Offshore Wind Farms Market

Industry Overview

Offshore wind farms are large-scale wind farms situated in bodies of water, typically oceans or seas. They consist of numerous wind turbines anchored to the seabed, with each turbine equipped with rotor blades that harness wind energy. This rotational motion drives a generator, converting kinetic energy into electricity (electric energy). Offshore locations are chosen for their consistent and powerful winds, allowing for higher energy output compared to onshore farms. The electricity generated is then transmitted via underwater cables to onshore substations and integrated into the electrical grid for distribution to homes and businesses. Offshore wind farms play a crucial role in sustainable energy production, reducing reliance on fossil fuels.

Global Offshore wind farms market was worth USD 24.70 billion in 2022 and is expected reach USD 102.00 billion by 2030 with a CAGR of 21.56% during the forecast period, i.e., 2023-2030. Offshore wind farms demand is rising due to increasing global demand for clean, renewable energy sources. Technological advancements, declining costs, and government incentives further accelerate the expansion, making offshore wind a pivotal component in combating climate change.

Geographically, the market is expanding rapidly in Europe and the Asia Pacific, as a result of the presence of suitable conditions for offshore wind farms, growing investment towards renewable energy, and favorable government policies; however, the market confronts constraints such as high upfront costs, complex regulatory approvals, potential environmental impacts, transmission infrastructure limitations, and geopolitical considerations in shared water territories. Overall, the global offshore wind farms market offers potential prospects for market participants to develop and fulfill the growing needs of wide range of industries including transportation, energy storage, consumer electronics, and other industries.

Market Segmentation

Insight by Power Rating

Based on the power rating, the global offshore wind farms market is segmented into ≤ 2 MW, >2 ≤ 5 MW, > 5 ≤ 8 MW, > 8 ≤ 10 MW, > 10 ≤ 12 MW, > 12 MW. In 2022, > 8 ≤ 10 MW power rating offshore wind farms dominated the global offshore wind farms market. Major projects such as the Hornsea One wind farm, equipped with Siemens Gamesa's 8 MW turbines, illustrate their widespread use. Partnerships between industry leaders, such as Ørsted and Siemens Gamesa's collaboration on multiple projects, demonstrate the preference for these high-capacity turbines. Their optimal balance of output and cost-efficiency positions them as a dominant choice for offshore wind farms; however, > 10 ≤ 12 MW power rating is emerging as promising options for the future, particularly in deep-sea locations.

Insight by Installation

Based on the installation, the global offshore wind farms market is segmented into fixed and floating. In 2022, fixed segment dominated the market due to established technology and cost-effectiveness. These foundations, firmly anchored to the seabed, are simpler and more economical to construct. For instance, the Hornsea One project in the UK, operated by Ørsted and with a capacity of 1.2 GW, showcases the success of fixed installations. Partnerships like Equinor and SSE's collaboration on the Arklow Bank Wind Park also highlight the industry's confidence in this approach. While floating platforms show promise in deeper waters, the maturity and proven track record of fixed installations currently secure their position as the prevailing choice in the global offshore wind farms market.

Offshore Wind Farms Market Report Coverage

Industry Dynamics

Growth Drivers

Support from the government and favorable policies

Government support and favorable policies are pivotal growth drivers for the global offshore wind farms market. Many countries are implementing ambitious renewable energy targets, incentivizing the development of offshore wind projects. For instance, Denmark's ambitious plan to construct the Energy Island in the North Sea exemplifies this trend. Additionally, partnerships between governments and industry leaders, like the collaboration between Equinor and the UK government for the Dogger Bank Wind Farm, demonstrate the mutually beneficial efforts to drive the sector forward. These supportive policies and strategic alliances are instrumental in accelerating the expansion of offshore wind energy on a global scale.

Technological Advancement and Decreasing Costs

Another significant growth driver for the global offshore wind farms market is advancing technology and falling costs. Technological innovations have led to more efficient turbines and streamlined installation processes, reducing overall project expenses. Noteworthy collaborations, like Ørsted's partnership with Eversource for the Revolution Wind project, showcase the industry's momentum. Landmark developments such as the Hornsea One wind farm in the UK, boasting a record-breaking capacity, exemplify the sector's progress. These advancements, coupled with increased investments and ambitious production targets, underscore the industry's potential to play a dominant role in the transition towards sustainable, renewable energy sources on a global scale.

