Floating Wind turbine Market - Forecast(2023 - 2028)

Floating Wind Turbine Market Overview

The global Floating Wind Turbine market size is forecast to reach $31.5 billion by 2026, growing at a CAGR of 28.1% from 2021 to 2026. Floating wind turbine is one of the widely used offshore wind turbines incorporated with a floating foundation or base structure. Owing to its capabilities of generating power even at consistent wind flow or strong sea waves at the shore, they have been getting highly deployed for serving both shallow water and transitional water environments. The growing shift towards increasing renewable offshore wind capacity as a part of reducing CO2 emissions, along with high investments from oil & gas industries towards deploying floating wind turbines overtime have been attributing to the market growth. In addition, growing investments on infrastructural development regarding floating offshore wind farms along with an increase in governmental support or initiatives for raising floating offshore wind power capacity is set to drive the market forward in the long run.

Report Coverage

The report: “Floating Wind Turbine Industry Outlook – Forecast (2021-2026)”, by IndustryARC covers an in-depth analysis of the following segments of the Floating Wind Turbine industry.

Key Takeaways

• Semi-submersible foundation structure is analyzed to grow with the highest CAGR in the global floating wind turbine market during 2021-2026, owing to various benefits including low costs, ease of deployment, maintenance as well as onsite independence.
• Europe Floating Wind Turbine market held the largest share in 2020, owing to governmental initiatives towards increasing the floating wind capacity targets and rise in floating wind turbine installation or commissioning contracts.
• Governmental initiatives to support floating offshore wind power generation along with rise in investments for establishment of floating offshore wind farms is analyzed to significantly drive the market growth during the forecast period 2021-2026.
  
  

  Global Floating Wind Turbine Market Value Share, By Region, 2020 (%)

  

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Floating Wind Turbine Market Segment Analysis - By Type

Based on type segmentation, Semi-submersible foundation is analyzed to grow with the highest CAGR of 11.3% in the global Floating Wind Turbine market during the forecast period 2021-2026. Floating wind turbines with semi-submersible foundation have emerged as a better alternative compared to other types, due to its capability of minimizing exposed surface area to the water. Adoption of semi-submersible platforms have been gaining wide popularity overtime, owing to incorporation of large floating hulls capable of spreading out from the tower, anchored to be prevent drifting. This in turn, acts as one of the potential factors driving its market growth. In comparison to other available designs for floating wind turbines, these foundation models offer significant benefits including cost, deployment, maintenance as well as site independence, which have been contributing towards the market growth. Since the semi-submersible floating wind turbine models reduce dependency on optimal water exposure, these platforms are less prone to damages caused by erosion and others, thus saving additional costs on maintenance services for the end users. Growing number of R & D activities for semi-submersible floating platforms, along with increase in installation or decommissioning contracts related to these models is set to drive the market growth forward in the long run. In July 2021, Guangzhou Salvage had revealed about the installation of China’s first floating wind turbine, off the coast of Yangjiang City, Guangdong Province, for demonstration purpose at the 400 MW Yangxi Shapa III offshore wind farm. Installation of this typhoon resistant wind turbine developed by MingYang Smart Energy, comprising of a semi-submersible floating foundation was done, where it will be tested over the coming six months. Such factors can be considered vital in driving the market growth forward in the long run.

Floating Wind Turbine Market Segment Analysis - By Application

Floating wind turbines for industrial application is analyzed to grow with the highest CAGR of 9.8% during the forecast period 2021-2026. Conducting varied industrial operations across major industries including oil & gas, chemicals and so on, require massive amounts of power to drive industrial machinery or equipment along with serving related applications. In order to meet such growing power requirements, varied industries have been investing on renewable sources like offshore wind farms, attributing to the market growth of floating wind turbines. Since installation of floating wind turbines is cost effective as well as help in reducing carbon emissions, they have been gaining wide popularity across various industry verticals as a part of meeting renewable energy or sustainable energy targets. In October 2019, Norwegian oil giant, Equinor announced about the approval of Hywind Tampen project, under which 88 Megawatt floating offshore wind farm will be constructed, which is set to be completed in 2022. This project will help in serving about 5 oil & gas platforms in Norway's part of the North Sea, with the NOK 5 billion ($560 million) investment. According to the Newfoundland and Labrador Oil and Gas Industry Recovery Task Force report, published in March 2021, collaborative projects including WASI and Saitec have been planned to generate abundant clean power utilizing floating offshore wind turbines, alongside transmitting to offshore or near shore installations. This will be helpful in demonstrating the efficacy of floating wind turbines as an economically viable, safe as well as sustainable solution towards reducing GHG (greenhouse gases) emissions from oil and gas projects, under the energy transition shift. Such factors are set to drive the market demand for floating wind turbines for industrial applications in the long run. 

