Offshore Wind Energy Market Analysis & Forecast: 2025-2032

Offshore Wind Energy Market Size and Forecast – 2025 to 2032

Global Offshore Wind Energy Market size is expected to reach USD 80.65 Bn by 2032, from USD 34.07 Bn in 2025, exhibiting a compound annual growth rate (CAGR) of 13.1% during the forecast period (2025-2032).

Key Takeaways

• By Foundation, Floating hold the largest market share in 2025 owing to its access to deeper-water, higher-wind sites.
• By Component, Turbine expected to hold largest market share in 2025 owing to the larger turbine sizes & increasing power ratings.
• By Location, Shallow Water acquired the prominent market share of 45.5% in 2025 owing to the mature technology & supply chain.
• By Region, Europe dominates the overall market with an estimated share of 47.0% in 2025 owing to the strong policy & climate-targets.

Market Overview

Countries are rapidly expanding the offshore wind energy market as they pursue renewable power to boost energy security and cut carbon emissions. Technological advancements in turbines, grid systems, and floating platforms enhance efficiency and reduce costs. Governments, supported by strong policies and private investments, drive large-scale offshore wind projects in favorable coastal areas.

Current Events and their Impact on the Offshore Wind Energy Market

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End-user Feedback and Unmet Needs in the Offshore Wind Energy Market

• Reliability and Maintenance Challenges: End-users highlight concerns over turbine reliability in harsh marine environments. Maintenance access is often difficult and costly, especially for deepwater or floating installations. There’s a strong demand for more durable components and advanced predictive maintenance technologies to minimize downtime and optimize operational efficiency.
• Grid Integration and Stability Issues: Users report challenges in integrating offshore wind power with onshore grids due to intermittent generation and transmission constraints. They seek improved grid management solutions, enhanced energy storage options, and better interconnection infrastructure to ensure stable, consistent power delivery.
• Cost Reduction and Financing Support: Despite cost declines, end-users express the need for further reductions in installation, operation, and maintenance expenses. They also emphasize the importance of accessible financing options and long-term government incentives to make projects financially viable and attractive to investors.

Segmental Insights 

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Offshore Wind Energy Market Insights, by Location: Shallow Water contribute the highest share of the market owing to its proximity to grid and ports.

Shallow Water acquired the prominent offshore wind energy market share of 45.5% in 2025. Developers benefit from proven fixed-bottom foundation technologies in shallow-water offshore wind, which simplify installation and lower costs. Projects become more economically attractive as they take advantage of proximity to shorelines, reducing transmission expenses and easing maintenance access. Established supply chains and mature regulatory frameworks enable faster deployment in these areas. Investors are encouraged by favorable seabed conditions and strong wind resources in shallow waters. Together, these factors drive growth and expand renewable energy capacity along coastlines through practical and cost-effective solutions. For instance, in June 2025, Petrobras launched geophysical survey tenders for an offshore wind pilot project in Rio de Janeiro. The company is also conducting a second tender to acquire geotechnical data in shallow and ultra-shallow water, as well as beach environments.

Offshore Wind Energy Market Insights, by Foundation: Floating contribute the highest share of the market owing to its cost reduction potential.

Floating offshore wind energy grows as it captures powerful winds in deep waters where fixed foundations cannot operate. Advancing technologies in floating platforms, mooring systems, and subsea cables improve reliability and lower expenses. Governments drive innovation by implementing supportive policies and renewable energy goals that attract private investment. This technology opens new coastal areas for development, diversifies energy sources, strengthens grid stability, and accelerates the global transition toward clean and sustainable offshore wind power generation. For instance, in October 2025, the European project I3FLOAT launched with a kick-off meeting held in Brussels. I3FLOAT aims to support the scale-up of advanced technologies and promote cooperation between regional innovation ecosystems. Such instances are accelerating the offshore wind energy market demand.

Offshore Wind Energy Market Insights, by Component: Turbine contribute the highest share of the market owing to its rising demand for clean power.

Developers are driving the offshore wind turbine market as they pursue higher efficiency and greater power output through larger, more advanced turbines. Engineers continuously enhance blade design, materials, and digital monitoring systems to boost performance and reliability in demanding marine environments. Governments strengthen turbine demand by implementing supportive policies, renewable energy targets, and investment incentives. Expanding offshore projects across Europe, Asia-Pacific, and North America accelerate technological innovation, increase energy production, and propel the global move toward sustainable offshore power generation. For instance, in October 2025, China’s Mingyang, announced plans to open a factory in the UK, is launching a colossal 24.5MW floating offshore wind turbine.

