According to research and consulting company Frost and Sullivan, technological improvements such as increased-capacity wind turbines, floating wind turbines and 3D printing have brought down the overall cost of offshore wind power and opened up new previously inaccessible locations.
These developments, says Frost and Sullivan, are accelerating the adoption of wind power worldwide and driving the global offshore wind turbines market toward monumental growth.
Additionally, the scaling up of investments in the renewable energy sector through national, regional and international climate change-related policies has had an enormous effect on the offshore wind turbine market.
A recent analysis by Frost & Sullivan predicts that the sector will grow at a Compound Annual Growth Rate (CAGR) of 22.5% between 2018 and 2025, with revenues expected to rise from $7.4 billion to $30.5 billion.
According to the research, Europe is the largest market for offshore wind turbines, generating $4.91 billion in 2018, followed by Asia-Pacific, with $2.47 billion in revenue.
As the European wind turbine market is mature, Frost and Sullivan expects revenues to grow at a comparatively low CAGR of 18.2%.
On the other hand, revenues from the Asia-Pacific region are forecast to grow at a CAGR of 27.5% as a result of increased installations in mainland China and Taiwan.
However, the highest growth is projected to be in the North American market, driven by demand from the United States, as several offshore wind projects reach completion.
The market is also expected to start picking up in the rest of the world, as several projects in Brazil, Saudi Arabia, and Kenya develop over the forecast period.