Offshore Wind Market Size was valued at USD 31.8 billion in 2023. The offshore wind market industry is projected to grow from USD 35.33 Billion in 2024 to USD 88.24 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.01% during the forecast period (2024 - 2032). Due to the growing interest in reducing the global carbon footprint and the increased need for renewable energy sources, the market is anticipated to grow. Government bodies and electricity companies' increased efforts to minimize carbon emissions are the key market driver enhancing market growth. Additionally, it is predicted that the installation of turbines will increase internationally, propelling the market.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
July 2024: General Electric (GE) announced the launch of its new Haliade-X 14 MW offshore wind turbine, designed to enhance efficiency and reduce the cost of energy.
Governments in several nations are taking the required steps to minimize carbon emissions. Pushing governments to spend money on renewable energy sources like wind and solar. Therefore, there has been a huge increase in the amount of electricity produced by wind energy in recent years. By 2022 and 2030, the Indian Union Ministry of New and Renewable Energy (MNRE) wants to install 5 GW and 30 GW offshore capacity. The World Economic Forum projects that by 2040, the offshore wind market will be worth $1 trillion. Therefore the ongoing public and private investment in the market has enhanced the offshore wind market CAGR across the globe in recent years.
Figure 1: Renewable energy consumption from 200 to 2022 in exajoules
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The government has implemented several policies to help the transition to greener energy. Equinor (Norway), for instance, wants to cut its carbon emissions in half by 2050. Developing its renewable energy businesses, especially offshore wind, which may reach 6,000 megawatts in six years and 16,000 megawatts in 15 years, is a part of the plan. According to estimates, offshore wind could support 80,000 employment annually by 2035 and generate USD 166 billion in new investments and USD 1.7 billion in new tax income for the US Treasury by 2022. Thus the rapidly expanding renewable energy sector is another factor driving the growth of the offshore wind market revenue.
The Offshore Wind Market segmentation, based on components, includes turbine, tower, blades, electrical infrastructure and nacelle. The turbine segment dominated the market with respect to the Offshore Wind Market revenue. To lower the installation costs, numerous turbines are installed simultaneously on the same site using wind turbines, which are electricity generators. The turbines are situated in big lakes and oceans. Cathodic protection can be used to stop corrosion.
The second fastest-growing segment in the offshore wind industry is the nacelle sector. The worldwide wind turbine nacelle sector is anticipated to be driven by technological advancements in the design of wind turbine materials, such as glass composites, to reduce the cost of maintenance and installation. Smaller, less expensive, and simpler to carry and assemble components are built using contemporary glass composites.
November 2021: Vestas, a wind turbine manufacturer, announced the first-ever modular nacelle design that allowed for customization. The product reduces time to market and simplifies various operations, construction, and maintenance processes. The manufacturer also says that the next product's modularized nacelle units may be transferred over rail systems, bridge heights, and tunnels with far less specialist handling. This creation has further broadened the growth opportunity for the offshore wind industry.
The Offshore Wind Market data has been bifurcated by location into shallow water, transitional water and deep water. The market is predicted to be led by the shallow water sector, which is estimated to have the greatest revenue share in 2021. The majority of energy initiatives are carried out in shallow water. Shallow water tower installation is easier to complete and costs less money.
Figure 2: Offshore Wind Market, by Location, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the offshore wind industry is the deepwater sector. The deep-water wind turbine sector is primarily driven by improvements in wind technology and increased investments in the development of floating wind turbines. Hence, rising offshore wind applications in deep water positively impact the market growth.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Europe’s offshore wind market accounted for USD 11.05 billion in 2021 and is expected to exhibit a significant CAGR of 43.2 percent growth during the study period. According to the European Union, Europe accounts for one-fourth of all market installations worldwide. Therefore, Europe (particularly the nations bordering the North Sea) is set to dominate the offshore wind industry. Around 85% of all offshore wind installations worldwide are located in European waters. The development of offshore wind farms within each nation's territorial waters has been established as an ambitious goal by the governments of the European region, notably those in the North Sea region. Further, the German offshore wind market held the largest market share, and the UK offshore wind market was the fastest-growing market in the European region.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Offshore Wind Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Asia Pacific’s offshore wind market accounts for the second-largest market share. Implementing pro-renewable energy government policies by developing countries like China, India, and Japan, among others, may be related to the industry's growth in the Asia Pacific. China is a global leader, with more than 40% of the world's offshore wind capacity. Of China's 18,000 km of coastline, more than 3 million square kilometers are suitable for offshore renewable energy development. Moreover, China's offshore wind market held the largest market share, and the India offshore wind market was the fastest-growing market in the Asia-Pacific region.