Regional Insights 

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Europe Offshore Wind Energy Market Trends

Europe dominates the overall market with an estimated share of 47.0% in 2025. Increasing demand for clean energy and strong government support are rapidly evolving Europe’s offshore wind energy market. Developers are scaling up turbine sizes and advancing floating wind technologies to tap into deeper waters. Collaborative projects and cross-border grid integration improve energy distribution and reliability. Innovations in supply chains and manufacturing reduce costs, while ambitious climate goals drive faster installation of new projects. These trends actively position Europe as a global leader, accelerating the transition to sustainable offshore wind power. For instance, in June 2025, ORLEN Neptun, part of the ORLEN Group, has launched an offshore wind farm installation terminal in Świnoujście, marking Poland’s first facility of this kind and one of the most advanced in Europe.

Asia Pacific Offshore Wind Energy Market Trends

Countries in Asia Pacific are rapidly expanding the offshore wind energy market demand by investing heavily in renewable energy to address growing electricity demand. The region is actively developing both fixed-bottom and floating wind technologies to utilize extensive coastal and deepwater resources. Governments implement supportive policies and incentives to draw private investment. Local manufacturers and supply chains are improving to lower costs, while collaboration and infrastructure upgrades boost market growth, establishing Asia Pacific as a major force in the global offshore wind industry. For instance, in March 2025, Vestas secured a 495 MW order from Copenhagen Infrastructure Partners for the Fengmiao I offshore wind project near Taichung, Taiwan. The deal includes 33 V236-15.0 MW turbines and a long-term service agreement to ensure optimal asset performance.

United Kingdom Offshore Wind Energy Market Trends

The United Kingdom drives offshore wind development by prioritizing large-scale projects and advancing floating wind technology to reach deeper waters. The government’s strong commitment and clear policies encourage investment and innovation throughout the sector. The UK expands port infrastructure and improves supply chains to enable faster deployment. Industry and government collaborate to advance turbine technology and grid integration. These actions reinforce the UK’s role as a global leader in offshore wind and speed up its shift toward a low-carbon energy future. For instance, in August 2025, in London, JERA and bp have completed forming JERA Nex bp, their new joint venture with equal 50:50 ownership. JERA Nex bp operates as a global offshore wind developer, owner, and operator. The company’s portfolio of active assets and development projects offers a net potential generating capacity of 13GW.

India Offshore Wind Energy Market Trends

India is rapidly advancing its offshore wind energy market by developing coastal projects and exploring floating wind technologies to tackle deepwater challenges. The government implements favorable policies and provides incentives to attract domestic and international investors. Local manufacturers are strengthening capabilities, and supply chains are improving to lower costs. Public and private sectors collaborate to enhance infrastructure and grid connectivity. These efforts establish India as an emerging leader in the global offshore wind industry and propel its renewable energy ambitions. For instance, in October 2025, the Department for Promotion of Industry and Internal Trade (DPIIT) launched ‘PM GatiShakti – Offshore’, a digital geospatial platform to support integrated planning and management of offshore infrastructure, boosting India’s Blue Economy and clean energy transition.

Offshore Wind Energy Market Trend

Scaling Up Turbine Size and Capacity

The offshore wind market is moving towards larger turbines with higher capacities to increase energy generation and improve project economics. Bigger blades and taller towers allow access to stronger winds, enhancing efficiency. This trend reduces the cost per megawatt by maximizing output per unit, helping projects become more competitive with traditional energy sources. Manufacturers and developers focus on innovations that support these larger turbines while ensuring reliability and ease of installation in challenging offshore conditions.

Growth of Floating Offshore Wind Technology

Floating offshore wind is gaining momentum as it unlocks deeper water sites previously inaccessible to fixed-bottom foundations. This trend expands the geographic scope of offshore wind development to regions with deep coastal waters and limited shallow sites. Advances in floating platforms, mooring systems, and dynamic cabling increase feasibility and cost-effectiveness. Floating wind is becoming a key strategy for countries aiming to diversify their renewable energy mix and tap into untapped wind resources far from shore.

Offshore Wind Energy Market Opportunity

Expansion into Deepwater Sites with Floating Wind

Floating offshore wind technology offers vast opportunities by enabling energy generation in deepwater locations previously unreachable by fixed foundations. This expansion allows access to stronger, more consistent wind resources far from shore, opening new markets. Countries with deep coastal waters can significantly increase their renewable energy capacity. Innovations in floating platform designs and cost reductions will drive commercial viability, positioning floating wind as a crucial growth segment in the offshore wind market.

