Offshore Wind Energy Market Size, Share, Growth, And Industry Analysis, By Type (Up to 1 MW, 1-3 MW, 3-5 MW and 5 MW and Above), By Application (Shallow Water and Deep Water), Regional Insights and Forecast From 2025 To 2034

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Offshore Wind Energy Market Overview

The global Offshore Wind Energy Market size is valued at USD 0.01 billion in 2025, is projected to grow steadily to USD 0.01 billion in 2026 and is expected to reach USD 0.03 billion by 2034, maintaining a CAGR of about 15.5% over the forecast period 2025-2034. In 2022, Europe dominated the global Offshore Wind Energy market with over 55% share, driven by large-scale offshore wind farm developments in the UK and Germany.

Offshore wind energy is the term used to describe the production of electricity using wind turbines positioned on water, usually in coastal or offshore sites. It is a type of renewable energy that uses wind energy more extensively than onshore wind farms to generate electricity.

On average, offshore wind turbines are substantially larger than their onshore equivalents. They are set up on either stationary foundations or floating platforms that are moored to the seafloor. Monopiles, jackets, and gravity-based structures are examples of fixed foundations, whereas floating constructions are made to remain stable in deeper waters where fixed foundations would not be appropriate.

KEY FINDINGS

COVID-19 Impact

Pandemic Hamper the Demand of Offshore Wind Energy to Market Growth

The global Covid-19 pandemic has been unprecedented and staggering, with the offshore wind energy market experiencing Higher than anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

The COVID-19 pandemic has had both direct and indirect impacts on the offshore wind energy sector. The pandemic caused disruptions in the construction activities of offshore wind projects. Travel restrictions, supply chain disruptions, and social distancing measures led to delays in manufacturing, transportation, and installation of wind turbines and related infrastructure. Projects faced challenges in mobilizing personnel and equipment, resulting in construction delays and potential cost overruns.     

Latest Trends

Increasing Turbine Sizes Will Drive Market Growth  

 Offshore wind turbines continue to increase in size, with larger rotor diameters and higher power capacities. This trend enables greater energy production and improved cost-effectiveness by capturing more wind energy per turbine. Larger turbines also contribute to reducing the overall number of turbines needed for a project, simplifying installation, and reducing maintenance requirements. 

• According to the International Renewable Energy Agency (IRENA), 16% of new offshore projects in 2023 used floating turbine technology.

• The U.S. Department of Energy (DOE) reports that 24% of offshore wind turbines installed in 2023 had capacities exceeding 10 MW.

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Offshore Wind Energy Market Segmentation

By Type

According to type, the offshore wind energy market can be segmented into Up to 1 MW, 1-3 MW, 3-5 MW and 5 MW and above.

In terms of type, natural Up to 1 MW is anticipated to be the largest segment during the forecast period.  

By Application

Based on application, the offshore wind energy market can be shallow water and deep water.

In terms of application, the shallow water market is projected to hold an offshore wind energy market share through 2028.

Driving Factors

Declining Costs Will Boost Market Growth

 The cost of offshore wind energy has been declining steadily over the years, making it increasingly competitive with other forms of energy generation. Technological advancements, economies of scale, improved project designs, and streamlined installation and maintenance processes have contributed to cost reductions. As costs continue to decrease, offshore wind becomes a more attractive option for energy generation.

• According to the European Commission, 32% of EU member states aimed to meet offshore wind targets by 2030, driving project development.

• The International Energy Agency (IEA) notes 28% reduction in LCOE for offshore wind between 2020 and 2023, improving investment viability.

Renewable Energy Targets and Climate Goals Will Fuel Market Growth

 Governments around the world have set renewable energy targets and committed to reducing greenhouse gas emissions to mitigate climate change. Offshore wind energy plays a crucial role in achieving these goals, as it is a clean, renewable energy source with significant potential for large-scale electricity generation. Strong policy support and commitments to clean energy have driven the growth of offshore wind projects.

Restraining Factors

Grid Connection Challenges Will Impede Market Growth 

Offshore wind farms require robust and efficient grid connection infrastructure to transmit the generated electricity to onshore grids. Developing adequate transmission systems, including subsea cables and onshore substations, can be complex and costly. Grid connection challenges, including limited grid capacity, grid congestion, and lack of grid infrastructure in suitable offshore locations, can hinder the development of offshore wind projects.

• According to U.S. DOE Offshore Wind Report 2023, 38% of projects reported cost overruns during installation phases.

• The IRENA 2023 Report states that 22% of offshore wind farms faced delays due to limited transmission capacity.

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Offshore Wind Energy Market Regional Insights

The Europe Region will Dominate Market Due to Strong Demand of Wind Supply Chain

Europe has been a global leader in offshore wind energy development. Countries such as the United Kingdom, Germany, Denmark, the Netherlands, and Belgium have made significant progress in deploying offshore wind farms. The region benefits from strong policy support, favorable wind resources in the North Sea, and a well-established offshore wind supply chain. Europe aims to expand offshore wind capacity as part of its clean energy transition and has set ambitious targets for offshore wind installation.

The Asia-Pacific region is emerging as a promising market for offshore wind energy. Countries such as China, Taiwan, South Korea, and Japan have made significant investments in offshore wind projects. These countries have substantial coastlines and abundant wind resources. Rapid industrialization, growing energy demand, and commitments to decarbonization are driving offshore wind development in the region. China, in particular, has become a major player in the offshore wind industry, with ambitious targets for capacity installation.

Key Industry Players

Adoption Recycling Services by Key Players Influencing Market Development

The top key players in the offshore wind energy market are Siemens, MHI Vestas, ABB, General Electric, EEW Group. Most of the top players hold the offshore wind energy market share. In addition, the strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the offshore wind energy market growth in the competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession of market shares by the key players stimulates the offshore wind energy market.  

• Siemens Gamesa: According to Siemens Sustainability Report 2023, 27% of offshore turbine installations focused on high-capacity units above 10 MW.

• ABB: According to ABB Annual Report 2023, 19% of offshore projects integrated advanced grid connection and power management systems.

List of Top Offshore Wind Energy Companies

• Siemens (Germany)
• MHI Vestas (Denmark)
• ABB (Switzerland)
• General Electric (U.S.)
• EEW Group (Germany)
• A2Sea (Denmark)
• Nexans (France)
• Adwen Offshore (Spain)
• Equinor (Norway)
• Orsted (Denmark)
• Senvion (Germany)
• Sinovel (China)

Report Coverage

This report examines an understanding of the offshore wind energy market’s size, share, growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.