Global Floating Offshore Wind Power Market Growth, Share, Size, Trends and Forecast (2024 - 2030)

Recent Developments

• In October 2023, the Norwegian Offshore Wind and the Polish Offshore Wind Energy Society (PTMEW) inked two memorandums of understanding (MoUs), strengthening their collaboration in the offshore wind sector. These agreements aim to foster knowledge exchange and cooperation between both countries' offshore wind projects.

• May 2022 saw China unveiling its largest floating offshore wind turbine as part of a project aimed at advancing the technology and showcasing the capabilities of floating wind power generation. Dubbed Fuyao, the floater was developed by Haizhuang WindPower, a subsidiary of the China State Shipbuilding Corporation (CSSC). It boasts a 6.2 MW typhoon-resistant wind turbine with a rotor diameter of 152 meters, installed on a floating platform measuring 236 feet in length, 108 feet in depth, and 262 feet in width. The chosen site features complex seabed topography and water depths ranging between 50 and 70 meters.

• April 2022 witnessed the Bureau of Ocean Energy Management (BOEM) unveiling its Central Atlantic Draft Call for Information and Nominations Area. Covering an area of 3,897,388 acres, these proposed zones are expected to accommodate approximately 30,000 MW of generating capacity, supporting the deployment of both fixed-bottom and floating wind turbines. Currently, the United States boasts 11 call areas for offshore wind energy, with five designated for floating structures.

• In July 2021, Siemens Gamesa, Stiesdal Offshore Technologies, and other industry stakeholders joined forces for the TetraSpar Demonstration Project. This initiative holds the potential to drive down costs associated with floating offshore wind power.

• In June 2021, Siemens Gamesa and Siemens Energy, in collaboration with Odfjell Oceanwind, signed an MoU to collaborate on the development of mobile offshore wind units. Odfjell Oceanwind is responsible for developing, owning, and managing a fleet of floating units that produce electricity for micro-grid or off-grid customers.

This report extensively covers different segments of Global Floating Offshore Wind Power Market and provides an in depth analysis (including revenue analysis for both historic and forecast periods) for all the market segments. In this report, the analysis for every market segment is substantiated with relevant data points and, insights that are generated from analysis of these data points (data trends and patterns).

The market, segmented by water depth and geography, represents a dynamic and rapidly evolving sector within the renewable energy industry. Floating offshore wind power involves the deployment of wind turbines on floating platforms anchored to the seabed, enabling the harnessing of wind resources in deeper waters where traditional fixed-bottom structures are not feasible. This innovative approach opens up new possibilities for offshore wind energy development, unlocking vast untapped wind resources in offshore regions around the world.

Segmentation by water depth is a critical aspect of the floating offshore wind power market, as it determines the feasibility and technical requirements of deploying floating wind farms in different marine environments. Water depth plays a significant role in the design, construction, and installation of floating platforms and wind turbines, with deeper waters requiring more advanced floating technologies and mooring systems.

Geographic segmentation further enhances our understanding of the global floating offshore wind power market by highlighting regional trends, regulatory landscapes, and market dynamics. Different regions around the world offer distinct wind resources, ocean conditions, and policy frameworks that influence the development and deployment of floating offshore wind projects.

Global Floating Offshore Wind Power Market Analysis

In this report, the Global Floating Offshore Wind Power Market has been segmented by Water Depth, and Geography.

Global Floating Offshore Wind Power Market, Segmentation by Water Depth

The Global Floating Offshore Wind Power Market has been segmented by Water Depth into Shallow Water (less than 30 m Depth), Transitional Water (30 m to 60 m Depth), and Deep Water (higher than 60 m Depth).

In shallow water, defined as less than 30 meters depth, floating offshore wind projects benefit from relatively simpler installation and mooring requirements compared to deeper waters. These projects can utilize fixed-bottom structures or simple floating platforms, making them suitable for nearshore or coastal areas where water depths are shallower. Shallow water floating wind farms are often deployed closer to shore, facilitating easier grid connection and reducing transmission costs. These projects may face fewer environmental and regulatory challenges, enhancing their feasibility and permitting processes.

Transitional water, ranging from 30 meters to 60 meters depth, presents unique opportunities and challenges for floating offshore wind development. Projects in transitional water depths require more advanced floating technologies and mooring systems compared to shallow water installations. They also benefit from access to stronger and more consistent wind resources compared to nearshore locations. Transitional water floating wind farms may be located farther offshore, offering additional space for project expansion and minimizing visual impacts on coastal communities.

