Floating Offshore Wind Power Market Size, Share, Growth, and Industry Analysis, By Type (Spar-Buoy, Semi-submersible and Tension Leg Platform), By Application (Government and Private) and Regional Forecast to 2032

Updated On: 02 September 2024

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FLOATING OFFSHORE WIND POWER MARKET REPORT OVERVIEW

The global Floating Offshore Wind Power Market size was USD 489 million in 2023 and the market is projected to touch USD 15563.2 million by 2032, exhibiting a CAGR of 41.0% during the forecast period.

While in its early days, technological development and emerging demand by users assure that the amount of power produced from installed offshore wind farms has increased tremendously over the years. This is evidenced by large projects by Equinor, MHI Vestas Offshore Wind, and Iberdrola. Businesses have massively put money into turbine technology, floating wind farms, and advanced grid integration associated with major and modern solutions. Geographically, key companies are based in Europe, Asia, and North America. The huge potential that lies in wind resource development nowadays becomes very important in the present times as part of global efforts to bring down carbon emissions and to deliver on the goals of sustainable energy.

COVID-19 Impact: supply chain disruptions led to delays in projects and increased costs

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic disrupted the market for offshore wind energy through supply chain disruption, project delays, and a related rise in cost. These few illnesses imposed travel restrictions and hence caused a shortage of labor and transport, thereby delaying many projects. On the other hand, this has been an eye-opener because the resilient, sustainable energy has been among the drivers forcing the need to add more to renewables. Anyway, it was being run digitally as remote monitoring mirrored the recovery and adaptation of the industry to the more sustainable clean energy path in the long term.

LATEST TRENDS

"Government policies and technological advancements fuel market expansion"

The new trends in the market of offshore wind energy are rapid growth in floating wind farms, innovations in larger and more efficient turbine technologies, and higher integration of digital tools in maintenance and operations. It means that companies target cost cuts through economies of scale and innovative financing models. Interest is increasingly paid to models of cross-sector cooperation, such as the combination of offshore wind with hydrogen production and other sources of renewable energy. Supportive policy frameworks and ambitious targets put in place at government levels worldwide drive huge investment and a rather competitive market landscape toward reaching international goals on renewable energy.

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FLOATING OFFSHORE WIND POWER MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into spar-buoy, semi-submersible and tension leg platform (TLP).

• Spar-Buoy: this type of buoy includes a cylindrical shape centered around the buoy, attached to the sea floor, making it most suitable for deep-water installations on account of high stability with minimal wave impact.
• Semi-Submersible: Is a kind of rig that equips semi-submerged pontoons, THAT HAS, characteristics of flexibility, stability, and water depth range even down.
• Tension Leg Platform (TLP): This utilizes vertical tensioned tendons that tie up a floating structure so that it has outstanding stability with very little vertical motion in deep water locations.

By Application

Based on application the global market can be categorized into government and private.

• Government: Government applications represent public sector investments in offshore wind projects to achieve renewable energy policy objectives and energy security goals, supported by funding and policy incentives.
• Private: Private applications are interested in the commercial investment opportunities in offshore wind, ensuring innovation and efficiency through competition of market forces, with potential high returns.

DRIVING FACTORS

"Technological advancements boost market growth"

Improvements in efficiency and feasibility of wind energy projects are being revolutionized through technological advancement in floating offshore wind power market growth. Innovative design in larger turbines, provides powerful turbines for much greater capture of energies and less loss of energy while working in hostile marine environments. In floating platform technologies, innovations have opened the possibility of deploying these devices in deeper waters than had been accessible, especially Spar-Buoys, semi-submersibles, and tension leg platforms. Moreover, digital monitoring and control systems optimize operations and maintenance with real-time data analytics and predictive maintenance that reduce downtime and improve overall performance. Taken together, such technological improvements in offshore wind energy reduce costs while expanding its potential.