Challenge

Transmission and Grid Integration

One major challenge for the global offshore wind farms market is transmission and grid integration. Harnessing energy at sea necessitates efficient transmission infrastructure to deliver power to onshore grids. Constructing high-capacity underwater cables and upgrading onshore substations require substantial investments and careful planning. Additionally, the variability of wind patterns at sea demands advanced grid management techniques to ensure a reliable power supply. Overcoming these logistical and technical hurdles is crucial for maximizing the potential of offshore wind energy and realizing its role in the transition towards sustainable, low-carbon power generation on a global scale.

Geographic Overview

• North America

• Europe

• Asia Pacific (APAC)

• Rest of the World

The global Offshore wind farms market is segmented into North America, Europe, the Asia-Pacific, and rest of the world region. The global offshore wind farms market was dominated by the Asia-Pacific in 2022 because of dominant share of wind projects capacity installed in China. According to the ‘Offshore Wind Market Report: 2023 Edition’ by the US Department of Energy, out of 8,385MW of new offshore wind projects, 5,719.6MW capacity was installed in China and 331MW in Vietnam.

Moreover, robust investments, supportive policies, and strategic partnerships further support the dominant position of the region in the global offshore wind farms market. Notable projects like the Chuncheon and Yunlin wind farms showcase the region's capacity and collaborations between key players like Ørsted and local companies further bolster the region's dominance, establishing it as a pivotal force in offshore wind energy space.

Competitive Insight

Ørsted stands at the forefront of the global offshore wind farm market, holding a dominant position. Renowned for its pioneering role, Ørsted has spearheaded numerous significant projects worldwide including notable partnerships with major energy companies and governments. For instance, in the US, Ørsted collaborated with Eversource to develop critical wind farms like Revolution Wind and South Fork Wind. The company's substantial investment in research and development further solidifies its leadership, enhancing turbine efficiency and lowering costs. With an impressive production capacity and a track record of successful ventures, Ørsted continues to drive the industry's transition towards sustainable energy solutions.

Siemens Gamesa Renewable Energy holds a formidable position in the global offshore wind farm market. The company's strategic collaborations with industry leaders and governments, such as Ørsted and Orsted, have propelled its influence. Noteworthy projects like the Hornsea One and Hornsea Two wind farms in the UK exemplify Siemens Gamesa's technical prowess and scale of operation. Substantial investments in cutting-edge technology and infrastructure underscore their commitment to advancing the sector. With an impressive production capacity and a strong track record of successful ventures, Siemens Gamesa remains a vital force in driving the transition towards sustainable offshore wind energy solutions around the world.

Recent Development by Key Players

In October 2023, Statkraft completed the acquisition of Njordr Offshore Wind (NOW) from Vindkraft Värmland and Njordr. NOW holds a pre-permit portfolio of nine offshore wind projects in the Swedish economic zone with a total potential for up to 21 GW of installed capacity and as part of the acquisition agreement, Statkraft has committed to fully fund the maturation of the portfolio in the coming two years.

In October 2023, A consortium of leading Danish players, DTU, DHI, Siemens-Gamesa Renewable Energy, Stiesdal Offshore, Stromning and Ørsted, established a test lab for floating wind turbines in the 20 MW class. The lab includes wind, waves and a model scale wind turbine with measurements connected directly to calculation models in a 'Digital Twin' setup.

Key Players Covered in the Report

Ørsted, Siemens Gamesa, Vestas, Equinor, RWE, E.ON, Enbridge, EnBW, Dominion Energy, Vattenfall, SSE, Iberdrola, ScottishPower, Shell, Northland Power, wpd, EDPR, CGN (China General Nuclear Power Group), Macquarie Group, and Copenhagen Infrastructure Partners (CIP).

The Offshore wind farms market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2023–2030.

Segments Covered in the Report

• Power Rating

• ≤ 2 MW

• >2 ≤ 5 MW

• > 5 ≤ 8 MW

• > 8 ≤ 10 MW

• > 10 ≤ 12 MW

• > 12 MW

• Installation

• Floating

• Fixed

Region Covered in the Report

• North America

• U.S.

