Offshore Wind Turbine Market Size, Share & Trends Analysis Report By Capacity (Up to 3 MW, 3 MW to 5 MW, Above 5 MW), By Water Depth (Shallow Water, Transitional Water, Deepwater), By Region, And Segment Forecasts, 2024 - 2030

Offshore Wind Turbine Market Size & Trends

The global offshore wind turbine market size was estimated at USD 17.81 billion in 2023 and expected to grow at a CAGR of 11.5% from 2024 to 2030. The market is expected to expand accounting to rising interest in reducing the global carbon footprint and increasing demand for renewable energy. Increasing efforts by government agencies and electrical companies to reduce carbon emissions are major market drivers driving market expansion.

One of the prominent trend in the offshore wind turbine market is the rise in expansion of industrial industry including wind power owing to the growing need for a clean, affordable, and diverse electricity supply. The offshore wind turbine is an essential clean energy solution for large communities looking to obtain more energy from clean sources, and lower costs make it more affordable.

The rise in continued research, development, demonstration, and deployment of technologies to eliminate impediments to the widespread installation of turbines are likely to drive the offshore wind turbine market growth in the forecast period.Advances in turbine design, materials and manufacturing processes have led to more efficient and reliable turbines. This includes larger turbines with more power, which reduce the cost per megawatt of energy produced.

The increase in adoption of renewable energy across several emerging countries in regions such as South America, Asia, and Africa is expected to drive the market growth in the coming years. Offshore wind turbines are gaining popularity due to their high energy production potential and ability to make a significant contribution to global efforts to reduce greenhouse gas emissions.

The offshore wind turbine market is growing at a rapid rate, however the market faced various challenges. Offshore wind projects require significant upfront capital for installation, including the cost of turbines, foundations and grid connections.Offshore wind turbines are more expensive to maintain compared to onshore wind turbines due to harsh marine conditions and accessibility issues. These factors are likely to restrain the market growth.

Capacity Insights

Based on capacity, above 5 MW segment dominated the market with the revenue share of 43.71% in 2023. Higher capacity turbines are in high demand for the production of offshore wind more energy efficient and economically sustainable. Advances in turbine design, such as larger rotor diameters and improved blade materials, to improve performance and reliability is expected to benefit the segment growth in the coming years.

3 MW to 5 MW is another significant application which is expected to grow significantly over the forecast period. The expansion of offshore wind projects with capacities ranging from 3 MW to 5 MW represents a key component of the offshore wind market. Offshore wind projects ranging from 3 MW to 5 MW provide a good blend of scale and flexibility. They are adaptable to diverse wind conditions and water depths, making them useful for a wide range of applications. Moreover, the widespread use and standardization of turbines of this size facilitate production, installation and maintenance, reducing overall project risk.

Water Depth Insights

Based on water depth, shallow water segment led the market with the revenue share of 44.54% in 2023. Shallow water allows for the use of simpler and less expensive foundation types such as monopoles and gravity structures, reducing overall installation costs. Shallow water projects can be designed to minimize environmental impacts on marine ecosystems and seabed habitats, facilitating regulatory approval and public acceptance. These advantages is expected to further propel the segment growth in the coming years.

The transitional water segment is expected to grow at a significant CAGR over the forecast period. Transitional waters typically experience stronger and more consistent wind speeds compared to shallow waters, resulting in higher energy production and improved project economics.

Regional Insights

Europe dominated global offshore wind turbine market and accounted for largest revenue share of over 47% in 2023. Governments across Europe are providing various subsidies, grants and tax breaks to support the development of offshore wind projects. Moreover, the European Union (EU) has set ambitious renewable energy targets, aiming to become climate neutral by 2050. This is expected to drive the installation of offshore wind turbines across the region.

North America Offshore Wind Turbine Market Trends

The North America region has a well-established infrastructure and culture that promotes technological innovation, leading to increased adoption of advanced technologies. The wind turbine market is experiencing significant growth across the region driven several factors including favorable policies, technological advancements and increased investment. In addition, the growing interest from private capital, institutional investors and public-private partnerships is driving investment in offshore wind projects.

U.S. Offshore Wind Turbine Market Trends

The U.S. market dominated the North American offshore wind turbine market is expected to grow at a significant rate in the coming years. The government and several states have set ambitious goals for offshore wind development.The development of specialized ports and logistics facilities for the assembly, transportation and maintenance of offshore wind turbines helps to efficiently implement projects and reduce costs. This is expected to contribute to the market growth in the country.

Asia Pacific Offshore Wind Turbine Market Trends

The offshore wind turbine market in Europe is experiencing significant growth due to several key drivers. With an increasing focus on sustainable energy sources around the world, offshore wind power has emerged as a lucrative alternative for a variety of countries, including China, India, and Japan, driving regional market growth.

Key Offshore Wind Turbine Market Company Insights

The offshore wind turbine market is highly competitive, with several key players dominating the landscape. Major companies include General Electric, Equinor ASA, Iberdrola, S.A., Mitsubishi Heavy Industries, Ltd, and Goldwind. The offshore wind turbine market is categorized by a competitive landscape with several key players driving innovation and market growth. Major companies in this sector are investing heavily in research and development to enhance the performance, cost-effectiveness, and sustainability of their products.

Recent Developments

• In July 2024, Chinese company Mingyang Smart Energy launched the OceanX single-capacity floating wind platform, consisting of two MySE8.3-180 hybrid drive wind turbines, each with a capacity of 8.3 MW.The innovative V-shaped turret with a long elliptical cross-section provides additional swinging power, increasing production efficiency and reducing ultimate load, especially in extreme typhoon conditions.

• In July 2024, Maersk Supply Service launched a company, Maersk Offshore Wind, which will offer installation services based on offshore wind installation vessel (Maersk WIV) concept.The design and concept will significantly reduce installation time for offshore wind turbines compared to traditional methods, thereby reducing the overall installation cost for developers. The first vessel will be conveyed in 2025.

• In April 2024, Denmark government announced its largest offshore wind tender, offering no subsidies to companies competing to install turbines at six sites totaling up to 10 gigawatts (GW).Six sites will be allocated, which will allow the construction of at least 6 GW.

Offshore Wind Turbine Market Report Scope

Global Offshore Wind Turbine Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global offshore wind turbine market report on the basis of capacity, water depth, and region:

• Capacity Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)

  • Up to 3 MW

  • 3 MW to 5 MW

  • Above 5 MW

• Water Depth Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)

  • Shallow Water (<30 M Depth)

  • Transitional Water (30-60 M Depth)

  • Deepwater (More than 60 M Depth)

• Regional Outlook (Volume, MW; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • Italy

    • Spain

    • France

    • The Netherlands

    • Denmark

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Indonesia

    • Thailand

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa

    • UAE