Floating Wind Turbine Market size was valued at USD 898.58 Million in 2023 and is poised to cross USD 17.21 Billion by 2036, registering more than 25.5% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of floating wind turbine is estimated at USD 1.08 Billion. The growth of the market can be attributed to the increasing adoption of renewable energy throughout the world. As per the International Energy Agency (IEA) statistics, worldwide electricity production using renewable sources increased from 26% in the first quarter of 2019 to nearly 28% in the first quarter of 2020. The growth of renewable energy took place at the expense of coal and gas. In addition to this, the lower cost of offshore wind farms is also estimated to skyrocket the growth of the floating wind turbine market over the forecast period.
In addition to these, factors that are believed to fuel the market growth of floating wind turbine include the rise in the initiatives to encourage the deployment of offshore wind energy. In 2022, the US Department of Energy launched initiatives to deploy 15 GW of floating offshore wind, power 5 million homes, and reduce energy costs by 70% by 2035. Besides this, the higher capacity factor of floating wind turbines as compared to the other onshore wind turbines is also anticipated to accelerate the growth of the market in the projected time frame. In addition to this, surging investments in sustainable energy from the government and private sectors are another significant factor projected to push the market growth further throughout the forecast period.
Growth Drivers
Growing Consumption of Electricity - The worldwide demand and consumption of energy continue to rise as a result of heightened industrial activities and technological advancements in both emerging and established nations. Moreover, the astounding surge in urbanization has been also boosting the demand for electricity across the globe. Hence, the increasing electricity demand is leading the way for the use of numerous clean energy sources for power generation. This, as a factor, is estimated to fuel market growth in the coming years. For instance, after dropping by approximately 4% in 2020, worldwide energy consumption soared by nearly 8% in 2021.
Rise in Wind Farm Construction – As of the surging demand for energy, the construction of wind farms has increased in the last few years. Furthermore, these offshore wind turbines do not emit any sort of greenhouse gases. Hence, this factor is also estimated to propel the growth of the market in the coming years. For instance, China had 30 offshore wind farm projects under construction as of January 2023.
Worldwide Surging Depletion of Traditional Resources – Dynamic surge in the worldwide population has been using traditional resources very swiftly. In addition to this, the industrial revolution also fastened the excessive use of traditional resources. Thus, the rising depletion of such resources has increased the use of various green energy sources which is also estimated to accelerate the growth of the floating wind turbine market in the coming years. For instance, between the years 2000 to 2020, the natural resource depletion in Congo Republic surged by around 39%, and in Angola around 22%.
Rising Need to Reduce Escalating Carbon Footprint – As per a report, in 2020, worldwide measured molecular fractions of CO2 exceeded nearly 412 parts per million. Thus, the worldwide carbon dioxide footprint must be decreased by 46% from 2010 levels by 2030, with net-zero emissions by 2050.
Upsurge in the Investments of Wind Energy – For instance, in 2021, worldwide investments in wind energy technologies augmented approximately USD 149 billion.
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
25.5% |
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Base Year Market Size (2023) |
USD 898.58 Million |
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Forecast Year Market Size (2036) |
USD 17.21 Billion |
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Regional Scope |
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Foundation (Spar-Buoy Foundation, Semi-Submersible Foundation, Tension-Leg Platform Foundation)
The global floating wind turbine market is segmented and analyzed for demand and supply by foundation into spar-buoy foundation, semi-submersible foundation, tension-leg platform foundation, and others. Out of these four types of segments, the spar-buoy foundation segment is estimated to gain the largest market share of about 42% in the year 2036. The growth of the segment can be attributed to its simple design, and stabilization that is coupled with its being economical to build for small and medium-sized rigs. For instance, since it has its deep draft construction, a spar-buoy foundation is more stable than a semi-submersible foundation. Its framework is typically easier than that of semi-submersibles and TLPs. Furthermore, the expense of the spar-buoy anchoring system is less than TLP. In addition to this, it is more stable than a TLP as it has a big counterbalance at its bottom and does not rely on the mooring to keep it stable. This, as a factor, is also estimated to fuel segment growth over the forecast period.
Application (Commercial, Industrial)
The global floating wind turbine market is also segmented and analyzed for demand and supply by application into commercial, industrial, and others. Amongst these three segments, the commercial segment is expected to garner a significant share of around 55% in the year 2036. The growth of the segment can be credited to the surging demand and consumption of energy in the commercial sector, coupled with the expanding investments by various organizations in sustainable energy sources. In addition to this, surging concern for environmental and climate change is also estimated to propel segment growth in the coming years. On the other hand, the industrial segment is projected to witness an impressive CAGR during the forecast period, owing to the rising preference of the industrial sector towards green power to minimize their co-dependency on conventional fuel sources. Moreover, stringent government regulations to conserve the environment are also estimated to drive the segment growth in the projected time frame. In addition to this, escalating investments in R&D activities to strive for the development of innovative technology is another significant factor estimated to boost segment growth in the coming years.
Our in-depth analysis of the global market includes the following segments:
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By Water Depth |
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By Foundation |
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By Application |
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Europe Market Forecast
The market share of the floating wind turbine in Europe, amongst the market in all the other regions, is projected to be the largest with a share of about 38% by the end of 2036. The growth of the market can be attributed majorly owing to the presence of a large number of offshore wind farms in several countries, such as Denmark, Norway, the United Kingdom, and Russia, along with high untapped potential in the region. Based on a report, Denmark presently has 122 offshore wind farm projects, 16 of which are functioning. In addition to this, the great availability of advanced technology in the region, along with the high investment in the utilization of green energy sources are also projected to spur the market growth further throughout the forecast period in the region.
North American Market Forecast
The North American floating wind turbine market is estimated to be the second largest, registering a share of about 25% by the end of 2036. The growth of the market can be attributed majorly to the escalating count of wind farms in the coastal areas of the region. As per the report by the U.S. Energy Information Administration (EIA), the United States produced 338 billion kWh of electricity from wind energy in 2020, which accounted for 8.4% of total U.S. utility-scale electricity generation. Although a major part of this electricity was generated by onshore wind farms, offshore wind farms are also gaining acceptance owing to their economic benefits. This, as a factor, is estimated to further boost the market growth in the region throughout the projected time frame. Further, the surge in strict regulations imposed by the government to control greenhouse emissions is also a significant factor anticipated to spur the growth of the floating wind turbine market in the region during the forecast period.
APAC Market Statistics
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to garner a majority of the share of about 20% by the end of 2036. The growth of the market can be attributed majorly to the increasing adoption of offshore wind farms in China, coupled with the surging demand and deployment of renewable energy sources in the region. As per the World Wind Energy Association, China alone accounts for 39% of the global wind energy generation capacity, as of 2020. China installed wind turbines of almost 289 gigawatts of capacity by 2020. In addition to this, surging demand for energy is also estimated to boost the market growth further throughout the forecast period in the region.
Vestas Wind Systems A/S to deliver 21 V162-6.0 MW turbines for the 126 MW Posio Murtotuuli project by Taaleri Energia in Finland. These turbines will be equipped with an anti-icing system to work in harsh climatic conditions.
Siemens Gamesa Renewable Energy, S.A. to supply offshore wind turbines for three wind power projects of Hai Long in Taiwan. The Hai Long Offshore Wind Project extends to 1,044 MW.
Iberdrola, S.A. and Vestas Wind Systems A/S to collaborate for the 476 MW Baltic Eagle offshore project in Germany.
Author Credits: Dhruv Bhatia
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