• Canada

• Mexico

• Europe

• Germany

• U.K.

• France

• Italy

• Spain

• Russia

• Rest of Europe

• Asia-Pacific (APAC)

• China

• Japan

• Vietnam

• India

• South Korea

• Rest of Asia-Pacific

• Rest of the World

• Middle East and Africa (MEA)

• Latin America

Primary Research Interviews Breakdown

1.  Research Overview

     1.1.  The Report Offers
     1.2.  Market Coverage
             1.2.1.  By Power Rating
             1.2.2.  By Installation
             1.2.3.  By Region
     1.3.  Research Phases
     1.4.  Limitations
     1.5.  Market Methodology
             1.5.1.  Data Sources
                        1.5.1.1.  Primary Research
                        1.5.1.2.  Secondary Research
             1.5.2.  Methodology
                        1.5.2.1.  Data Exploration
                        1.5.2.2.  Forecast Parameters
                        1.5.2.3.  Data Validation
                        1.5.2.4.  Assumptions
             1.5.3.  Study Period & Data Reporting Unit

2.  Executive Summary

3.  Industry Overview

     3.1.  Industry Dynamics
             3.1.1.  Market Growth Drivers
             3.1.2.  Market Restraints
             3.1.3.  Key Market Trends
             3.1.4.  Major Opportunities
     3.2.  Industry Ecosystem
             3.2.1.  Porter’s Five Forces Analysis
             3.2.2.  Recent Development Analysis
             3.2.3.  Value Chain Analysis
     3.3.  Competitive Insight
             3.3.1.  Competitive Position of Industry Players
             3.3.2.  Market Attractive Analysis
             3.3.3.  Market Share Analysis

4.  Global Market Estimate and Forecast

     4.1.  Global Market Overview
     4.2.  Global Market Estimate and Forecast to 2030

5.  Market Segmentation Estimate and Forecast

     5.1.  By Power Rating
             5.1.1.  ≤ 2 MW
                        5.1.1.1.  Market Definition
                        5.1.1.2.  Market Estimation and Forecast to 2030 
             5.1.2.  >2 ≤ 5 MW
                        5.1.2.1.  Market Definition
                        5.1.2.2.  Market Estimation and Forecast to 2030
             5.1.3.  > 5 ≤ 8 MW
                        5.1.3.1.  Market Definition
                        5.1.3.2.  Market Estimation and Forecast to 2030
             5.1.4.  > 8 ≤ 10 MW
                        5.1.4.1.  Market Definition
                        5.1.4.2.  Market Estimation and Forecast to 2030
             5.1.5.  > 10 ≤ 12 MW
                        5.1.5.1.  Market Definition
                        5.1.5.2.  Market Estimation and Forecast to 2030
             5.1.6.  >  12 MW
                        5.1.6.1.  Market Definition
                        5.1.6.2.  Market Estimation and Forecast to 2030
             5.1.7.  > 8 ≤ 10 MW 
                        5.1.7.1.  Market Definition
                        5.1.7.2.  Market Estimation and Forecast to 2030
     5.2.  By Installation
             5.2.1.  Established Technology
                        5.2.1.1.  Market Definition
                        5.2.1.2.  Market Estimation and Forecast to 2030
             5.2.2.  Cost-Effectiveness
                        5.2.2.1. Market Definition
                        5.2.2.2. Market Estimation and Forecast to 2030
                   
6.  North America Market Estimate and Forecast

     6.1.  By Power Rating
     6.2.  By Installation
     6.3.  By Country
             6.3.1.  U.S. Market Estimate and Forecast
             6.3.2.  Canada Market Estimate and Forecast
             6.3.3.  Mexico Market Estimate and Forecast

7.  Europe Market Estimate and Forecast

     7.1.  By Power Rating
     7.2.  By Installation
     7.3.  By Country
             7.3.1.  Germany Market Estimate and Forecast
             7.3.2.  France Market Estimate and Forecast
             7.3.3.  U.K. Market Estimate and Forecast
             7.3.4.  Italy Market Estimate and Forecast
             7.3.5.  Spain Market Estimate and Forecast
             7.3.6.  Rest of Europe Market Estimate and Forecast

