Decreasing cost of wind power to boost the opportunities for adoption of offshore wind turbines, finds Frost & Sullivan
SANTA CLARA, Calif., Jan. 8, 2020 /PRNewswire/ -- Technological improvements such as increased-capacity wind turbines, floating wind turbines and 3D printing have brought down the overall cost of offshore wind power and opened up new offshore locations that were previously inaccessible. These developments are accelerating the adoption of wind power worldwide and driving the global offshore wind turbines market toward monumental growth. Additionally, the scaling up of investments in the renewable energy sector through national, regional and international climate change-related policies has had an enormous effect on the offshore wind turbine market. A recent analysis by Frost & Sullivan predicts that the sector will grow at a CAGR of 22.5% between 2018 and 2025, with revenues slated to rise from $7.4 billion to $30.5 billion.
"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," said Sama Suwal, Research Analyst, Energy and Environment at Frost & Sullivan. "This will result in increased efficiency and reduced operational and maintenance costs, which will lead to a growth in the deployment of offshore wind turbines."
Frost & Sullivan's latest research, Growth Opportunities in the Offshore Wind Turbine Market, Forecast to 2025, offers an in-depth analysis of the global offshore wind turbine market and identifies key opportunities that can be leveraged for growth in this sector. The report explores the trends influencing the sector, examines the key market drivers and restraints, and provides detailed revenue forecasts, region-wise market profiles, and competitive landscape analyses.
For further information on this analysis, please visit: http://frost.ly/3xv
Europe is the largest market for offshore wind turbines, generating $4.91 billion in 2018, followed by Asia-Pacific, which garnered $2.47 billion in revenue. As the European wind turbine market is mature, revenues are expected to grow at a comparatively low CAGR of 18.2%. On the other hand, revenues from the Asia-Pacific region are forecast to grow at a CAGR of 27.5% as a result of increased installations in China and Taiwan. However, 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. The market is also expected to start picking up in the rest of the world, as several projects in Brazil, Saudi Arabia, and Kenya develop over the forecast period.
"Country-specific clean energy targets aimed at remedying climate change, along with strong regulatory support, will drive the growth of the global offshore wind turbine market," noted Suwal. "Additionally, 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."
Manufacturers of offshore wind turbines could potentially foster growth by:
- Offering turbines for floating foundations to access previously inaccessible markets
- Leveraging IoT, AI, robotics and data analytics to enable predictive maintenance and increased efficiency
- Expanding into emerging geographies to benefit from the expected demand surge in these regions
- Exploring collaboration and partnership opportunities to diversify product lines and expand global presence
Growth Opportunities in the Offshore Wind Turbine Market, Forecast to 2025, is a part of Frost & Sullivan's Energy and Environment Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Growth Opportunities in the Offshore Wind Turbine Market, Forecast to 2025
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SOURCE Frost & Sullivan