Floating Offshore Wind Power Market

Market Perspective

The global Floating Offshore Wind Power Market was valued at USD 0.92 billion in 2022 and is projected to reach USD 17.44 billion by 2030, growing at a CAGR of 44.62% from 2023 to 2030.

The growth of the floating offshore wind power market is accelerated by the rising demand for fixed offshore wind farms, which has paved the way for the development of floating offshore wind energy. Floating offshore wind energy helps solve environmental problems associated with traditional energy sources. It offers a renewable and clean energy alternative, reducing greenhouse gas emissions and dependence on fossil fuels. The rising number of government policies towards renewable energy resources, including offshore wind, play a crucial role in developing floating offshore wind. These policies create a favorable investment environment and encourage industrial growth.

Consequently, there has been a significant increase in research and development efforts focused on advancing the technology and reducing the costs associated with floating offshore wind energy. This has led to the deployment of several pilot projects and demonstration sites around the world, showcasing the potential of this innovative energy source. Additionally, collaborations between governments, industry stakeholders, and research institutions have been formed to further accelerate the growth of the floating offshore wind sector. These partnerships aim to address technical challenges, improve infrastructure, and establish best practices for the successful deployment and operation of floating offshore wind farms.

Analyst’s Review on Floating Offshore Wind Power Market

The high demand for floating wind installations complements the proliferation of advanced technologies in the market. Ongoing investments in commercializing floating wind farms could increase the demand for offshore wind power and drive the market's growth. In addition, there is a growing trend in increasing the water depth of offshore wind projects and using alternative sources of clean electricity production, mainly gas and solar energy. Since electricity generation from solar and gas resources are more sterile forms of energy production, their wider adoption is expected to reduce the demand for wind power. Moreover, increasing interest in offshore wind from developing and untapped markets is likely to create lucrative growth opportunities for the floating offshore wind power market over the forecast period.

Market Definition

Floating offshore wind power refers to the generation of electricity through wind turbines installed on floating platforms in bodies of water, typically at sea. Unlike traditional offshore wind farms that use fixed structures, floating offshore wind turbines are anchored to the seabed using flexible anchors, chains, or steel cables. This innovation allows wind turbines to be installed in deeper or more complex seabed locations that were previously inaccessible. This advancement in offshore wind technology opens up new possibilities for harnessing the power of wind in areas with strong and consistent wind resources. Floating offshore wind turbines can be deployed in deeper waters, where wind speeds are often higher and more consistent, resulting in increased energy production.

Moreover, the ability to place turbines in previously inaccessible areas reduces visual impact and minimizes conflicts with other ocean activities such as shipping or fishing. Overall, floating offshore wind power has the potential to significantly expand the reach and impact of renewable energy generation.

Market Dynamics

The floating offshore wind power market is experiencing substantial growth due to the rising adoption of renewable energy resources as a means to reduce carbon emissions, which is driving the demand for wind and solar energy. Large companies are increasingly focusing on expanding wind farms and generating power to improve their return on investment. However, the emphasis on green energy is now shifting towards floating offshore wind farms, leading to a significant impact on producers and suppliers of renewable energy sources. This paradigm shift is driven by the rising demand for carbon-neutral electricity and a growing reliance on renewable energy. One major advantage of renewable energy projects is their ability to provide long-term cost stability, as they are not affected by fluctuations in fossil fuel prices. To encourage the use of renewable energy, governments worldwide are implementing supportive policies and incentives, thereby promoting market growth.

The floating offshore wind power market growth is restrained by the high installation and maintenance costs of submarine power cables, which may undermine the industry's growth prospects. Planning and pre-development of wind farms require significant costs, as installing underground electrical cables involves digging, which can be labor-intensive and time-consuming. The installation process requires special equipment and skilled labor, which increases the total cost. Furthermore, the maintenance of these submarine power cables is a complex and costly task. Regular inspections, repairs, and replacements are necessary to ensure the uninterrupted transmission of electricity. This involves deploying specialized vessels and equipment, as well as highly trained technicians, adding to the overall expenses. As a result, the high installation and maintenance costs of these cables pose a considerable challenge to the growth of the market.

