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The global floating wind power market size stood at USD 0.41 billion in 2018 is projected to reach USD 9.36 billion by 2026, exhibiting a CAGR of 49.9% during the forecast period from 2019 – 2026.
The floating wind power market is driven by the increasing energy demand and adoption of renewables for energy production. Floating wind farms have already been proven beneficial in harsh environmental conditions and hold immense opportunities for harnessing a huge amount of power. Commercialization of floating wind farms is expected between 2020-2026 after full-scale prototypes have been in operation for several years now. This will drive the growth of the market in forthcoming years.
Offshore Wind Energy Targets to Attract Huge Investments
In aid of achieving green energy targets being set by countries, various countries are focusing specifically on floating offshore wind power. This is has led offshore wind to stand as a huge opportunity for every country having access to such wind farms. The recent target setup by countries, including the United Kingdom has set a target of 30GW offshore wind energy by the end of 2030. German Climate Cabinet has set the goal of installing 20GW of offshore wind power in the country by 2030, starting from 15GW in 2019. China has a target of achieving 30GW offshore wind energy by 2020 from 5GW installed capacity in 2015.
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Operational Advantages Over Fixed Offshore Structure Will Drive the Market Growth
The adoption of floating wind power is expected to rise owing to its functional advantages over the fixed structure installations of wind farms. Floating wind farms are capable of being operational in harsh conditions and at locations that hold the strongest wind flow. This is attributed to the base structures which are more flexible and ease the process of turbine set up. Also, these installations offer environmental benefits as compared to fixed bottom structures owing to less invasive activity on the seabed during installation. It is one of the most vital floating wind power market trends that would fuel growth.
Exponential Investment for Sustainable Energy Development to Boost Growth
The major factor driving floating wind power market growth is the exponential investments being made for the development of sustainable energy. The depleting trend of petroleum products has raised concerns regarding fulfilling the energy need of population growing at a healthy rate across the globe. This has compelled the government bodies to ensure secondary sources of energy, following which considerable research and development activities are being carried out.
Further, floating offshore wind stands as the untapped source of energy that holds immense opportunities for every region. Also, offshore wind turbines rooted to the ground are limited to 50m depth due to monopile or jacket foundations. This rules out the installations in sites having the strongest winds and access to huge markets. In these situations, floating wind farms provide the solution for tapping of the wind energy by eliminating various constraints of depth and turbine setups.
Paradigm Shift Towards Renewable Power Generation to Augment Growth
The demand for curbing carbon emissions has forced countries to adopt renewable sources of energy. This has led to the adoption of solar and wind as two primary renewable energies. Success stories of onshore wind farms have opened doors for the offshore wind power industry that can harness a tremendous amount of wind energy, which goes wasted. This, in turn, has boosted the offshore floating wind energy market growth.
The shift towards floating wind farms has been witnessed in recent years as various installation techniques such as spar-buoy, spar-submersible, and tension leg platforms offer the advantage of operating in deep water, as well as harsh locations. These can be assembled onshore before installation at a given site.
Substantially High Initial Investment May Obstruct Growth
The major factor that can hinder the market growth is the high initial investment. Owing to this, People would prefer other low-cost technologies for energy production rather than these power sources. The requirement of new grid infrastructure and setting up more distribution and transmission lines would add up to the cost. Also, the environmental barriers that can occur during the construction of offshore wind farms can hinder the growth of the market in the forthcoming years.
Above 5 MW Installations to Gain Momentum during the Forecast Period
Based on capacity, the market is classified into up to 3 MW, 3 MW- 5 MW, and above 5MW. In the present scenario, up to 3MW floating wind farms would occupy a major share in the market. But following the success of these, new wind farms sanctioned for construction are of a higher capacity, which will drive the growth of above 5MW floating wind farms. Also, wind farms having higher capacity justify the cost that has been incurred during the whole life cycle of the wind farm.
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Deep Water Projects to Account for Maximum Share
By water depth, the market segments include shallow water (< 30m), transitional water (30m-60m), and deep water (> 60m). Given the advantages of floating wind farm installation in deep water, the segment is anticipated to dominate the market during the given forecast period. The major advantages offered by the deep water installations include access to large areas with strong wind resources and proximity to population centers. Also, in some countries with a narrow continental shelf, floating foundations are the only opportunity for large scale deployment of the wind farms.
Europe Floating Wind Power Market Size, 2018 (USD Billion)
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The findings based on our research indicate that the United Kingdom holds the largest floating offshore wind power market share in the current year. Being the market leader, the country has set offshore wind targets of achieving 40GW of offshore wind capacity by the end of 2030, which will attract a large number of investors. The United Kingdom also has the world's largest offshore floating wind farm (OWF) under construction and is expected to be in operation by 2020. The 50MW Kincardine offshore wind farm is located in Scotland, which is also home to the current biggest floating 30MW hywind floating wind farm.
Following the United Kingdom, Japan, France, the U.S., and Sweden are some of the other countries that currently possess installed floating wind farms. Looking at the planned installation of floating wind power, other countries such as Germany, Spain, and South Korea are expected to emerge as influential stakeholders in the market during the given forecast period.
Siemens Gamesa Focuses on Strategic Acquisition of Service Assets and IP to Strengthen its Multibrand Offerings
As the power generation shifts from coal and petroleum products to renewables with an aim to curb carbon emissions, the market size of floating wind power will grow at a healthy rate. The offshore wind power industry is considered to have humongous potential to serve the energy needs of a large population. Following these, floating wind power projects are being planned in the coming years in many countries in Europe and Asia Pacific. The U.S. also has made rollouts for investments in offshore wind, which will drive floating OWF market revenue.
The report offers qualitative and quantitative insights on the global floating wind power and the detailed analysis of market size & growth rate for all possible segments in the market.
An Infographic Representation of Floating Wind Power Market
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The floating wind energy market report offers an elaborative analysis of numerous factors affecting the global floating wind power market. These include opportunities, growth drivers, threats, key developments, and restraints. In addition to this, it further helps in analyzing, segmenting, and defining the market based on different segments such as capacity and water depth. It analyzes several strategies such as product innovations, mergers, alliances, joint ventures, and acquisitions adopted by players present in the industry.
Value (USD Billion) and Volume (MW)
By Water Depth
Fortune Business Insights says that the global market was worth USD 0.41 billion in 2018.
The global market is projected to be worth USD 9.36 billion in 2026.
The global market will grow at a CAGR of 49.9% in the forecast period (2019-2026).
United Kingdoms market stood at USD 0.30 billion in 2018.
In terms of water depth, deep water installations with water depth above 60 meters will dominate the market during the forecast period.
Increased energy demand and a drift towards renewable energy are the key factors driving market growth. However, the high capital required for infrastructure can hinder growth.
Siemens Gamesa Renewable Energy S.A., MHI Vestas Offshore Wind, and Senvion S.A are the top companies in the global market.
Increasing penetration of renewables will help in new project rollouts for offshore wind energy and, therefore, will boost the investments in floating wind power projects.
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