The global offshore wind power market is expected to grow from 7.1 Gigawatts (GW) in 2013 to 39.9 GW by 2020 according to research company GlobalData.
More countries around the world are utilising offshore wind potential, creating at least a fivefold rise in global offshore wind capacity – a Compound Annual Growth Rate (CAGR) of 28 percent. GlobalData’s latest report states that the sector registered substantial growth between 2006 and 2013, rising from 0.9 GW in 2006 to 7.1 GW in 2013. Of this 1.6GW came online in 2013, driven mainly by the UK, Germany, Denmark and Belgium.
Offshore wind is now expected to become one of the largest renewable power market segments by 2020 with significant contributions by the UK, Germany and China, thanks to a number of projects currently in the planning and construction stages.
“Offshore wind power is increasingly being explored for its high yield, due to stronger and more consistent winds compared to onshore, and the scope that this provides for the construction of large-scale projects” said Swati Singh, GlobalData’s Analyst covering Power. “An additional benefit is the fact that future offshore wind power technology development will ensure a decline in the average cost per megawatt, although overall project costs are expected to rise in countries with wind farms planned in deeper water and further from the shore.”
Singh added that the main obstacles that will hinder market growth are environmental concerns, the lack of skilled personnel and sophisticated technology catering to offshore requirements. Despite these barriers, GlobalData expects offshore wind’s share in the global wind power market to climb from 2.2 percent in 2013 to 6.1 percent by 2020, as more countries embrace the technology.
GlobalData is a global research and consulting firm that offers advanced analytics to help clients make better, more informed decisions utilising data based on the expert knowledge of over 700 qualified business analysts and 25,000 interviews conducted with industry insiders every year.