Offshore Wind Energy Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 35.34 Billion
Forecasted Value (2030)
USD 72.35 Billion
CAGR (2023 - 2030)
Fastest Growing Region (2023 - 2030)
Turbines, Electrical Infrastructure, Substructure, Others
By Power Capacity
Up to 3 MW, 3MW - 5 MW, Above 5 MW
The global Offshore Wind Energy Market was valued at USD 35.34 billion in 2022 and is projected to reach USD 72.35 billion by 2030, growing at a CAGR of 10.70% from 2023 to 2030.
Governments worldwide are actively working towards reducing carbon emissions and promoting sustainability. To achieve this, governments are allocating significant funds towards renewable energy sources such as wind and solar power. As a result, there has been a substantial increase in the generation of electricity from wind energy in recent years. The Indian Union Ministry of New and Renewable Energy (MNRE) has set ambitious targets of installing 5 GW and 30 GW offshore wind capacity by 2022 and 2030, respectively. The World Economic Forum predicts that the offshore wind market will reach a staggering value of USD 1 trillion by 2040. Consequently, both public and private investments in the offshore wind market have greatly contributed to its impressive compound annual growth rate (CAGR) worldwide in recent years.
Analyst’s Review on Offshore Wind Energy Market
Multiple nations worldwide are strategically allocating substantial funds toward clean energy solutions in order to ensure a reliable and sustainable energy supply for the future. These investments are a response to evolving global energy requirements and the need to transition to renewable energy infrastructure. As per the International Energy Agency (IEA), countries have collectively invested more than USD 1.2 trillion in clean energy projects since the onset of the COVID-19 pandemic. Furthermore, there is a growing emphasis on tightening emission regulations which, in turn, creates significant opportunities for business expansion. In November 2022, the U.S. Department of Energy received substantial funding of USD 550 million from the Biden-Harris administration. This initiative aims to support clean energy ventures, reduce energy costs, and benefit over 250 million Americans.
The offshore wind energy market is a crucial player in the global pursuit of renewable energy targets. Countries worldwide are actively developing and implementing regulations to enhance the feasibility of offshore wind power as a clean energy solution. Moreover, the advent of cutting-edge technologies has led to substantial improvements in the efficiency of wind power generation, while simultaneously driving down installation costs, resulting in negative growth.
The offshore wind energy market is poised to depict significant expansion, driven by the growing demand for renewable power sources and a heightened focus on reducing the global carbon footprint. Governmental organizations and power corporations are actively pursuing measures to decrease carbon emissions, further fueling market growth.
In line with the objectives of the Paris Agreement, IRENA (International Renewable Energy Agency) emphasizes the need for renewable energy to increase its share from the current 25% to 86% in global power generation by 2050. Bloomberg BNEF forecasts that an estimated USD 13.3 trillion will be invested in new production assets, with wind and solar power expected to contribute to half of the global electricity generation by 2050.
Furthermore, the increasing global installation of offshore wind turbines is expected to be a major driver for the growth of the offshore wind energy market. This trend reflects the industry's recognition of the immense potential and competitiveness of offshore wind power as a reliable and sustainable source of electricity.
The offshore wind power industry is experiencing a rapid rise in investments, driven by supportive government policies and the increasing focus on offshore wind energy. Governments around the world are recognizing the potential of offshore wind as a clean and renewable energy source, and they are implementing policies to encourage its development. These policies include financial incentives, feed-in tariffs, and streamlined permitting processes, all aimed at attracting investment and facilitating project development. Additionally, the combination of supportive government policies and the significant investment influx has led to a surge in offshore wind power projects. The declining costs of wind energy have also played a vital role in this growth. Advanced technologies, economies of scale, and increased competition have contributed to cost reductions, making offshore wind energy more economically viable. Overall, the alignment of supportive government policies with the attractiveness of offshore wind energy has sparked significant growth in investments and project development, driving the offshore wind power sector forward and contributing to the global clean energy transition.
The development of offshore wind energy is hindered by high capital costs and logistical challenges. Offshore wind projects require substantial upfront investment due to the complexity and scale of the installations. Manufacturing, transporting, and installing turbines in offshore environments incur higher costs compared to onshore wind farms. Additionally, logistics pose a challenge, as accessing remote offshore sites, dealing with harsh weather conditions, and ensuring worker and equipment safety add to the complexity and expenses involved. Despite these hurdles, efforts to optimize the supply chain, improve installation techniques, and reduce costs through innovation and economies of scale are ongoing. Governments and industry stakeholders are collaborating to address these challenges and facilitate the growth of offshore wind energy, given its potential for clean electricity generation and carbon emissions reduction.
The global offshore wind energy market is segmented based on product, foundation, power capacity, and geography.
