The Offshore Wind Installations market industry is projected to grow from Significant Value in 2023 to Significant Value by 2032, exhibiting a compound annual growth rate (CAGR) of 70.20% during the forecast period (2024 - 2032). Favorable government policies, increasing investment in upcoming offshore wind power projects, and the reduced cost of wind energy are the main market drivers anticipated to propel the Offshore Wind Installations market in Europe.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
One of the primary drivers behind the growth of the Europe Offshore Wind Installations market CAGR is the increased investment in renewable power. As there is a growing emphasis on environmental sustainability, the power industry is transitioning towards green and renewable power sources to mitigate the depletion of fossil fuels, combat climate change, and reduce carbon emissions. In 2022, renewable energy accounted for 23.0% of the energy consumed in the EU, marking an increase from 21.9% in 2021. The share of energy from renewable sources used in transport in the EU also rose to 9.6% in 2022, up from 9.1% in 2021. Moreover, renewable energy sources constituted 41.2% of gross electricity consumption in the EU in 2022, representing an almost 4-percentage point increase from the previous year (37.5% in 2021). Wind and hydropower together accounted for over two-thirds of the total electricity generated from renewable sources, with solar power, solid biofuels, and other renewable sources making up the remainder.
In the third quarter of 2023, greenhouse gas emissions from the EU economy are estimated at 787 million tonnes of CO2-equivalents, reflecting a 7.1% decrease compared to the same quarter in 2022 (847 million tonnes of CO2-equivalents). Notably, greenhouse gas emissions are estimated to have decreased in 23 EU countries during the third quarter of 2023 compared to the same period in 2022, with Estonia, Bulgaria, and Germany witnessing the largest reductions. This reduction in emissions further reinforces the commitment towards renewable energy adoption and accelerates the development of offshore wind installations as a clean energy solution. Thus, driving the Offshore Wind Installations market revenue.
The Europe Offshore Wind Installations market segmentation, based on Turbine Rating, includes ≤ 2 MW, >2 to 5 MW, >5 to 8 MW, >8 to 10 MW, and >10 to 12 MW. The >10 to 12 MW segment dominated the market. Advancements in turbine design, materials, and manufacturing processes are driving the development of larger, more efficient, and reliable turbines, resulting in economies of scale and reduced per unit cost of energy production. Increased investment in grid expansion and interconnection projects to accommodate the growing installation of offshore wind energy projects will further enhance the market outlook. Additionally, the presence of robust grid infrastructure enables the connection of larger turbines, facilitating the transmission of renewable electricity to consumers.
The Europe Offshore Wind Installations market segmentation, based on Component, includes Turbines, Support Structures, Electrical Infrastructure, and Others. The Support Structures segment dominated the market. This refers to the foundation and substructure responsible for ensuring stability and structural integrity, engineered to withstand dynamic loads such as wind, waves, and currents exerted on the turbine. Additionally, these structures incorporate transition pieces that link the foundation to the turbine tower, facilitating a seamless transition while often accommodating electrical and control equipment. The choice of support structure is determined by factors such as water depth, seabed conditions, wind conditions, and project-specific needs.
The Europe Offshore Wind Installations market segmentation, based on Installation, includes Floating and Fixed. The Floating segment dominated the market. Significant advancements in technology, including floating platform design, mooring systems, and dynamic control mechanisms, will bolster the efficiency, reliability, and cost-effectiveness of wind turbines, thereby fortifying the market landscape. Learning curves, economies of scale, and technological enhancements are expected to lower the costs associated with floating wind projects, rendering them more competitive with other energy sources. This trend will aid in diversifying the energy mix and reducing reliance on traditional fuels.
Figure 1: Europe Offshore Wind Installations Market, by Installation, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The Europe Offshore Wind Installations market segmentation, based on Depth, includes ≤ 30 m, >30 m to 50 m, and > 50 m. The ≤ 30 m segment dominated the market. The floating offshore wind energy market in Europe, specifically for depths of ≤ 30 meters, is projected to expand owing to a rise in public and private mergers, contracts, and investments in floating offshore wind energy projects. The ability to provide significant potential and competitive energy transition has accelerated the development of offshore wind projects at depths of ≤ 30 meters. These projects developed at this water depth level offer substantial opportunities for grid connectivity and are economically viable compared to projects developed at higher water depths, thereby boosting product penetration.
Germany possesses abundant reserves of high-quality and cost-competitive wind energy resources, making it the European leader in installed wind power capacity, totaling 63.76 GW in 2021. This capacity is sufficient to provide electricity for approximately 3.4 million homes in the country. With the increasing demand for affordable, reliable, clean, and diversified electricity supply, both the government and utilities nationwide are increasingly turning to wind power as a viable solution. Leveraging the country's unmatched wind resources presents significant opportunities to maximize the economic and environmental benefits of wind energy development. In May 2021, RWE and BASF announced plans to invest USD 4.9 billion in offshore wind power projects. RWE aims to construct a 2 GW offshore wind park by 2030, intending to supply energy to BASF's Ludwigshafen chemical complex. In November 2021, Google entered into a 12-year corporate power purchase agreement (CPPA) for 50 MW of wind power from an offshore wind farm developed by Danish energy giant Ørsted in the German North Sea. This agreement aligns with Google's commitment to operating all its data centers with carbon-free energy by 2030.
Figure 2: Europe Offshore Wind Installations Market Share By Country 2023 & 2032 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players are investing heavily in research and development to expand their product lines, which will help the Offshore Wind Installations market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Offshore Wind Installations industry must offer cost-effective items.
Major players in the Offshore Wind Installations market are attempting to increase market demand by investing in research and development operations, including Envision Group, Senvion, RTS Wind AG, Suzlon Energy Limited, WEG, Global Energy (Group) Limited, Siemens Gamesa Renewable Energy, Ørsted, Prysmian Group, Nexans.
November 2021:Google secured a 12-year corporate power purchase agreement (CPPA) with Danish energy giant Ørsted to receive 50 MW of wind power from an offshore wind farm located in the German North Sea. This agreement is part of Google's commitment to powering all its data centers with carbon-free energy by 2030.
June 2023:Ørsted and Vestas entered into a sustainable strategic partnership aimed at sourcing low-carbon steel blades and towers for all their joint offshore wind projects. The agreement also includes the commercial production of blades made from recycled materials. This initiative aligns with Ørsted's efforts to achieve its decarbonization goals and targets.
| Report Attribute/Metric | Details |
| Market Size 2022 | Significant Value |
| Market Size 2023 | Significant Value |
| Market Size 2032 | Significant Value |
| Compound Annual Growth Rate (CAGR) | 70.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Turbine Rating, Component, Installation, Depth, and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, UK, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, Rest of Europe |
| Key Companies Profiled | Envision Group, Senvion, RTS Wind AG, Suzlon Energy Limited, WEG, Global Energy (Group) Limited, Siemens Gamesa Renewable Energy, Ørsted, Prysmian Group, Nexans |
| Key Market Opportunities | ·        Initiatives by governments and companies to reduce carbon emissions |
| Key Market Dynamics | ·        The growing demand for clean energy sources |
Frequently Asked Questions (FAQ) :
The Europe Offshore Wind Installations market size was valued at Significant Value in 2023.
The market is projected to grow at a CAGR of 70.20% during the forecast period, 2024-2032.
The key players in the market are Envision Group, Senvion, RTS Wind AG, Suzlon Energy Limited, WEG, Global Energy (Group) Limited, Siemens Gamesa Renewable Energy, Ørsted, Prysmian Group, and Nexans.
The Support Structure dominated the market in 2023.
The market share leader was the floating category.
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