Offshore Wind Energy Market Size - Global Industry, Share, Analysis, Trends and Forecast 2022 - 2030

The Global Offshore Wind Energy Market Size accounted for USD 29 Billion in 2021 and is estimated to garner a market size of USD 137 Billion by 2030 rising at a CAGR of 19% from 2022 to 2030. The increasing demand for energy across the world is the primary aspect that is driving the global offshore wind energy market value. Additionally, the rising inclination of people towards sustainable energy sources is another factor that is boosting the offshore wind energy industry. Technological advancements in the wind turbine technology is a prominent trend in the offshore wind energy market that will support the industry growth throughout the forecast timeframe from 2022 to 2030. The worldwide offshore wind energy had a record year for deployment with 17,398 MW of new projects commissioned in 2021. This surge in offshore wind energy deployment pushed global installed capacity over 50 GW. This expansion was largely attributed to China, which installed 13,790 MW in a single year, more capacity than the entire world installed in any previous year.

Offshore Wind Energy Market Report Key Highlights

• Global offshore wind energy market revenue is estimated to reach USD 137 Billion by 2030 with a CAGR of 19% from 2022 to 2030
• According to the U.S. Department of Energy report, U.S. offshore wind energy generated roughly 35,324 megawatts (MW) in May 2021.
• Europe offshore wind energy market gathered over 40% regional shares in 2021
• Asia-Pacific offshore wind energy market will record noteworthy CAGR from 2022 to 2030
• Based on water depth segment, up to 30m accounted 70% of the overall market share in 2021
• Growing energy consumption in emerging nations propels the offshore wind energy market growth in coming years

Offshore wind energy is the energy captured by the force of the winds at sea and converted into electricity before being fed into the onshore power grid. This technology is used to generate electricity from wind turbines built along the coastlines of oceans and lakes. Offshore wind energy is advantageous because it generates energy from renewable sources. Furthermore, energy is generated at a faster rate offshore than onshore, which benefits the growth of the offshore wind energy market. Offshore wind power is a continuously renewable and unquantifiable energy source, and converting wind to power produces no harmful greenhouse gas emissions.

Global Offshore Wind Energy Market Dynamics

Market Drivers

• Growing investments in renewable energy
• Increasing global demand for renewable sources in power generation
• Favorable government policies throughout the world

Market Restraints

• High capital cost and logistic concerns
• Low cost of conventional energy generation

Market Opportunities

• Growing focus towards deeper installation projects
• Significant opportunities from emerging nations

Offshore Wind Energy Market Report Coverage

Offshore Wind Energy Market Insights

One of the primary factors driving the offshore wind energy market share is raising demand for renewable energy sources in power generation. Furthermore, rising energy consumption and improved environmental concerns about natural resource exhaustion are key factors supporting renewable energy generation. Furthermore, due to the availability of advanced technology and turnkey solutions provided by various service providers, there is a surge in demand for offshore wind installation. Furthermore, rising demand for clean energy is expected to drive the offshore wind power market globally over the forecasted timeframe of 2022 to 2030.

Rising investments in the expansion of offshore wind energy infrastructure are expected to propel the industry forward in the coming years. Rising investments in deep-sea offshore wind energy projects, combined with rapid technological advancements, are expected to enhance the business landscape. However, private and public investment in the development and expansion of utility-scale projects, as well as ongoing identification of potential offshore wind project sites, will provide momentum to the overall industry expansion. For example, Ørsted, Eversource, and the Connecticut Port Authority announced a public-private partnership in 2021 to modernize State Pier's infrastructure (deepwater port) and heavy-lift functionality. These ten-year projects cost the companies more than USD 157 million.

In addition, increasing investments in the expansion of sustainable energy platforms, such as floating and fixed offshore wind projects, will accelerate the adoption of this technology. The Bureau of Ocean Energy Management (BOEM) announced in April 2022 that it is seeking public input on a newly released BOEM Central Atlantic draught Call for Information and Nominations Area (BOEM 2022e). The proposed areas, more than 3.8 million acres, have the potential to support the development of approximately 30,000 MW of generating capacity, as well as the implementation of both fixed-bottom and floating wind turbines.

Furthermore, engineering, procurement, construction, and installation firms, wind turbine manufacturers, oil and gas companies, and other corporate investors are already investing in this sector, as are infrastructure funds, institutional investors, and export credit agencies. Furthermore, increasing the utilization factor for energy generation in an economical and efficient manner through robust R&D and investment by numerous energy and power companies in offshore wind energy will fuel the market's growth.

The reducing offshore auction prices are one of the key growth opportunities for the market in the coming years. BOEM auctioned six new lease areas in the New York Bight and two lease areas in Carolina Long Bay. BOEM auctioned off six lease areas in the New York Bight in February 2022 for US$ 4.37 billion.

Offshore Wind Energy Market Segmentation

The worldwide offshore wind energy market is split based on installation, water depth, and geography.

Offshore Wind Energy Market By Installation

• Fixed Structure
• Floating Structure

According to our offshore wind energy industry analysis, the fixed structure generated significant revenue in 2021 and is expected to do so again between 2022 and 2030. Because of its low cost and ease of operation, fixed structures are the most popular installation type for offshore wind energy. The fixed structure segment currently controls the global offshore wind energy market share, with floating structure still in its initial stages; however, based on intended and forthcoming projects, the floating structure type is expected to grow rapidly in the coming years.

Offshore Wind Energy Market By Water Depth

• Up to 30m
• Above 30m

According to our offshore wind energy market forecast, up to 30m water depth is currently holding a significant market revenue because installation is much easier and reduces capital expenditure. However, with recent advancements and increased investments in floating offshore wind energy projects for deeper locations, certain factors are likely to gain traction for water depths above 30 metres.

Offshore Wind Energy Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Latin America

• Mexico
• Brazil
• Rest of Latin America

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

The Middle East & Africa (MEA)

• Gulf Cooperation Council (GCC)
• South Africa
• Rest of the Middle East & Africa

Europe Recorded Noteworthy Market Share for Global Offshore Wind Energy

In terms of offshore wind energy regional analysis, Europe is one of the leading regions in the global market. The EU is also likely to hold its leading position in the coming few years. The increased focus to achieve low carbon footprint, maintain continuous power supply, and lower greenhouse gas emission to control global warming. Also, the rapid infrastructural enhancement and the progress of offshore wind energy projects across Europe, especially in Netherlands and Belgium will have augmented growth of the offshore wind energy market.

North America is expected to have a significant market share in the future, owing to rising wind energy demand and increased investment in the wind energy sector in North America. Furthermore, Canada and the United States are significant contributor economies in wind energy. In December 2020, the US Department of Energy (DoE) allocated US$ 21 million to three different projects in the US for innovative offshore wind energy technologies. Furthermore, the prominent prominence of major players in North America is boosting the growth of this region's offshore wind energy market. In addition, Asia Pacific is expected to increase its market share in the coming years. According to the Global Wind Energy Council (GWEC), China has led the offshore wind energy installation for three years in a row, with 3 GW of offshore wind capacity installed alone, while the global offshore wind energy installed capacity in 2020 stood at 6 GW.

Offshore Wind Energy Market Players

The global offshore wind energy companies profiled in the report include Enessere, Sumitomo Electric Industries, Ltd., Siemens Gamesa Renewable Energy, S.A., Vestas, goldwind.com, Prysmian Group, ENVISION GROUP, LS Cable & System Ltd., RTS Wind AG, smart dolphin GmbH, WEG, NORDEX SE, Southwire Company, LLC., and Suzlon Energy Limited.