LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the global wind energy cables market to grow at a CAGR of more than 7% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the global wind energy cables market for 2017-2021. The report also segments the market based on the type of wind energy, which includes onshore wind energy and offshore wind energy. The offshore wind energy segment accounted for more than 70% of the market share in 2016.
According to Anju Ajaykumar, a lead analyst at Technavio for unit operations research, “The global wind energy cables market is expected witness steady growth during the forecast period. Rapid urbanization and growing population have led to an increase in the demand for electricity. In addition, governments are taking initiatives to reduce carbon emissions by encouraging renewable energy resources such as wind power. This is expected to propel the market for wind energy, thereby driving the demand for wind energy cables.”
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the global wind energy cables market:
- Growing demand for power
- Increasing investments in offshore wind turbines
- Decline in the LCOE in wind power
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Growing demand for power
The global population is growing at an exponential pace which is leading to an increase in the demand for power. The growing need for power can be met with the help of renewable energy, owing to growing concerns about environmental pollution from fossil fuels. As a result, most countries are shifting their focus to renewable power generation, thereby driving wind power generation. The global wind power market is growing significantly and expanding in all geographic regions. It is expected that by 2020, wind power will be a significant contributor the global energy mix.
“Technological advances have led to a decline in the prices of wind turbines, thereby making it a cost-effective way of generating power. The rapidly falling cost of wind turbines has led to a worldwide increase in the adoption of wind farms, both onshore and offshore. This is expected to drive the demand for the wind energy cables market during the forecast period,” says Anju.
Increasing investments in offshore wind turbines
Offshore wind turbines can produce more energy using fewer turbines than conventional onshore wind turbines. Nearly 70% of the new installed capacity in offshore wind farms is in Europe. The strategic shift toward renewable power generation in the EU countries is to meet the 2020 target of reducing greenhouse gas emissions by 20% and improving the share of renewable power generation by 20%. Due to the growing preference for renewable power and the need to reduce carbon emissions, the wind power sector is expected to grow significantly during the forecast period. Growing investments in offshore wind generation are expected to drive the demand for wind energy cables.
Decline in the LCOE in wind power
The cost of generating electricity from renewable energy, particularly from onshore wind farms, has substantially declined over the years. The levelized cost of energy (LCOE) in onshore wind farms has continuously declined even in the absence of subsidies, thereby enhancing its competitiveness. The LCOE is less than that of a combined-cycle natural gas plant.
Cost-effective energy storage technologies will find high applications across the power grid and could provide an alternative to gas-fired plants, thereby increasing the utility and profitability of renewable energy generation. Many leading industries are developing utility-scale wind projects and solar projects, which will increase the capacity and aid in meeting the needs of the grid. This makes wind power projects the most economical option among all renewable energy technologies.
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