Floating Wind Turbine Market Segment Analysis - By Geography 

Europe region dominated the global floating wind turbine market in 2020, with a share of around 37% and is also analyzed to have a significant growth during the forecast period 2021-2026. Governmental measures or initiatives towards increasing floating wind capacity targets along with growing installation projects of floating wind turbines have been attributing to the market growth. Additionally, rising investment towards floating offshore wind farms, ports or related infrastructures, as well as governmental efforts towards increasing offshore wind power generation as a part of meeting renewable energy transition, can also help in driving the market growth forward overtime. Moreover, stringent regulations or policies regarding reduction in greenhouse gas emissions along with high adoption of strategies including commissioning or installation contracts, R&D activities and so on from various market players is analyzed to boost the market demand for floating wind turbines in the long run. In October 2020, the U.K Government had revealed about setting up a new target of 1 GW floating wind capacity by 2030, under which an investment of 160 million pounds ($207.3 million) will be done. This investment will help in construction of offshore wind ports as well as infrastructure in order to meet country’s target of 40 GW offshore wind capacity by 2030. In August 2021, a French Contractor, Bourbon Sea Services had revealed about completion of installation and hook-up operations, followed by commissioning of an innovative pilot floating wind turbine in the coming weeks, in Norway. Such factors are set to drive the market growth of floating wind turbines in the coming time.

Floating Wind Turbine Market Drivers

Governmental initiatives supporting the shift towards floating offshore wind power positively impacts the market growth

Governmental initiatives supporting the shift towards floating offshore wind power act as one of the major drivers boosting the market growth of floating wind turbines. Various government organizations, energy emission regulating bodies and so on have been providing grants or funding floating offshore wind farm projects as a part of meeting emission reduction goals. Additionally, government efforts towards advanced research projects related to floating wind turbines, shift towards increasing offshore wind capacity along with rise in floating wind turbine installations under government funding will also fuel the market growth overtime. In February 2019, U.S Department of Energy announced about its $28 Million funding, under the Advanced Research Projects Agency-Energy program, named ATLANTIS, in order to support research projects related to development of new technologies for floating wind turbines to lower down deployment costs. In May 2021, the South Korean Government had revealed its plan on construction of a 6 GW floating offshore wind farm, with over KRW 1.4 trillion ($1.2 billion) investment for the first stage by 2025. Government support through funding of this offshore wind farm project, off the coast of Ulsan, is set to be completed by 2030, which will drive the demand for floating wind turbines. Such governmental initiatives are further set to boost the market growth towards floating wind turbines for power generation in the long run.

Increasing investments on the establishment of floating offshore wind farm drive the market forward

Increasing investments on the establishment of floating offshore wind farm can be considered as a major factor driving the growth towards floating wind turbine market. Growing investment towards infrastructural projects related to floating offshore wind farms have been rising significantly, as a part of shift to renewable energy transition. Additionally, growing investments on installation or commissioning contracts of offshore wind farms along with adoption of floating wind turbines owing to reduced costs, less emissions, higher efficiency and so on have been also driving its market growth overtime. In July 2021, Belgium based green energy company, Parkwind had revealed about securing funding of €150 million ($177.8 million) from European Investment Bank for constructing its floating offshore wind farm, named Arcadis Ost 1. This establishment of the offshore wind farm facility is set to become operational by 2023, in Northern Germany. In September 2021, Shell Overseas Investment had revealed about establishment of a joint venture with CoensHexicon, meant to focus on development and operation of a 1.4GW floating offshore wind farm project in Ulsan, South Korea. This project is a part of initiative towards increasing country’s domestic renewable energy generation to 20% by 2030 along with becoming carbon-neutral by 2050. Such factors are further analyzed to boost the demand for floating wind turbines in the coming years.

Floating Wind Turbine Market Challenges

High costs related to installation, operation and maintenance of floating wind turbines adversely impact the market growth

High costs related to installation, operation and maintenance of floating wind turbines act as a major challenge for its market growth. Since commercial floating wind farms generally focus on installation in deeper waters, causing key risks with the relative motion of the turbine and a floating maintenance vessel, while making use of conventional jack up vessels non-viable. In addition, anchoring of floating offshore wind platforms include inherent challenges associated with deep as well as shallow water environments, driving the need for efficient mooring systems, adding up to the overall operational costs. Due to deployment of these turbines in offshore locations, there are chances of being susceptible to erosion due to stronger waves in the sea, targeting the need for periodic maintenance or servicing requirements, which in turn makes it expensive. The cost of an average sized commercial floating wind turbine lies in the range of $2.6 to $4 million for capacity of 2-3 MW. Furthermore, cost of completion, installation, as well as commissioning of the floating offshore wind farms, have been eventually creating slower adoption of floating wind turbines in the end use markets.

Floating Wind Turbine Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Floating Wind Turbine Market. The Floating Wind Turbine Market top 10 companies include:

1. Siemens Games Renewable Energy S.A
2. MingYang Smart Energy 
3. MHI Vestas Offshore Wind A/S
4. Senvion S.A.
5. Nordex SE
6. GE Renewable Energy 
7. Envision Energy
8. Goldwind
9. Enercon GmbH
10. Adwen GmbH

Acquisitions/Technology Launches/Partnerships

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