The North American offshore wind market is expected to grow at the fastest CAGR from 2022 to 2030. Favorable government regulations, rising investment in wind power projects, and the declining cost of wind energy are major contributors to the rise. The government and utilities across the country are increasingly looking at wind power as a solution to the nation's growing need for an affordable, dependable, clean, and diverse electricity supply. For instance, United States President announced a bold plan to install 30 gigawatts (GW) of offshore wind power by 2030, which would deliver sustainable energy to 10 million homes, support 77,000 jobs, and encourage private investment throughout the supply chain. Moreover, the US offshore wind market held the largest market share, and the Canadian offshore wind market was the fastest-growing market in the region.
The market will continue to grow as major market players invest heavily in R&D to diversify their product offerings. In addition to major market developments such as new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations, market participants are involved in many strategic efforts to grow their global footprint. If competitors in the offshore wind industry want to develop and survive in a tough environment where competition and the market are expanding, they must offer products at competitive costs.
Local production to lower operational costs is one of the key business tactics manufacturers use in the global offshore wind industry to help clients and increase the market sector. Recently, the offshore wind industry has made major contributions to medicine. Offshore wind market major players, such as General Electric (US), Ørsted A/S (Denmark), ABB (Switzerland), and Senvion SA (Luxembourg), are investing in R&D to increase customer demand.
Hecate Energy is a pioneer in developing and operating renewable energy projects and storage solutions, specializing in solar and wind energy, high-efficiency natural gas, and energy storage. It is headquartered in Chicago, Illinois. They are experts in renewable energy and energy storage projects, from planning to building and operation. In May 2021, Hecate Independent Power Limited (HIP), a renewable energy project firm established in the United States, announced the HIP Atlantic Project, which will deploy about 10 GW of floating and fixed wind power in the North Atlantic, UK. The project, which is expected to cost roughly USD 30 billion or GBP 21 billion, will connect offshore farms to the national grid network.
Also, GE Renewable Electricity is a branch of General Electric based in Boulogne-Billancourt, Greater Paris, France, focusing on producing renewable energy. Its product offering comprises wind (onshore and offshore), hydroelectric, and solar (concentrated and photovoltaic) power generation solutions. It is the world's largest manufacturer of wind turbines. In May 2021, GE Renewable Energy announced that the Turbine Supply, Service, and Warranty contracts for Dogger Bank C, the Dogger Bank offshore wind farm's third and final phase, have been finalized. The Turbine Provide Contract confirms GE Renewable Energy's commitment to supply 87 Haliade-X 14 MW offshore wind turbines, marking the first commercial commitment for this type. Offshore wind energy turbines, marking the first commercial commitment for this nameplate.
April 2021: Siemens Gamesa Renewable Energy SA has received a definite order to supply turbines for the 1.4 GW Sofia Offshore Wind Farm, which will be located in the North Sea. The project will include the installation of 100 turbines, the first of which will be SGRE's 14MW Direct Drive offshore wind turbines.
February 2021: Vestas has introduced the V236-15.0MW offshore wind turbine, which features the industry's largest wind-swept area, rotor diameter, and greatest nominal power rating. The massive turbine will have a rotor diameter of 236 meters and a wind-swept surface of 43,743 square meters. The second largest wind turbine in the industry, GE's Haliade-X, has a rotor diameter of 220 meters and a wind-swept area of 38,013 meters.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 31.8 billion |
| Market Size 2024 | USD 35.33 billion |
| Market Size 2032 | USD 88.24 billion |
| Compound Annual Growth Rate (CAGR) | 12.01% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Components and Location |
| Geographies Covered | Europe, North America, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | General Electric (US), Ørsted A/S (Denmark), ABB (Switzerland), and Senvion SA (Luxembourg). |
| Key Market Opportunities | Floating foundation wind farms are permitting access to better wind resources |
| Key Market Dynamics | Increasing global investments in renewable energy are likely to drive the market Favorable government policies across all regions |
Offshore Wind Market Highlights:
Frequently Asked Questions (FAQ) :
The Offshore Wind Market size was valued at USD 31.8 Billion in 2023.
The global market is estimated to grow at a CAGR of 12.01% during the forecast period 2024-2032.
Europe had the largest share of the global market.
The key players in the market are General Electric (US), Ørsted A/S (Denmark), ABB (Switzerland), and Senvion SA (Luxembourg).
The turbine component dominated the market in 2021.
Increasing investments to develop clean energy, economic surge with high focus on emission reduction and increasing competition between top players are boosting the market growth for offshore around the world.
High cost of construction activities can have a negative impact on the market.
Onshore wind power refers to turbines that are located on land and use wind to generate electricity. Offshore wind power is when wind over open water (typically the ocean) is used to generate electricity.
Offshore wind farms have a higher potential for power generation due to faster and more constant winds, also providing energy at a more stable rate. There are no visual or noise pollution disadvantages as those caused by onshore wind farms.
The shallow water location had the largest share of the global market.
Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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