The global floating wind turbine market size was valued at USD 5,655 million in 2021, projected to reach USD 54,704 million, and expand at a CAGR of 32.8% during the forecast period. Wind turbine machines convert the kinetic energy of the wind to generate electricity. A floating wind turbine is an offshore wind turbine assisted by a floating foundation with most of its mass submerged. Because it is mounted on a structure, the wind turbine can generate electricity in water depths where a fixed foundation would not be applicable. Multiple mooring cables and anchors connect the turbine to the seafloor. A floating wind turbine is effective in any body of water with a depth of 60 meters or more. Moreover, in contrast to onshore wind turbines, floating wind turbines can generate electricity at a consistent rate because there is a constant flow of wind along the shoreline.
The floating wind turbine market share is anticipated to be fueled by a significant increase in demand for renewable energy sources. Unlike conventional power sources, floating wind turbines are cost-effective and reduce carbon emissions. In addition, the floating wind turbine technology eliminates the limitation of water depth, which facilitates the selection of the optimal location for power generation. In addition, the capacity factor of floating wind turbines is more significant than that of onshore wind turbines. This is due to the consistent energy production of floating wind turbines. However, installing a wind turbine with various mooring lines and anchors can be costly. Moreover, the wind turbine may sustain significant damage during intense storms or hurricanes.
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The Increased Demand for Renewable Power Sources and Electricity Consumption
The expansion of the floating wind turbine market share is anticipated to be driven by the significant surge in demand for renewable power sources. In addition, the expanding focus that the government is placing on discovering efficient energy solutions in terms of cost will further boost market growth. In addition, renewable energy sources, such as floating wind turbines, can be utilized in remote coastal areas. This presents a significant obstacle for industry participants when providing power through conventional power plants. The demand for floating wind turbines will be driven by the growing concern governments worldwide have for finding environmentally friendly energy sources. The generation of electricity using the floating wind turbine results in a decrease in the amount of carbon dioxide emissions because it uses no conventional fossil power.
In recent years, there has been a steep rise in the quantity of electricity that is required. The development of technology has resulted in the production of electronic goods, both for domestic and commercial use, that are dependent on the availability of electric power. Additionally, an increase in per capita disposable income and consumer spending power contributes to the sales of electronic devices like refrigerators, televisions, and air conditioners. In addition, an increase in modernization, the expansion of the construction industry, the development of prosperous societies, and the evolution of residential buildings have all contributed to a rise in demand for power. Moreover, since the portion of industrial applications has increased, the growth of the commercial sector, which includes the construction of schools and hospitals as well as retail and grocery stores, office buildings, and other commercial establishments, has further fueled the electricity demand.
Because of these factors, there has been an increase in the demand for reliable and efficient electricity supply. Hence, governments in a variety of countries have begun to place a greater emphasis on the production of electricity from renewable sources, which is anticipated to, in turn, drive demand for floating wind turbines. Owing to the speedy economic advancements in emerging economies, it is expected that both the production and consumption of electricity will continue to rise in the years to come. As a result, it is anticipated that the impact of drivers on the overall floating wind turbine market will reflect substantial growth throughout the forecast period.
High Cost of Installation and Maintenance to Hinder Market Growth
The cost of wind turbine installation with several mooring lines and anchors during the beginning stages can be pretty high. In essence, there are relatively few locations around the world that have high wind speeds, and because of this, the cost of installing new wind farms in those locations will be pretty high. For example, the cost of establishing a new wind company will be approximately USD 2,200 per kilowatt, and the cost of maintenance will be around 20–25% of the total levelized cost per kWh.
Advancements in the Structures of Wind Turbines to Spur Market Opportunities
The development of new technologies for the structure of wind turbines, such as the "Twisted Jacket" foundation, which has fewer nodes and components, could provide a long-term answer to the problem of heavy storms. The inward battered guide framework provides a sturdy and secure framework and helps cut down on the installation cost. These recent developments are anticipated to create additional opportunities in the floating wind turbine market growth.
The global floating wind turbine market is classified based on foundation, depth, and region.
Segmentation based on foundation includes Spar-Buoy, Semi-Submersible, and Others.
The spar-buoy foundation segment is expected to advance at a CAGR of 32.5% and hold the highest valued share during the forecast period. A spar-buoy foundation is a type of cylindered structure with a low water plane area and is ballasted so that the center of gravity remains lower than the center of buoyancy. Catenary or taut spread mooring lines with drag or suction anchors are used to keep the spar-buoy foundation in its designated location. Offshore operations involving the spar-buoy foundation call for the use of heavy-lift vessels, and the water depth must be greater before these operations can begin. The spar-buoy foundation has a propensity for wave-induced motions lower than the critical level. There is expected to be an increase in demand for spar-buoy foundations because of the low costs associated with their installation. The straightforward construction also can help the business expand its customer base. The expansion of this market is being propelled by the efforts of companies such as DeepWind, SeaTwirl, and Windcrete.