Segmentation Analysis

The global floating offshore wind power market is segmented based on water depth, turbine capacity, and geography.

Based on water depth, the floating offshore wind power market is segmented into shallow, transitional, and deep water. The deep water segment registered a significant revenue share in 2022 due to increasing investments in deep water floating offshore wind projects. The availability of vast areas with high wind speeds in deep water makes it an ideal location for the installation of floating wind turbines. Additionally, advancements in technology and the development of efficient floating turbine designs have boosted the growth of the segment. With favorable government policies promoting renewable energy and the rising demand for clean electricity, the deep water segment is anticipated to witness substantial growth in the coming years.

Based on turbine capacity, the floating offshore wind power market is classified into Up to 3MW, 3MW - 5 MW, and above 5 MW. The above 5W turbine capacity sub-segment is anticipated to record a significant market share in 2022. This can be attributed to the increasing demand for high-capacity turbines to generate more power and meet the growing energy needs. Additionally, advancements in turbine technology have led to the development of larger and more efficient turbines, further driving the growth of the above 5 MW turbine capacity segment. With continuous investments in offshore wind projects, the market share of this sub-segment is expected to increase in the foreseeable future.

Geographical Analysis

Based on region, the global floating offshore wind power market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

Europe is dominating the global floating offshore wind power market and is foreseen to obtain a significant revenue share in 2022 due to the presence of established players and favorable government initiatives. The increasing demand for clean and renewable energy sources, coupled with the abundant wind resources in countries such as the United Kingdom, Norway, and France, is driving the growth of the floating offshore wind power market in Europe. Furthermore, the region's continuous investments in research and development activities and technological advancements are expected to propel the floating offshore wind power market growth through the review timeline.

In addition, floating offshore wind turbines have minimal visual impact on the area's landscape compared to onshore wind turbines. The turbines are located farther out to sea, which reduces their visibility from the coast. This could help address rising concerns about preserving scenic views and the potential impact on tourism, which are essential to many European coastal areas. The European Union (EU) has also recognized the significance of floating offshore wind. It has set the target of deploying up to 60 GW of offshore wind power by 2030, of which floating offshore wind is expected to make up a significant portion. With continued support from governments, industry collaboration, and technological advances, floating offshore wind can play an essential role in Europe's transition to a low-carbon future, preserving the integrity of regional landscapes.

Competitive Landscape

The global floating offshore wind power market study will provide valuable insights emphasizing the fragmented nature of the worldwide industry. Prominent players are focusing on key business strategies, such as partnerships, mergers & acquisitions, product innovations, and joint ventures, to expand their portfolio and increase their market shares across different regions. The major players profiled in the market are:

• TotalEnergies
• Shell
• Doosan Corporation
• Hitachi Energy Ltd.
• Vestas
• Iberdrola, S.A.
• Equinor ASA
• Siemens Gamesa Renewable Energy, S.A.U.
• Nexans
• General Electric

Key Developments

• June 2022 (Launch): TotalEnergies and BW Ideol commissioned the 30 MW Eolmed offshore wind farm, a floating project located 18 kilometers off Gruissan and Port-la Nouvelle coast in the French Mediterranean. The contract includes the supply, transportation, installation inspection, and commissioning of three V164-10.0 MW wind turbines.
• January 2022 (Launch): Shell and ScottishPower placed combined proposals for the ScotWind lease from Crown Estate Scotland's seabed rights to build substantial floating wind farms. The partners won two sites on the east and north-east coasts, representing 5 gigawatts (GW) as they combine the decades of offshore experience and the significant presence of ScottishPower and Shell in Scotland with a strong innovative capacity to deliver world-class offshore energy projects.

The global Floating Offshore Wind Power Market is segmented as:

By Water Depth

• Shallow Water
• Transitional Water
• Deep Water

By Turbine Capacity

• Up to 3MW
• 3MW - 5 MW
• Above 5 MW

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • U.K.
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America.