Frost & Sullivan has published a new report on the global offshore wind turbine market suggesting a 22.5% sector increase between 2018 and 2025.
Annual market revenue generation is expected to increase from $7.4 billion to $30.5 billion during the forecast period.
Factors driving the market include:
- Technological improvements such as increased-capacity wind turbines, floating wind turbines and 3D printing.
- The improvements have reduced the overall cost of offshore wind turbines and opened up new offshore locations that were previously inaccessible.
- Increased investments in the renewable energy sector driven by national, regional and international climate change-related policies.
Other key study findings:
- Europe is the largest offshore wind turbine market, generated $4.91 billion in revenue in 2018 and is expected to record an 18.2% annual growth through 2025.
- The Asia-Pacific is the second-largest market, had $2.47 billion in revenue in 2018 and is expected to record a 27.5% growth through 2025 owing to increased installations in China and Taiwan.
- The highest growth is projected to be in the North American market, driven by demand from the United States, as several offshore wind projects reach completion.
To foster growth, manufacturers of wind energy turbines need to:
- Offer turbines for floating foundations to access previously inaccessible markets.
- Leverage IoT, AI, robotics and data analytics to enable predictive maintenance and increased efficiency.
- Expand into emerging geographies to benefit from the expected demand surge in these regions.
- Explore collaboration and partnership opportunities to diversify product lines and expand global presence.
Sama Suwal, a research analyst of Energy and Environment at Frost & Sullivan, said: “The integration of artificial intelligence (AI), internet of things (IoT), robotics, and data analytics in wind turbines will enable advanced condition monitoring and predictive maintenance.
“This will result in increased efficiency and reduced operational and maintenance costs, which will lead to growth in the deployment of offshore wind turbines.
“…the corporate sector’s growing interest in procuring cost-efficient wind power to meet their renewable energy targets will sustain the demand for offshore turbines in the years to come.”