A new report from Zion Market Research states the size of the global offshore wind energy market was $20.3 billion in 2016 and is expected to reach $57.2 billion in 2022, growing at a compound annual growth rate (CAGR) of 16.2% between 2017 and 2022.
The study states a large number of offshore wind energy projects are in the planning and construction phase across the globe.
Increasing awareness about climate change and technological development are expected to further boost the offshore wind market. However, high costs, risks, and supply chain bottlenecks related to offshore wind energy projects are expected to hamper the growth of the market.
The global wind energy market is segmented on the basis of foundation type and water depth. On the basis of foundation type, the market is segmented into monopile, jacket, tripod, and floating.
Monopile foundations held the leading share of the market. These type of foundations are easy to construct and relatively cheap when compared with other types. However, monopolies are not suited for deepwater projects.
During the forecast period, floating type foundations are expected to grow at the fastest rate. Offshore floating foundations are advantageous over fixed structures in terms of the total cost incurred in installation and production.
The study also finds that currently, most of the offshore wind energy projects are based in shallow water. Constructing a shallow water offshore wind farm incurs lesser efforts and overall project cost. However, the share of deepwater offshore wind energy projects is expected to increase during the forecast period.
Most of the offshore wind energy projects across the globe are constructed in a water depth of up to 40 meters. However, numerous plans are being carried out to construct wind farms in water depths of more than 50 meters. Offshore wind farms in deep water are more efficient and generate more power owing to faster wind speeds.
Europe dominated the global offshore wind energy market in 2016. Countries such as the U.K., Germany, Denmark, Netherlands, Belgium, and Sweden are leading players in the European offshore wind energy market.
Asia Pacific followed Europe in terms cumulative installed capacity of offshore wind energy. China is the leading player and is expected to grow at the fastest rate across the globe. Japan, South Korea, and India are among others expected to further boost the market during the forecast period.
The U.S. is also expected to witness numerous offshore wind energy projects during the forecast period. Some other countries including Finland, Ireland, Spain, Norway, and Portugal are anticipated to boost the global offshore wind energy market during the forecast period.