Offshore Wind Energy Market Size

Offshore Wind Energy Market size was valued at USD 31.94 billion in 2023 and is poised to grow from USD 37.79 billion in 2024 to USD 144.94 billion by 2032, growing at a CAGR of 18.3% during the forecast period (2025-2032).

Growing demand for renewable energy, advancements in wind turbine technologies, declining costs of offshore wind projects, and availability of subsidies and incentives from governments are slated to help bolster the demand for offshore wind energy on a global level over the coming years.

Growing emphasis on sustainability has led to the launch of new efforts to reduce reliance on fossil fuels. Renewable energy is emerging as a popular clean alternative to traditional energy sources. Offshore wind energy is a key component of this shift towards clean energy due to its high efficiency, consistent wind speeds, and large-scale power generation potential. Even though establishing a new offshore wind energy project might seem expensive, the costs of these projects have been significantly reduced in recent years. This decline in costs can be attributed to improved manufacturing processes, economies of scale, and better supply chain management.

High emphasis of governments of countries to improve their energy security has led to launch of multiple new supportive initiatives that provide incentives and subsidies for offshore wind energy projects. Policies such as feed-in tariffs, renewable portfolio standards, and green financing initiatives encourage private investments in offshore wind energy projects thereby favoring global offshore wind energy market growth as well.

Advancements in offshore wind turbine technology, including larger rotor diameters, higher capacity turbines, and improved efficiency, have significantly increased energy output. These advancements in turbine technologies have made offshore wind energy more productive and efficient. On the contrary, challenges in grid integration, environmental and marine ecosystem concerns, dependence on government subsidies and incentives, and competition from other renewable energy sources are slated to impede the adoption of offshore wind energy across the study period and beyond.

In February 2025, German Federal Network Agency (BNetzA) announced the launch of a new tender for an offshore wind energy project in North Sea. The maximum bidding value is set for 6.2 eurocents/kWh as per Section 19 of the Offshore Wind Energy Act (WindSeeG) and the tender is open for bids until 1st June 2025. The new offshore wind energy project at the N-9.4 site is expected to feature 1 GW capacity and is expected to be operational in 2032 whilst connecting with the NOR-9-4 (BalWin5) offshore grid which will be built by TenneT.

In September 2024, The Solar Energy Corporation of India (SECI), a public sector company in India announced the launch of tender for a new offshore wind energy project located off the coast of Gujrat. The project has a deadline for completion of 48 months with an initial deposit of INR 3,700,000. The new 500 MW offshore wind energy project is estimated to span across 202 square kilometers in the Gulf of Khambhat, Gujrat. After a successful bid, the bidder is also expected to enter into a power purchase agreement (PPA) with SECI for a period of 25 years.

Bids for new offshore wind energy projects around the world are offering highly lucrative opportunities for market players. Companies can focus on participating in these bids to win projects and enhance their market presence by collaborating with different governments. Launch of new offshore wind energys are as more countries commit to sustainability goals is also offering new business scope on a global level.

In February 2025, the Polish Prime Minister, Donald Tusk announced the launch of the Baltica 2 project. The new offshore wind farm is being developed in collaboration with Ørsted and PGE and is expected to generate an impressive 1.5 GW over 190 km² area of the Baltic Sea. The project has commissioning scheduled for the year 2027. The prime minister also stated that this project is the initial part of Poland’s effort to reach 18 GW of national offshore capacity by 2040.

Facilitating better design and engineering capabilities for offshore wind energy equipment and solutions is also a key strategy helping companies expand their revenue generation. In February 2025, ABL Group, a renowned marine and energy consulting company announced the launch of its new business unit specializing in offshore wind foundation design. The new business unit is intended to bring together multi-disciplined engineering and offshore wind foundation design expertise from Longitude and other parts of the Group to expand its business scope in the long run.