The global offshore wind market is projected to grow at a CAGR of 15.32% from 2017 to 2022, to reach a market size of USD 55.11 Billion by 2022. This growth is attributed to the increasing demand for clean energy in order to cut down carbon emissions and protect the environment by generating electricity through renewable resources. Offshore wind energy form an integral part of these clean energy resources and also has a higher capacity factor compared to onshore wind.
The report segments the offshore wind market on the basis of component such as turbine, substructure, and others (logistics and transportation, and assembly and installation). The turbine segment is projected to dominate the offshore wind market. This is mainly because it contains most important components such as nacelle, rotor and blades, and tower which helps to generate electricity. Moreover, turbine cost accounts for the maximum share in the overall cost of the offshore wind project. The market in Europe is the largest for turbines, where in, companies like MHI Vestas (Denmark) and Siemens AG (Germany) among others manufacture turbines with high capacity and cater the needs of wind farms all across the globe.
High capital cost and maintenance and logistics issues could be restraints of the offshore wind market which might lead to decline in profit. Offshore wind turbines are susceptible to erosion since it operates for decades in the harsh marine environment. At times, even some of the most advantageous features such as high wind speeds could be a negative factor for offshore wind turbines. Moreover, offshore wind turbines are installed miles away from the shore which makes it difficult to access easily, especially during bad weather conditions. So, rectifying small issues would incur high costs in terms of maintenance, transportation, and logistics. These factors can be some challenging factors in the offshore wind deployment.