Offshore Wind Market - Global Forecast 2025-2030

The Offshore Wind Market size was estimated at USD 45.96 billion in 2024 and expected to reach USD 50.62 billion in 2025, at a CAGR 9.86% to reach USD 80.82 billion by 2030.

Offshore wind energy has emerged as a cornerstone of the global clean energy transition, thanks to its ability to leverage high and consistent wind speeds in coastal and deep-water environments. In 2024, global installed offshore wind capacity reached approximately 83 gigawatts, sufficient to power an estimated 73 million homes, marking a significant expansion from the 75 GW recorded at the end of 2023. Although new capacity additions of 8 GW in 2024 represented a 26 percent drop from the previous year, the pipeline for future projects remains robust, with 56.3 GW awarded through auctions and 48 GW under active construction worldwide, highlighting the sector’s capacity to scale rapidly in the coming decade.

Meanwhile, the United States is undergoing a period of accelerated domestic offshore wind development, underpinned by supportive federal and state policies and substantial investor interest. According to the U.S. Department of Energy’s Offshore Wind Market Report 2024, the domestic pipeline grew by 53 percent year-over-year to reach a potential generating capacity of 80,523 megawatts as of May 31, 2024. This pipeline encompasses a diverse mix of leasing areas in the Gulf of Maine, Mid-Atlantic, and Pacific regions. Despite having only three fully operational projects, including the 132 MW South Fork Wind Farm which began delivering power in November 2023, the U.S. industry has attracted over $2.1 billion in supply chain investments since 2021 for ports, vessels, and workforce development, signaling growing confidence in commercial-scale deployment.

As the industry evolves, technological innovation and policy frameworks are converging to drive down costs and expand market reach. The emergence of floating offshore wind has unlocked vast deep-water resources previously inaccessible to fixed-bottom foundations. In California and the Gulf of Maine alone, floating projects account for over 21 GW of estimated pipeline capacity, reflecting the maturing status of this technology and its potential to harness wind resources far from shore. Meanwhile, fixed-bottom turbines continue to dominate shallower waters, benefiting from decades of experience and supply chain optimization. Bridging these deployment models, governments have set ambitious targets such as the U.S. goal of deploying 30 GW of offshore wind by 2030 and parallel objectives in the European Union and Asia-Pacific, creating a policy imperative for streamlined permitting, enhanced grid integration, and sustained R&D support.

Recent years have witnessed a rapid escalation in turbine capacity and foundation diversity, reshaping the economics and feasibility of offshore wind projects. Turbines exceeding 10 MW per unit, including prototypes surpassing 15 MW, have transitioned from concept to demonstration, engendering economies of scale and higher capacity factors. This shift is supported by advanced foundation solutions; while monopile foundations remain prevalent in shallow waters, jacket structures and gravity bases are gaining traction at intermediate depths, and suction bucket foundations are emerging as an alternative for modular installation and reduced seabed impact. The convergence of larger machines and novel substructure designs has enabled projects in deeper and more remote areas, unlocking previously untapped resource zones and driving down the levelized cost of energy.

Underpinning the transition to larger turbines and deeper installations is the adoption of sophisticated power transmission and conversion technologies. High Voltage Direct Current systems now account for over 60 percent of new offshore grid connections, leveraging voltage source converter architectures to facilitate long-distance, asynchronous grid integration with minimal losses. Concurrently, the industry is migrating from 33 kV to 66 kV array cables, reducing electrical losses and enabling longer export distances. Advances in wide-bandgap semiconductors such as silicon carbide and gallium nitride have yielded more compact, efficient converter stations, while digital control systems and predictive maintenance platforms are enhancing reliability and performance. Such developments have been reinforced by supportive government investments, including a $2.3 billion grid modernization fund under the U.S. Inflation Reduction Act dedicated to HVDC projects linked to offshore leases, underscoring the critical role of policy in accelerating technology adoption.

Digitalization and integrated energy systems are further amplifying offshore wind’s potential as a backbone of net-zero strategies. The integration of real-time data analytics, condition monitoring, and digital twin models is streamlining asset management, reducing operational expenditures, and extending equipment lifespans. Moreover, the coupling of offshore wind with hydrogen production and energy storage is transitioning from pilot schemes to large-scale demonstrations, reflecting a holistic approach to decarbonization and energy security. Floating offshore wind, which accounted for just 0.3 percent of global capacity in 2022, is poised to scale exponentially, supported by technological refinements and targeted cost-reduction pathways. Together, these trends are transforming the offshore wind landscape from a nascent niche into a mainstream solution for large-scale renewable power generation.

