The global offshore wind power market is expected to grow from 7.1 GW in 2013 to 39.9 GW by 2020 according to GlobalData.
This fivefold rise in global offshore wind capacity is due to the increased utilization by more countries around the world at a CAGR of 28 percent.
The share of offshore wind in the global market will climb from 2.2 percent in 2013 to 6.1 percent by 2020, as more countries welcome the technology.
Between 2006 and 2013, the sector registered substantial growth, rising from 0.9 GW to 7.1 GW.
Of this 1.6GW came online in 2013, driven mainly by the UK, Germany, Denmark and Belgium.
By 2020, offshore wind is expected to become one of the largest renewable power market with significant contributions by UK, Germany and China, because of a number of projects.
Offshore wind power is being explored for its high yield, due to stronger and consistent winds compared to onshore, and the subsequent chance offered for construction, said, Swati Singh, analyst, Power, GlobalData.
An additional benefit is that future offshore wind power technology development will ensure a decline in the average cost per megawatt, although overall project costs will rise in countries with wind farms planned in deeper water and further from the shore, adds Singh.
The main challenges for market growth are environmental concerns, the lack of skilled personnel and sophisticated technology catering to offshore requirements.