Offshore Wind Turbine Market Expected to Reach $39.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Offshore Wind Turbine Market," The offshore wind turbine industry was valued at $17.8 billion in 2021, and offshore wind turbine market size is estimated to reach $39.2 billion by 2031, growing at a CAGR of 8.28% from 2022 to 2031.

Wind turbine allows harnessing the power of the wind and turning it into the electrical energy. Wind energy is one of the most affordable, clean, and readily available renewable energy sources. It is considered as the cleanest energy sources of energy and is also one of the alternatives for depleting fossil fuel resources. The major benefit of wind energy is cost certainty as it is one of the cheapest forms of electricity generation. The government is taking initiatives to explore alternative sources of energy, which is beneficial to minimize the dependency on other limited sources, such as fossil fuel, oil, and gas.

The technological development to produce more efficient and reliable wind turbines is making wind power more cost-effective. Further, government initiative to discover alternative sources of energy and depleting natural resources of energy drives the offshore wind turbine market. However, heavy initial investment for the production and installation of wind turbines hamper 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.

On the basis of capacity, the large (greater than 100MW) segment holds the largest share, in terms of revenue, and is expected to maintain its dominance during the forecast period. This offshore wind turbine market forecast growth is attributed to rise in investment for large scale offshore wind farm, such as Hecate Independent Power Limited, a U.S. based renewable power project company, which introduced its HIP Atlantic Project to deploy about 10GW floating and fixed wind power in the North Atlantic, UK, which is worth about $30 billion and thus, is expected to fuel the growth of the market.

On the basis of application, the industrial segment holds the largest share, in terms of revenue, and is expected to grow at a CAGR of 7.97% during the forecast period. This is due to increase in investment in the major manufacturing industries, such as chemical, electronic towards the renewable energy as a power source. In addition, increase in research and development of more efficient wind turbine is expected to drive the growth of the offshore wind turbine market for the industrial segment across the globe.

On the basis of region, the market is analyzed across four major regions, such as North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific garnered the dominant share in 2020, and is anticipated to maintain this dominance during the forecast period. This is attributed to the presence of key players and huge consumer base in the region.

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. 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 to attain key developments in the global offshore wind turbine market trends.

Key Findings Of The Study:

• As per Offshore Wind Turbine Market Analysis, the large (greater than 100MW) segment accounted for three-fourths of the offshore wind turbine market share in 2021, and is anticipated to grow at a rate of 8.12% in terms of revenue, increasing its share in the global offshore wind turbine market during the forecast period.
• The industrial segment is the fastest-growing application segment in the global offshore wind turbine market, and is expected to grow at a CAGR of 7.97% during 2022–2031.
• In 2021, Asia-Pacific region dominated the global offshore wind turbine market with more than 40% of the share, in terms of revenue.

IMPACT OF COVID-19 ON THE GLOBAL OFFSHORE WIND TURBINE MARKET

• Emergence of COVID-19 had a negative impact on the growth of the offshore wind turbine market during this period.
• This impact is mostly attributed to the significant disruptions in the raw material transportation, presence of low-labor, led to shutdown of many manufacturing industries led to decline of demand power hence decrease in the demand for offshore wind turbine market during this period.
• The decrease in demand for many non-essential products and shut down of electrical, automotive, and other manufacturing related industries has created a negative impact on the development of offshore wind turbine market
• The increasing demand for environment friendly manufacturing products and increase in awareness among the people towards the environment will hamper the growth of offshore wind turbine market.
• Thus, the abovementioned factors are expected to have great impact on the development of offshore wind turbine market growth in this forecast period.