Offshore Wind Turbine Market Size, Share & Trends Analysis Report By Components (Turbine, Substructure, Electrical Infrastructure, Others), By Location (Shallow Water, Transitional Water, Deepwater), By Foundation (Floating, fixed, Monopile, Tripod, Gravity base, Jacket, Others), By Capacity (Less than 5MW, 5MW-10 MW, More than 10 MW) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Offshore Wind Turbine Market Size

The global offshore wind turbine market size was valued at USD 21.59 billion in 2023 and is estimated to reach from USD 24.49 billion in 2024 to USD 67.16 billion by 2032, growing at a CAGR of 13.44% during the forecast period (2024–2032). 

The offshore wind market benefits from economies of scale as larger projects reduce costs over time. The involvement of major industry players and increased international cooperation also enhance the market's expansion. Therefore, companies are focusing on product innovations and strategic partnerships to strengthen their positions in the market.

An offshore wind turbine is a type of wind energy converter installed in bodies of water, usually on the continental shelf, to harness the power of the wind and generate electricity. Offshore wind power has several advantages over traditional onshore wind turbines, including increased wind speeds, which result in more electricity generation per unit of installed capacity and a lower visual impact on the landscape. Offshore wind turbines are linked to the electrical grid via underwater cables that transport the electricity generated by the turbines to an offshore substation and then to an onshore substation for distribution to end users. Offshore wind farms can be located near the coast, in which case the electricity is evacuated via an export cable directly to an onshore substation, or far from the coast, in which case an offshore substation is required to raise the voltage of the power generated by the turbines before it is transmitted to the onshore grid.

Highlights

• Turbine dominates the component segment
• Shallow water dominates the location segment
• Monopile dominates the foundation segment
• Europe is the highest shareholder in the global market

Offshore Wind Turbine Market Growth Factors

Increasing Research and Development Projects and Expansion in Global Financing

The offshore wind energy industry is experiencing substantial expansion, with significant efforts devoted to research and development to enhance the performance and efficiency of offshore wind turbines. Governments and private investors worldwide are making substantial investments in offshore wind power projects, recognizing the potential of this sustainable energy source to mitigate greenhouse gas emissions and combat climate change. Increasing investments in research and development are facilitating the creation of more sophisticated and efficient offshore wind turbines.

One notable development is the creation of larger turbines with increased power output capabilities by manufacturers, which has the potential to significantly decrease energy generation costs. Further, floating offshore wind turbines, which can be installed in deeper waters, are gaining increasing attention. These floating turbines open up new opportunities for offshore wind energy generation, expanding the potential areas where wind farms can be developed.

• For instance, the Moray West offshore wind farm has made substantial progress toward renewable energy by successfully installing its initial wind turbine. This achievement marks a critical juncture for the project in the context of pressing environmental issues and the urgent need for sustainable energy alternatives. Equipped with 108-meter blades manufactured by Siemens Gamesa, this milestone showcases the project's progress and its commitment to leveraging advanced technology in the pursuit of sustainable energy.

Restraining Factors

Logistics Challenges in Offshore Wind Fields

The development and operation of offshore wind farms are significantly hampered by the logistical challenges that are present in offshore wind fields. One of the most significant obstacles is the remote location of offshore wind farms, which are typically located in open seas or deep waters, a significant distance from the coast. The transportation of personnel, materials, and equipment to and from the wind farm sites is made more difficult by the geographical distance between them. Accessing offshore wind farms becomes even more difficult when adverse weather conditions, such as storms or rough seas, are present. This can result in potential delays in construction, maintenance, and repair activities.

Furthermore, the logistics difficulties extend to the process of installing and operating wind turbines that are located offshore. The transportation and installation of large wind turbine components, such as blades, nacelles, and towers, necessitate the use of specialized vessels and equipment, significantly increasing the complexity and expense associated with offshore wind projects. Moreover, the harsh marine environment, which can accelerate wear and corrosion on turbine components, makes it more difficult to maintain and service offshore wind turbines than onshore installations. Due to this, the maintenance and servicing of offshore wind turbines is more demanding. Such factors hinder the market growth.

Market Opportunities

Increasing Demand for Renewable Energy Sources and the Transition Towards more Sustainable Power Generation

The demand for renewable energy sources has been driven by growing awareness of climate change and the necessity of reducing greenhouse gas emissions. Offshore wind turbines provide a clean and sustainable energy solution, making them an appealing alternative for governments and utilities aiming to transition away from fossil fuels. The global energy landscape is undergoing a significant transformation, with an increasing emphasis on renewable energy sources and sustainable power generation.

Offshore wind turbines are gaining popularity due to their high potential for energy generation and capacity to contribute significantly to global efforts to reduce greenhouse gas emissions. These turbines harness the strong and consistent winds found offshore, providing a reliable and substantial renewable energy source.

• For instance, according to the latest data from Rystad Energy, India installed a record 7.1 gigawatts (GW) of renewable energy capacity in March. This brought the total annual renewable energy installations to 18.5 GW in FY24, highlighting the rapid growth and commitment to expanding renewable energy infrastructure. Such developments underscore the vital role of offshore wind energy in meeting global renewable energy targets and mitigating the impacts of climate change.