Market Report Scope 

Offshore Wind Energy Market News

• In October 2025, Petronas, in partnership with University Malaysia Terengganu (UMT), launched the Centre for Offshore Renewable Energy (CEFORE) off the coast of Kuala Terengganu. CEFORE aims to generate continuous power by combining offshore wind, solar, and wave energy with on-site storage and energy management systems.
• In October 2025, the Canada-Nova Scotia Offshore Energy Regulator launched its offshore wind Call for Information NS25-1R and Pre-qualification NS25-1R. The Pre-qualification process allows companies to demonstrate their eligibility to participate in the upcoming Call for Bids.
• In September 2025, the Victorian government postponed its first offshore wind auction, initially planned for September. Victoria aims to develop at least 2 GW of offshore wind capacity by 2032, increasing the target to 4 GW by 2035 and 9 GW by 2040.
• In July 2025, the Department of the Interior began a full review of offshore wind regulations to align with the Outer Continental Shelf Lands Act and U.S. energy priorities, examining rules, financial assurances, and decommissioning costs to prevent preferential treatment of foreign-controlled energy sources.

Analyst Opinion (Expert Opinion)

• The offshore wind energy sector is at a critical inflection point, driven not just by policy mandates but by tangible technological breakthroughs that are reshaping the economics and feasibility of projects globally. For instance, the leap from 8 MW to 15 MW+ turbines—exemplified by GE’s Haliade-X and Siemens Gamesa’s SG 14-222 DD—dramatically boosts capacity factors and reduces levelized costs of energy (LCOE), fundamentally challenging traditional energy generation models.
• Europe’s North Sea projects, like Dogger Bank Wind Farm, which will feature 13.6 MW turbines, illustrate how scale and innovation converge to drive down costs and accelerate deployment timelines. Equally significant is the rise of floating offshore wind, led by projects such as Equinor’s Hywind Scotland. Floating platforms unlock previously inaccessible deepwater zones, a game-changer for geographies like Japan, California, and parts of Asia where seabed conditions limit fixed-bottom installations.
• However, the market still grapples with supply chain bottlenecks and inflationary pressures on raw materials, which have caused turbine and installation costs to surge recently. For example, steel prices spiked by over 50% during 2021–2023, significantly impacting foundation and tower expenses. Without strategic supply diversification and localized manufacturing expansions, these cost pressures risk slowing deployment rates.
• Moreover, grid integration remains an underappreciated hurdle. As offshore wind scales, the intermittency challenge grows more complex, demanding smarter grid solutions and enhanced interconnectivity. The UK’s recent challenges with grid curtailments, where up to 10% of offshore wind power was wasted during peak generation, highlight that infrastructure and policy must evolve in tandem with capacity.

Market Segmentation

• By Foundation
  • Floating
  • Bottom Founded
• By Component
  • Turbine
  • Substructure
  • Others (Electric components, etc.)
• By Location
  • Shallow Water
  • Transitional Water
  • Deep Water
• By Region
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • MHI Vestas Offshore Wind
  • Siemens Gamesa Renewable Energy, S.A.
  • J Cole Collections
  • Sinovel Wind Group Co., Ltd 
  • Erndtebrücker Eisenwerk Gmbh & Co. Kg
  • Northland Power Inc.
  • Ming Yang Smart Energy Group Limited
  • Adwen GmBH
  • General Electric Company
  • A2SEA A/S
  • Nexans

Sources

Primary Research interviews

• Industry experts from offshore wind turbine manufacturers
• Project developers and operators
• Government energy regulators and policymakers
• Technology suppliers and service providers
• Grid operators and utility companies

Databases

• International Energy Agency (IEA) Database
• Global Wind Energy Council (GWEC) Data Repository
• National Renewable Energy Laboratory (NREL) Database
• European Network of Transmission System Operators for Electricity (ENTSO-E) Data
• U.S. Energy Information Administration (EIA)

Magazines

• Windpower Monthly
• Recharge News
• Offshore Wind Journal
• Renewable Energy World
• Power Engineering International

Journals

• Renewable Energy Journal
• Wind Energy Science
• Journal of Offshore Mechanics and Arctic Engineering
• Energy Policy
• Journal of Cleaner Production

Newspapers

• Financial Times – Energy Section
• The Guardian – Environment and Energy
• The New York Times – Climate and Energy
• The Wall Street Journal – Energy & Environment
• South China Morning Post – Energy and Technology

Associations

• Global Wind Energy Council (GWEC)
• American Wind Energy Association (AWEA)
• European Wind Energy Association (EWEA)
• Offshore Renewable Energy (ORE) Catapult
• International Renewable Energy Agency (IRENA)

Public Domain sources

• Government energy departments (e.g., UK Department for Business, Energy & Industrial Strategy)
• National offshore wind project reports
• Publicly available environmental impact assessments
• International Maritime Organization (IMO) publications
• United Nations Framework Convention on Climate Change (UNFCCC) reports

Proprietary Elements

• CMI Data Analytics Tool
• Proprietary CMI Existing Repository of information for last 8 years