Offshore Wind Turbine Market Research, 2031
The global offshore wind turbine industry was valued at $17.8 billion in 2021, and offshore wind turbine market size is projected to reach $39.2 billion by 2031, growing at a CAGR of 8.28% from 2022 to 2031.
Introduction
An offshore wind turbine is a type of wind turbine that is located in bodies of water, typically on the continental shelf, to harness wind energy for electricity generation. These turbines are designed to operate in marine environments and are usually mounted on robust foundations anchored to the seabed. Offshore wind farms consist of multiple turbines and are situated at varying distances from the coastline, taking advantage of stronger and more consistent winds compared to land-based turbines. The generated electricity is transmitted to the grid via underwater cables, contributing significantly to renewable energy sources and helping reduce reliance on fossil fuels. Offshore wind energy is increasingly recognized for its potential to support sustainable energy goals and combat climate change.
Market Dynamics
Increase in investment in renewable energy is a significant driver of demand for offshore wind turbines, as governments, private companies, and financial institutions increasingly recognize the need to transition to cleaner energy sources. This shift is largely motivated by the urgent need to address climate change, reduce greenhouse gas emissions, and meet international commitments such as the Paris Agreement. As countries aim to decarbonize their energy systems, they are directing substantial investments toward the development of renewable energy projects, with offshore wind being a key focus due to its vast potential for energy generation. All these factors are expected to drive the demand for the offshore wind turbine market during the forecast period.
However, high initial capital costs are one of the most significant barriers to the growth of offshore wind turbine projects. The development of offshore wind farms requires substantial investment in various components, including advanced turbine technology, specialized vessels for installation, and robust infrastructure for maintenance and operation. As compared to onshore projects, which are constructed at a lower cost due to easier access and logistics, offshore wind projects necessitate more complex engineering solutions and higher-quality materials that withstand harsh marine conditions. All these factors hamper the offshore wind turbine market growth.
Favorable government incentives and policies play a crucial role in creating opportunities for offshore wind turbines by fostering a supportive regulatory environment that encourages investment and development. Governments worldwide are increasingly recognizing the importance of renewable energy in combating climate change and achieving energy independence. As a result, many countries have implemented specific policies and incentives, such as tax credits, grants, and subsidies, to promote the establishment of offshore wind farms. These financial incentives significantly lower the capital costs associated with offshore wind projects that makes them preferable to investors and developers. All these factors are anticipated to offer new growth opportunities in the offshore wind turbine market during the forecast period.
Segment Overview
The offshore wind turbine market is segmented on the basis of capacity, application, and region. On the basis of capacity, the global offshore wind turbine market is segmented into small (less than 10MW), medium (10-100MW), and large (greater than 100MW). On the basis of application, the market is segmented into industrial, commercial, and residential. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe and North America.
By Capacity
The large (greater than 100MW) segment dominates the global offshore wind turbine market. Offshore wind turbine with exhibiting power 100 MW and above is majorly used for heavy industrial applications and power generation, including chemical, pharmaceutical, and other heavy industries. Large-scale wind farms are used to provide power supply to various utilities through grid support. In 2021, 73.35% of the offshore wind farm installations are a large scale capacity over 100MW. Most of these installations are undertaken by some of the major manufacturers operating in the market including, Toshiba Power, Vestas Wind Energy, GE Renewable Energy, Siemens Gamesa, and Andritz Group. The presence of above mentioned factors are expected to provide ample opportunities for the development of the market.
By Capacity
Large (Greater than 100MW) to be the most lucrative segment till 2031
By Application
The industrial segment dominates the global offshore wind turbine market. The industrial application segment accounted for 40% of total offshore wind turbine market revenue, owing to increase in demand for renewable energy sources in heavy industrial manufacturing sectors have boosted the utilization of offshore wind turbine as an auxiliary power source. Furthermore, the presence of benefits such as stabilizing electric prices over a long period of time can be paired with alternative energy storage systems such as hydrogen fuel cells. In developing countries, the market is currently dependent on government support and subsidy schemes. Moreover, manufacturing and installation costs of large offshore wind turbines are capital-intensive, which restricts their end use in small- and medium-sized projects. The number of investors is expected to increase gradually, which helps improve installation costs, thereby driving the growth of the market.
By Region
Asia-Pacific occupies the largest part of the offshore wind turbine market share and consists of countries, such as China, India, Japan, South Korea, Australia, and Rest of Asia-Pacific. The China is the world’s largest consumer of electricity from solar power generation, having produced over 306.56 gigawatts in 2021. According to Rystad Energy, the installed capacity of renewable energy in this region is expected to jump from 517 GW in 2020 to 815 GW by 2025. The presence of many developing and underdeveloped countries is also the most populated region across the globe. It is also home to a significant number of megacities with an ever-increasing population. It is expected to have the largest urban population by 2050.
