Fixed Offshore Wind Energy Market Analysis

Fixed Offshore Wind Energy Market Analysis

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Based on turbine rating, the market is segmented into ≤ 2 MW, >2≤5 MW, >5≤8 MW, >8≤10 MW, >10≤12 MW and > 12 MW. >5≤8 MW is projected to grow by more than USD 15.4 Billion by 2032 owing to greater energy production per turbine and reducing overall project costs. Better economies of scale on account of decrease in number of turbines needed to achieve a given project capacity, lowering the installation, operation, and maintenance costs per megawatt-hour of electricity generated, will augment the industry landscape. Larger turbines are capable of capturing more energy from the wind, particularly at higher hub heights where wind speeds are typically stronger and more consistent. This leads to higher capacity factors and increased energy production over the lifetime of the turbine, improving the overall economics of offshore wind projects.

Horizontal fixed offshore wind energy market will grow owing to high efficiency in capturing wind energy, maximizing the energy capture and enhancing the overall turbine performance. They can be scaled up to larger capacities, allowing for increased energy production per turbine and reducing the overall number of turbines needed for a given project. This scalability further makes them well suited for large scale offshore wind farms that aim to maximize energy output and cost effectiveness.

Based on end use, the fixed offshore wind energy industry is segmented into blades, towers and others. Blades is set to grow at a CAGR of over 16% till 2032. Advances in wind turbine blades including improvements in aerodynamics, materials, and manufacturing processes, will drive the adoption of new components. Innovative designs and materials can enhance the turbine performance, thereby reducing maintenance requirements, making them attractive for wind farm developers and operators, strengthening the product adoption. Further, components comprising advanced rotor blades, efficient drivetrains, and optimized control systems enhance the turbine output, increasing the overall energy yield of wind farms, thereby driving the market growth.

Europe fixed offshore wind energy market is anticipated to grow over USD 56.4 Billion by 2032. Establishment of ambitious renewable energy targets and policy frameworks including the Renewable Energy Directive sets binding targets for EU member states to increase the share of renewable energy in their energy mix will promote the deployment of offshore wind energy. Additionally, governments in countries including the UK, Germany, Denmark, the Netherlands, and Belgium among others have implemented various financial incentives and support mechanisms to encourage offshore wind development. Additionally, significant investments in grid infrastructure to support the integration of offshore wind energy into the electricity grid will drive the business outlook.

The U.S. has established offshore wind targets and incentive programs comprising wind leasing and permitting processes set by The Bureau of Ocean Energy Management (BOEM) will strengthen the product adoption. Furthermore, significant investment from energy players in offshore wind projects along the U.S. East Coast, will stimulate long term growth potential of the industry.