Europe Offshore
Wind Turbine Market is anticipated to grow during the forecast period as a
result of factors like favourable government regulations, rising investment in
planned offshore wind power projects, and the decreased cost of wind energy,
which has led to higher use of wind energy. On November 19, 2020, the Commission
released a specific EU policy on offshore renewable energy that outlines
practical next steps to assist the sector's long-term sustainable growth. By
2030, the strategy aims to have at least 60 GW of offshore wind capacity
installed, along with 1 GW of ocean energy, and by 2050, 300 GW and 40 GW,
respectively. Also, using the enormous potential of the five EU sea basins,
the installed offshore wind capacity in the EU was 14.6 GW in 2021 and is
anticipated to expand by at least 25 times by 2030.
A wind turbine
is a machine that uses the wind's kinetic energy to generate electricity. A
wind turbine's blades can rotate at a constant or variable speed between 13 and
20 times per minute, depending on the technology utilised. The rotor's velocity
varies according to the wind speed to maximise efficiency. Wind turbines come
in two different varieties: horizontal axis and vertical axis.
Europe
Offshore Wind Turbine Market: Drivers & Trends
Technological
Advancements:
Technology
innovation is helping the future of offshore wind. Up until recently,
installing wind turbines required bottom-fixed foundations situated in waters
with typical depths of up to 50 metres, requiring a very small continental
shelf. Modern floating foundations, on the other hand, can be built no matter
the subsurface topography and may be useful for ocean depths of 1,000 metres
and more. For instance, the first floating commercial project in France has
already received all bids. Italy has discovered an offshore wind potential of
more than 17 GW, 70% of which are in deep waters and require for floating
foundations.
In addition,
excess offshore wind capacity can now be used as a substitute fuel source for
hydrogen electrolysis, a flexible energy transmission, fuel, and storage
technology that can be applied to decarbonize a variety of challenging sectors
and applications. Companies are trying to increase usage because electrolysis
is so expensive to develop. Offshore wind contributes to this goal because of
its high capacity. Denmark approved a project in 2021 to build an offshore hub
with up to 10 GW of capacity in the form of a man-made island in the North Sea
that can store power and generate green hydrogen using on-site electrolysers.
Due to these
advancements, the levelized cost of electricity (LCOE) for offshore wind has
significantly decreased, falling from about USD 163.43 per megawatt-hour (MWh)
in 2015 to a predicted level of less than USD 54.48 per MWh by about 2024.
As a result, it is projected that the market for offshore wind turbines in Europe
would expand in the forecast period.
Green
Hydrogen Production:
Increasing
inclination toward clean energy has been compelling the European government and
the energy companies (including oil & gas firms) to provide due
consideration to alternative sources of energy that are cleaner and energy
efficient. Green Hydrogen, a zero-emission fuel that can be produced using
offshore wind energy as a power source, is being looked upon as a viable option
to be utilized as an alternative fuel source.
Apart from the
government and the energy firms, various other end users looking to utilize
green hydrogen are the steel producers and chemical companies. Other
applications where green hydrogen can be used are transportation, heating, and
grid storage. Various projects have been proposed where offshore wind turbines
shall be used for production of green hydrogen. For instance, the European
Commission has proposed to produce 10 million tonnes of renewable hydrogen by
2030 and to import 10 million tonnes by 2030. The rising inclination
towards green hydrogen is anticipated to propel the Europe Offshore Wind
Turbine Market.
R&D On
Cost-Effective Offshore Wind Farms:
Offshore wind
farm development is an immensely capital-intensive project with robust and
challenging infrastructure development requirements. Over the years, the
industry experts have been collectively working on pushing down the overall
capital expenditure associated with offshore wind farms and benefit from
economies of scale after optimizing manufacturing efficiencies. Research and
development in this direction is being done by the leading companies in the
Europe Offshore Wind Turbine Market with regards to the increasing size of the
turbine blades that would boost the efficiency of the wind turbine. Increasing
the size of the wind turbine blade to increase each wind turbine's power
generation capacity shall reduce the number of total wind turbines installed in
a wind farm to generate the desired energy output.
Therefore, the
overall capital cost of the project can be reduced by increasing the size of
the wind turbine. As of today, turbines with a capacity of 9.5 MW turbines are
in operation. Moreover, 12 MW wind turbines have been tested and will soon
commence commercial operations. Furthermore, advanced monitoring and control
systems are being developed to maintain the operational efficiency of offshore
wind turbine systems.
Increasing
Investment in the Clean Energy Sources is Projected to Drive the Market Growth
To reduce
carbon emissions, governments across the countries are taking necessary
measures. Thus, encouraging governments to invest in renewable energy sources
such as solar and wind energy. As a result, the amount of electricity generated
from wind energy has grown significantly in recent years. Rising electricity
demand and increasing concern for non-renewable energy sources are propelling
the growth of offshore wind energy.
According to
the World Economic Forum, offshore wind is set to become a USD 1 trillion
industry by 2040. Additionally, the declining price of wind turbine and
advancements in wind technology have reduced the cost of generating electricity
from wind energy. Moreover, growing competition among market players has led to
decrease in installation cost, contributing to decrease the cost of electricity
generated from wind turbine. As a result, the European countries are steadily
increasing their offshore wind capacity, thereby driving the market growth.
