Offshore Wind Turbine Installation Vessels Market

Offshore Wind Turbine Installation Vessels Market Outlook 

“Expected to exceed the valuation of US$5 Bn by 2022 end, the global offshore wind turbine installation vessels market size is anticipated to experience more than 2x expansion through 2027. The Fairfield Market Research report forecasts the market revenue to surpass US$13.4 Bn by the end of forecast period.”

Installation Vessel Service Providers to Add New Fleets to Get New Orders as Demand Escalates

Year-on-year additions of offshore wind capacities has resulted in shortage of installation vessels. In 2021, more than 6.0 GW of new offshore winds were added. Currently, there are limited offshore wind turbine installation vessels in operation. Wind turbine installation vessels (WTIVs) are essentially designed to lift, load, transport and install the offshore wind turbine foundations. With investments in offshore wind power projects heightening each year, it will fuel the growth of global offshore wind turbine installation vessels market.  

Race to a Carbon-neutral Economy to Boost Demand for Wind Energy

Demand in global offshore wind turbine installation vessels market is driven by offshore wind power investments. Offshore wind today is only 2% of what the world needs to get to net zero by 2050. Offshore wind has the biggest growth potential of any renewable energy technology as majority of countries have identified offshore wind as a key technology for reaching climate targets. Furthermore, technological advancements in offshore wind turbine installation services, have aided in safe installation of the wind turbines in the deep offshore areas. Expansion of the offshore wind farms from the coast far towards into the sea is likely to be incremental in the coming years.

The key challenges such as offshore wind policies, investment scale-up, government support and fundings, etc. Increasing complexity of future projects due to larger sizes, deeper waters, and longer distances from shore will continue to put pressure on costs, creating new risks for developers and engineering, procurement, and construction (EPC) companies. The COVID-19 outbreak has resulted in delayed funding for several offshore wind power projects between 2019-2020. Moreover, service, maintenance, and repair activities of several offshore wind turbines were delayed due to unavailability of spare parts and labour.

Increasing Orders of Large Capacity-based Wind Turbines to Trigger Demand for Heavy-lift Vessels for Installation Services

Based on vessel type, the market is divided into self-propelled jack up, normal jack-up, and heavy-lift vessel. In terms of vessel type, normal jack up rig dominated and constituted 66.7% of the global offshore wind turbine installation vessels market in 2021. High market share is attributed to growing utilization of normal jack up vessels for 2-8 MW turbine installation for offshore wind power. In terms of CAGR, heavy lift vessel is expected to grow at a higher rate when compared to other types. Growing demand for high-capacity turbine in the offshore wind industry is expected to witness surge in the utilization for heavy lift vessels for turbine installation. In the offshore wind power industry, the trend is shifting toward large turbines due to growing investments in high capacity based offshore wind farms. This is expected to shift demand from self-propelled jack-up vessels to heavy lift vessels for offshore wind turbine installation activities soon. Heavy lift vessel is utilised for lifting and installing high and ultra-high-capacity turbine in the offshore wind industry as well as in oil and gas industry.

Europe, and Asia Pacific to Register Strong Growth in Offshore Wind Turbine Installation Vessels Market by 2027

In 2021, Europe dominated the global offshore wind turbine installation vessels market and constituted 48.7% share. Asia Pacific follows behind Europe. Europe has the potential to realise up to 3,400 TWh of offshore wind energy within its waters in 2030. The ongoing Russia-Ukraine war is expected to hamper Europe’ energy supply as the region is highly dependent on crude oil/natural gas imports from Russia. Investment surge in renewable energies, especially wind power is expected to minimize demand-supply gaps. This is likely to benefit the overall demand for installation vessels. In North America, the US is planning a significant investment in offshore wind development in the next few years. The Biden administration plans to thousand of offshore wind turbines by 2030. The Departments of Energy, Interior and Commerce US wants to expand offshore wind capacity to 30 gigawatts (GW) by 2030. Majority of offshore wind turbine installation vessel fleet owners are beginning to target U.S. to increase their market share.

In Asia Pacific, China dominates the offshore wind turbine installation vessels market. India has 17 offshore wind farm projects of which none currently operating. However, India can generate 127 GW of offshore wind energy with its 7,600 km of coastline. As per Global Wind Energy Council (GWEC), the Asian offshore market is expected to have installed nearly 100 GW of offshore wind capacity by 2030. In Middle East & Africa, and Latin America, offshore wind turbine installation vessels market is expected to remain moderate. Columbia, Brazil, and UAE are key nations beginning to invest in offshore wind power. In May 2022, the Colombian Government launched the country’s Offshore Wind Roadmap. BlueFloat Energy revealed it has seven offshore wind projects under development in the country. This is just half of what the company plans in South America since there are also seven projects the Spanish developer is planning offshore Brazil.

Global Offshore Wind Turbine Installation Vessels Market: Competitive Landscape

The top five players constitute more than 45% of offshore wind turbine installation vessels market. Some of the key players involved in offshore wind turbine installation vessels market, include CADELER, Eneti Inc., Fred. Olsen Windcarrier, Seafox, Van Oord, JACK-UP BARGE, A-2-Sea Solutions Limited, MPI Offshore, and Seajacks.

• On May 2022, Van Oord awarded contract for large-scale USA offshore wind project. The consortium between Van Oord and Great Lakes Dredge & Dock (GLDD) has been selected by Empire Offshore Wind, a joint venture between Equinor and bp, as main contractors for subsea rock installation works related to the development of Empire Wind I & II.
  
  
• In August 2021, Eneti Inc. announced its acquisition of Seajacks to become the leading owner and operator of WTIV’s. Seajacks operates as a stand-alone company within Eneti, and the existing Seajacks management team remains in place.

The Global Offshore Wind Turbine Installation Vessels Market is Segmented as Below:

By Vessel Type Coverage

• Self–propelled jack up
• Normal jack up
• Heavy lift vessel

By Geographical Coverage

• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• Denmark
• Belgium
• Netherlands
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• ASEAN
• Rest of Asia Pacific
• Rest of the World (RoW)
• Columbia
• Brazil
• Others

Leading Companies

• CADELER
• Eneti Inc.
• Olsen Windcarrier
• Seafox
• Van Oord
• JACK-UP BARGE
• A-2-Sea Solutions Limited
• MPI Offshore
• Seajacks
• Others

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