Offshore wind foundations segment is expected to witness revenue growth at a CAGR of 14.9% from 2016 to 2024, making it the fastest growing segment for wind energy foundations over the forecast period on account of increasing offshore installations coupled with technological innovations, according to a new report by Grand View Research, Inc.
Overall, the demand for wind energy foundations was USD 73.46 billion in 2015, with offshore wind foundations market attracting USD 21.45 billion in revenues last year.
In the offshore category, monopile foundations accounted for 35.6% of the global market share in 2015, making them the largest segment in offshore category.
The offshore category is segmented into monopile, jacket –pile, gravity, suction, and tripod. Jacket-pile is expected to be the fastest growing segment at a CAGR of 15.8% over the forecast period. It is specially used in deep water technology on account of being light weight and easy for installation. Monopile is the largest segment in this category and is used in several ongoing projects and seabed structures for sustainable energy production in Europe.
Increasing need to secure energy security and growing concerns about onshore wind farms is a major factor propelling the expansion, according to the report.
The global wind energy foundation market is expected to reach USD 241.14 billion by 2024, the report says.
Wind energy is gaining momentum over the past few years on account of major capacity additions owing to the declining prices, according to the report.
Recently, there have been dramatic reductions in costs on account of increasing research and development. Growing demand for expansion of electricity generation and access is expected to be a major driver for the industry over the forecast period, the researchers say.
Strong government initiatives and subsidies for the development of renewable energy are also expected to be crucial factors for the growth of the industry over the forecast period.