"Government policies and incentives promote market expansion"

Government policy impetus and incentives are playing a leading role in the growth of the floating offshore wind power market. In this context, many countries have become very ambitious regarding renewable energy targets, with some incorporating the potential for offshore wind energy into their national energy strategies. This has generated serious interest in the investments and development required. Available financial support mechanisms, including subsidies, tax credits, and grants, lower the risk associated with a financial investment in a wind project. Moreover, positive legislative conditions include better general conditions for obtaining permits and creating a more stable investment climate. These conditions are meant to reduce bureaucracy and project schedules. All of these supportive measures will contribute to a robust and dynamic market for offshore wind energy.

RESTRAINING FACTORS

"High capital costs restrain market growth "

Probably a major restrain to the floating offshore wind power market growth has been the high capital cost involved with this technology. The creation and installation of floating platforms and advanced new turbines, along with associated infrastructure, require huge investments, hence becoming an entry barrier for many new and existing market players. In terms of costs, research and development, manufacturing, transportation, and installation of large parts are complicated operations in hostile marine environments. The overall cost is also raised by complexities in the engineering and deployment of such floating platforms. While technological progress and government incentives can balance out these costs, issues like these are significant handicaps to the growth of market pace and project feasibility.

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FLOATING OFFSHORE WIND POWER MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"Europe dominates global market due to adoption of offshore wind technology and extensive experience"

Europe holds the largest floating offshore wind power market share. This is explained by the fact that it was the first region to adopt offshore wind technology, hence rich in experience, with huge investments in renewable energy infrastructure. Countries like the United Kingdom, France, and Norway are leading in the building of wind farms with floating foundations, which are encouraged by ambitious renewable energy targets and strong government policies, coupled with advanced technological breakthroughs. Established regulatory frameworks in Europe and significant public and private funding in both sectors foster a nature that allows for market growth, therefore strengthening its position as leader of the global floating wind power sector.

KEY INDUSTRY PLAYERS

"Technological innovation and strategic investments drive market leadership"

Key players in this sector of the floating offshore wind power market are applying a number of strategies to retain leadership. While companies are investing heavily in technological innovation—developing bigger and more efficient turbines alongside advanced designs in floating platforms that better energy output and bring down costs—strategic partnerships or collaborations with technology providers, energy companies, and research institutions will clearly further accelerate innovation and project deployment. Furthermore, companies are entering emerging regions of Asia-Pacific and increasing their market presence due to the rising demand of renewable energy in those regions. An investment in specialized infrastructure and logistics to support large-scale project execution, and active advocacy for policy favorability along with associated financial incentives will help drive a supportive regulatory environment. All these efforts back their position of leadership to drive further growth in the market.

List of Market Players Profiled

• Equinor (Norway)
• MHI Vestas Offshore Wind (Denmark)
• Naval Energies (France)
• Principle Power (U.S.)
• Mingyang Smart Energy Group (China)
• BW Ideol (France)
• Iberdrola (Spain)
• Doosan (South Korea)
• General Electric (U.S.)
• Hitachi ABB (Switzerland)

INDUSTRIAL DEVELOPMENT

January 2024: MHI Vestas Offshore Wind won a contract for the supply of turbines for the Moray East Offshore Wind Farm, which is located off Scotland. This was an important shot in the arm for offshore wind energy because the Moray East project will be 950 MW, establishing a clean power supply to about one million households in the UK.

REPORT COVERAGE

This is one of the components in a more comprehensive report on industry: analysis of the market for floating offshore wind power. This has been a growing industry, helped by key factors such as technological progress and government support. This report describes the segmentation of the market by type into spar buoy, semi-submersible, and tension leg platform; application areas like government and private; and investigates regional dominance by Europe. Also added to the report is in-depth research in analyzing the impact of COVID-19, the latest industrial development, and strategies applied by major players, including Equinor and MHI Vestas Offshore Wind. The report will also give projections on revenues, market size estimation, and answers to frequently asked questions on market trends and segmentation.