With more countries utilising offshore wind potential, the global offshore wind power market is expected to increase more than fivefold from 7.1GW in 2013 to 39.9GW by 2020, representing a Compound Annual Growth Rate (CAGR) of 28%, according to research and consulting firm GlobalData.
The company’s latest report, Offshore Wind Turbines and Foundations – Global Market Size, Market Share, Regulations and Key Country Analysis to 2020, states that the global offshore wind energy space registered substantial growth between 2006 and 2013, rising from 0.9GW in 2006 to 7.1GW in 2013, at a higher CAGR of 33.9%. Of this, 1.6GW came online in 2013, driven mainly by the UK, Germany, Denmark and Belgium. Offshore wind power is increasingly being explored for its high yield, due to stronger and more consistent winds compared to onshore, and the scope that this provides for the construction of large-scale projects. An additional benefit is the fact that future offshore wind power technology development will ensure a decline in the average cost per megawatt, although overall project costs are expected to rise in countries with wind farms planned in deeper water and further from the shore. The main obstacles that will hinder market growth are environmental concerns, as well as the lack of skilled personnel and sophisticated technology catering to offshore requirements. Despite these barriers, GlobalData expects offshore wind’s share in the global wind power market to climb from 2.2% in 2013 to 6.1% by 2020.