Offshore Wind Market by Component, Location and Region - Global Forecast to 2027

During the projected period, the global offshore wind market is expected to develop at a CAGR of 12.3 percent, from USD 31.8 billion in 2021 to USD 56.8 billion in 2026. Offshore wind turbines are being installed at an increasing rate, and the market is booming.

COVID-19's impact on the offshore wind market

COVID-19 has hampered offshore wind industry growth, as governments were required to apply lockdowns in the first half of 2020. Governments and municipal governments established strict restrictions, and all non-essential activity were halted. This had a negative impact on the offshore wind sector because there was less focus on its development.

Furthermore, during the second quarter, production and supply chain delays were observed, posing a challenge to the offshore wind sector.

Offshore wind Market Dynamics Driver: The offshore wind market is projected to be driven by rising global investments in renewable energy.

Due to causes such as the desire to minimise carbon emissions, the depletion of fossil fuels, climate change, and so on, there has been a considerable movement in the energy sector toward renewable and green energy. A number of government programmes are in place to aid the transition to greener energy. Many multinational corporations are taking steps to reduce their carbon footprint in order to contribute to a greener world and long-term sustainability. Equinor (Norway), for example, wants to cut its carbon emissions in half by 2050. The goal includes expanding its renewable energy companies, particularly offshore wind, which may reach 6,000 megawatts in six years and 16,000 megawatts in 15 years. Another example is the energy conglomerate Total, which has agreed to purchase a 51 percent interest in SSE Renewables.

Offshore wind, according to researchers, could generate USD 166 billion in new investments and USD 1.7 billion in new tax revenue for the US Treasury by 2022, while also supporting 80,000 employment annually by 2034.