Deep water, characterized by depths higher than 60 meters, represents the frontier of floating offshore wind development. Projects in deep water face significant technical and engineering challenges due to the harsh marine environment and complex seabed conditions. Deep water floating wind farms require advanced floating platform designs, sophisticated mooring systems, and robust turbine technologies capable of withstanding high waves and strong currents. Despite these challenges, deep water locations offer access to abundant wind resources and vast expanses of untapped offshore wind potential.

Global Floating Offshore Wind Power Market, Segmentation by Geography

In this report, the Global Floating Offshore Wind Power Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Global Floating Offshore Wind Power Market Share (%), by Geographical Region, 2023

In North America, particularly in the United States and Canada, there is growing interest and investment in floating offshore wind power as a strategic component of the region's clean energy transition. Abundant wind resources along the Atlantic and Pacific coasts present significant opportunities for floating wind development, with several projects in various stages of planning and development. Supportive policies, such as renewable energy targets and incentives, are driving market growth in the region, attracting investments from utilities, developers, and government agencies.

Europe leads the global floating offshore wind market, with established projects in countries like Norway, the United Kingdom, Portugal, and France. The European Union's ambitious climate goals and offshore wind targets have spurred rapid growth in floating wind installations, supported by favorable regulatory frameworks and financial incentives. Technological innovation and collaboration across industry stakeholders have enabled Europe to maintain its leadership position in floating offshore wind, with continued investments in research, development, and project deployment expected to drive further market expansion.

The Asia Pacific region holds immense potential for floating offshore wind power, driven by its vast coastal areas, strong wind resources, and growing energy demand. Countries such as Japan, South Korea, Taiwan, and Australia are actively pursuing floating wind projects to diversify their energy mix, enhance energy security, and achieve climate goals. Policy support, including feed-in tariffs, auctions, and offshore wind development targets, is accelerating market growth in the region, attracting investments from domestic and international players.

In the Middle East and Africa, there is increasing interest in floating offshore wind as countries seek to leverage their coastal resources for renewable energy generation. Gulf Cooperation Council (GCC) countries like Saudi Arabia and the United Arab Emirates are exploring the potential of floating wind to complement their existing energy infrastructure and diversify their economies. Despite facing technical and regulatory challenges, such as deep water depths and limited offshore infrastructure, the region's vast offshore wind potential presents significant long-term opportunities for market growth.

Latin America is emerging as a promising market for floating offshore wind power, driven by favorable wind conditions, growing energy demand, and supportive policy frameworks. Countries like Brazil, Chile, and Argentina are exploring the development of floating wind projects along their coastlines, aiming to harness offshore wind resources for sustainable energy generation. Strategic partnerships, technology transfer, and capacity-building initiatives are facilitating market entry and fostering collaboration between local and international stakeholders.

This report provides an in depth analysis of various factors that impact the dynamics of Global Floating Offshore Wind Power Market. These factors include; Market Drivers, Restraints, and Opportunities.

Drivers:

• Abundant Offshore Wind Resources
• Climate Goals and Energy Transition
• Policy Support and Incentives

• Energy Security and Diversification - Energy security and diversification stand as pivotal drivers propelling the global floating offshore wind power market. The increasing emphasis on reducing dependency on conventional fossil fuels, which often entail geopolitical risks and supply uncertainties, is driving the adoption of renewable energy sources such as floating offshore wind. By leveraging abundant wind resources from the vast expanses of oceans and seas, floating offshore wind projects contribute significantly to enhancing energy security for nations across the globe. The diversification of the energy mix is crucial for mitigating risks associated with reliance on a single energy source. Floating offshore wind offers a versatile and complementary energy solution that can be integrated with existing energy infrastructure, providing resilience against supply disruptions and market fluctuations. By diversifying the energy portfolio, countries can achieve a more balanced and sustainable approach to meeting their energy needs while reducing vulnerability to external shocks.

  Floating offshore wind projects offer the advantage of geographical flexibility, enabling deployment in regions with limited land availability or challenging onshore conditions. This flexibility allows for the development of wind farms closer to demand centers, reducing transmission losses and enhancing grid stability. As a result, floating offshore wind contributes to decentralizing energy production and improving energy access, particularly in remote or island communities where traditional energy infrastructure may be lacking. In addition to enhancing energy security and diversification, floating offshore wind projects play a crucial role in supporting the transition to a low-carbon economy and achieving climate targets. By harnessing clean and renewable energy from wind resources, these projects help reduce greenhouse gas emissions, mitigate climate change impacts, and promote sustainable development. As nations strive to meet their emissions reduction commitments under international agreements such as the Paris Agreement, the deployment of floating offshore wind becomes increasingly vital in the global energy transition.