Based on components, the offshore wind energy market is bifurcated into turbines, electrical infrastructure, substructure, and others. The turbines segment held the largest market share in 2022 due to the significant utilization of turbines for power generation. Wind turbine components were transported by ships and barges, allowing for the construction of larger turbines capable of producing more electricity. This trend was driven by the growing adoption of offshore wind platforms that can float, enabling deep-water installations. Offshore wind energy projects were also developed along the coasts of various countries, including the United States, where significant potential was identified. The offshore wind industry witnessed advancements in research, technology, and collaboration with government entities to address unique challenges such as environmental impacts, logistical considerations, and infrastructure development. Additionally, major energy players like Siemens Gamesa played a significant role in the growth and future of the offshore wind sector.
Based on foundation, the offshore wind energy market is categorized into fixed and floating. The floating segment accumulated the largest market share in 2022. The emergence of floating wind farms represents a highly promising advancement within the ocean energy sector. The utilization of floating foundations brings forth valuable opportunities such as accessing sites with water depths exceeding 50 meters and facilitating convenient turbine installation, even in mid-depth conditions ranging from 30 to 50 meters. Furthermore, the growth of floating wind energy production has primarily been witnessed in Asia and Europe, positioning these regions at the forefront of the global floating offshore energy market, particularly in shallower waters. As a result, commercial projects utilizing floating foundations are gradually entering the market, contributing to the expansion and commercialization of this transformative technology. The floating offshore wind energy sector boasted operational projects with a cumulative capacity of 123.4 MW. Among these projects, Europe accounted for the majority, with seven installations totaling 112.9 MW, while Asia claimed three installations with a combined capacity of 10.5 MW.
Based on power capacity, the offshore wind energy market is bifurcated into Up to 3 MW, 3MW - 5 MW, and Above 5 MW. The 3MW - 5 MW segment held the largest market share in 2022 due to rising acceptance among different applications. This is primarily attributed to the well-established technology and cost-effectiveness associated with these turbines. However, there is a notable shift in the industry towards deeper installations and the implementation of floating structures. As a result, there is a growing preference for wind turbines with higher power ratings, as they enable more energy-efficient and economically viable offshore wind power generation.
Based on region, the global offshore wind energy market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
North America dominated the market in 2022 due to a remarkable surge in the development of offshore wind energy. Policy support played a crucial role in driving the growth of offshore wind in North America. Governments at both the federal and state levels implemented favorable regulations and incentive programs to encourage the deployment of offshore wind farms, paving the way for a sustainable energy future. The offshore wind sector's developments in North America also had a positive economic impact. These projects created job opportunities across the entire value chain, including manufacturing, installation, and ongoing maintenance, boosting local economies and supporting the transition to a green energy economy. For instance, in 2022, the United States government stated that offshore wind energy project development and operational pipeline expanded in the U.S., reaching a potential generating capacity of 40,083 megawatts (MW).
The global offshore wind energy industry study report will provide valuable insight with an emphasis on the global market and market is highly fragmented. Major players are focusing on some effective strategies such as partnerships, mergers and acquisition, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. These tactics involve investments in R&D, new manufacturing facilities, and supply chain optimization. The major manufacturers in the offshore wind energy market are:
- General Electric
- Equinor ASA
- Iberdrola, S.A.
- Mitsubishi Heavy Industries, Ltd
- Naval Group
- Nordex SE
- MODEC, Inc.
- July 2023 (Development): The first green megawatts generated from Iberdrola's Saint-Brieuc offshore wind farm was successfully integrated into the French national electricity grid by RTE, the project's manager. This venture represents Iberdrola's first project in France and is the second offshore wind project in the country to begin producing power.
- February 2023 (Partnership): Siemens Gamesa and Doosan Enerbility have entered into a strategic partnership to strengthen the offshore wind market in South Korea. The partnership will bring numerous advantages, including the establishment of efficient and eco-friendly local assembly capabilities and the creation of job opportunities within South Korea's offshore wind market.
- December 2022 (Partnership): General Electric renewable energy signed a strategic partnership agreement with Hyundai Electric to expand the growth of offshore wind in South Korea. The agreement was purposed to set up a manufacturing facility in South Korea to produce nacelles and generators for Haliade X turbines. There is also a possibility of utilizing the South Korea site to export generator components.
- June 2021 (Acquisition): Saipem and Naval Energies, a subsidiary of Naval Group, entered into a formal agreement for the purchase of Naval Energies floating wind business. This acquisition includes Naval Energies' valuable engineering expertise in the field of floating units, intellectual property rights, and around thirty skilled professionals specializing in modeling and simulation.
The global Offshore Wind Energy Market is segmented as:
- Electrical Infrastructure
By Power Capacity
- Up to 3 MW
- 3MW - 5 MW
- Above 5 MW
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America