The Asia-Pacific dominates the market with a considerable revenue share. This is attributed to rise in concern from governments across emerging nations, such as China, India, and South Korea, regarding zero emission norms. Moreover, key players such as GE and Mitsubishi Hitachi Power Systems Ltd. are making significant contributions to the growth of the offshore wind turbine market. Technological advances and lower costs of capital have propelled renewables into the mainstream energy market. Furthermore, the boom of green investments in Asia-Pacific and the ambitious policies dominate global renewable energy in terms of capacity, technology development, and energy demand. The above-mentioned initiatives are major factors driving the growth of the market in the region during the forecast period.
By Region
Asia-Pacific region to hold highest market share till 2031
COVID-19 Analysis:
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments and infrastructure companies. The novel coronavirus has affected several economies ad caused lockdown in many countries which has limited the growth of the market. The shutdown of industrial manufacturing companies led to the decline in the demand for solar-related equipment in most of the countries across the globe, which led to decline in demand for the offshore wind turbine market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.
After the global vaccination, the government of various countries has taken initiatives to increase the investment in the renewable energy related industries, especially solar and wind power systems. The increase in the investment is mostly to improve the national energy security during the pandemic and other crisis. The presence of above-mentioned activities and changes in policies due to the outbreak of the COVID-19 pandemic are expected to have a positive impact on the development of the offshore wind turbine market forecast.
Competitive Landscape
The major companies profiled in this report include Enercon GmbH, General Electric, Goldwind, Nordex SE, Regen Powertech, Sinovel Wind Group, Suzlon Energy Limited, Zhejiang Windey, VESTAS, and Siemens Energy. Rapid urbanization and industrialization have fueled the demand for power, which led to increase in the investment in solar-based renewable power plants. This led to the development of the offshore wind turbine market. Additional growth strategies, such as expansion of production capacities, acquisition, collaboration, joint venture, and partnership in the development of the innovative products from manufacturers have helped attain key developments in the global offshore wind turbine market trends.
Key Benefits for Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the offshore wind turbine market analysis from 2021 to 2031 to identify the prevailing offshore wind turbine market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the offshore wind turbine market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global offshore wind turbine market trends, key players, market segments, application areas, and market growth strategies.
Offshore Wind Turbine Market Report Highlights
| Aspects | Details |
 Market Size By 2031 | USD 39.2 billion |
 Growth Rate | CAGR of 8.3% |
 Forecast period | 2021 - 2031 |
 Report Pages | 299 |
 By Capacity |
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 By Application |
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 By Region |
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 Key Market Players | Goldwind, Enercon Gmbh, SINOVEL WIND GROUP, ReGen Powertech, General Electric, Zhejiang Windey Co., Ltd., NORDEX SE, Siemens AG, Suzlon Energy Limited, VESTAS |
Analyst Review
The global offshore wind turbine market is likely to gain traction during the forecast period as a result of government regulations and investments that are aimed at developing offshore wind resources through investing in the offshore wind farms.
Rapid industrialization and growth of the renewable energy sector are the key factors attributed to the leading position of Asia-Pacific. The huge potential in Asia-Pacific to set up offshore renewable wind power generation plants through power transmission and distribution networks is expected to provide lucrative opportunities to leading offshore wind turbine manufacturers.
Increase in investments in renewable energy and surge in demand for the electricity due to rapid urbanization contribute toward the market growth. Moreover, increase in concerns about rise in prices, depletion of fossil fuels resources globally, and rise in awareness among the people regarding harmful effects of greenhouse gases such as carbon dioxide on the environment are the key driving factors of the offshore wind turbine market. According to the Global Wind Energy Council (GWEC), more than 80% of offshore wind farms are installed in European countries. Rapid development in developing countries and various infrastructure plans by the countries have resulted in high demand for electricity. Thus, these factors together are anticipated to open new avenues for the market.
Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue in the market during the forecast period, followed by Europe, North America, and LAMEA.
Increase in demand for renewable and sustainable energy and technological advancements for development of more reliable and efficient offshore wind turbines are the key factors boosting the Offshore Wind Turbine Market growth
Government initiatives to explore alternative sources of energy is the Main Driver of Offshore Wind Turbine Market
Enercon Gmbh, General Electric, Goldwind, Nordex SE, Regen Powertech, Sinovel Wind Group, Suzlon Energy Limited, Zhejiang Windey, VESTAS, and Siemens Energy.
Industrial application is projected to increase the demand for Offshore Wind Turbine Market
The offshore wind turbine market is segmented on the basis of capacity, application, and region. On the basis of capacity, the global offshore wind turbine market is segmented into small (less than 10MW), medium (10-100MW), and large (greater than 100MW). On the basis of application, the market is segmented into industrial, commercial, and residential. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The market value of Offshore Wind Turbine in 2031 is expected to be $39.2 billion
end-use industry are expected to drive the adoption of Offshore Wind Turbine
The shutdown of industrial manufacturing companies led to the decline in the demand for solar-related equipment in most of the countries across the globe, which led to decline in demand for the offshore wind turbine market. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market.
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