Regional Insights

Europe: Dominant region

Europe is the most significant global market shareholder and is expected to expand substantially during the forecast period. The region's importance is rooted in its unwavering commitment to environmentally sustainable energy solutions and robust infrastructure, positioning it at the vanguard of the industry's evolution. Key European nations such as Denmark, Germany, the United Kingdom, and Belgium have emerged as trailblazers in offshore wind energy, propelled by strong governmental support and progressive regulatory frameworks conducive to industry growth. Moreover, the remarkable ascent of offshore wind energy in Europe is underscored by the proliferation of operational wind farms, which are tangible manifestations of the region's steadfast dedication to renewable energy and environmental stewardship. Through concerted efforts over the years, Europe has solidified its position as a global powerhouse in offshore wind, setting a benchmark for other regions to emulate.

Asia Pacific: Fastest growing region

The Asia-Pacific region is witnessing a surge in offshore wind turbine deployment, emerging as the epicenter of rapid market growth. Nations such as China, Taiwan, South Korea, and Japan spearhead this momentum, leveraging their extensive coastlines and abundant wind resources to drive ambitious offshore wind projects. Supportive policy frameworks, ambitious renewable energy targets, and escalating demand for clean energy solutions are propelling the rapid expansion of the offshore wind industry in the Asia-Pacific region. Crucially, the development of offshore wind power in the Asia-Pacific region has been bolstered by strategic investments in research, technology transfer initiatives, and fruitful collaborations with European counterparts. These synergistic efforts are instrumental in accelerating the region's transition towards a sustainable energy future, positioning the Asia-Pacific as a pivotal growth engine in the global offshore wind market landscape.

Offshore Wind Turbine Market Segmentation Analysis

By Components

Based on components, the global market is segmented into turbines, substructures, electrical infrastructure, and others. Turbines dominate the component segment of the global market, representing the most valuable part of its value chain. Offshore wind turbines operate similarly to onshore turbines. Still, they are larger and equipped with additional features to withstand the harsh environmental conditions of offshore seas, such as strong winds, saltwater corrosion, and powerful ocean currents. A wind turbine comprises three main parts: the nacelle, which houses the gearbox, generator, and control electronics; the rotors and blades, which capture the wind's energy and change it into rotational motion; and the tower, which supports the nacelle and blades at a height where wind speeds are optimal. The turbine segment is expected to be the fastest-growing component within the offshore wind industry. This growth is driven by advancements in turbine technology, such as the development of big turbines with higher power output capacities, enhanced materials for durability, and improved aerodynamic designs for efficiency.

By Locations

The global market is segmented into shallow water, transitional water, and deep water based on locations. The shallow water segment owns the highest market share. The term "shallow water locations" refers to regions with water depths of up to thirty meters and relatively closer to the shore, making it simpler to access and develop these sorts of areas. Due to the fact that these locations are so close to land, they have been the primary focus of early offshore wind projects. As a result of their well-established technology and the ease with which they can be implemented, many shallow water locations have established themselves in the market. In the beginning, governments and developers prioritized these locations to lay the groundwork for the offshore wind industry, ultimately leading to their dominant position in the market. The vast majority of offshore wind farms currently in operation use fixed installations due to their maturity, proven technology, and simplicity of execution.

By Foundation

Based on the foundation, the global market is bifurcated into floating, fixed, monopile, tripod, gravity base, jacket, and others. Monopile dominates the foundation segment due to its effectiveness and advantages. Monopile foundations are made of a single steel pile driven into the seabed, offering a simple and dependable solution for offshore wind turbine installations. They are widely used in shallow water areas, which are the most common sites for offshore wind farms. Monopile foundations are popular because they are simple to install, inexpensive, and very stable. They are relatively simple to manufacture and install, making them an economical choice for offshore wind projects. Moreover, monopile foundations are extremely stable, providing a solid foundation for wind turbines in harsh marine conditions. The monopile foundation market is driven by growing demand for renewable energy sources and a shift toward more sustainable power generation.

By Capacity

Based on capacity, the global market is bifurcated into less than 5MW, 5MW-10 MW, and more than 10 MW. The dominance of the 5MW-10MW capacity segment in the wind turbine market can be ascribed to many factors that converge to make this range highly appealing to stakeholders in the renewable energy sector. These turbines epitomize a harmonious blend of size, efficiency, and cost-effectiveness, positioning them as the preferred choice for offshore wind projects globally. One key allure of turbines within this capacity bracket lies in their optimal balance between scale and performance. Their size allows for harnessing substantial wind energy, translating into robust electricity generation potential. Yet, they remain sufficiently compact to facilitate seamless installation and maintenance operations, mitigating logistical challenges and reducing associated costs over the project's lifecycle. Moreover, the 5MW-10MW turbines exhibit versatility and adaptability, two indispensable qualities in the dynamic realm of offshore wind energy.

Recent Developments

• May 2024-The Empire Wind offshore wind project, managed by Equinor, received final permission from the New York State Public Service Commission (PSC), allowing building on a new 810MW offshore wind farm to commence south of Long Island. The project is expected to make significant progress toward the state's objective of developing 9,000 MW of offshore wind energy by 2035, as outlined in the Climate Leadership and Community Protection Act (Climate Act).