The semi-submersible foundation segment is expected to hold the second-largest share. Several large columns make up a semi-submersible foundation. These columns are connected by connecting submerged bracings or pontoons. The columns contribute to the hydrostatic stability and the additional buoyancy. Catenary or taut spread mooring lines, in addition to drag anchors, are used to keep the foundation in its current location. This foundation can be built on land or in a dry dock, allowing the turbines to float with drafts of less than 10 meters while transported. The relatively low additional costs primarily drive the floating wind turbine market share expansion. Businesses drive the market's growth like Aerodyn, DCNS/GE, DeepCwind, Floating Power Plant, GustoMSC, NAUTILUS Floating Solutions, Nenuphar/EDF, and TetraFloat.
Segmentation based on depth includes Deep Water and Shallow Water.
The deep water segment is most likely to hold the largest market share during the forecast period and grow at a CAGR of 32.1%. Deep water floating wind turbine operates in depths greater than 60 meters. Compared to fixed offshore turbines, this turbine can work more efficiently in deeper water. Installing floating wind turbines in deep water provides a large area without water depth restriction and aids in identifying the optimal site for energy generation. Furthermore, there are circumstances in which the deployment of floating wind turbines is restricted to the use of floating foundations due to the narrow continental shelf. The floating wind turbine used in deep water can access a large ocean area up to a mile and a half deep. NS Energy reports that deep water regions like the North Sea are home to approximately 80 % of the world's best wind resources. In addition, a deep water turbine is not constrained by the water depth, which helps find the best site for wind firms to reduce installation costs. These factors will have a favorable impact on the market demand for deep-water floating turbines.
The shallow water segment will hold the second-largest share. A floating wind turbine designed for shallow water could be used for depths up to sixty meters. The bending restriction of electrical cable and the turbine acceleration restriction due to vessel motions are two significant factors that can affect the cost of energy generation in shallow water. Both of these restrictions can increase the cost of energy generation. In the oil and gas industry, applications that take place in shallow water typically make use of mooring systems that have an "all chain" design. The shallow water market's growth is because of the recent advancements in mooring design. An all-chain design, in which the catenary mooring leg and the ground chain rest on the seafloor to provide the restoring forces, is one of the designs that see the widespread application.
The region-wise segmentation of the global floating wind turbine market includes North America, Europe, Asia-Pacific, and LAMEA.
Europe and the Asia Pacific Will Dominate the Regional Market
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Europe will command the market with the largest share and grow at a CAGR of 32% during the forecast period. Intense research and development activities, along with the presence of governing bodies like EUROPUR, the European association, and significant Spar-buoy Foundation foam block manufacturers, encourage growth opportunities in the European market. It is anticipated that the target for using renewable energy sources will play a substantial part in the critical factors contributing to the expansion of the floating wind turbine market. By the end of the year 2020, European countries had met their renewable energy targets and begun implementing their 2030 National Energy and Climate Plans (NECPs) to meet the 32 % renewables target.
Wind power will make it possible for many European nations to continue reducing the amount of carbon dioxide released by their power systems efficiently and affordably. It will also enable these nations to transform their energy infrastructure. It is anticipated that Europe will reach a total installed capacity of 277 GW by 2023. This is mainly due to installing more than 90 GW of wind power over the next five years. Because of this, it is projected that the floating wind turbine market will also expand.
Asia Pacific will hold a revenue share of USD 22,718 million and grow at a CAGR of 34.1%. The floating wind turbine market is being driven by the countries in the region, such as India. India is rapidly transitioning to become one of the essential players in the market for renewable energy. India reaffirmed its dedication to the promotion of clean energy and the cutting of carbon emissions. The national budget of India outlines the country's increased emphasis on renewable energy sources, intending to increase the proportion of total energy production that comes from renewable sources.
It is anticipated that production will have increased to 175 GW by the end of 2022. This includes a budgetary allocation supporting 100 GW of solar capacity, 60 GW of wind capacity, 10 GW of biomass capacity, and 5 GW of small hydropower capacity. As a result, the utilization of floating wind turbines is anticipated to play a significant part in both the accomplishment of the goal and the consumption of renewable energy.
List of key floating wind turbine market manufacturers profiled