The global offshore wind power sector added 8GW of new grid-connected capacity in 2024, down 26% year on year yet still ranking as the fourth-highest annual addition in history, according to a report released by the Global Wind Energy Council (GWEC). This took the total global offshore wind capacity to over 83 GW by year-end, enough to power 73 million households.

Asia-Pacific gains momentum

China and Europe remained the major drivers of offshore wind growth. China led the world in new offshore wind installations for the seventh consecutive year, followed by the UK, China's Taiwan, Germany, and France, said the Global Offshore Wind Report 2025. The top five markets made up 94% of the new additions last year.

In Europe, the UK reclaimed the top spot with 1.2 GW of new installations. Traditional leaders like the Netherlands and Denmark grappled with the energy transition.

Notably, the Asia-Pacific region has emerged as a new growth frontier. Countries such as Japan, South Korea, and the Philippines have enabled offshore wind through progressive policy frameworks. According to GWEC, Asia-Pacific (excl. China) accounted for 15% of global offshore wind additions in 2024, double its share just five years ago.

Vietnam, Australia, and Brazil leverage policy incentives and international partnerships to accelerate deployment. Vietnam's 1.2 GW Thang Long project is poised to become Southeast Asia's largest offshore wind farm. Brazil, meanwhile, passed its Offshore Wind Bill with a 3.5 GW capacity potential.

Though late entrants, these nations boast abundant coastal resources and could collectively contribute up to 30% of global new capacity over the next decade.

From shallow shores to deep seas

Technological innovation remains the linchpin of cost reduction and efficiency gains in offshore wind. In 2024, the average turbine capacity reached 9.8 MW worldwide, with China leading at 9.95 MW, the report said. Marked contributions by Chinese manufacturers included a 16.6-MW double-rotor floating platform, OceanX.

By end-2024, global floating offshore wind capacity hit 278 MW, with Norway, the UK, and China topping the charts. GWEC projected floating wind to balloon from 1 GW in 2024 to 8.3 GW by 2033, with China expected to contribute 30% of that growth.

Headwinds: policy uncertainty, costs, supply chain strains

Despite its promise, the offshore wind sector faces formidable challenges. Global economic uncertainty and rising capital costs are delaying some projects. Policymakers, too, are sending mixed signals. In the US, the Trump administration's halt on Atlantic wind leasing jeopardized 8.4 GW of projects. In China's Taiwan, strict local content rules forced Orsted to exit its 1.2-GW Hai Phong project.

These policy shifts led GWEC to revise down its 2025-2029 forecast of global new wind installations by 24%, noted the report.

Meanwhile, developing deep-water offshore wind is significantly more expensive than nearshore projects, with marine engineering accounting for over 60% of total investment. Industry participants are exploring precision electricity trading and Algorithmic IT Operations to enhance project returns.

As for supply chain constraints, global wind supply capacity could only meet 77% of demand in 2024. Lead times for critical components like blades and bearings stretched to 24 months. China dominates 60-80% of global blade and gearbox production, yet remains dependent on imports for high-end bearings.

Outlook

GWEC advocates for public-private collaboration, restructured auction designs, and promoting risk-sharing mechanisms. Between 2025 and 2034, the offshore wind power sector is forecast to maintain a 21% compound annual growth rate, adding 350 GW of capacity and reaching a cumulative 441 GW. Annual additions will hit 36 GW by 2030 and exceed 50 GW by 2033.

The share of cumulative capacity held by China and Europe is projected to fall from 89% in 2029 to 84% by 2034, as Asia-Pacific, North America, and Latin America accelerate deployment. Innovations like floating wind and green hydrogen integration could unlock an additional 400 GW of potential.