Restraints:

• Engineering Challenges
• Regulatory and Permitting Hurdles

• Grid Connection and Infrastructure - Grid connection and infrastructure represent significant restraints in the global floating offshore wind power market. The development of floating offshore wind projects requires robust grid infrastructure to transmit electricity from offshore wind farms to onshore grids and ultimately to consumers. Establishing grid connections for offshore wind farms, particularly in remote or deep-water locations, can pose numerous challenges and complexities. One of the primary challenges is the cost and technical complexity associated with laying submarine cables to connect offshore wind turbines to onshore grids. Installing and maintaining underwater transmission cables involve specialized equipment, expertise, and logistical considerations, which can significantly escalate project costs and timelines. The distance between offshore wind farms and onshore grids may necessitate longer transmission cables, further adding to the infrastructure requirements and expenses.

  Grid connection constraints may arise from limited capacity or congestion in existing onshore grids, especially in regions with high renewable energy penetration. Integrating intermittent renewable energy sources like floating offshore wind into the grid requires grid reinforcements and upgrades to accommodate variable power output and ensure grid stability. Grid expansion projects often face regulatory hurdles, permitting delays, and community opposition, hindering timely grid infrastructure development. Offshore grid infrastructure entails ongoing maintenance and operational challenges, including monitoring, repair, and protection against external threats such as fishing activities, vessel collisions, and natural hazards. Ensuring the reliability and resilience of offshore transmission networks requires continuous investment in monitoring systems, maintenance vessels, and emergency response protocols, adding to the overall project complexity and costs. Regulatory frameworks and permitting processes for offshore grid connections vary across jurisdictions, leading to inconsistencies and uncertainties for developers. Delays in obtaining permits, navigating regulatory approvals, and resolving interconnection issues can impede project progress and deter investment in floating offshore wind projects.

Opportunities:

• Offshore Wind Supply Chain Development
• Partnerships and Collaboration
• Climate Finance and Green Investments

• Hybrid Energy Systems - Hybrid energy systems present significant opportunities for the global floating offshore wind power market, offering synergistic benefits that enhance project economics, grid stability, and energy resilience. A hybrid energy system combines multiple renewable energy sources, such as floating offshore wind, solar photovoltaics (PV), and energy storage technologies, to optimize energy generation, storage, and utilization. By integrating complementary energy resources, hybrid systems can overcome the intermittency of individual renewable sources and deliver more reliable and dispatchable power supply. One of the key opportunities of hybrid energy systems is the ability to maximize energy output and resource utilization through complementarity and diversification. Floating offshore wind turbines typically experience higher wind speeds and energy production during certain periods, while solar PV arrays generate electricity during daylight hours. By combining these resources in a hybrid configuration, energy generation can be optimized to match demand patterns more effectively, thereby improving overall system efficiency and revenue generation potential.

  Incorporating energy storage components, such as batteries or pumped hydro storage, into hybrid energy systems enables the capture and storage of surplus energy during periods of high generation. This stored energy can then be dispatched during periods of low renewable generation or peak demand, enhancing grid stability and providing valuable ancillary services, such as frequency regulation and grid balancing. Energy storage enhances the flexibility and resilience of hybrid systems, allowing for smoother integration of variable renewable energy sources and improving overall system reliability. Hybrid energy systems offer opportunities for enhanced project economics and cost competitiveness. By diversifying energy sources and optimizing resource utilization, hybrid projects can achieve economies of scale and reduce the levelized cost of energy (LCOE) compared to standalone renewable energy projects. These systems may benefit from streamlined permitting processes and shared infrastructure, leading to lower capital expenditures and faster project deployment. They can also contribute to energy access and electrification efforts, particularly in remote or island communities where grid connection may be limited or unreliable.

Key players in Global Floating Offshore Wind Power Market include,

• Siemens Gamesa Renewable Energy S.A. (Spain)
• MHI Vestas (Denmark)
• FlowOcean (Sweden)
• Engie Energy (France)
• ABB Ltd. (Switzerland)
• General Electric (U.S.)
• Ming Yang Smart Energy Group Co. (China)
• Nordex SE (Germany)
• GoldWind (China)
• Envision Energy (China)
• Suzlon Energy Limited (India)
• Hitachi Ltd. (Japan)

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis