UK Offshore Wind Market

UK Offshore Wind Market Overview:

The UK offshore wind market size reached USD 8.16 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 35.21 Billion by 2033, exhibiting a growth rate (CAGR) of 17.63% during 2025-2033. The market is rapidly expanding due to the increasing government support, rising focus on energy security and decarbonization goals, rapid technological advancements, strong private investment and burgeoning economic growth in the country.

UK Offshore Wind Market Trends:

Introduction of Favorable Government Policies

The increasing support from the government is one of the major factors driving the UK offshore wind market. In this context, the establishment of ambitious renewable energy targets by the government, including a plan to increase offshore wind capacity to 50 GW by 2030 is enhancing the market expansion. Moreover, the implementation of policies like Contracts for Difference (CfD) to ensure long-term revenue certainty for offshore wind projects is boosting the market growth. For instance, in August 2024, the government announced an enhanced budget for difference auction round (AR6). They increased the total budget by £500mn to £1.56bn, of which £1.1bn will be allocated for bottom-fixed offshore wind. These auctions offer guaranteed prices for energy produced, minimizing market risk for developers.

Increasing Focus on Energy Security and Decarbonization Goals

The growing need for energy security and the UK’s ambitious decarbonization targets are major factors boosting offshore wind development. Moreover, the rising need to lower the reliance on fossil fuels, thereby increasing the use of offshore wind as they offer an opportunity to diversify the energy mix and reduce greenhouse gas (GHG) emissions, is contributing to the expansion of the industry. For instance, Dogger Bank Wind Farm, an offshore wind farm with an installed generation capacity of 1.2GW, is capable of powering up to 6 million homes in a year. Offshore wind is also seen as a reliable and scalable source of renewable energy as it helps the country meet its net-zero target by 2050. The transition from coal and gas to wind energy mitigates exposure to volatile international energy markets, providing the UK with a stable domestic energy source.

Rapid Technological Advancements

The rising technological improvements that reduce the cost of offshore wind energy and improve its efficiency are creating a positive outlook for the market. In line with this, the development of larger turbines with models exceeding 14 MW of capacity per turbine to boost energy output is bolstering the expansion of the industry. Moreover, the heightened focus on floating offshore wind technology, which enables installations in deeper waters, thereby allowing access to higher wind speeds and previously inaccessible sites, is acting as a growth-inducing factor. Additionally, innovations in blade design, turbine components, and advanced grid integration technologies are enhancing the overall efficiency and viability of offshore wind projects are driving the UK offshore wind market.

UK Offshore Wind Market News:

• In September 2024, The UK Department for Energy Security and Net Zero (DESNZ) awarded Ørsted contracts for difference (CfD) for a 1,080 MW share of the Hornsea 3 Offshore Wind Farm, along with a 2,400 MW CfD for Hornsea 4. The CfDs were awarded at inflation-indexed strike prices of GBP 54.23 per MWh for the share of Hornsea 3 and GBP 58.87 per MWh for Hornsea 4.
• In March 2024, Vattenfall completed the sale of the Norfolk Offshore Wind Zone to RWE for GBP 963 million (approximately EUR 1.1 billion). This zone included projects like Norfolk Vanguard West, Norfolk Vanguard East, and Norfolk Boreas, each with a planned installed capacity of 1.4 GW.

UK Offshore Wind Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, foundation type, capacity, and location.

Component Insights:

• Turbine
• Substructure
• Electrical Infrastructure
• Others
   

The report has provided a detailed breakup and analysis of the market based on the component. This includes turbine, substructure, electrical infrastructure, and others.

Foundation Type Insights:

• Fixed Foundation
• Floating Foundation
   

A detailed breakup and analysis of the market based on the foundation type have also been provided in the report. This includes fixed foundation and floating foundation.

Capacity Insights:

• Less Than 5 MW
• Greater than or Equal to 5 MW
   

The report has provided a detailed breakup and analysis of the market based on the capacity. This includes less than 5 MW and greater than or equal to 5 MW.

Location Insights:

• Shallow Water
• Transitional Water
• Deep Water
   

A detailed breakup and analysis of the market based on the location have also been provided in the report. This includes shallow water, transitional water, and deep water.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Offshore Wind Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK offshore wind market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK offshore wind market?
• What is the breakup of the UK offshore wind market on the basis of component?
• What is the breakup of the UK offshore wind market on the basis of foundation type?
• What is the breakup of the UK offshore wind market on the basis of capacity?
• What is the breakup of the UK offshore wind market on the basis of location?
• What are the various stages in the value chain of the UK offshore wind market? 
• What are the key driving factors and challenges in the UK offshore wind?
• What is the structure of the UK offshore wind market and who are the key players?
• What is the degree of competition in the UK offshore wind market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK offshore wind market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK offshore wind market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the UK offshore wind industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.