Government
Policies and Initiatives:
Governments of
Europe countries have been driving a green economy through various actions and
initiatives. Offshore wind energy is an abundant and renewable source of
energy. Governments of countries with a considerable coastline like the United
Kingdom, Germany, and Denmark have been working on framing various initiatives
to capture and utilize offshore wind energy.
For instance, in
2022, the UK Minister for Energy and Climate has signed a landmark agreement on
renewable energy cooperation with EU and North Seas countries. Initiative
expected to support the UK’s ambitious targets to increase offshore wind
fivefold to 50GW by 2030. Such initiatives being framed will likely push
the Europe offshore wind turbine market forward.
Disinvestments
From Coal-Fired Power Plants
With rising
pollution concerns, governments have been putting a hold on power generation
through coal-fired power plants. Over the years, there has been a significant
drop in approvals for coal-fired power plants worldwide, especially in
countries prone to pollution, such as Turkey and Poland. However, with the
increasing population and the ever-increasing demand for electricity, the
countries must look out for renewable sources of energy to fulfil the demand.
Thus, with the disinvestments into coal-fired power plants, the Europe Offshore
Wind Turbine Market demand is likely to be boosted.
Europe
Offshore Wind Turbine Market: Challenges
Capital-Intensive
Projects
Though
possessing long-term benefits, offshore wind energy throws immense challenges
regarding the capital investments required to set up offshore wind turbine
infrastructure. The offshore wind farm developers must consider the huge costs
associated with the fabrication of wind turbines and the transportation of the
same to the offshore sites.
The
construction of the submerged foundation for the wind turbines poses additional
challenges given the hostile marine conditions and the superior quality of a
material and skilled set of manpower required to execute the same. Various wind
farm developers have experienced cost overruns during the construction phase
despite carefully analysing the project’s financial feasibility before the
initiation. Such capital-intensive nature of the project is likely to hamper
the growth of the Europe Offshore Wind Turbine Market.
Disruptions
in Turbine Blade Supply
Instead of
improving the wind turbines' efficiency and reducing the overall cost of
offshore wind energy farm infrastructure, the manufacturers have started
fabricating larger turbine blades (with a rating of 10+W). However,
transporting such large-sized blades to the offshore sites can be immensely
challenging. Once the blades reach the shores, supplying them to the wind farms
within the sea from the shores is another challenge, necessitating both skilled
manpower and appropriate equipment to transfer the blades to the proposed wind
farm location. Such supply chain challenges are likely to hamper the growth of
the Europe Offshore Wind Turbine Market.
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Market
Segments
Europe Offshore
Wind Turbine Market is segmented into installation type, turbine capacity, and
country. Based on installation type, the market is segmented into fixed and
floating. Based on turbine capacity, the market is segmented into Up to 3 MW, 3
MW to 5 MW, > 5 MW. Based on country, the market is segmented into United
Kingdom, Germany, Denmark, Netherlands, Belgium, Sweden, Finland.
Market
Players
Major market
players in the Europe Offshore Wind Turbine Market are Schneider Electric SE,
Nordex SE, Equinor ASA, Siemens Gamesa Renewable Energy, Vestas Wind Systems
A/S, GE Renewable Energy, Enercon GmbH, Goldwind Science & Technology Co.
Ltd, Orsted A/S, ABB Ltd.
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Attribute
|
Details
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|
Base Year
|
2022
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|
Historic
Data
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2018 – 2022
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|
Estimated Year
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2023
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Forecast
Period
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2024 – 2028
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Quantitative Units
|
Revenue in USD Million, and CAGR for
2018-2022 and 2023-2028
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|
Report
coverage
|
Revenue forecast,
company share, growth factors, and trends
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|
Segments covered
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Installation Type
Turbine Capacity
Country
|
|
Country
scope
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United Kingdom,
Germany, Denmark, Netherlands, Belgium, Sweden, Finland, Rest of Europe
|
|
Key companies profiled
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Schneider Electric SE, Nordex SE,
Equinor ASA, Siemens Gamesa Renewable Energy, Vestas Wind Systems A/S, GE
Renewable Energy, Enercon GmbH, Goldwind Science & Technology Co. Ltd, Orsted
A/S, ABB Ltd.
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|
Customization
scope
|
10% free report customization with purchase.
Addition or alteration to country, regional & segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to
meet your exact research needs. Explore purchase
options
|
|
Delivery
Format
|
PDF and Excel
through Email (We can also provide the editable version of the report in
PPT/Word format on special request)
|
Report
Scope:
In this report,
Europe Offshore Wind Turbine Market has been segmented into following
categories, in addition to the industry trends which have also been detailed
below:
- Offshore Wind Turbine Market, By
Installation Type:
- Offshore Wind Turbine Market, By
Turbine Capacity:
- Up to 3 MW
- 3 MW to 5 MW
- > 5 MW
- Offshore Wind Turbine Market, by
country:
- United Kingdom
- Germany
- Denmark
- Netherlands
- Belgium
- Sweden
- Finland
Competitive
Landscape
Company
Profiles: Detailed
analysis of the major companies present in Europe Offshore Wind Turbine Market.
Available
Customizations:
Europe Offshore
Wind Turbine Market with the given market data, Tech Sci Research offers
customizations according to a company’s specific needs. The following
customization options are available for the report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
Europe
Offshore Wind Turbine Market is an upcoming report to be released soon. If you
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please contact us at [email protected]