Offshore Substation Global Market Report 2025

The offshore substation market size has grown strongly in recent years. It will grow from $5.58 billion in 2024 to $5.95 billion in 2025 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to increasing infrastructure development, increasing support of governments for projects, increasing investments in wind turbines, growth in offshore wind energy generation, and increasing goals for alternative energy.

The offshore substation market size is expected to see strong growth in the next few years. It will grow to $7.8 billion in 2029 at a compound annual growth rate (CAGR) of 7%. The growth in the forecast period can be attributed to growing demand for renewable energy, rising global focus on energy transition, rising demand for smart grids, growing focus on decentralized energy systems, and rise of digital and smart substations. Major trends in the forecast period include developing grid connectivity, integration of energy storage, technology-driven safety systems, developing hybrid offshore solutions, and integration of smart grid technologies.

The forecast of 7% growth over the next five years reflects a modest reduction of 0.3% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Offshore substation development may slow down due to tariffs on HV switchgear, platform structures, and export cable assemblies sourced internationally. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

The growing demand for renewable energy is expected to drive the expansion of the offshore substation market. Renewable energy refers to power generated from naturally replenished resources such as sunlight, wind, rain, tides, waves, and geothermal heat. This demand is fueled by the need to reduce carbon emissions and address climate change, offering a sustainable and long-term solution to global energy challenges. Offshore substations play a crucial role by facilitating the efficient transmission of electricity from offshore wind farms to the mainland, supporting the integration of renewable energy into national power grids. For example, in December 2024, Eurostat, a Luxembourg-based non-profit organization, reported that renewable energy accounted for 24.5% of the European Union's energy consumption in 2023, up from 23% in 2022. Thus, the increasing focus on renewable energy is contributing to the growth of the offshore substation market.

Leading companies in the offshore substation market are innovating with advanced technologies such as floating substations to expand energy transmission capabilities in deeper offshore environments. Floating substations are marine-based power distribution facilities installed on floating platforms, primarily used to transmit electricity from offshore wind farms to onshore grids. For instance, in October 2024, DNV Group, a Norway-based risk management company specializing in energy supply chains, launched Phase 2 of its Floating Substation Joint Industry Project (JIP). This initiative aims to set industry standards for offshore substations within the growing floating wind sector. The project is focused on minimizing risk, enhancing safety, and improving the efficient deployment of floating wind farms by addressing technical challenges related to electrical infrastructure, platform stability, and grid integration.

In November 2022, Burns & McDonnell Inc., a U.S.-based construction engineering firm specializing in EPC (engineering, procurement, and construction) of offshore substations, formed a partnership with Bay Ltd. to reinforce the domestic offshore wind substation supply chain. This collaboration aims to accelerate the development of offshore wind energy in the U.S. by providing localized engineering, fabrication, and construction services. The partnership seeks to reduce dependence on foreign suppliers and promote job creation within the U.S. Bay Ltd. is a U.S.-based construction firm known for its multidiscipline capabilities, large-scale industrial project execution, and commitment to safety, quality, and productivity.

An offshore substation is a crucial electrical infrastructure located at sea, typically as part of an offshore wind farm. It collects and consolidates the power generated by multiple offshore turbines, increases the voltage for efficient transmission, and then transfers it to an onshore grid via submarine cables. Offshore substations enhance the overall efficiency of energy transmission while improving safety and reliability by managing power from various sources before it reaches the mainland.

The main types of offshore substations are alternating current (AC) substations and direct current (DC) substations. AC substations are facilities that adjust voltage levels and distribute electrical power across the grid, ensuring system stability and protection. These substations operate at various voltage levels, such as low voltage (< 110 kV), medium voltage (110-220 kV), and high voltage (>220 kV). Depending on the project requirements, they can be installed as either fixed or floating offshore substations. Key end users of these substations include wind farms, the oil and gas sector, and other industries.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a notable impact on the utilities sector, particularly across power generation, grid modernization, and renewable energy initiatives. Increased duties on imported equipment such as turbines, transformers, solar panels, and battery storage systems are driving up both capital and operational expenses for utility companies, prompting many to delay projects or pass higher costs on to consumers through increased energy rates. The water and waste management sectors are similarly affected, as tariffs inflate the cost of essential machinery, piping, and treatment technologies. Moreover, retaliatory tariffs from key trading partners have disrupted the supply of critical raw materials - such as rare earth elements vital for clean energy technologies - posing further challenges to the shift toward sustainable energy. In response, the sector is increasingly focusing on domestic procurement, digital transformation, and efficiency-enhancing innovations to control rising costs while safeguarding energy reliability and meeting regulatory demands.

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

Major players in the offshore substation market are Hitachi Energy Ltd, General Electric Company (GE), Schneider Electric SE, ABB Ltd, Prysmian S.p.A, Siemens Energy AG, Nexans S.A., Burns And McDonnell Engineering Company Inc., Keppel Offshore And Marine Ltd., John Wood Group PLC, Aker Solutions ASA, DNV Group, Ramboll Group A/S, Van Oord Dredging and Marine Contractors B.V., Aibel AS, MHI Vestas Offshore Wind A/S, Semco Maritime A/S, Petrofac Limited, CS Wind Corporation, STX France SA.

Europe was the largest region in the offshore substation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in offshore substation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the offshore substation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The offshore substation market consists of revenues earned by entities by providing services such as installation and commissioning, operation and maintenance, decommissioning, and design and engineering. The market value includes the value of related goods sold by the service provider or included within the service offering. The offshore substation market also includes sales of maintenance and monitoring solutions, auxiliary systems, HVAC and HVDC transmission systems, control and protection systems, and high voltage electrical equipment. 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.

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