Since 2018, successive administrations have leveraged trade measures to bolster domestic manufacturing, imposing tariffs of up to 25 percent on steel and 10 percent on aluminum. These measures, originally targeting traditional steel markets, have extended to offshore wind components such as monopile foundations and turbine towers, amplifying project cost structures. In 2025, regulatory actions have continued this trajectory, with developers reporting that steel tariffs contributed approximately $300 million in incremental costs for Equinor’s Empire Wind projects in New York, culminating in a $955 million impairment charge. The uncertainty surrounding tariff durations and rates has become a central concern for investors and project sponsors navigating long-term offshore wind contracts.

Dominion Energy’s 2.6 GW Coastal Virginia Offshore Wind project provides a case study of tariff impacts on project economics. As of the close of the first quarter of 2025, the project had incurred $4 million in actual tariff costs, with expectations of a cumulative $120 million in expenses by the end of Q2 2025. Should current policies persist through the anticipated project completion in late 2026, tariffs could add roughly $500 million to the total cost. The company has already adjusted its budget, increasing the project’s capital expenditure by $120 million to account for tariff-related expenditures while maintaining schedule confidence and supply chain robustness.

While Dominion has characterized the tariff impact as manageable, broader industry analysis suggests that persistent protectionist policies could elevate project financing costs and alter procurement strategies. The Renewable Energy World reported that Dominion’s share of the projected $500 million exposure would be approximately $130 million due to cost-sharing arrangements, with the remainder attributed to partner and equipment supplier adjustments. Despite these headwinds, the utility emphasized that all major components, including Siemens Gamesa turbines, were on schedule and that tariff risks have not derailed the project timeline, highlighting the critical role of early procurement and supply chain diversification in mitigating trade-policy volatility.

Regional utilities and developers are exploring various mitigation strategies, including increased domestic content thresholds, renegotiated supplier contracts, and tariff surcharges in customer rates, to protect investment viability. Dominicular precedents in state regulatory commissions allow for cost recovery mechanisms, such as a four-cent monthly bill increase for Virginia ratepayers, to offset immediate tariff impacts. However, the reliance on regulatory approval introduces another layer of uncertainty, as future policy adjustments and political shifts could alter cost-recovery frameworks. These dynamics underscore the need for clear, stable trade and energy policies to sustain the momentum of offshore wind deployment in the United States.

The offshore wind market’s diversity is underscored by the segmentation across turbine configurations, foundation solutions, and substation architectures. Traditionally, fixed-bottom turbines anchored to the seabed have dominated in waters less than 60 meters deep, capitalizing on the relative ease of monopile foundation installation. However, floating turbines are emerging as a strategic alternative for deep-water sites, with planned floating projects in California and the Gulf of Maine totaling more than 21 gigawatts of pipeline capacity. Substation design has likewise evolved, with alternating current configurations prevailing in shorter export runs, while high voltage direct current systems-particularly those utilizing voltage source converter technology-are increasingly favored for long-distance grid connections due to their reduced losses and enhanced grid stability. Foundations have diversified beyond simple monopiles to include gravity base structures for shallow seabeds, three- or four-legged jackets for intermediate depths, and suction bucket options that facilitate modular installation and lower environmental impact.

Power capacity segmentation further influences project economics and technology selection. Projects featuring turbines in the 3 to 6 MW class offer established performance in shallow waters, whereas 6 to 10 MW machines are rapidly becoming the default choice for new developments seeking optimal capacity factors and reduced turbine quantities. Less than 3 MW units, while less common offshore, remain relevant for specialized applications or phased pilot programs. Conversely, turbines exceeding 10 MW are now under commercial demonstration, promising significant cost advantages through scale. Contractual frameworks reflect similar segmentation dynamics: Build-Own-Operate models transfer long-term operational risk to project developers, Build-Own-Operate-Transfer arrangements enable utility ownership after an initial operational period, and Engineering, Procurement, Construction agreements consolidate responsibilities under a single contractor, each aligning risk allocation with project and stakeholder objectives.

