Global offshore wind energy market to grow at CAGR of 15.5% during 2018 -23

offshore wind farm

Global offshore wind energy market is expected to reach $50.45 billion by 2023, rising at a CAGR of 15.5 percent from 2018 to 2023, says a new report from BIS Research.

This growth is highly attributed to the increasing demand for using renewable energy sources in the power generation mix and the increasing demand for clean energy.

The global offshore wind energy market in terms of installed capacity is expected to reach 55,835MW by 2023 growing at a CAGR of 21 percent from 2018 to 2023.

Increasing utilization of renewable energy for power generation mix continues to have a positive impact on the global offshore wind energy market. Today, the offshore wind energy sector has evolved to generate electricity, with the help of wind turbines taking off a significant load from conventional sources of energy, the report said.

According to Sonal Rawat, analyst at BIS Research, in 2018, “the turbine module segment is expected to dominate the offshore wind energy market (by components). This segment is expected to grow at a CAGR of 15.8 percent from 2017 to 2022. This dominance is due to the features of the turbine which comprises essential components such as the nacelle, rotor and blades, and tower, which helps to produce electricity. Moreover, the cost of turbine components accounts for the largest share of the overall cost of the offshore wind project.”

The offshore wind energy market requires the use of various components to perform the operations efficiently. Some of these components are turbine, electrical infrastructure, substructure, and others. Though the wind turbines are increasingly used for power generation, offshore wind turbine technology is still in its early stage of evolution and is expected to grow rapidly in the coming years.

MHI Vestas, Siemens Gamesa, GE Renewable Energy, Adwen Offshore, Statoil, Orsted, ABB, Senvion, Sinovel and Petrofac are some of the prominent players in the offshore wind energy market. The market has the presence of a large number of small-sized to medium-sized companies that compete with each other and the large enterprises.

The key players operating in this market have increased their business expansion activities over the recent years to enhance their geographical presence, enter into new ventures, and increase their customer base, the report said. This has been the most widely adopted strategy by the players in this market. For instance, in March 2018, MHI Vestas signed four Memorandums of Understanding (MoU) with four Taiwanese companies, namely CSMC for wind towers, Tien Li for blade manufacturing, Swancor for composites and resins, and Formosa Plastics Corporation for materials for blade manufacturing.

Source: BIS Research