwind, Nordex SE, Regen Powertech, Sinovel Wind Group, Suzlon Energy Limited, Zhejiang Windey, VESTAS, and Siemens Energy.
Industrial application is projected to increase the demand for Offshore Wind Turbine Market
The offshore wind turbine market is segmented on the basis of capacity, application, and region. On the basis of capacity, the global offshore wind turbine market is segmented into small (less than 10MW), medium (10-100MW), and large (greater than 100MW). On the basis of application, the market is segmented into industrial, commercial, and residential. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The market value of Offshore Wind Turbine in 2031 is expected to be $39.2 billion
end-use industry are expected to drive the adoption of Offshore Wind Turbine
The shutdown of industrial manufacturing companies led to the decline in the demand for solar-related equipment in most of the countries across the globe, which led to decline in demand for the offshore wind turbine market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.
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