Off Shore Wind Turbine Global Market Report 2024

The off shore wind turbine market size has grown rapidly in recent years. It will grow from $27.14 billion in 2023 to $31.74 billion in 2024 at a compound annual growth rate (CAGR) of 16.9%. Historical growth can be attributed to increased energy demand, government support and policies, cost reduction initiatives, market maturation, and the development of infrastructure within the industry.

The off shore wind turbine market size is expected to see rapid growth in the next few years. It will grow to $57.27 billion in 2028 at a compound annual growth rate (CAGR) of 15.9%. Anticipated growth in the upcoming period is linked to digitalization, climate change policies, the advancement of green hydrogen production, supportive policies for supply chain optimization, and regulatory measures. Key trends expected in this forecast period encompass the emergence of energy-as-a-service models, integration of smart grids, a surge in demand for clean energy, the development of higher-capacity turbines, and efforts focused on recycling and reusing decommissioned components within the industry.

The growing demand for renewable and sustainable energy is expected to drive the expansion of the offshore wind turbine market. Renewable and sustainable energy, often termed as clean energy, is derived from natural resources or processes that are replenishable, such as solar and wind power. The increasing demand for clean energy is fueled by concerns related to the environmental impact of other energy sources, such as the emission of harmful pollutants from fossil fuel combustion and nuclear power reactors. In contrast, renewable sources such as solar and wind energy are environmentally friendly, leaving no adverse effects on nature. Harnessing electricity through offshore wind turbines is considered an efficient means of promoting sustainable development. For example, in 2023, reports from the Business Council for Sustainable Energy, a US-based clean energy trade association, highlighted significant strides in renewable energy in the US. In 2022, renewables accounted for 13% of the total US energy demand, with renewables and natural gas jointly increasing from 43% to 62% of total power generation within a few years. During the same period, the US added over 25.5 GW of new clean power, representing nearly 80% of all new capacity. Consequently, the escalating demand for renewable and sustainable energy is a key factor propelling the growth of the offshore wind turbine market.

The anticipated growth in the offshore wind turbine market is propelled by the increasing job creation in offshore wind projects. Job creation within offshore wind projects pertains to the employment opportunities stemming from the planning, construction, and operation of offshore wind farms. The deployment of offshore wind turbines plays a pivotal role in generating jobs throughout various phases, including development, manufacturing, installation, and maintenance, thereby engaging skilled professionals and workers in the wind energy sector. A notable example is the data from June 2023, reported by the Offshore Wind Industry Council, a UK-based government and industry forum. By the end of 2021, the UK had witnessed a 4% increase in offshore wind workers, totaling over 32,000 individuals. This figure encompasses both direct employment and nearly 15,000 indirect jobs related to offshore wind activities. Projections for 2026 suggest a demand for approximately 88,509 skilled workforces. Consequently, the escalating job creation in offshore wind projects emerges as a significant driver fueling the growth of the offshore wind turbine market.

The prevalent trend in the offshore wind turbine market involves a noteworthy increase in partnerships and collaborations. Key market players strategically engage with industry counterparts to drive technological advancements and enhance their market footprint. Illustratively, in May 2021, GE Renewable Energy, a prominent US-based wind turbine manufacturer, entered into a strategic partnership with Toshiba Energy Systems and Solutions Corporation, a Japan-based leader in large-scale power generation systems. The primary objective of this collaboration is to facilitate the localization of the Haliade-X offshore wind turbine's commercialization within the nation, emphasizing the localization of critical manufacturing stages. This strategic alliance underscores the industry's commitment to fostering collaborative efforts for mutual benefits in technology development and market expansion.

Prominent companies within the market are strategically focused on the development of innovative solutions, exemplified by the introduction of floating offshore wind farms, to offer reliable services to their customers. A floating offshore wind farm is characterized by an assemblage of wind turbines affixed to floating platforms rather than fixed foundations, allowing them to operate effectively in deep waters. A noteworthy example is the achievement by Equinor ASA, a Norway-based multinational energy company, which inaugurated the world's largest floating offshore wind farm in August 2023. This 11-turbine facility, based on Equinor's Hywind concept, boasts an impressive 88 MW capacity, effectively covering 35% of the electricity needs for five platforms. Executed over a five-year span, the project incurred an investment of approximately NOK 7.4 billion, with 60% of the amount directed towards Norwegian suppliers, contributing to the growth of green jobs and technology development. Notably, when compared to the Hywind Scotland project, Hywind Tampen achieved a 35% reduction in investment cost per installed MW, showcasing the economic efficiency and advancements in floating offshore wind technology.

In January 2021, Siemens Gamesa, a Germany-based manufacturer in the offshore wind turbine market, successfully completed the acquisition of Ria Blades SA, a business unit of Senvion, for a total transaction value of $199.42 million (€200 million). This strategic move by Siemens Gamesa is aimed at bolstering its onshore competitiveness by accommodating the anticipated increase in production from external suppliers, particularly those based in Asia. The acquisition positions Siemens Gamesa to serve as a key export hub for foreign markets. Senvion, the German-based manufacturing company specializing in the offshore wind turbine market, contributes to this initiative as part of the broader strategy to enhance Siemens Gamesa's market position and global outreach.

Major companies operating in the off shore wind turbine market report are ABB Ltd., Orsted A/S, Shanghai Electric Group Co. Ltd., Vestas Wind Technology India Private Limited, Vestas Wind Systems A/S, MHI Vestas Offshore Wind A/S, General Electric Renewable Energy LLC, Siemens Gamesa Renewable Energy S.A., Nordex Acciona Windpower S.A., Tata Power Company Limited, Xinjiang Goldwind Science Technology Co. Ltd., Goldwind Science & Technology Co. Ltd., MingYang Smart Energy Co. Ltd., Eneco Group NV, Northland Power Inc., Senvion S.A., ReNew Energy Global plc, Suzlon Energy Limited, Adani Green Energy Limited, Envision Energy Limited, Sinovel Wind Group Co. Ltd., Copenhagen Infrastructure Partners, White Energy Company Limited, Inox Wind Energy Ltd., Adwen Offshore Wind Power SAS, Ecoventia S.L., XEMC Windpower Co. Ltd., Jiangsu Aeolos Wind Energy Corporation, CSIC Haizhuang Windpower Equipment Co.Ltd., NSL Renewable Power Private Limited.

Western Europe was the largest region in the global offshore wind turbine market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the off shore wind turbine market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the off shore wind turbine market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Various foundation types support offshore wind turbines, with notable options such as monopile, jacket, tripod, and floating structures. Monopile foundations consist of substantial steel tubes, forming a crucial element in the offshore wind turbine infrastructure. These turbines exhibit diverse capacities, categorized as up to 3 MW, 3 MW to 5 MW, and above 5 MW, catering to different energy needs. Furthermore, offshore wind turbines are deployed at varying depths, including shallow water, transitional water, and deep water locations, presenting versatile solutions for distinct marine environments. The applications of these offshore wind turbines extend across industrial, commercial, and residential settings, illustrating their adaptability and relevance in diverse business contexts.

The offshore wind turbine market research report is one of a series of new reports that provides offshore wind turbine market statistics, including off shore wind turbine industry global market size, regional shares, competitors with an off shore wind turbine market share, detailed offshore wind turbine market segments, market trends and opportunities, and any further data you may need to thrive in the off shore wind turbine industry. This off-shore wind turbine market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The offshore wind turbines market consists of sales of fixed foundation and floating foundation offshore wind turbines. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.