According to a report released by Transparency Market Research, the offshore wind energy market in Asia Pacific was valued at $8.96 billion in 2017, and it is projected to increase to $60.2 billion by 2025, at a strong CAGR of 22.4 percent. It was also found that the market is fragmented, with almost every subsector exhibiting considerable representation from regional and international players.
Overview of the Asia Pacific Offshore Wind Energy Market
While the Asia Pacific offshore wind energy market exhibits the presence of regional and international companies, a large percentage of it is held by three companies. These three companies accounted for about 31 percent of the global market in 2016. Currently, the most prominent players in the Asia Pacific market are Goldwind Science Technology, Suzlon Group, GE Wind Energy, Vestas Wind Systems, Dong Energy, Nordex, Siemens Wind Power, Gamesa Corporacion Technologica, China Ming Yang Wind Power Group, and Sinowel Wind Group. Geographically, China owns the largest market share due to the large number of existing and planned offshore wind power plants and the presence of the leading players in the region.
Research and Development for Reducing Costs and Maintenance Complications
In order to stay competitive, regional and international companies are stepping up their investments in research and development activities to develop high-capacity turbines, cost-effective products, and better maintenance solutions. In this regard, foreign companies lead the way in technological advancements. Presently, the technological aspect of offshore wind turbine solutions is still in the nascent stages, and the offshore wind energy industry is facing a number of significant challenges. Firstly, the planning and setting up of offshore wind farms require significantly higher investment than onshore farms, which can have an adverse effect on the market. Also, complex grid structures have to be constructed for the proper transmission and storage of electricity, which will add to the costs of power generation and distribution.
Investing in the Offshore Wind Energy Market
Since technology is an integral part of the offshore wind energy market, investors need to be tech-minded in order to make profitable investments. According to veteran investorJason Sugarman, it is essential for investors to choose a company that is at the forefront of technological development and implementation, because a competitor may adopt a new technology and leave their investment in the dust. Companies that are technologically advanced have a greater chance of surviving and staying competitive in the future. This is especially true in the offshore wind energy market.
Despite the challenges faced by the Asia Pacific wind energy market, efforts are being made to develop new technologies and solutions to facilitate efficient and cost-effective energy generation from offshore wind farms. As predicted by Transparency Market Research, there are sunny days ahead for the market.