The North America Offshore Wind Market is poised for substantial growth, fueled by favorable policy frameworks and increased investments in renewable energy. With expanding project pipelines and technological advancements, the market is projected to progress robustly, making the region a key player in the global offshore wind landscape.
The economic impact of tariffs on "North America Offshore Wind Market".
North America Offshore Wind Market Drivers
Favorable Regulatory Support: Several U.S. states including New York and New Jersey are implementing aggressive Renewable Portfolio Standards (RPS) and setting multi-gigawatt offshore wind procurement targets for 2030 and beyond. In March 2024, Ørsted and Eversource announced the completion of the 132 MW South Fork Wind project off Long Island, reflecting strong state support and streamlined permitting.
Declining Levelized Cost of Energy (LCOE): Technological innovation and larger capacity turbines have resulted in a notable decline in LCOE, making offshore wind increasingly cost-competitive with fossil fuels. Siemens Gamesa, for instance, has deployed 14 MW turbines at the Vineyard Wind project, set for commissioning in 2025, demonstrating economies of scale and operational efficiencies.
North America Offshore Wind Market Trends
Growth in Floating Offshore Wind Projects: To tap deeper waters, floating technology is gaining momentum. In early 2024, Equinor launched the Empire Wind 2 project development phase off the New York coast, which includes floating foundations capable of operating in depths above 60 meters. This widens the market scope beyond shallow coastal areas and enables access to optimal wind resources.
Integration with Green Hydrogen Production: Offshore wind farms are increasingly being linked to green hydrogen initiatives. In January 2024, BP announced plans to couple its offshore wind capacity in the Gulf of Maine with a new electrolyzer facility, aiming to supply renewable hydrogen to regional industries. This convergence addresses both the energy and industrial decarbonization needs.
North America Offshore Wind Market Opportunities
Supply Chain Localization: There is significant opportunity for domestic manufacturing of turbines, substations, and cable systems as well as the establishment of specialized ports, such as the new wind port under construction in New Jersey by Atlantic Shores. This will boost job creation and reduce logistics costs.
Expansion into Canadian Waters: With supportive policies in Quebec and Nova Scotia, companies like Northland Power are exploring pilot offshore wind projects, presenting untapped potential for cross-border market expansion.
North America Offshore Wind Market Revenue (USD Million), 2020-2035
The chart shows North America's offshore wind market revenue forecast from 2020 to 2035, illustrating exponential growth starting modestly and rising sharply post-2025. In 2020, total market revenue was around USD 250 million, primarily driven by early-stage investments and pilot projects. As project pipelines mature and state-level procurement expands, revenue is projected to accelerate, reaching approximately USD 2,800 million by 2025. Continued capacity additions, coupled with supply chain localization and decreasing project costs, will likely propel revenue to an estimated USD 16,000 million by 2035, signaling North America's emergence as a major offshore wind hub.
Market Share by Region (%) in 2025
The 2025 market share pie chart illustrates the dominance of the US North East region, which commands around 52% of the market on account of large federal lease auctions and state procurement. The US West Coast emerges with a 20% share, fueled by California's floating wind initiatives. The US Mid-Atlantic holds a 15% share, benefitting from both state and private sector commitments, while Canada and the US Gulf Coast follow with 8% and 5% respectively, reflecting their emerging or pilot-stage market presence.
Recent Developments in North America Offshore Wind Market (Last 6 Months)
In May 2024, Ørsted and Eversource celebrated the final commissioning of South Fork Wind, the first commercial-scale offshore wind farm in the US, delivering power to New York's grid. This milestone signifies North America’s move from pilot to operational maturity, unlocking further investment confidence.
In April 2024, BP announced its initiative to integrate a 1 GW offshore wind project in the Gulf of Maine with green hydrogen production, aiming to decarbonize local industry. This marks a crucial step in the convergence of offshore wind and clean fuels supply.
In February 2024, Atlantic Shores Offshore Wind received final approval for its New Jersey wind port, which will serve as a construction and staging hub for the mid-Atlantic region, supporting up to 5 GW of installation over the coming decade and creating more than 1,500 direct jobs.
By Type (Fixed, Floating, Semi-submersible, Spar-buoy, Tension Leg Platform, Gravity Based Structure), By Application (Commercial, Industrial, Utilities, Research, Military, Others)
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