Installation vessel typology and project lifecycle stage complete the segmentation view. Jack-up vessels equipped with heavy-lift cranes and dynamic positioning systems serve as the workhorses for turbine and foundation installation in moderate-depth waters, ensuring efficient lift and placement operations. Heavy lift vessels-often repurposed from oil and gas sectors-address foundations that exceed jack-up capacity thresholds, handling components above 1,000 tonnes with robust stability. Floating crane vessels and crane barges offer an alternative for specialized lifts, particularly in gravity base and jacket installations. Projects span the preconstruction phase, where site assessment, permitting, and supply chain contracting are critical; the construction phase, marked by sequential foundation, substructure, and turbine installation; and the operation phase, focused on asset management, maintenance, and performance optimization, each demanding tailored execution and risk management approaches.

In the Americas, the United States and Canada are spearheading offshore wind ambitions, driven by robust policy incentives and strategic pipeline expansions. As of May 2024, the U.S. offshore wind project pipeline stood at over 80 gigawatts, a 53 percent increase from the previous year, supported by federal and state procurements totaling more than 45 GW through 2040. Projects like South Fork Wind, Revolution Wind, and Coastal Virginia Offshore Wind have moved from permitting to construction, marking the nation’s transition into commercial-scale deployment. Canada, while still at an earlier stage, has initiated leasing rounds along the Atlantic coast, with Nova Scotia and New Brunswick advancing exploratory surveys, underpinned by commitments to supply up to 5 GW of clean power to regional grids. Investment in port infrastructure and specialized vessels in ports such as New London, Connecticut, and Halifax, Nova Scotia, further cements the region’s growing capabilities in project assembly and logistics.

In Europe, the Middle East, and Africa zone, offshore wind maintains its status as a mature and rapidly evolving market. Europe alone accounted for 23.2 GW of new capacity awarded in 2024 auctions, with the United Kingdom, Germany, and France leading deployment. The region’s cumulative capacity reached nearly 20 GW by 2025, backed by strategic interconnection initiatives like the North Sea Wind Power Hub and cross-border HVDC networks. North Africa is beginning to explore limited offshore wind opportunities, with Morocco conducting preliminary site assessments and Egypt targeting 7 GW of offshore capacity by 2030 to complement its solar ambitions. Middle Eastern nations, particularly the UAE and Saudi Arabia, are evaluating floating offshore wind potential in the Red Sea and Arabian Gulf to diversify their renewable portfolios. Despite this momentum, the region faces challenges including grid integration complexities, auction failures in the UK and Denmark, and supply chain constraints that have delayed commissioning, signaling the need for enhanced logistical coordination and stable policy frameworks.

In the Asia-Pacific region, offshore wind is transitioning from infancy to scale, with China, Taiwan, and South Korea at the forefront. In 2024, China led global additions with over 17 GW in awarded projects and now maintains the largest installed fleet, while Taiwan and South Korea have secured strategic contracts that prioritize local manufacturing and reduce lead times. Orsted’s recent pivot to deepen investments in Taiwan and South Korea underscores the region’s attractive policy environments, stable regulatory frameworks, and competitive wind resources. Japan and Australia are initiating their first full-scale offshore leases, with an emphasis on floating technology to harness deep-water winds. Floating projects in the South China Sea and off the west coast of Australia signal the next frontier for these markets. These developments reflect a concerted effort by governments across Asia-Pacific to achieve energy security, decarbonization, and industrialization goals, positioning the region as a critical growth corridor for global offshore wind capacity.

Denmark’s Ørsted remains the global leader in offshore wind development but has recently recalibrated its regional focus amid cost pressures and investor scrutiny. After a significant decline in market capitalization since its 2021 peak, the company has opted to increase capital commitments to mature markets like Taiwan and South Korea, where policy incentives and supply chain visibility mitigate execution risks. Ørsted’s Asia-Pacific president cited favorable wind conditions and streamlined permitting as key factors driving this strategic realignment, while pursuit of new markets has been temporarily paused in favor of consolidating its existing lease portfolio. This agile shift underscores Ørsted’s commitment to restoring investor confidence and optimizing returns on its 10 GW global pipeline.

