Global Offshore Wind Auctions Hit 56 GW; 45 GW Under Construction: GWEC

Offshore Wind

Global Wind Energy Council (GWEC) Market Intelligence’s latest report recorded the addition of 83 GW of offshore wind capacity installed worldwide, supplying clean, affordable electricity to 73 million households. The report found that China holds the top position and is projected to continue dominating the market in the region until 2027, with a current market share between 87–91%.

As the sector expands to other countries and major GW-level offshore wind capacity is projected to come online in Japan and South Korea, the study projects a drop in China’s market share to 79% in 2028 and 68% in 2034. GWEC expects the first batch of project development to take place in emerging markets such as the Philippines, Vietnam, India, and Australia towards the end of the forecast period.

China may struggle due to bottleneck challenges

However, there is a high concentration risk, meaning that the region, excluding China, will struggle to install the amount of offshore wind power required to meet climate targets, with bottlenecks expected for all components except towers, foundations, and cables. Additionally, the report finds that new markets — including the Philippines, India, and Australia, where offshore wind is in the early stages of development — are still facing the challenge of developing a local supply chain while building the necessary skills and workforce.

Strong case for  offshore wind

There are numerous benefits of offshore wind projects. For instance, the report finds that new capacity additions could provide vast amounts of clean, renewable power. Moreover, they could add billions in gross value to national economies and sustain hundreds of thousands of jobs.

In Europe alone, offshore wind contributes approximately USD 3.2 billion in gross value added (GVA) per gigawatt of installation. Amid rising geopolitical uncertainty and shifting trade relations, offshore wind — with its unique position in marine space — is gaining recognition as a strategic asset for nations seeking greater energy independence and resilience by harnessing their marine resources.

As the world enters the “Age of Electrification,” offshore wind is expanding rapidly into new regions such as Asia Pacific and Southeast Asia, helping meet energy needs and supporting sustainable development. However, despite its growing strategic importance, recent years have been marked by significant economy-wide headwinds. The sector now faces a perfect storm of macroeconomic factors, geopolitical tensions, and industry-specific challenges.

The study shows that the sector faces long-standing issues such as slow permitting, poor auction design in mature markets, and increasing policy instability in some regions. These challenges have compounded and led to an inflection point. For instance, the GWEC report mentioned, “In 2024, new installations totalled 8 GW – down 26% from the previous year, though it still ranks as the fourth-highest year on record for installations.”