Offshore Wind Market Size, Share, Growth, and Industry Analysis, By Type (Turbine, Substructure and Electrical Infrastructure), By Application (Shallow Water, Transitional Water and Deep Water), and Regional Forecast to 2033

OFFSHORE WIND MARKET OVERVIEW

The Global offshore wind market size was USD 45605.03 million in 2024 and the market is projected to touch USD 147895.61 million by 2033, exhibiting a CAGR of 12.3% during the forecast period.

The offshore wind industry has been leaping up in growth because of the varied convergence of technology advancements, government policies, and the global movement towards renewable energy sources. The construction of offshore wind farms that build wind turbines in the ocean is now one of the critical components of many national clean energy programs. With the pouring of investment, turbine technology improved-onward with the lowering phase of product prices; the market now attracts more from both developed-in and developing-in countries. Empowered by the global conversation around global warming's effects, the demand for clean energy solutions—offshore wind among them—is surging, with wind power at the very heart of global energy supply. In this, offshore wind has been planted as one of the fundamental enablers of the global clean energy transition.

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GLOBAL CRISES IMPACTING OFFSHORE WIND MARKET- COVID-19 IMPACT

"Offshore wind sector faced disruptions, but market growth remains viable"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The offshore wind sector suffered from some harsh aftereffects during the COVID-19 pandemic, owing to long disruptions in manufacturing, construction, and logistics. Many offshore wind farm projects could not meet set deadlines due to travel restrictions and lockdowns, causing work to be temporarily halted. Apart from other interruptions, there was a shortage of some very important components, for instance, turbines and substructures. This added to the delay in advancing construction activities. Additionally, the wavering economic environment and changes in government priorities toward spending on renewable generation projects dimmed investments in new projects. Irrespective of the issues, offshore wind has a point of long-term viability since governments are focusing more on renewable energy solutions for economic recovery post-pandemic.

LATEST TREND

"Floating wind turbines are expanding offshore market growth in deeper waters"

A large global trend in the offshore wind market is the development of floating wind turbines, which are to be installed in much deeper waters compared to traditional fixed-bottom turbines. This technology allows energy generation in areas that previously could not be reached, greatly enhancing the geographic spectrum of capabilities for offshore wind farms. With the floating wind technology gaining momentum, particularly in regions with deep coastal waters where fixed-bottom turbines cannot be installed, this transition is expected to expedite the growth of the offshore wind industry, giving it access to extensive new areas for energy generation. With time and developing technology, we will witness floating wind farms coming as acceptable alternatives in offshore wind energy generation.

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OFFSHORE WIND MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Turbine, Substructure and Electrical Infrastructure

• Turbine: Turbines are the most important component of the offshore wind farm, as they directly convert wind energy into electricity. The technological advances in turbine design focus on increasing the turbine size, efficiency, energy retrieval, and cost reduction. Bigger and stronger turbines are a key trend that has contributed to increased capacity and output of energy. These developments are making offshore wind energy more competitive with other energy generation while simultaneously decreasing the price of the production of renewable offshore wind energy. The next generations of the turbines could promise other boosts in efficiency, with these machines poised for market dominance well into the future.

• Substructure: A substructure for an offshore wind turbine serves the purpose of providing stability and longevity in this realm of harsh marine environments. Improvements in foundation designs, including monopiles, jackets, and floating substructures, are driving the offshore wind industry forward. The design of substructures is being made more versatile, as the new floating platform technology allows businesses to place turbines in deeper waters where traditional fixed-bottom foundations would be impractical. Such advances are indeed opening up major new markets and improving the overall reliability and efficiency of offshore wind energy projects. The further deep-sea penetration will reinforce the role of subsea structure due to the increasing dependency on it for facilitating offshore wind farms.

• Electrical Infrastructure: Electrical infrastructure encompasses the components required to transmit electricity generated by the offshore wind turbines to the onshore grid. Such includes subsea cables, substations, and transformers, which enable long-distance transmission of energy with confidence. With the applications of HVDC technology, the efficient transmission of energy as required has increased significantly, especially for the offshore wind farms positioned far from the coast.Currently, with the scaling up of offshore wind projects into deeper waters, it is necessary to have a fully fledged and sophisticated electrical infrastructure that can incorporate all of the energy generation and ensure grid stability. 