Norwegian energy firm Equinor reported a substantial $955 million impairment charge on its U.S. offshore wind assets, attributing approximately $300 million of the negative adjustment solely to steel tariffs. The bulk of the write-down relates to the Empire Wind 1 project and associated South Brooklyn Marine Terminal, which were temporarily halted by regulatory interventions before construction began. Equinor’s management emphasized that unstable tax incentives and expiring federal credits, combined with trade-policy disruptions, have undermined project economics, leading to a reassessment of future investment commitments in the region despite previously secured lease positions.

Turbine manufacturers are grappling with order backlogs, supply chain bottlenecks, and shifting technology roadmaps. GE Vernova has suspended new order intake to manage project deliveries, while Siemens Gamesa faces pressure to meet contractual deadlines for its existing portfolio. Both companies are investing in next-generation product lines, including 15 MW turbine prototypes and enhanced service platforms, to maintain competitive positioning. Meanwhile, emerging suppliers specializing in floating wind technologies, such as Principle Power and NEXUS, are carving niche opportunities by offering smaller-scale demonstration projects. Industry observers note that consolidation among technology providers may be inevitable as margins tighten and capital requirements for R&D intensify.

To sustain and accelerate offshore wind deployment, industry leaders and policymakers must intensify efforts to streamline permitting and regulatory approval processes. A recent analysis by the International Energy Agency highlights that reducing project development timelines and facilitating site identification are essential for achieving near-term deployment targets. By establishing clear, time-bound permitting frameworks and improving interagency coordination, jurisdictions can minimize bureaucratic delays and provide investors with the certainty needed to commit capital to large-scale projects.

Developers and contractors should prioritize supply chain diversification and early procurement strategies to mitigate the risks associated with trade-policy volatility and logistical bottlenecks. As evidenced by recent tariff-related cost escalations, securing long-lead components-such as monopile foundations and HVDC converter stations-from multiple geographic sources, including qualified domestic manufacturers, enhances project resilience. Leveraging local content incentives and forming strategic partnerships with fabricators can not only buffer against import duties but also contribute to regional economic development.

Embracing digitalization, advanced analytics, and multi-terminal HVDC grids will reinforce operational efficiency and optimize asset performance. Investment in predictive maintenance platforms, digital twin modeling, and machine learning can reduce downtime and lower life-cycle costs, particularly for floating foundations and subsea cable networks. Furthermore, collaboration between developers, technology providers, and grid operators to deploy compact voltage source converter stations will enable more flexible and reliable integration of offshore wind capacity, unlocking deeper resource areas and strengthening grid stability.

Our analysis commenced with an extensive secondary research phase, drawing on authoritative datasets from government bodies, industry associations, and global think tanks. Key sources included the U.S. Department of Energy’s Offshore Wind Market Report, which provided detailed project pipeline and operational insights, and the Global Wind Energy Council’s Global Offshore Wind Report, offering comprehensive capacity and auction data. This secondary research established the factual baseline for market characteristics, technological trends, and policy frameworks.

Following the literature review, we conducted primary research through structured interviews and consultations with senior executives, project developers, technology providers, and regulatory officials. These engagements yielded qualitative insights on supply chain dynamics, tariff impacts, and strategic planning processes. The findings were rigorously cross-validated via a triangulation methodology, ensuring consistency and accuracy. Finally, an advisory panel comprising offshore wind experts reviewed the draft analysis to provide critical feedback and refine recommendations, resulting in a robust and actionable market intelligence framework.

As offshore wind transitions into its next growth phase, the convergence of technological innovation, policy support, and capital investment has positioned the industry as a pivotal component of global decarbonization strategies. The maturation of large-scale turbines, advanced foundation and transmission solutions, and digital asset management practices has expanded viable deployment zones and reduced costs, enabling developers to pursue projects in deeper waters and more ambitious markets. Regional markets across the Americas, EMEA, and Asia-Pacific are each charting unique pathways to capitalize on their resource endowments, demonstrating that offshore wind is now a truly global phenomenon.

Nevertheless, challenges such as trade-policy fluctuations, supply chain constraints, and regulatory uncertainties underscore the need for coordinated action among stakeholders. Stable, transparent policy frameworks, strategic supply chain diversification, and continuous technological advancement will be instrumental in overcoming cost escalations and schedule risks. By embracing these imperatives, project sponsors, technology vendors, and government entities can unlock the full potential of offshore wind to deliver reliable, affordable, and sustainable energy for decades to come.

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