March 1, 2024
Offshore Wind Energy Market

Offshore Wind Energy Market Is Powered By Rising Global Demand For Renewable Energy Sources

The offshore wind energy market involves designing, installing and operating wind turbines that are placed offshore of coastal cities and counties in order to harness the power of wind and convert it into electrical energy. This renewable power generation method offers advantages such as steady wind flows and higher energy yields compared to onshore locations. Offshore wind energy projects are an important addition to national renewable energy portfolios as governments worldwide aim to reduce greenhouse gas emissions and dependence on fossil fuels. With wind turbines placed offshore, the issue of noise and visual pollution that exist with onshore farms are alleviated. Sophisticated substructure designs and advanced foundation technologies allow turbines to operate safely in marine environments.

The global Offshore Wind Energy Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 14.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

Floating offshore wind projects are one of the major trends gaining momentum in the market. Floating foundations are especially suitable in deep waters beyond around 60 meters where bottom-fixed structures become prohibitively expensive. They make use of innovative mooring systems to keep turbines stable without the need to drill into the seabed. Asian countries like Taiwan, Korea and Japan which have limited shallow waters are increasingly adopting floating offshore wind technology. The world’s largest floating wind farm started operations off the coast of Scotland in 2017. Technological advances continue to make floating wind more commercially viable, attracting greater investments globally.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the offshore wind energy market is moderate as it involves high initial investments in developing offshore wind farms and related infrastructure.

Bargaining power of buyers: The bargaining power of buyers is moderate as there are many players in the market providing offshore wind energy solutions.

Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of many component suppliers in the market with low switching costs.

Threat of new substitutes: The threat of new substitutes is high as there are other renewable energy sources that can potentially substitute offshore wind energy.

Competitive rivalry: The competitive rivalry in the market is high due to the presence of many global and regional players competing on factors like technology, price, customer satisfaction, among others.

Key Takeaways

The global Offshore Wind Energy Market Share is expected to witness high growth over the forecast period of 2023 to 2030.

Regionally, the Europe market is currently the largest contributor to the offshore wind energy market globally. Countries like the UK, Germany, Belgium, Netherlands, Denmark, and others are driving the growth of offshore wind energy in Europe.

Key players operating in the offshore wind energy market are Arlo Technologies Inc., Ring (owned by Amazon), Nest (owned by Google, a subsidiary of Alphabet Inc.), Wyze Labs Inc., Logitech International S.A., Blink Home Security (owned by Amazon), D-Link Corporation, TP-Link Technologies Co., Ltd., Ezviz (a subsidiary of Hikvision), Reolink Digital Technology Co., Ltd., Zmodo Technology Corporation, Canary Connect Inc., Netgear Inc., Eufy Security (a division of Anker Innovations), Swann Communications Pty Ltd. Major players are focusing on product launches and partnerships to strengthen their presence in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it