Offshore Wind Energy Market to Surpass USD 137 Billion by 2030: What’s Fueling the Surge in 2022–2030 – AltEnergyMag

Report on the Global Offshore Wind Energy Market and its Contribution to Sustainable Development Goals

Executive Summary

The global offshore wind energy market is projected to experience substantial growth, expanding from a valuation of USD 29 billion in 2021 to an estimated USD 137 billion by 2030, reflecting a compound annual growth rate (CAGR) of 19%. This expansion is a critical enabler for the achievement of the United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). The sector’s development also directly supports SDG 8 (Decent Work and Economic Growth) through job creation and SDG 9 (Industry, Innovation, and Infrastructure) by driving technological advancement and resilient infrastructure projects.

Market Growth Drivers and Alignment with the 2030 Agenda

The surge in the offshore wind market is propelled by several key factors that are intrinsically linked to global sustainability targets.

Primary Growth Drivers

• Rising Demand for Renewable Energy: A global imperative to transition from fossil fuels, driven by climate commitments, directly supports SDG 7 by increasing the share of renewable energy in the global energy mix and SDG 13 by reducing greenhouse gas emissions.
• Technological Advancements: Innovations in turbine design, foundation structures, and installation techniques are enhancing efficiency and lowering the cost of clean energy. This progress is central to SDG 9, fostering innovation and making sustainable infrastructure more viable.
• Increased Investment and Policy Support: Growing capital flows from public and private sectors, encouraged by government incentives and clean energy targets, are accelerating the deployment of large-scale offshore wind projects. This multi-stakeholder collaboration is an example of SDG 17 (Partnerships for the Goals) in action.
• Global Decarbonization Agendas: National and international commitments to phase out carbon-intensive power sources position offshore wind as a scalable, reliable alternative, crucial for meeting the objectives of SDG 13.

Market Segmentation Analysis

Analysis by Installation and Water Depth

The market is currently concentrated in specific operational environments, which informs near-term strategies for achieving the SDGs.

• In 2021, installations in water depths of up to 30 meters accounted for over 70% of the market share.
• Fixed-structure installations, suitable for these shallower waters, remain the dominant technology due to cost-effectiveness and logistical simplicity.
• This dominance highlights immediate opportunities for coastal nations to advance SDG 7 targets. Future growth in deeper waters, enabled by floating platforms, represents a significant frontier for SDG 9, expanding the potential for clean energy generation.

Regional Dynamics

• Europe: As the market leader with over 40% of the global share in 2021, Europe provides a proven model for integrating large-scale renewable energy to meet climate and energy goals.
• Asia-Pacific: This region is forecast to have the fastest growth rate, driven by urgent energy demands and strong government commitments to decarbonization. Its expansion is critical to the global success of SDG 7 and SDG 13.
• Other Regions (North America, Latin America, Middle East & Africa): These emerging markets represent new opportunities to diversify national energy portfolios, promoting energy security and sustainable economic development in line with SDG 8.

Opportunities for Advancing Sustainable Development

The expansion of the offshore wind market presents numerous opportunities to accelerate progress on the 2030 Agenda.

1. Green Economic Growth: The development of manufacturing, installation, and maintenance supply chains creates skilled, decent work, directly contributing to SDG 8.
2. Sustainable Infrastructure Development: Integrating offshore wind farms with onshore grids and energy storage solutions builds the resilient, sustainable infrastructure targeted by SDG 9.
3. Innovation in Clean Technology: The technical challenges of offshore environments drive innovation in engineering, materials science, and logistics, reinforcing the objectives of SDG 9.
4. Energy Security and Access: For coastal nations, offshore wind offers a path to energy independence and a stable supply of clean power, advancing SDG 7.

Challenges and Considerations for Sustainable Implementation

Realizing the full potential of offshore wind requires addressing significant challenges to ensure its development is sustainable and equitable.

• High Capital Expenditure: The substantial upfront investment can be a barrier, particularly for developing economies. This highlights the need for international financial cooperation as envisioned in SDG 17.
• Environmental and Regulatory Hurdles: Project development must be managed to mitigate impacts on marine ecosystems. This requires a balanced approach that respects SDG 14 (Life Below Water) through rigorous environmental assessments and responsible site selection.
• Infrastructure and Supply Chain Readiness: A lack of mature supply chains or adequate grid infrastructure can slow deployment. Overcoming this requires strategic investment in industrial capacity and workforce training, aligning with SDG 9 and SDG 8.
• Competition from Other Renewables: Offshore wind must compete with other clean energy sources like solar and onshore wind. Policy frameworks are needed to ensure a diversified renewable energy mix that optimizes for national and regional conditions.

