Floating Wind Power Market

Floating Wind Power Market Size

Floating Wind Power Market is anticipated to grow at a CAGR of 48.8% in the forecast period (2024-2034), with the market size valued at USD 1.7 billion in 2023 and projected to reach USD 136.8 billion by 2034.

Floating wind power refers to the use of wind turbines at sea, that are anchored to the seabed using floating structures instead of being fixed to the ocean floor. This technology allows the use of wind energy in deeper waters where traditional fixed-bottom offshore wind turbines are not feasible. Floating wind turbines use advanced floating platforms, such as spar buoys, semi-submersibles, or tension-leg platforms, to support the turbine tower and blades above the water surface. These platforms are tied to the seabed using cables or chains. Moreover, floating wind power has the potential to significantly expand offshore wind energy capacity by accessing wind resources in deeper waters and opening up new areas for development. It provides opportunities for high energy generation and low environmental impact compared to conventional fossil fuels, thereby contributing to the transition towards sustainable and renewable energy sources.

Market Highlights

Floating Wind Power Market is expected to exhibit a CAGR of 48.8% during the forecast period, 2024-2034

Floating Wind Power Market is anticipated to reach USD 136.8 billion, growing at a CAGR of 48.8% during the forecast period, due to increasing demand for renewable energy and the requirement of tapping into wind resources in deeper waters. Additionally, the growth in the market is attributed to factors such as innovations in floating platform technology, supportive legal environments, and high investment in offshore wind energy ventures. Additionally, several nations across the world are embracing floating wind power, which is evident by initiatives such as collaborative research projects and various incentives by the government. Moreover, collaborations and strategic partnerships among industry players are encouraging innovation and accelerating the growth of the floating wind power market. Consequently, the floating wind power sector offers promising opportunities across the value chain, that attract further investment and participation from various stakeholders.

Source: Fatpos Global

Floating Wind Power Market Segmentation

Deep Water segment is projected to hold a substantial share as it provides access to powerful and consistent wind resources

Floating Wind Power Market is segmented based on Water Depth into Shallow Water, Transitional Water, and Deep Water. The deep-water segment will likely lead the floating wind power market as deep waters provide access to powerful and consistent wind resources compared to shallower areas, which makes them favorable to efficient wind energy generation. Moreover, as shallow water sites become increasingly saturated and encounter construction limitations, attention naturally shifts towards deeper waters where competition is less, and opportunities for large-scale projects are more. This technological enhancement has expanded the available areas for development and improved the possibility of projects in deeper waters. Furthermore, favorable regulatory frameworks and government incentives in various regions are increasingly favouring offshore wind development in deeper waters. Therefore, the combination of favorable wind conditions and supportive governmental policies has firmly established the deep-water segment as a leading force in the floating wind power market.

Above 5MW segment will dominate the industry due to its efficiency and higher generation of power

Floating Wind Power Market is segmented based on Turbine Capacity into Up to 3 MW, 3 MW – 5 MW, and Above 5 MW. The "Above 5 MW" segment in the floating wind power market is anticipated to lead as turbines in this segment have higher power generation capacities, which makes them more efficient in terms of energy output per unit. This efficiency is appealing to developers who are seeking to maximize energy production while reducing project costs. Moreover, technological improvements have facilitated the development of larger turbines that are capable of withstanding offshore conditions. In addition, the "Above 5 MW" category has cheaper per-unit costs due to the benefit of their large-scale usage as compared to smaller turbines. This cost-benefit motivates developers to invest in larger turbines, which boosts the growth of this segment of the floating wind power market.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Improvements in Technology have Boosted the Growth Trajectory of the Floating Wind Power Market

Continuous progress in floating wind power technology is a major driver of market growth. Innovations in floating platform design, along with turbine technology and installation methods are improving the efficiency and cost-effectiveness of floating wind power technology. These improvements are essential for reducing the cost of energy production from floating wind turbines, which makes them competitive with other renewable energy sources. Furthermore, as technology continuously improves, it enables the development of larger and more powerful turbines, which increase the potential energy output of floating wind farms. Thus, investment in research and development to improve floating wind technology is expected to accelerate the growth of the floating wind power market.