By Application

Based on application, the global market can be categorized into Shallow Water, Transitional Water and Deep Water

• Shallow Waters: Shallow water applications are those that have reached the highest level of development for offshore wind energy generation and develop, typically, at a depth of no more than 60 meters. Such sites are attractive for offshore wind farms because of their proximity to shore and consanguineous wind flow; hence, the production of energy is feasible. Fixed-bottom turbines are common within these shallow waters because they have less capital to install and are easy to anchor to the seabed. These projects are further developed with many countries already investing and operating offshore wind farms in shallow waters across the globe. Further development of shallow water projects will significantly add to the growth of the global offshore wind market.

• Transitional Water: Transitional water between 60-200m is more complex because of offshore wind-farm installation conditions. The application of more sophisticated technologies, such as floating platforms, is needed to put turbines into deeper waters where fixed-bottom foundations are not feasible. The use of floating wind turbines is fast becoming a solution to approach such areas of the transitional water, permitting the construction of offshore wind farms in places previously never accessible. Growing studies of offshore wind farms in transitional waters will play a formative role in developing the industry, especially in regions with deeper coastlines. Floating wind technology continues to receive investments to propel development in this segment.

• Deep Water: Deep-water applications include offshore wind farms that are situated in water bodies that are greater than 200 meters in depth. Lately, floating wind turbines have shown great potential in penetrating such markets. These floating wind turbines are moored onto the ocean bed, which will facilitate the production of wind energy in regions that seemed unreachable by the standard offshore wind turbines. Equally, the emergence of floating wind technology has allowed for the expansion of deep-water projects that happen to be a major upcoming subsector in the offshore market. Wind energy from offshore turbines will be very beneficial as more nations and firms deploy such deep-water projects. This means the same scale of project in other parts of the world is now possible. The achievement of such projects will rely on the enhancement of floating turbine technology and the infrastructure.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.    

Driving Factors

"Technological Advances"

Technological advances are the significant factor influencing the growth of the offshore wind market. For instance, advances in turbine design, such as the use of larger blades and more efficient generators, increase the capture of energy and decrease overall costs significantly. It is a major change to create floating wind turbines, as they will allow offshore wind farms to be sited in deeper waters where traditional fixed-bottom turbines cannot function. Moreover, innovation related to the use of floating platforms, like other substructure breakthrough improvements, extends the offshore wind project's capacity in areas that had been inaccessible for a period of time. This makes technology advancement in offshore wind more competitive with traditional power sources and therefore also globally encourages its use.

"The Government Policies and the Targets to Achieve Sustainability"

Government policies and sustainability targets are major driving forces for significant growth in the global offshore wind market. Given the ambitious renewable energy targets set by countries worldwide, offshore wind energy will act as the game changer in meeting such targets. Governments are offering financial motivations such as various subsidies, tax breaks, and grants in support of the facilities needed to establish the wind farms offshore. Several governments also offer legislation to encourage long-term investments in renewable energy infrastructure, which further augments the market. On the other hand, increasing the need for clean energy, government support for offshore winds is the key driver in growth.

Restraining Factor

"High capital expenditure and financing challenges hinder offshore wind market growth"

One major challenge in the Offshore Wind Market Growth is the high capital expenditure required to start offshore wind farm projects. The cost of passing turbines, substructures, and electrical infrastructure suspensions of boats is too high, and therefore, with the long payout period of these projects, the investor's drive is less. Despite the decline in cost over time, it is still a barrier, particularly for smaller developers or other countries with fewer financial resources. Furthermore, the challenges in financing can become more complex because of the peculiarities of the offshore wind projects—for example, the need for sophisticated equipment and skilled labor, and often logistical expertise. These money-related obstacles not only reduce the pace of development of the market but also its effectiveness, especially regarding emerging markets.

Opportunity

"Floating wind technology drives market growth by enabling deeper offshore energy"

A critical opportunity for the offshore wind industry presents itself in floating wind turbines. In effect, because floating wind farms can access deeper waters for energy generation than fixed-bottom wind farms, the necessary precondition for opening up vast new areas for offshore wind energy production-deep enough coastal waters across different regions of the world-would thus be realized. As this technology improves and becomes more affordable, it will surely fuel further growth in the offshore wind market, especially in regions where shallow water sites have already been saturated. Floating wind technology is one of the best opportunities to expand the offshore wind sector and contribute to the global renewable energy targets.

