During the next five years, the production of offshore wind farms will far outpace the production of land-based wind turbines, according to a new market report.

Guiding the accelerated interest in offshore wind initiatives are government cash and tax incentives that promote renewable energy development, particularly in Europe and the United States, according to research firm SBI Energy.

In addition, the ongoing improvement in the quality of offshore wind products that can withstand stronger gusts, reduce maintenance cycles, and reduce the shipping expenses of turbines to offshore job sites are also vital to the market’s future. Meanwhile, offshore wind manufacturers will fuel growth by finding ways to reduce costs associated with offshore projects, which will subsequently attract greater investment from governments and private energy companies.

“Our analysts project that total offshore installed capacity will grow at an astounding 92% compound annual growth rate during the next five years to reach more than 79,700 megawatts,” says Shelley Carr, publisher for SBI Energy.

The current $47 billion total for offshore wind manufacturing represents 8% of the combined $566 billion global offshore and land-based wind energy manufacturing industry, a solid performance considering the challenges of financing offshore wind farms due to the lingering financial crisis.

Offshore manufacturing represents a sizeable percentage of total wind energy manufacturing for several nations, including India (20%) and China (17%). However, the U.S. has thus far approached offshore manufacturing conservatively with only 2% of its sales going to offshore production.

China is currently the global leader in generating sales for offshore wind energy manufacturing initiatives, garnering a 61% share of the market. Not surprisingly, multinational manufacturers are responding to the rapid growth of China’s offshore market by building turbine factories in the country, according to SBI Energy analyst Darren Bosik. Conversely, European-based companies lead the world in onshore wind energy manufacturing with a 34% market share.

The report "Offshore Wind Farm Manufacturing Worldwide" investigates the global activities affecting the development of offshore wind farms, such as public policy affecting growth and innovative developments in products and technologies. The report includes market value of offshore wind energy manufacturing by country, 2006 to 2015, including manufacturing of turbines, turbine components, and seabed foundation materials. Profiles of key offshore wind turbine manufacturers are also provided.

Reprinted with permission from Sustainable Business