Offshore wind market seen hitting $189.7B by 2035

MRFR projects the global offshore wind energy market will reach $189.7 billion by 2035, up from $68.9 billion in 2026, as policy support, corporate buying and grid investment accelerate deployment. Europe still leads, but Asia-Pacific is growing fastest as deeper-water floating projects and larger turbines reshape the industry.

Why it matters: - Offshore wind is moving from a niche clean-energy segment to regulated infrastructure with a visible pipeline of projects. - The market’s growth matters because it supports decarbonization goals while also expanding power supply for utilities, industrial buyers and data centers that need high-capacity-factor electricity. - The report projects the market will reach $189.7 billion by 2035, up from $68.9 billion in 2026, at an 11.8% CAGR.

What happened: - MRFR released a market outlook on offshore wind energy covering development, construction, operations and maintenance in marine environments. - The report says Europe, Asia-Pacific and North America will drive most of the expansion through 2035. - The report includes an inline sample request link: Get the free sample report.

The details: - Global offshore wind investment reached about $78 billion in 2024. - The European Union’s REPowerEU framework targets more than 110 GW of installed offshore capacity by 2030. - The U.S. Inflation Reduction Act extends investment tax credits worth up to 30% of qualifying project capital cost through 2032. - Offshore wind turbine platforms are shifting from 6–8 MW fixed-bottom machines to 15–18 MW direct-drive units and semi-submersible floating substructures that can operate in water deeper than 60 meters. - IRENA says the global weighted-average levelized cost of energy for offshore wind fell 34% between 2010 and 2023. - The UK Contracts for Difference program has de-risked more than GBP 20 billion of committed capital across recent rounds. - Japan’s Sea Area Utilization Act grants 30-year occupancy rights at auctions. - BOEM completed the Central Atlantic lease auction in February 2024, adding federally leased acreage for future solicitations. - Europe holds 46.5% of global market value. - Asia-Pacific is the fastest-growing region at 13.6% CAGR. - North America ranks third, driven by state procurement mandates in New York, New Jersey and Massachusetts. - The report also says the market could reach $108.1 billion by 2030 before rising to $189.7 billion by 2035. - More information is available in the full report.

Between the lines: - The report frames offshore wind less as a speculative technology story and more as a financing and industrial-supply-chain story. - Larger turbines, floating foundations and HVDC buildout are lowering costs and opening deeper-water sites that fixed-bottom projects cannot reach. - Installation vessel scarcity, higher interest rates, capex inflation, grid congestion and permitting delays remain key bottlenecks. - The report also points to an industry shakeout, with some developers retreating from projects that no longer fit fixed-price contracts and higher financing costs.

What's next: - Floating wind is expected to expand fastest through 2035 as deep-water leases open in places such as California, Scotland and Japan. - Corporate power purchase agreements are expected to grow as large electricity buyers seek reliable around-the-clock renewable supply. - Offshore hydrogen production, repowering older North Sea sites and digital maintenance services are emerging as longer-term growth areas. - The report says Europe will stay dominant, while Asia-Pacific should post the strongest growth as auctions turn into construction.

The bottom line: - Offshore wind is entering a more mature phase where policy, financing and grid access matter as much as turbine technology.