Floating Wind Turbine Market Trends

Growth Drivers

• Increasing number of wind farm constructions across the globe: Due to the surging demand for energy, the construction of wind farms worldwide has significantly increased in the last few years. According to the World Wind Energy Association (WWEA), approximately 123 GW of new capacity was added between June 2023 and June 2024. China leads the expansion, accounting for 65% of new installations, followed by the U.S., Brazil, and Germany. Moreover, in December 2024, Norway announced its plans to pioneer new solutions in offshore wind farm construction. As more offshore wind farms are under construction, Norway is leading the way in offshore wind assembly and installations in cables, construction vessels, and port infrastructure.

• Rising initiatives by governments worldwide: Many countries across the globe have set ambitious renewable energy targets to combat climate change. Governments are providing subsidies, tax credits, and feed-in tariffs to encourage the adoption of wind energy.  For instance, the U.S has launched the Floating Offshore Wind Shot, led by the U.S. Departments of Energy (DOE), the Interior (DOI), Commerce and Transportation, to reduce the cost of floating offshore wind energy by more than 70% by the end of 2035. Another scheme was launched in India in June 2024, where the Union Cabinet approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects worth USD 858.68 million. This VGF scheme is a key step toward the implementation of the National Offshore Wind Energy Policy.

Challenges

• Requirement of higher investments: Establishing and maintaining the power lines that transmit power from a floating wind farm back to land can be expensive and require higher investment. It is challenging to construct a strong and secure wind farm in an ocean that is deeper than 200 feet. Hence, this factor is anticipated to hinder market growth in the coming years.

• Lack of skilled workforce: Rapid market expansion is outpacing workforce development. Limited availability of engineers and technicians experienced in offshore wind and deep-sea mooring technologies can delay the ongoing projects, hampering overall floating wind turbine market growth.