In Technavio’s report on the ‘Global Offshore Wind Power Market’ for the forecast period 2019-2023, the company says that this market will grow by more than USD 17 billion, at a compound annual growth rate (CAGR) close to 18%.
Because of fast urbanization and industrialization worldwide, there has been important growth in the global demand for electricity, especially in emerging economies. As a result, there has been an increase in the adoption of renewable energy sources for power generation, which has led to the growth of wind power generation.
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Namely, wind and solar power recorded a double-digit growth rate in 2018, mainly driven by China, Europe, and the US. With the growing adoption of clean energy sources, the global offshore wind power market is expected to grow significantly during 2019-2023.
Moreover, factors like advances in wind farm development and the advance of offshore wind turbine technologies are reducing the cost of electricity generated from offshore wind farms. This technology has also made it an attractive proposition for numerous countries to provide clean, low-cost electricity, competing fossil fuels without explicit financial support.
In addition, the enhancement in wind turbine technology has allowed for a reduction in offshore wind power costs. For this reason, a larger capacity factor and better outputs will limit the levelized cost of energy (LCOE) for offshore wind farms. This fact will support the growth of the global offshore wind power market during the forecast period.
More than 64% of the market share will come from the monopile substructure type. Monopile is the most commonly used foundation structure in the global offshore wind power market, owing to its ease of installation in shallow-to-medium water depths. Thus, the global offshore wind power market is expected to grow significantly during the forecast period owing to the advantages of monopile structures, and the rapid deployment of monopile structures across the world due of the presence of prominent vendors with necessary technological expertise
explains an analyst at Technavio.
What is more, in order to reduce the cost of wind power projects, especially in the offshore sector, technological developments are being performed. These advancements reduce the number of wear-prone and rotating components in wind turbines.
Furthermore, the simplification in the design ensures smaller dimensions and lower weight, thus reducing transportation and installation costs. This means that the development of such technologically advanced components will boost the growth of the global offshore wind power market during the period analyzed in the report.
