Market Size of United Kingdom Offshore Wind Energy Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 13.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UK Offshore Wind Energy Market Analysis
The United Kingdom offshore wind energy market is expected to grow at a CAGR of more than 13.5% in the forecast period of 2022-2027. Covid-19 has affected the overall economy of the United Kingdom in the last two years. The pandemic COVID-19 hit the United Kingdom in early 2020 and disrupted the energy sector manufacturing, supply chains, and mobility due to lockdown and cross-border restrictions, which had a significant impact on the offshore wind energy market. The government's supportive policies and a significant rise in investment in offshore wind energy projects are expected to propel the offshore wind energy market in the near future. However, till 2019, the year-on-year growth of new offshore wind energy integration was more than 15%, but in 2020 it dropped to around 4%. This fall can be ascribed to the stringent restrictions imposed by the government to stop the spread of Covid-19. This led to a lack of funding, workforce, and spare parts, resulting in project completion delays. Thus, the adverse effects of Covid-19 are expected to negatively impact offshore wind energy investment.
- The floating foundation segment is expected to dominate the market during the forecast period. The floating foundation wind projects can harness higher wind energy from the deep waters, as deep waters have high wind speed, which creates a much more favorable environment for wind turbine operation. Thus, higher productivity is expected to boost the demand for the floating foundation segment in the forecast period.
- According to the International Renewable Energy Agency, the United Kingdom is expected to provide excellent opportunities for the offshore wind energy market shortly. With the rise in electricity demand and to achieve the net-zero target by 2050, the country needs more than 125 GW of offshore wind energy. This presents a great opportunity in the offshore wind energy market.
- The United Kingdom is one of the leading countries in the offshore wind energy project market in Europe and the world. The government's supportive policies for the research and development of next-generation wind turbines coupled with an increase in private companies' investment in offshore wind energy projects are expected to drive the market in the country.
UK Offshore Wind Energy Industry Segmentation
The Scope of the United Kingdom Offshore Wind Energy Market includes:-
| Foundation Type | |
| Fixed Foundation | |
| Floating Foundation |
| Capacity | |
| Less Than 5 MW | |
| Greater Than or Equal to 5 MW |
United Kingdom Offshore Wind Energy Market Size Summary
The United Kingdom offshore wind energy market is poised for significant growth, driven by supportive government policies and increased investments in renewable energy projects. Despite the challenges posed by the COVID-19 pandemic, which disrupted supply chains and delayed projects, the market is expected to expand substantially in the coming years. The UK's commitment to achieving net-zero emissions by 2050 and the rising demand for electricity are key factors propelling the offshore wind sector. The floating foundation segment, in particular, is anticipated to dominate the market due to its ability to harness higher wind energy from deep waters, offering greater efficiency and lower power generation costs. This segment's growth is further supported by government and private investments aimed at enhancing the country's offshore wind capacity.
The UK's offshore wind energy market is characterized by a moderate level of fragmentation, with major players such as √òrsted, Vestas, and Siemens Gamesa Renewable Energy actively participating in the sector. The government has set ambitious targets to increase installed capacity significantly by 2030 and 2050, with substantial investments planned in both floating wind projects and manufacturing facilities. These initiatives are part of a broader strategy to enhance energy security and reduce dependence on foreign energy sources, particularly in light of geopolitical tensions. The market's growth trajectory is further bolstered by joint ventures and partnerships, such as those between Shell plc and Scottish Power Ltd., which aim to develop large-scale floating offshore wind farms.
United Kingdom Offshore Wind Energy Market Size - Table of Contents
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1. MARKET OVERVIEW
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1.1 Introduction
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1.2 Renewable Energy Installed Capacity and Forecast in GW, till 2027
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1.3 Recent Trends and Developments
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1.4 Government Policies and Regulations
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1.5 Market Dynamics
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1.5.1 Drivers
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1.5.2 Restraints
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1.6 Supply Chain Analysis
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1.7 PESTLE Analysis
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2. MARKET SEGMENTATION
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2.1 Foundation Type
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2.1.1 Fixed Foundation
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2.1.2 Floating Foundation
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2.2 Capacity
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2.2.1 Less Than 5 MW
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2.2.2 Greater Than or Equal to 5 MW
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United Kingdom Offshore Wind Energy Market Size FAQs
What is the current United Kingdom Offshore Wind Energy Market size?
The United Kingdom Offshore Wind Energy Market is projected to register a CAGR of greater than 13.5% during the forecast period (2024-2029)
Who are the key players in United Kingdom Offshore Wind Energy Market?
Ørsted, Vestas , Siemens Gamesa Renewable Energy, S.A., , EDF Renewables and GE RENEWABLE ENERGY are the major companies operating in the United Kingdom Offshore Wind Energy Market.