8.  Asia-Pacific Market Estimate and Forecast

     8.1.  By Power Rating
     8.2.  By Installation
     8.3.  By Country
             8.3.1.  China Market Estimate and Forecast
             8.3.2.  Japan Market Estimate and Forecast
             8.3.3.  India Market Estimate and Forecast
             8.3.4.  South Korea Market Estimate and Forecast
             8.3.5.  Singapore Market Estimate and Forecast
             8.3.6.  Rest of Asia-Pacific Market Estimate and Forecast

9.  Rest of the World (RoW) Market Estimate and Forecast

     9.1.  By Power Rating
     9.2.  By Installation
     9.3.  By Country
             9.3.1.  Brazil Market Estimate and Forecast
             9.3.2.  Saudi Arabia Market Estimate and Forecast
             9.3.3.  South Africa Market Estimate and Forecast
             9.3.4.  Other Countries Market Estimate and Forecast

10.  Company Profiles

       10.1.  Ørsted
                 10.1.1.  Snapshot
                 10.1.2.  Overview
                 10.1.3.  Offerings
                 10.1.4.  Financial Insight
                 10.1.5.  Recent Developments
       10.2.  Siemens Gamesa
                 10.2.1.  Snapshot
                 10.2.2.  Overview
                 10.2.3.  Offerings
                 10.2.4.  Financial Insight
                 10.2.5.  Recent Developments
       10.3.  Vestas
                 10.3.1.  Snapshot
                 10.3.2.  Overview
                 10.3.3.  Offerings
                 10.3.4.  Financial Insight
                 10.3.5.  Recent Developments
       10.4.  Equinor
                 10.4.1.  Snapshot
                 10.4.2.  Overview
                 10.4.3.  Offerings
                 10.4.4.  Financial Insight
                 10.4.5.  Recent Developments
       10.5.  RWE
                10.5.1.  Snapshot
                10.5.2.  Overview
                10.5.3.  Offerings
                10.5.4.  Financial Insight
                10.5.5.  Recent Developments
       10.6.  E.ON
                 10.6.1.  Snapshot
                 10.6.2.  Overview
                 10.6.3.  Offerings
                 10.6.4.  Financial Insight
                 10.6.5.  Recent Developments
       10.7.  Enbridge
                10.7.1.  Snapshot
                10.7.2.  Overview
                10.7.3.  Offerings
                10.7.4.  Financial Insight
                10.7.5.  Recent Developments
       10.8.  EnBW
                 10.8.1.  Snapshot
                 10.8.2.  Overview
                 10.8.3.  Offerings
                 10.8.4.  Financial Insight
                 10.8.5.  Recent Developments
       10.9.  Dominion Energy
                 10.9.1.  Snapshot
                 10.9.2.  Overview
                 10.9.3.  Offerings
                 10.9.4.  Financial Insight
                 10.9.5.  Recent Developments
       10.10. Vattenfall
                  10.10.1.  Snapshot
                  10.10.2.  Overview
                  10.10.3.  Offerings
                  10.10.4.  Financial Insight
                  10.10.5.  Recent Developments
       10.11.  SSE
                   10.11.1.  Snapshot
                   10.11.2.  Overview
                   10.11.3.  Offerings
                   10.11.4.  Financial Insight
                   10.11.5.  Recent Developments
       10.12   Iberdrola
                   10.12.1.  Snapshot
                   10.12.2.  Overview
                   10.12.3.  Offerings
                   10.12.4.  Financial Insight
                   10.12.5.  Recent Developments
       10.13.  ScottishPower
                    10.13.1.  Snapshot
                    10.13.2.  Overview
                     10.13.3.  Offerings
                     10.13.4.  Financial Insight
                     10.13.5.  Recent Developments
       10.14  Shell
                  10.14.1.  Snapshot
                  10.14.2.  Overview
                  10.14.3.  Offerings
                  10.14.4.  Financial Insight
                  10.14.5.  Recent Developments
       10.15.  Ultramet
                   10.15.1.  Snapshot
                   10.15.2.  Overview
                   10.15.3.  Offerings
                   10.15.4.  Financial Insight
                   10.15.5.  Recent Developments
       10.16.  Northland Power
                   10.16.1.  Snapshot
                   10.16.2.  Overview
                   10.16.3.  Offerings
                   10.16.4.  Financial Insight
                   10.16.5.  Recent Developments
       10.17.  Wpd
                   10.17.1.  Snapshot
                   10.17.2.  Overview
                   10.17.3.  Offerings
                   10.17.4.  Financial Insight
                   10.17.5.  Recent Developments
       10.18.  EDPR
                   10.18.1.  Snapshot
                   10.18.2.  Overview
                   10.18.3.  Offerings
                   10.18.4.  Financial Insight
                   10.18.5.  Recent Developments
       10.19.   CGN (China General Nuclear Power Group)
                    10.19.1.  Snapshot
                    10.19.2.  Overview
                    10.19.3.  Offerings
                    10.19.4.  Financial Insight
                    10.19.5.  Recent Developments
       10.20.  Macquarie Group
                   10.20.1.  Snapshot
                   10.20.2.  Overview
                   10.20.3.  Offerings
                   10.20.4.  Financial Insight
                   10.20.5.   Recent Developments
       10.21.  Copenhagen Infrastructure Partners (CIP)
                   10.21.1.  Snapshot
                   10.21.2.  Overview
                   10.21.3.  Offerings
                   10.21.4.  Financial Insight
                   10.21.5.  Recent Developments
11.  Appendix