Expansion into Deeper Waters is Proving Helpful for the Growth of the Market

In deeper oceans where fixed-bottom offshore wind turbines cannot function profitably, floating wind power provides access to wind resources. This movement into deeper waters creates massive new opportunities for offshore wind development in areas with abundant offshore wind resources but limited availability of shallow water, such as the Pacific Northwest and the Mediterranean. In addition, as offshore wind development moves into deeper waters, the market for floating wind power is expected to witness significant growth. This growth increases the potential capacity for offshore wind energy and helps diversify the geographic distribution of renewable energy resources, which contributes to building a resilient and sustainable energy infrastructure globally.

Restraints

High Initial Costs Can Impact the Adoption of Floating Wind Power Market

High initial capital investment required for the development of the project is one of the primary limitations of the floating wind power market. Floating wind farms incur significant upfront costs for design, engineering, construction, and installation as they operate in deeper waters and require specialized equipment and infrastructure. These costs can be substantially higher than traditional onshore or fixed-bottom offshore wind projects, which presents significant barriers to entry for developers and investors across regions with less mature regulatory frameworks or financial support mechanisms.

Recent Developments

• In 2023, Siemens Gamesa Renewable Energy, introduced the SG 14.0-274X offshore wind turbine, one of the most powerful wind turbines in the world, suitable for both fixed-bottom and floating installations. The company also partnered with RWE and Copenhagen Infrastructure Partners to develop the 1.4 GW Sofia Offshore Wind Farm in the North Sea.
• In 2023, Equinor ASA, secured a deal for the Hywind Tampen floating wind farm project off the coast of Norway, which will be the world's first floating wind farm to power offshore oil and gas platforms. They also announced a successful partnership with RWE to develop the 800 MW Empire Wind project off the coast of New York, the largest floating wind project in the United States.
• In 2023, Principle Power successfully installed the Kincardine Wind Farm off the coast of Scotland, the world's first commercial-scale floating wind farm project. The company has also secured significant funding for the WindFloat Atlantic project, a floating wind farm off the coast of Portugal, planned to be operational in 2023.
• In 2023, MHI Vestas Offshore Wind, introduced the TetraSpar platform, which is a next-generation floating foundation designed for deeper waters and larger turbines. They have also successfully secured a contract to supply 16 MW of floating wind turbines for the Kincardine Wind Farm project.
• In 2023, Ideol S.A., partnered with BW Ideol to co-develop the Floatgen wind turbine, a semi-submersible floating platform designed for harsh environments. They have also secured funding for a 48 MW EolMed floating wind farm project off the coast of France, which is planned to be operational in 2024.

Floating Wind Power Market

Key Players:

• Siemens Gamesa Renewable Energy
• Equinor ASA
• Principle Power, Inc.
• Ideol S.A.
• BlueFloat Energy
• Hexicon AB
• BW Ideol
• Saitec Offshore Technologies
• X1 Wind
• Ocean Winds
• General Electric
• NEDO (New Energy and Industrial Technology Development Organization)
• Seawind Ocean Technology
• Sway Turbine AS
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Floating Wind Power Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. The European region dominates the floating wind power market as the continent has historically focused on renewable energy and set ambitious climate goals, that attract investment and policy support for offshore wind development. In addition, countries like Norway, Portugal, and Scotland are leading in floating wind technology as they benefit from supportive regulations and financial incentives that promote industry growth. Moreover, Europe has abundant offshore wind resources across the North Sea and Atlantic Ocean, which makes it an ideal region for offshore wind projects.

Conversely, the Asia-Pacific region has significant offshore wind potential but lags in floating wind power development due to regulatory complexities. However, countries like Japan, South Korea, and Taiwan are increasingly investing in floating wind technology to tap into their offshore wind resources and diversify their energy portfolios.

Source: Fatpos Global

Impact of COVID-19 on the Floating Wind Power Market

COVID-19 pandemic has impacted the floating wind power market with disruptions and long-lasting effects. Short-term consequences include project delays and logistical challenges due to travel restrictions and social distancing measures. These factors have hindered the construction and installation activities. However, the pandemic has highlighted the importance of resilient and sustainable energy infrastructure. The focus of the government on economic recovery has resulted in high support for renewable energy projects, such as floating wind power. This high emphasis on green recovery and decarbonization presents several opportunities for the growth of the floating wind power sector in the long term.

Floating Wind Power Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Floating Wind Power Market Scope and Segments:

Frequently Asked Questions (FAQ):