Floating Offshore Wind Energy Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

The Global Floating Offshore Wind Energy Market was valued at USD 201.5 million in 2023 and is projected to expand at a CAGR of 46.7% from 2024-2032. Floating offshore wind energy harnesses electricity from turbines mounted on floating structures anchored to the seabed, unlike traditional fixed-bottom structures. This innovation allows turbine placement in deeper waters, where fixed-bottom structures are not economically viable. Favorable measures, such as technology-specific quotas, set tariffs, and auctions, drive the industry. Countries like China, Denmark, France, Germany, Japan, the Netherlands, and the UK are making significant strides. For example, in November 2023, Portugal began preparations for its first wind farm license auction, set for mid-November, to support low-carbon projects and boost renewable energy deployment.

The overall floating offshore wind energy industry is classified based on the axis, depth, component, turbine rating, and region.

The market segments turbine ratings into categories: <= 2 MW, >2 to 5 MW, >5 to 8 MW, >8 to 10 MW, >10 to 12 MW, and > 12 MW. The industry's shift towards larger turbine ratings aims to reduce the levelized cost of electricity. Increased efficiency and economies of scale make these larger turbines more appealing to developers and investors. Major turbine manufacturers and developers are investing in technological advancements, exploring new materials, and pioneering designs to push turbine size and efficiency boundaries.

The market categorizes turbines based on axis into horizontal and vertical types. The vertical axis is projected to grow by over 69% by 2032, thanks to its adaptability to floating platforms in deep offshore waters. These turbines can harness wind from all directions, removing the need for the complicated yaw systems used in turbines with horizontal axes. Moreover, the simplified drivetrain in vertical-axis turbines lowers both manufacturing and maintenance costs, strengthening their position in the overall market landscape.

North America's Floating Offshore Wind Energy Market is set to surpass USD 490 Million by 2032, driven by favorable government regulations, declining turbine prices, supportive incentives, and increasing capacity. While North America, led by the U.S., is still emerging in this sector, it is making notable strides. For instance, in November 2023, the U.S. DOE announced a USD 16.4 billion funding initiative to support the nation's offshore wind industry. Coupled with robust research and development efforts to enhance port infrastructure and optimize energy output, the demand for offshore wind energy in North America is set to surge.