       11.1.    Exchange Rates
        11.2.    Abbreviations

Note: Financial insight and recent developments of different companies are subject to the availability of information in the secondary domain.

List of Tables

Table 1 Sources
Table 2 Study Periods
Table 3 Data Reporting Unit
Table 4 Global Offshore Wind Farms Market Size, by Power Rating, 2018 – 2022 (USD Billion)
Table 5 Global Offshore Wind Farms Market Size, by Power Rating, 2023 – 2030 (USD Billion)
Table 6 Global Offshore Wind Farms Market Size, by Installation, 2018 – 2022 (USD Billion)
Table 7 Global Offshore Wind Farms Market Size, by Installation, 2023 – 2030 (USD Billion)
Table 10 Global Offshore Wind Farms Market Size, by Region, 2018 – 2022 (USD Billion)
Table 11 Global Offshore Wind Farms Market Size, by Region, 2023 – 2030 (USD Billion)
Table 12 North America Offshore Wind Farms Market Size, by Power Rating, 2018 – 2022 (USD Billion)
Table 13 North America Offshore Wind Farms Market Size, by Power Rating, 2023 – 2030 (USD Billion)
Table 14 North America Offshore Wind Farms Market Size, by Installation, 2018–2022 (USD Billion)
Table 15 North America Offshore Wind Farms Market Size, by Installation, 2020–2025 (USD Billion)
Table 18 North America Offshore Wind Farms Market Size, by Country, 2018 – 2022 (USD Billion)
Table 19 North America Offshore Wind Farms Market Size, by Country, 2023 – 2030 (USD Billion)
Table 20 Europe Offshore Wind Farms Market Size, by Power Rating, 2018 – 2022 (USD Billion)
Table 21 Europe Offshore Wind Farms Market Size, by Power Rating, 2023 – 2030 (USD Billion)
Table 22 Europe Offshore Wind Farms Market Size, by Installation, 2018 – 2022 (USD Billion)
Table 23 Europe Offshore Wind Farms Market Size, by Installation, 2023 – 2030 (USD Billion)
Table 26 Europe Offshore Wind Farms Market Size, by Country, 2018 – 2022 (USD Billion)
Table 27 Europe Offshore Wind Farms Market Size, by Country, 2023 – 2030 (USD Billion)
Table 28 Asia-Pacific Offshore Wind Farms Market Size, by Power Rating, 2018 – 2022 (USD Billion)
Table 29 Asia-Pacific Offshore Wind Farms Market Size, by Power Rating, 2023 – 2030 (USD Billion)
Table 30 Asia-Pacific Offshore Wind Farms Market Size, by Installation, 2015–19 (USD Billion)
Table 31 Asia-Pacific Offshore Wind Farms Market Size, by Installation, 2020–25 (USD Billion)
Table 34 Asia-Pacific Offshore Wind Farms Market Size, by Country, 2018 – 2022 (USD Billion)
Table 35 Asia-Pacific Offshore Wind Farms Market Size, by Country, 2023 – 2030 (USD Billion)
Table 36 RoW Offshore Wind Farms Market Size, by Power Rating, 2018 – 2022 (USD Billion)
Table 37 RoW Offshore Wind Farms Market Size, by Power Rating, 2023 – 2030 (USD Billion)
Table 38 RoW Offshore Wind Farms Market Size, by Installation, 2018 – 2022 (USD Billion)
Table 39 RoW Offshore Wind Farms Market Size, by Installation, 2023 – 2030 (USD Billion)
Table 42 RoW Offshore Wind Farms Market Size, by Country, 2018 – 2022 (USD Billion)
Table 43 RoW Offshore Wind Farms Market Size, by Country, 2023 – 2030 (USD Billion)
Table 44 Snapshot – Ørsted
Table 45 Snapshot – Siemens Gamesa
Table 46 Snapshot – Vestas
Table 47 Snapshot – Equinor
Table 48 Snapshot – RWE
Table 49 Snapshot – E.ON
Table 50 Snapshot – Enbridge
Table 51 Snapshot – EnBW
Table 52 Snapshot – Dominion Energy
Table 53 Snapshot – Vattenfall
Table 54 Snapshot – Iberdrola
Table 55 Snapshot – ScottishPower
Table 56 Snapshot – Shell
Table 57 Snapshot – Northland Power
Table 58 Snapshot – Wpd
Table 59 Snapshot – EDPR
Table 60 Snapshot – CGN (China General Nuclear Power Group)
Table 61 Snapshot – Macquarie Group
Table 62 Snapshot – Copenhagen Infrastructure Partners (CIP)