Conclusion: A Transformative Role in a Sustainable Future

The offshore wind energy market is on a trajectory to become a cornerstone of the global energy transition. Its growth is fundamentally aligned with the Sustainable Development Goals, offering a scalable solution to advance clean energy access (SDG 7), combat climate change (SDG 13), foster innovation (SDG 9), and stimulate green economic growth (SDG 8). However, maximizing this potential requires a concerted effort from all stakeholders to navigate financial, regulatory, and environmental challenges, ensuring that the expansion of offshore wind power is managed in a way that is both sustainable and equitable for all.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   The entire article is centered on offshore wind energy, a form of clean and renewable power. It discusses the market’s growth, its role in the “global clean-power transition,” and its capacity to deliver “large-scale clean energy.”

2. SDG 13: Climate Action

   The article directly links the growth of offshore wind energy to climate action, stating it helps in “cutting greenhouse gas emissions,” meeting “climate-change commitments,” and supporting “decarbonization agendas worldwide.”

3. SDG 9: Industry, Innovation and Infrastructure

   The text highlights “Technological Advancements in Wind Turbines & Infrastructure,” including “larger rotor diameters, higher capacity units,” and the development of “floating platforms.” It also discusses the need for grid integration, supply chains, and new infrastructure like undersea cables and substations.

4. SDG 8: Decent Work and Economic Growth

   The article points to the economic benefits of the offshore wind market, noting that its expansion leads to “Economic Growth & Job Creation.” It specifies that building farms, manufacturing components, and maintenance operations “create employment opportunities and stimulate industrial growth.”

5. SDG 14: Life Below Water

   The article acknowledges the environmental challenges and potential negative impacts on marine ecosystems. It mentions “Regulatory, Permitting & Environmental Challenges,” including “marine life impact, noise, seabed disruption,” which directly relate to the health and protection of life below water.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.

   The article’s core theme is the rapid expansion of the offshore wind energy market, which is forecast to grow from “USD 29 billion in 2021 to USD 137 billion by 2030.” This growth directly contributes to increasing the share of renewable energy in the global mix.

2. Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.

   The article discusses “deepening investments and capital flows” from both public and private investors into large-scale projects. It also highlights “multi-stakeholder collaboration” and “global supply-chain development” as key trends, reflecting enhanced cooperation and investment in clean energy infrastructure.

3. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   The article states that offshore wind is becoming an “integral strategy in national energy plans” and that countries are adopting “aggressive decarbonization targets” and “clean-energy targets” supported by “favorable regulation.” This shows the integration of climate action into national policies.

4. Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

   The text describes the adoption of advanced clean technologies, such as more efficient turbines and floating platforms. It also discusses the need to upgrade infrastructure, including “grid expansion and storage solutions,” to support the scaling up of this sustainable energy source.

5. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

   The article highlights how the offshore wind sector stimulates economic growth through technological innovation. It mentions that challenges are “driving innovation in engineering, materials, design, AI-driven optimization, and offshore construction techniques,” which leads to higher productivity and economic diversification for coastal nations.

6. Target 14.2: By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts.

   The article implicitly addresses this target by listing “environmental impact assessments, coastal zoning… and ecosystem concerns (e.g., marine life impact, noise, seabed disruption)” as significant challenges that must be managed for projects to proceed. This points to the need for sustainable management to mitigate adverse impacts on marine ecosystems.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 7.2 (Renewable energy share):

   The article provides a clear financial indicator of the growth in this renewable energy sector: the market value is “forecast to expand to USD 137 billion by 2030” with a “compound annual growth rate (CAGR) of 19%.” This financial growth is a proxy for the increase in installed capacity and energy generation.

2. Indicator for Target 7.a (Investment in clean energy):

   The projected market growth from “USD 29 billion in 2021 to USD 137 billion by 2030” serves as a direct quantitative indicator of the “deepening investments and capital flows” into clean energy infrastructure mentioned in the text.

3. Indicator for Target 13.2 (Integration of climate policies):

   The article implies progress can be measured by the number of countries with “national energy plans,” “clean-energy targets,” and “favorable regulation” that specifically support and incentivize offshore wind deployment as part of their “decarbonization agendas.”

4. Indicator for Target 9.4 (Adoption of clean technologies):

   Progress is indicated by the “accelerated turbine technology innovation,” including the development and deployment of turbines with “larger rotor diameters, higher capacity units,” and the shift towards “deeper-water & floating platforms.” The market share of these advanced technologies would be a specific indicator.

5. Indicator for Target 8.2 (Economic growth and job creation):

   The article implies that the “Economic Growth & Job Creation” can be measured by the overall growth of the market (from USD 29B to USD 137B) and the number of jobs created in “turbine manufacturing, foundation construction, cable manufacturing, installation services and maintenance.”

6. Indicator for Target 14.2 (Protection of marine ecosystems):

   An implied indicator is the implementation and enforcement of “environmental impact assessments” for offshore wind projects. The degree to which projects successfully mitigate “marine life impact, noise, [and] seabed disruption” would measure progress towards this target.

4. Table of SDGs, Targets, and Indicators

Source: altenergymag.com