The global offshore wind energy market is primarily driven by growing demand for renewable energy sources across the globe. Offshore wind energy utilizes wind farms constructed in oceans or sea areas to generate electricity through wind turbine generators mounted on offshore wind platforms. The electricity is transmitted via underwater power cables to onshore electricity networks or grids on land. Europe is currently the world’s largest producer of electricity from offshore wind due to extensive investments by countries like the UK, Denmark, Germany, Belgium, and the Netherlands. The UK and China have emerged as major markets globally and are expected to significantly contribute to the growth of the offshore wind energy industry over the coming years. Due to substantial wind speeds, declining technology costs, and supportive government policies promoting renewable energy, offshore wind farms are highly profitable and economically competitive compared to traditional fossil fuel-based power generation methods.

The global offshore wind energy Market is estimated to be valued at US$ 5.78 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

Growing demand for renewable energy sources (as highlighted in the heading) is one of the key drivers boosting the offshore wind energy market. Stringent environmental regulations curbing carbon emissions coupled with the declining costs of offshore wind technology have further augmented the growth of the offshore wind industry globally. According to the International Renewable Energy Agency (IRENA), the levelized cost of energy from utility-scale offshore wind farms reduced by 13% between 2019 and 2020, driven by turbine efficiency improvements and cost innovation. Governments across Europe, China, and the US are setting ambitious targets for achieving energy from renewable sources to meet their international climate change commitments. For instance, the US has set a target of deploying 30 GW of offshore wind capacity by 2030 under the Biden administration’s infrastructure plan. This rising commitment towards clean energy adoption among governments and businesses worldwide is expected to significantly drive market growth over the forecast period.

Segment Analysis

The offshore wind energy market can be segmented by component into substructure, cables, turbine, electrical infrastructure, and others. The turbine segment is dominating the market currently due to continuous technological advancements in turbine components such as blades, gearboxes, and generators to increase efficiency. Turbines play a major role in offshore wind power projects as they are the primary devices that convert wind energy into electrical energy.

PEST Analysis

Political: governments across various countries are introducing supportive policies and regulations to boost the development of offshore wind projects. For example, Europe and China have set ambitious targets for offshore wind capacity additions to meet their renewable energy and climate goals.
Economic: the declining cost of offshore wind power generation is driving the market. The levelized cost of energy from offshore wind farms has reduced significantly over the past decade due to technology improvements and competitive auctioning of projects.
Social: communities near offshore wind projects have generally shown acceptance as these facilities help countries meet their emission reduction targets and transition to clean energy. The offshore wind sector also creates skilled jobs locally.
Technological: advances in bigger rotor diameters, taller towers, digitalization, floating foundations, and battery energy storage are helping optimize offshore wind projects and integrate more renewable energy onto grids reliably.

Key Takeaways

The global Offshore Wind Energy Market Share is expected to witness high growth over the forecast period, driven by supportive policies, rising investments, technological innovations and cost reductions.

Regional Analysis: Europe currently dominates the market led by countries such as the UK, Germany, Belgium, the Netherlands etc. due to early focus on developing offshore capacity. However, Asian markets like China are catching up fast and the Asia Pacific region is poised to grow at the fastest pace in the coming years, supported by China’s massive offshore ambitions.

Key players operating in the offshore wind energy market are Arlo Technologies Inc., Ring (owned by Amazon), Nest (owned by Google, a subsidiary of Alphabet Inc.), Wyze Labs Inc., Logitech International S.A., Blink Home Security (owned by Amazon), D-Link Corporation, TP-Link Technologies Co., Ltd., Ezviz (a subsidiary of Hikvision), Reolink Digital Technology Co., Ltd., Zmodo Technology Corporation, Canary Connect Inc., Netgear Inc., Eufy Security (a division of Anker Innovations), Swann Communications Pty Ltd. Growing at an exponential rate, these companies are focusing on developing innovative offshore wind turbines, foundations, and electrical infrastructure to strengthen their position in the market.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it