List of Figures

Figure 1 Market Coverage
Figure 2 Research Phases
Figure 3 Secondary Sources for Different Parameters
Figure 4 Methodology
Figure 5 Data Mining & Exploration
Figure 6 Data Triangulation
Figure 7 Assumptions for Market Estimation and Forecast
Figure 8 Market Synopsis
Figure 9  Global Offshore Wind Farms Market - Growth Drivers and Restraints
Figure 10 Competitive Benchmark
Figure 11 Global Offshore Wind Farms Market Highlight
Figure 12 Global Offshore Wind Farms Market Size, by Power Rating, 2018 – 2030 (USD Billion)
Figure 13 Global Offshore Wind Farms Market Size, by Installation, 2018 – 2030 (USD Billion)
Figure 15 Global Offshore Wind Farms Market Size, by Region, 2018 – 2030 (USD Billion)
Figure 16 North America Offshore Wind Farms Market Highlight
Figure 17 North America Offshore Wind Farms Market Size, by Power Rating, 2018 – 2030 (USD Billion)
Figure 18 North America Offshore Wind Farms Market Size, by Installation, 2015–2025 (USD Billion)
Figure 20 North America Offshore Wind Farms Market Size, by Country, 2018 – 2030 (USD Billion)
Figure 21 Europe Offshore Wind Farms Market Highlight
Figure 22 Europe Offshore Wind Farms Market Size, by Power Rating, 2018 – 2030 (USD Billion)
Figure 23 Europe Offshore Wind Farms Market Size, by Installation, 2018 – 2030 (USD Billion)
Figure 25 Europe Offshore Wind Farms Market Size, by Country, 2018 – 2030 (USD Billion)
Figure 26 Asia-Pacific Offshore Wind Farms Market Highlight
Figure 27 Asia-Pacific Offshore Wind Farms Market Size, by Power Rating, 2018 – 2030 (USD Billion)
Figure 28 Asia-Pacific Offshore Wind Farms Market Size, by Installation, 2018 – 2030 (USD Billion)
Figure 30 Asia-Pacific Offshore Wind Farms Market Size, by Country, 2018 – 2030 (USD Billion)
Figure 31 RoW Offshore Wind Farms Market Highlight
Figure 32 RoW Offshore Wind Farms Market Size, by Power Rating, 2018 – 2030 (USD Billion)
Figure 33 RoW Offshore Wind Farms Market Size, by Installation, 2018 – 2030 (USD Billion)
Figure 35 RoW Offshore Wind Farms Market Size, by Country, 2018 – 2030 (USD Billion)