Offshore Substation Market Report 2026

The offshore substation market size has grown strongly in recent years. It will grow from $5.95 billion in 2025 to $6.37 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to expansion of offshore wind farm installations, growth in submarine cable deployment, increasing offshore power transmission distances, early adoption of AC offshore substations, rising investments in offshore energy infrastructure.

The offshore substation market size is expected to see strong growth in the next few years. It will grow to $8.32 billion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing deployment of large-scale offshore wind projects, rising demand for floating wind farms, expansion of HVDC transmission systems, growing investments in offshore grid interconnections, increasing focus on resilient offshore energy infrastructure. Major trends in the forecast period include increasing deployment of high-voltage offshore substations, rising adoption of floating substation platforms, growing integration of digital monitoring systems, expansion of direct current offshore substations, enhanced focus on grid reliability and power loss reduction.

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 March 2025, Smulders Group NV, a Belgium-based company, acquired HSM Offshore Energy for an undisclosed amount. Through this acquisition, Smulders aims to expand its engineering, procurement, construction, installation, and commissioning (EPCIC) capabilities across the offshore energy value chain, enhancing its ability to deliver large-scale offshore wind and emerging energy projects while strengthening its position in the expanding European sustainable energy market. HSM Offshore Energy B.V. is a Netherlands-based company that provides offshore substations, particularly offshore high-voltage substations.

Major companies operating in the offshore substation market are Siemens Energy AG, General Electric Company (GE), Aker Solutions ASA, Petrofac Limited, Keppel Offshore And Marine Ltd, Smulders Group NV, Bladt Industries A/S, Semco Maritime A/S, Burns And McDonnell Engineering Company Inc, John Wood Group PLC, WorleyParsons Ltd, McDermott International Ltd, Royal Boskalis Westminster NV, ENGIE Solutions, Seaway 7, Chiyoda Corporation, Larsen & Toubro Ltd, SLPE SA, Hollandia Offshore BV, Baltic Operator (GP Baltic)

Europe was the largest region in the offshore substation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the offshore substation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the offshore substation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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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