Challenge

"Delays in environmental permits may impede market growth for offshore wind"

The assessment of environmental impacts may take many months, coupled with the requirement of obtaining permission and consultation among other stakeholders. The entire procedure for obtaining such permits might, therefore, become a pretty time-consuming process especially in areas that have very stiff environmental requirements or in areas which are characterized with other industries, such as fishery and maritime industries. This could slow up the development rates of offshore wind farms, so regional market expansion could be impeded in various areas. And to speed this up, we have indeed to make our regulatory processes much smoother and establish more definitive guidelines that would see offshore wind projects clear more speedily.

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OFFSHORE WIND MARKET REGIONAL INSIGHTS

North America

"North America's offshore wind market growth is driven by innovation and investment"

North America, and more particularly the United States, leads the offshore wind market due to huge investments in renewable energy. The United States  Offshore Wind Market is really taking off with support from the government and increasing commitment to clean energy. Offshore wind projects are expanding along the East Coast, including Vineyard Wind and Ocean Wind, which are some of the initiatives that lead the charge. North America has enormous potential to emerge as a leading player in the global offshore wind landscape, due to the available space for offshore development. With such rapid growth, the U.S. has emerged as an important hub of innovation and expansion in the global offshore wind space.

Europe

"Europe leads offshore wind market growth with strong policy and investments"

Europe is at the helm of the Offshore Wind Market Share and is playing an important role in the development of the industry. The European Union has set ambitious targets for renewable energy and offshore wind energy will play a critical role in the realization of these targets. Leading players in this include the UK, Germany, Denmark, and the Netherlands, which have already initiated large-scale offshore projects. The EU has a strong policy and financial support with significant investments in offshore wind infrastructure, making its transition to green energy. As such, Europe's well-established offshore wind market continues to set the global standard in both capacity and technological advancements.

Asia

"Asia’s offshore wind market growth is driven by investments and innovation"

Asia is stepping up as a major force in the offshore wind market, marked by substantial investments and swift growth in leading countries such as China, Japan, and South Korea. China stands out as the biggest offshore wind market globally, showcasing impressive developments in both fixed-bottom and floating wind farms. Meanwhile, Japan and South Korea are ramping up their offshore wind initiatives, bolstered by solid government backing and ambitious sustainability goals. With the demand for clean energy on the rise, Asia’s offshore wind sector is anticipated to keep expanding, fueled by new projects and technological advancements that are crucial to the region's shift towards greener energy.

 KEY INDUSTRY PLAYERS

"Offshore wind industry growth driven by innovation, partnerships, and market expansion"

Major companies in the offshore wind industry, like Ørsted, Siemens Gamesa, Vestas, and GE Renewable Energy, are fueling growth through ongoing innovation and smart partnerships. These firms are at the forefront of developing advanced turbine technology, refining offshore construction techniques, and enhancing energy transmission systems. Their focus on cutting costs and boosting efficiency has made offshore wind a viable competitor to traditional fossil fuels. Moreover, these key players are expanding their global reach, landing significant contracts, and helping build up offshore wind infrastructure. Their knowledge and investments are not just shaping the future of the offshore wind sector, but they’re also speeding up its expansion.

List Of Top Offshore Wind  Companies

• Adwen (GERMANY)
• Ming Yang Smart Energy (CHINA)
• Doosan Heavy Industries (SOUTH KOREA)
• General Electric (U.S)
• Mhi Vestas Offshore Wind (DENMARK)

KEY INDUSTRY DEVELOPMENT

June 2021: In June 2021, Ørsted and Eversource teamed up to kick off the South Fork Wind project off New York's coast, marking a major advancement in the U.S. offshore wind sector. This initiative aims to provide renewable energy to thousands of households, reinforcing Ørsted's status as a front-runner in offshore wind development. South Fork Wind is among the first large offshore wind farms in the U.S., showcasing the rising significance of offshore wind in achieving national renewable energy targets. The project's launch underlines the expanding role of offshore wind in the U.S. energy transition and is anticipated to boost the growth of more offshore wind projects across the nation.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This research report examines the segmentation of the market by using both quantitative and qualitative methods to provide a thorough analysis that also evaluates the influence of strategic and financial perspectives on the market. Additionally, the report's regional assessments consider the dominant supply and demand forces that impact market growth. The competitive landscape is detailed meticulously, including shares of significant market competitors. The report incorporates unconventional research techniques, methodologies and key strategies tailored for the anticipated frame of time. Overall, it offers valuable and comprehensive insights into the market dynamics professionally and understandably.