The global offshore wind sector is poised for significant growth, with installations expected to surpass 520 GW by 2040, according to a recent report by Rystad Energy.

Despite facing challenges such as inflationary pressures and supply chain disruptions, the industry demonstrated resilience in 2023, achieving a 7 per cent increase in new capacity additions compared to the previous year.

This upward trajectory is projected to continue, with new capacity additions anticipated to grow by 9 per cent to over 11 GW by the end of 2024.

The report highlights Europe’s crucial role in this expansion, particularly in the floating wind segment, which is expected to account for more than 70 per cent of global floating wind installations by 2040.

Europe: The UK, Germany, and the Netherlands are set to emerge as the dominant players in the bottom-fixed market, leveraging their proximity to the North Sea and extensive maritime areas.

These three countries are projected to account for a total of 150 GW of installed capacity by 2040.

Asia: Excluding mainland China, the region is expected to capture 20 per cent of global floating wind installations by 2040.

Countries like Taiwan, South Korea, and Vietnam are poised to become major markets in the region.

Americas: The United States is expected to lead growth in the Americas, with projections of less than 40 GW of installed capacity by 2040.

However, the future of the US market remains uncertain due to potential political shifts.

While the offshore wind sector shows promising growth, it faces significant challenges, particularly in the supply chain.

These bottlenecks could hinder the advancement of floating wind technology in the short term, with capacity estimates of less than 7 GW by 2030.

Petra Manuel, Senior Analyst at Rystad Energy, emphasised the importance of addressing these issues: “While ambitious targets boost investor confidence, it is crucial to address logistical issues to ensure that offshore wind can successfully take a key role in the energy transition.”

As the industry continues to evolve, increased government support and focused efforts to overcome supply chain constraints will be critical in realising the full potential of offshore wind energy and its role in the global energy transition.