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Offshore Wind Energy Market worth over $266.5 Bn by 2032

  • Published Date: January 9, 2023

Offshore Wind Energy Market size is set to surpass USD 266.5 billion by 2032, according to a new research report by Global Market Insights Inc.

Favorable government initiatives to address climate change is creating strong impetus for economies to transition to clean energy sources, fostering demand for more offshore wind energy capacity worldwide. Many countries are introducing benefits such as tax credits, suitable policies, contracts of difference, and schemes for offshore wind development, positively influencing the industry outlook. For instance, USA’s Inflation Reduction Act of 2022, which provides a 30% tax credit to offshore wind projects that commence before January 1, 2026.

Advancements in power transmission tech to fuel electrical infrastructure segment growth

In terms of component, the offshore wind energy market from electrical infrastructure segment is predicted to observe more than 15% growth rate till 2032 driven by technological advancements in power transmission components, such as electric cables and wires, to deliver considerable energy extraction capabilities across offshore wind farms. Leading industry players are committing more resources to design reliable & flexible electrical systems such as substation, generators, cables, and others to minimize the overall cable expenditure, shaping the segment outlook further.

Low environmental impact of > 30 to ≤ 50 m depth segment to bring high revenues to market

In terms of depth, the offshore wind energy market size from > 30 to ≤ 50 m segment is anticipated to reach over USD 112 billion by 2032 owing to the low environmental impact of these wind farms as well as their economic viability in comparison to the deep-water projects. Wind farms constructed within the > 30 to ≤ 50 m depth have access to higher wind speeds, ensuring higher yields. The economic viability also makes these farms more likely to draw government support. In November 2022, the U.S. Department of Energy unveiled a USD 43 million support package for 23 clean energy projects to help communities chart their transition to a clean energy future.

Browse key industry insights spread across 1000 pages with 1937 market data tables & 42 figures & charts from the report, “Offshore Wind Energy Market Size By Component (Turbine {Rating (≤ 2 MW, >2 ≤ 5 MW, > 5 ≤ 8 MW, > 8 ≤ 10 MW, > 10 ≤ 12 MW, > 12 MW), Installation (Floating {Axis {Horizontal (HAWTs) [Up-Wind, Down-Wind], Vertical (VAWTs)}, Component [Blades, Tower]}, Fixed {Axis [Horizontal (HAWTs) [Up-Wind, Down-Wind], Vertical (VAWTs)], Component [Blades, Tower]), Support Structure (Substructure (Steel), Foundation {Monopile, Jacket}), Electrical Infrastructure (Wires & Cables, Substation)), By Depth (> 0 to ≤ 30 m, > 30 to ≤ 50 m, > 50 m), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Price Trend, Competitive Market Share & Forecast, 2022 – 2032”, in detail along with the table of contents:

Strong government incentives and fundings across North America

North America offshore wind energy market value is projected to exceed nearly USD 26 billion by 2032. The introduction of robust government incentives, investments, and feed-in tariff schemes to encourage offshore wind research is likely to shape the regional outlook. In addition, introduction of various tax credits and leasing policies for offshore energy capacities is also set to stimulate the regional share. In June 2022, the Biden administration launched a new federal-state offshore wind partnership to encourage American-made clean energy.

Partnerships to outline the competitive scenario for offshore wind energy market

Top participants operating in the industry are Southwire Company, LLC, FURUKAWA ELECTRIC CO., LTD, LS Cable & System Ltd, IMPSA, Sumitomo Electric Industries, Ltd., Vestas, ENESSERE S.r.l., General Electric, among others. Collaborations and partnerships have been a mainstay of the sector. Recently, in October 2022, LS Cable & System, a South-Korea based industrial corporation, entered into a definitive agreement with Vattenfall, a Swedish multinational power company, and DEME Group, a Belgian construction engineering firm, to supply cables for the Norfolk Boreas offshore wind farm.

The deal covers the manufacturing, testing, engineering, design, and procurement of nearly 360 km of High Voltage Direct Current (HVDC) fiber optic and export cables for offshore installations and onshore connecting.

Authors: Ankit Gupta, Srishti Agarwal