Increasing support of governments for projects will positively impact the global Offshore Substation market at a CAGR of 6.1% during the forecast period 2024 to 2032

Market Research Future (MRFR) has published on the “Global Offshore Substation Market”.

The Offshore Substation market is estimated to register a CAGR of 6.1% during the forecast period of 2024 to 2032.

MRFR recognizes the following companies as the key players in the global Offshore Substation market— General Electric, Siemens Energy, Petrofac Limited, Burns & McDonnell, HSM Offshore Energy BV, Hitachi Energy Ltd., ABB, and others.

Offshore Substation Market Highlights

The global Offshore Substation market is accounted for to register a CAGR of 6.1% during the forecast period and is estimated to reach USD 9,916.8 million by 2032.

The growth in offshore wind power generation is a key driver, as countries worldwide are increasingly turning to offshore wind farms to meet renewable energy targets. This trend is fueled by the need for sustainable energy sources and the abundant wind resources available at sea. Additionally, the increasing infrastructure development in developing countries is creating opportunities for offshore substations as part of their energy transition plans.

Offshore wind power is an emerging, fastest-growing renewable energy source that is driven by various factors. Onshore wind power is a proven and mature technology with an extensive worldwide supply chain. Technology has improved with more giant wind turbines featuring taller hub heights and larger rotor diameters, improving the efficiency and output of offshore wind farms. According to IEA, worldwide wind electricity generation was up 265 TWh to just over 2100 TWh making it second behind solar PV as the highest growing global renewable power technology in 2022. To achieve such levels according to Net Zero Emissions by 2050 Scenario that assumes around 7400 TWh of wind electricity generation in 2030, average annual growth rate should increase significantly up to about 17%. This implies an additional increase per year of over three times –from around seventy-five gigawatts (GW) in 2021 to three hundred fifty GW by the end of 2030. China was number one with thirty-seven gigawatts (GW) added including seven gigawatts (GW) of offshore farms or total additional capacity additions being about fourteen gigawatts (GW).

The European Union also accelerated its implementation plan due to the energy crisis so that it added thirteen gigawatts (GW). The United States will see a boost in medium term deployment following increased funding for wind power through Inflation Reduction Act. In addition, Great Britain showed significant progress after having installed almost three GW of the world combined outside of China.

Fast growth in the generation of electricity from wind power over the ocean is creating demand for the necessary infrastructure of an offshore substation to collect and transmit the generated electricity to onshore grids. The market is expected to continue as a part of the trend in which offshore wind power plays an essential role in the shift to using renewable sources of energy to achieve net-zero emissions targets around the world.

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Segment Analysis

The global Offshore Substation market has been segmented based on  Type, Voltage, Application, and Region.

The global Offshore Substation Market segmentation, based on type has been segmented into segmented into HVDC, and HVAC. Among these, the HVDC is projected to dominate the global Offshore Substation market revenue through the projected period, followed by the HVAC holding the second-largest segment by type in the global Offshore Substation market, and its prominence can be attributed to its widespread adoption across a spectrum of industries and applications. The key to its popularity lies in its ability to be used for the creation and usage of wind farms. HVDC is not constrained in terms of distance as is AC transmission because it does not experience charging current problems. This makes HVDC ideal for long-distance energy transport because the energy losses are greatly reduced compared to HVAC.

The voltage has been segmented into 170 kV, 245 kV, 72.5 kV, 123 kV, 145 kV,400 kV and above 400 kV.

In application segment, the market is categorized Wind Farms, Oil & Gas, and Others. Out of which the Oil & Gas segment held the maximum share in the base year market and is also expected to be holding a significant share in the forecasted period as well. This high share of the Oil & Gas segment is owing to the strong need for linking oil and gas infrastructure to the electrical network.

Regional Analysis

By Region, the Offshore Substation market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Europe Offshore Substation market holds the considerable market share and is also forecasted to hold the largest share during the forecast period. The European offshore substation market is growing steadily because of record-breaking developments in the field of offshore wind energy. In 2023, Europe installed 4.2 GW new offshore wind capacity, thereby representing an improvement from the previous year which was 3GW. The key front runners were the Netherlands, France, and the UK with the Netherlands’ “Hollandse Kust Zuid” project that has become the largest operating offshore wind farm in the world. Offshore funding also reached a record high in 2023, as €3 billion were raised for eight offshore wind farms to develop 9GW of new capacity.

All these indicate that the offshore substations are a critical component in the developing offshore wind and the offshore oil and gas industries in Europe. The substations play a vital role of regulating the flow of the enhanced energy from these projects to the grids for stability and to meet the energy targets of Europe

Key Findings of the Study

• The global Offshore Substation market is expected to reach 9,916.8 million by 2032, at a CAGR of 6.1% during the forecast period.


• The Europe region accounted for the fastest-growing global market.


• Based on type, the HVDC segment was attributed to holding the largest market in 2023.


• Based on Application, the Oil & Gas segment was attributed to holding the largest market in 2023.


• General Electric, Siemens Energy, Petrofac Limited, Burns & McDonnell, HSM Offshore Energy BV, Hitachi Energy Ltd., ABB, and others are the key market players.