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Offshore Wind Energy Market By Foundation Type (Monopile, Jacket, Tripod, Floating), Water Depth (Shallow Water (Up to 29m deep), Transitional Water (30-60m deep), Deep Water (Above 60m deep)) - Growth, Future Prospects & Competitive Analysis, 2017 – 2025

One major advantage of locating wind turbines offshore is that wind speeds are much greater and more uniform off the coast as compared to onshore. The maximum demand for electricity occurs during the afternoon hours of the day, and the sea breeze is also strong at that time. Hence, offshore wind installations are more efficient and consistent energy producers as compared to their onshore counterparts. Most of the wind turbines are in shallow waters (water depth up to 29 m) so that they can be directly connected to the distribution grid. Therefore, it eliminates the need for long transmission lines.

The offshore wind energy market is segmented geographically into Europe, Asia Pacific, North America, and the Rest of the World. In 2016, Europe was the market leader in the offshore wind market. More than 87% of all offshore wind installations are located in European waters. Some of the major countries in Europe are Denmark, Germany, the U.K., and Sweden, which have the highest number of offshore wind installations. Other countries apart from Europe are the U.S., China, Japan, and South Korea, which have the remaining offshore wind installations. As of 2016, offshore wind installation in the rest of the world was nil. However, the prospects were from the African and Middle Eastern countries (Nigeria, Ghana, and the UAE), which are expected to see new installations.

Offshore wind installations are much more expensive than their onshore counterparts. Setting up an offshore wind farm entails a significant amount of risk and safety concerns. Since offshore wind turbines operate at comparatively higher speeds, repair and maintenance operations are time-consuming and incur even higher capital costs. With almost zero emissions and no effect on real estate (land), more financiers and governmental agencies are opting to invite bidders for offshore wind energy development.

Regions with a high density of offshore wind farms are now setting up turbines in deeper waters due to the high demand for large turbines, which can eventually reduce the number of wind turbines in a particular wind farm. Offshore wind projects with higher capacities are now being installed in European regions. Wind farm installations are now aimed at transient waters (30-60 meters deep) as well as deep waters (60 meters and above). Wind turbine technology is mature, and investors have confidence in setting up wind farms at strategic locations. Thus, the introduction and deployment of new generation 6-8 MW turbines and even 9 MW turbines with the extremely high swept area and output have caused this market to thrive exceptionally during the forecast period.

In late 2016, Europe, which has the world more than 85% of offshore wind installations, drastically reduced offshore wind prices. Some of the major wind farms in Spain, Denmark, and the U.K. witnessed a reduction in generation costs. The price per MWh (Mega Watt Hour) generation was close to €65. This was reduced to €58 in Spain and €49 in Denmark. This pricing is even lower than onshore wind generation in some regions. A similar trend is expected to motivate future offshore wind installations, and thus low generation costs will further fuel the growth of the offshore wind energy market.

The key players present in this market are Siemens-Gamesa, MHI Vestas Wind Systems A/S, DONG Energy, Vattenfall, E.on, GE Wind, Sinovel Wind Group Co. Ltd., Nordex S.E., China Ming Yang Wind Power Group Ltd., Alstom, Senvion Ltd., Clipper Wind Power, and DOOSAN Heavy Industry & Construction.

On the basis of foundation, the global offshore wind energy market is categorized into the following foundation types:

  • Monopile
  • Jacket
  • Tripod
  • Floating

In monopile design, the wind tower is made up of steel pipes. Support for the structure is mainly provided by a transition piece. The monopile support structure is a relatively simple design in which the tower is supported by a monopile. One of the major advantages is that the pile penetration depth is adjustable to suit the actual environment and seabed conditions, as compared to jackets, tripods, and floating structures. Seabed conditions are of prime importance since they vary from region to region. Based on the seabed condition, the pile is driven down by an impact hammer. In some places, grouting is also performed for firm support of the foundation.

A jacket typically consists of a four-legged structure. The legs of the steel structure are supported by diagonal and horizontal brace members connected to a transition piece. The entire structure is made up of steel. A tripod frame is similar to a jacket, with the only difference being that the frame is triangular in shape. The members are connected to each other, and the brace members are connected to the central transition piece for firm support. A tripod structure, with its angular frame, can easily reduce deflections more than a jacket structure. The tripod structure is similar to the technology utilized in offshore oil and gas tripod jackets. In both tripod and jacket structures, the piles are driven from the legs into the seabed with the help of an impact hammer. Vertical anchor legs that are pre-tensioned are used to partially submerge floating structures in Water. The partially submerged part assists in dampening the system's motion. The floating structures are preferred for deep-water installations. The structure can be towed to the site and connected to the anchor piles or suction caissons.

On the basis of water depth, the global offshore wind energy market is categorized into the following segments:

  • Water that is shallow (up to 29 meters deep)
  • Transitional Water (30–60 meters deep)
  • Deep Water (depths greater than 60 meters)

With the increased grid connection of offshore wind energy, there is an urgent need to utilize and harness more wind energy at greater distances from the shore. The shallow waters may also pose a risk to the vessels and ships moving in and out of the port of any country. The deep-water offshore wind turbine designs are suitable for water depths of 60 meters and above. Offshore wind energy development companies are investing heavily in R&D to optimize and exploit this widely available marine resource. The cost of installation is a bit higher, but the output energy is more continuous, and multiple grid connections will be possible, which has a wide outreach in terms of electrical power end users. Thus, the slow but firm shift of offshore wind energy from shallow to deep waters is gaining more importance in Europe and in developing Asian countries. Current commercial offshore wind farms are limited to shallow waters. The first phase of the Blue H wind turbine was installed in 2008 at 113 meters deep and 11.5 nautical miles off the coast of southern Italy. However, the load was connected to the grid in early 2015.

On the basis of geographical distribution, the global offshore wind energy market is segmented into the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Denmark
    • Germany
    • Netherlands
    • Belgium
    • U.K.
    • Sweden
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • Rest of Asia Pacific
  • Rest of the World

Europe is the world leader in the offshore wind energy market. By 2016, more than 85% of offshore wind installations were located in European countries. The global offshore wind energy market evolved in Europe in the early 1990s. Other countries that contribute to a large extent to the market are China, Japan, South Korea, and the U.S. The Chinese government had set an ambitious target of more than 10 GW of offshore installations by 2020. India has built its first offshore wind turbine based on LiDAR (light detection and ranging) technology off its western coast for demonstration purposes. LiDAR technology is a remote sensing method to examine the earth's surface and its characteristics based on data collection by air. The commissioning was done in November 2017 by FOWIND. The data from this offshore LiDAR is expected to support efforts toward the exploration of offshore potential along the Indian coastline. China and India are expected to have phenomenal growth in the market for the forecast period.

Frequently Asked Questions:

The market for Offshore Wind Energy Market is expected to reach 49,931.6 Bn By 2025.

The Offshore Wind Energy Market is expected to see significant CAGR growth over the coming years, at XX%.

The report is forecasted from 2017-2025.

The base year of this report is 2016.

MHI Vestas Wind Systems A/S, DONG Energy, Vattenfall, E.on, GE Wind, Sinovel Wind Group Co. Ltd., Nordex S.E., China Ming Yang Wind Power Group Ltd., Alstom, Senvion Ltd., Clipper Wind Power are some of the major players in the global market.

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Published Date:  Dec 2017
Category:  Energy
Report ID:   58915
Report Format:   PDF
Pages:   120
Rating:    4.2 (65)
Delivery Time: 24 Hours to 48 Hours   
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