A new report conducted by Research and Market states that the global market for offshore wind energy will record a 12.3% growth between 2021 and 2026. Revenue generation within the market is expected to increase from $31.8 billion to $56.8 during the forecast period.
Factors driving the market include:
The increasing deployment of renewable energy to meet growing energy demand to provide consumers with affordable electricity.
The increasing penetration of renewables to decarbonise economies.
Favorable government policies.
Activities within the Asia Pacific and North American markets are expected to drive the global market.
Europe, the largest market in 2020, with a 57% share and home to leading global offshore wind energy companies, is expected to primarily focus on upgrading existing infrastructure rather than building new projects during the forecast period, according to the study.
However, EU countries are also expected to build networks, from generation to end-users, to allow for efficient power and energy trading. The enactment of policies including the Green Deal and Fit for 55 will likely attract investments within the offshore wind energy market in the coming years.
The turbines segment is expected to grow at the highest rate. Improving turbine technology and larger turbines are being used to harness the constant strong wind available in the deep-sea, which in turn is attracting more offshore wind farm development in this location.
Many large players are already developing wind farms in the deep-sea and also developing technologies to sustain the climatic challenges present in these areas.
However, a number of challenges remain in the way of increased deployment of offshore wind energy projects across the globe and they include:
The high capital costs and logistic issues.
The low cost of conventional electricity generation.
The lack of technical expertise needed to develop an offshore wind farm.
Climatic challenges during operations of wind farm.
The impact of COVID-19.