Asia Pacific Offshore Wind Market Size was valued at USD 25.9 Billion in 2022. The Offshore Wind market industry is projected to grow from USD 31.9 Billion in 2023 to USD 173.1 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 23.50% during the forecast period (2024 - 2032). The increasing demand for renewable energy sources, abundant coastlines, and abundant wind resources are the main market drivers anticipated to propel the Offshore Wind market in the Asia Pacific.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In 2021, the onshore wind energy installations in Asia amounted to 357.574 GW. It is anticipated that new installations in the region will surpass 10 GW in 2026 and approach nearly 15 GW by 2030. Looking further ahead, by the year 2050, Asia is expected to witness a significant surge in new wind power installations, with projections indicating a ninefold increase. This growth trajectory is projected to culminate in a total of 613 GW of offshore wind power and 2,646 GW of onshore wind power in the region by 2050. In the Asia-Pacific region, the solar energy market CAGR is predominantly led by China, with India, China, Australia, and Japan implementing various regulatory frameworks and policies to advance their renewable energy initiatives, including solar and wind power. By 2021, the installed solar capacity in Asia-Pacific had surged to 485.84 GW, marking a notable 19% increase from 2020. Both India and Australia have set ambitious goals for solar energy production, recognizing their significant potential in this sector. For instance, in February 2022, the Indian government allocated an additional INR 19,500 crore to bolster solar PV module manufacturing under the Production Linked Incentive (PLI) scheme. China, as the world's largest energy consumer, aims to significantly reduce its CO2 emissions to 5150 million tons by 2035 and further to 2,600 million tons by 2050. Additionally, the Chinese government plans to elevate the proportion of renewable energy in its energy mix to nearly 37% by 2035 and 58% by 2050.
In India, the Green Growth initiative is one of the focal points in the SAPTARISHI (7 priorities). The country has also launched the $2.4 billion National Hydrogen Mission to produce 5 million metric tons by 2030, with an additional $36 million allocated in the budget. Viability Gap Funding is supporting the development of 4 GWh Battery Energy Storage Systems, while Pumped Storage Projects have received momentum by formulating a detailed framework. Furthermore, the government has allocated $1.02/2.5 billion for Central Sector Support for the Interstate Transmission System (ISTS) infrastructure to facilitate the integration of 13 GW of renewable energy from Ladakh. Thus, driving the Offshore Wind market revenue.
The Asia Pacific Offshore Wind market segmentation, based on Technology, includes Wind Energy, Wave Energy, Tidal Stream, Ocean Thermal Energy Conversion (OTEC), and Other Technologies. The wind energy segment dominated the market. In the Asia-Pacific region, wind energy stands out as one of the most abundant energy resources, offering a promising solution to meet the region's energy demands. China has contributed significantly to global offshore wind installations, accounting for 80% of the growth, marking the fourth consecutive year of leadership in this sector. This surge in installations was largely attributed to a Feed-in Tariff (FiT) cutoff at the start of 2022. Additionally, in 2021, Vietnam emerged as the third-largest market for offshore installations, commissioning 779 MW of intertidal (nearshore) projects. The World Bank Group reports that the Philippines' Exclusive Economic Zone (EEZ) boasts approximately 178 GW of technical resource potential for offshore wind, particularly in floating wind, along with 18 GW of fixed-bottom offshore wind potential. This capacity exceeds the country's total installed electricity generation capacity by over sevenfold, presenting a significant opportunity to achieve decarbonization and enhance energy security goals.
Figure 1: Asia Pacific Offshore Wind Market, by Technology, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
China has recognized the effectiveness of wind energy technology in providing electricity to rural and isolated areas. Over the years, China's installed wind capacity has experienced significant growth, expanding from a modest 4 MW in 1990 to an impressive 338.31 GW in 2021. This remarkable progress can be attributed to policy reforms, dedicated research and development (R&D) initiatives, innovative financing mechanisms, and clear goals outlined in recent Five-Year Plans. According to the International Renewable Energy Agency (IRENA), China accounted for a substantial portion of global offshore wind capacity additions in 2021. Out of the total 19.89 GW of newly installed offshore capacity worldwide, China contributed a staggering 87% (17.4 GW), bringing the country's cumulative offshore wind capacity to 26.39 GW. Numerous Chinese provinces have established ambitious targets to bolster offshore wind power generation. For instance, Guangdong aims to construct 30 GW of offshore wind power by 2030, followed by Jiangsu with a target of 15 GW, Zhejiang with 6.5 GW, and Fujian with 5 GW. Additionally, other provinces have also set their targets and formulated comprehensive offshore wind development plans.
Figure 2: Asia Pacific Offshore Wind Market Share By Country 2023 & 2032 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Leading market players are investing heavily in research and development to expand their product lines, which will help the Offshore Wind market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Offshore Wind industry must offer cost-effective items.
Major players in the Offshore Wind market are attempting to increase market demand by investing in research and development operations, including Xinjiang Goldwind Science & Technology Co. Ltd, Ming Yang Smart Energy Group Ltd, Suzlon Energy Ltd, Envision Group, Mitsubishi Heavy Industries Ltd, Hann-Ocean Energy, Siemens Gamesa Renewable Energy SA, Vestas Wind Systems AS, Nordex SE, GE Renewable Energy.
February 2022:In February 2022, MingyangSmart Energy, a leading Chinese wind turbine manufacturer, announced plans to install two 16 MW wind turbines in the South China Sea. The wind farm project, slated to be operational by 2026, will incorporate these two high-capacity turbines alongside the existing 59 8-MW turbines.
January 2022:In January 2022, Hann-Ocean Energy launched its inaugural third-generation 15-kilowatt wave energy converter (WEC) in the Shengsi archipelago, China. Embarking on a year-long sea trial, the device is anticipated to generate an annual power output of 70,000 kWh.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 25.9 Billion |
| Market Size 2023 | USD 31.9 Billion |
| Market Size 2032 | USD 173.1 Billion |
| Compound Annual Growth Rate (CAGR) | 23.50% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Technology and Region |
| Region Covered | Asia Pacific |
| Countries Covered | China, Japan, India, Australia, South Korea, Indonesia, Thailand, Vietnam, Malaysia, Singapore, and Rest of Asia-Pacific |
| Key Companies Profiled | Xinjiang Goldwind Science & Technology Co. Ltd, Ming Yang Smart Energy Group Ltd, Suzlon Energy Ltd, Envision Group, Mitsubishi Heavy Industries Ltd, Hann-Ocean Energy, Siemens Gamesa Renewable Energy SA, Vestas Wind Systems AS, Nordex SE, GE Renewable Energy |
| Key Market Opportunities | Initiatives by government and companies to reduce carbon emissions |
| Key Market Dynamics | Rising demand for renewable power sourcesIncreased focus on lowering the global carbon footprint |
Frequently Asked Questions (FAQ) :
The Asia Pacific Offshore Wind market size was valued at USD 31.9 Billion in 2023.
The market is projected to grow at a CAGR of 23.50% during the forecast period, 2024-2032.
The key players in the market are Xinjiang Goldwind Science & Technology Co. Ltd, Ming Yang Smart Energy Group Ltd, Suzlon Energy Ltd, Envision Group, Mitsubishi Heavy Industries Ltd, Hann-Ocean Energy, Siemens Gamesa Renewable Energy SA, Vestas Wind Systems AS, Nordex SE, GE Renewable Energy.
The Wind Energy category dominated the market in 2023.
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