One of the prominent trends in the offshore wind energy market is the technological advancements in wind turbine technology, which is expected to support the industry's growth throughout the forecast period. The offshore wind industry had a record year for deployment in 2021, with 17,398 MW of new projects commissioned, pushing the global installed capacity over 50 GW. This expansion was mainly attributed to China, which installed 13,790 MW in a single year, more than any previous year's capacity installed by the entire world.

In summary, the global offshore wind energy market is witnessing significant growth, and it presents a promising investment opportunity for investors looking for sustainable energy sources. The market's key drivers include the increasing demand for energy, the rising inclination towards sustainable energy sources, and the advancements in wind turbine technology.

Offshore Wind Energy Market Report Key Highlights

• The global offshore wind energy market is projected to grow at a CAGR of 19% from 2022 to 2030, with a revenue of USD 29 billion in 2021 expected to reach USD 137 billion by 2030.
• In May 2021, the U.S. Department of Energy reported that the offshore wind energy generated approximately 35,324 megawatts (MW).
• In 2021, Europe's offshore wind energy market accounted for over 40% of the regional market share.
• The Asia-Pacific offshore wind energy market is expected to record a noteworthy CAGR from 2022 to 2030.
• The up to 30m water depth segment accounted for 70% of the overall market share in 2021.
• The growing energy consumption in emerging nations is expected to propel the offshore wind energy market's growth in the coming years.

Offshore wind energy is a sustainable form of energy that captures the force of winds at sea to generate electricity, which is then fed into the onshore power grid. This technology involves the use of wind turbines installed along the coastlines of oceans and lakes. Offshore wind energy has several advantages over onshore wind energy. For one, it generates energy from renewable sources, which is essential for reducing greenhouse gas emissions. Additionally, offshore wind power has a faster rate of energy generation than onshore wind power, which is a significant advantage for the growth of the offshore wind energy market. Another advantage of offshore wind power is that it is a continuously renewable and unquantifiable energy source, meaning that it can be harnessed without any 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

The adoption of offshore wind energy is also being driven by favorable government policies around the world, including subsidies, tax credits, and feed-in tariffs, which promote investment in renewable energy projects. Governments are also encouraging the development of offshore wind energy infrastructure through initiatives like auctions, tenders, and regulatory frameworks. For instance, the European Union has set a target of achieving 60 GW of offshore wind energy capacity by 2030, which is expected to drive the growth of the offshore wind energy market in the region. Additionally, the United States government has set a target of installing 30 GW of offshore wind energy by 2030, which is expected to boost the adoption of offshore wind energy in the country.

However, the high capital cost of offshore wind energy projects and logistics concerns, such as the transportation and installation of equipment, are key factors restraining the market growth. The low cost of conventional energy generation, particularly in emerging economies, is also hindering the adoption of offshore wind energy. Nevertheless, there are significant opportunities for growth in the offshore wind energy market, particularly in emerging nations that are focusing on developing their renewable energy infrastructure. Furthermore, there is a growing focus on deeper installation projects, which will enable the industry to tap into new offshore wind energy resources and expand the market's reach.

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

It is worth noting that in 2021, Europe set a new record by installing 3 GW of new offshore wind capacity, which brought its total capacity to 25 GW. The United Kingdom remained the largest market in Europe, with a total installed capacity of 10.4 GW, followed by Germany with 7.7 GW. The Netherlands, Belgium, and Denmark are also key markets in the region. The European Commission has set a target of increasing offshore wind capacity to at least 60 GW by 2030, which will further drive the growth of the offshore wind energy market in the region.

In North America, the United States is expected to be the dominant market, with several large-scale offshore wind projects in the pipeline. The US government has set a target of installing 30 GW of offshore wind capacity by 2030, which is expected to drive investments and growth in the industry. The first large-scale offshore wind farm in the US, Vineyard Wind, is expected to come online in 2024, with a capacity of 800 MW.

In Asia Pacific, China is expected to continue leading the offshore wind energy market, with the government targeting 40 GW of offshore wind capacity by 2025. Japan and South Korea are also emerging markets for offshore wind energy, with several large-scale projects in development. The Asia-Pacific region is expected to account for a significant share of global offshore wind energy installations in the coming years.

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.