PUBLISHER: The Business Research Company | PRODUCT CODE: 1751059
PUBLISHER: The Business Research Company | PRODUCT CODE: 1751059
An offshore substation is a crucial electrical infrastructure located at sea, typically as part of an offshore wind farm. It collects and consolidates the power generated by multiple offshore turbines, increases the voltage for efficient transmission, and then transfers it to an onshore grid via submarine cables. Offshore substations enhance the overall efficiency of energy transmission while improving safety and reliability by managing power from various sources before it reaches the mainland.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The main types of offshore substations are alternating current (AC) substations and direct current (DC) substations. AC substations are facilities that adjust voltage levels and distribute electrical power across the grid, ensuring system stability and protection. These substations operate at various voltage levels, such as low voltage (<110 kV), medium voltage (110-220 kV), and high voltage (>220 kV). Depending on the project requirements, they can be installed as either fixed or floating offshore substations. Key end users of these substations include wind farms, the oil and gas sector, and other industries.
The offshore substation market research report is one of a series of new reports from The Business Research Company that provides offshore substation market statistics, including the offshore substation industry global market size, regional shares, competitors with the offshore substation market share, detailed offshore substation market segments, market trends, and opportunities, and any further data you may need to thrive in the offshore substation industry. This offshore substation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The offshore substation market size has grown strongly in recent years. It will grow from$5.58 billion in 2024 to $6.00 billion in 2025 at a compound annual growth rate (CAGR) of 7.6%. The growth during the historic period can be attributed to factors such as the expansion of infrastructure development, growing government support for projects, rising investments in wind turbines, increased offshore wind energy generation, and higher targets for alternative energy sources.
The offshore substation market size is expected to see strong growth in the next few years. It will grow to$7.95 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth during the forecast period can be attributed to increasing demand for renewable energy, a heightened global emphasis on energy transition, growing need for smart grids, an increasing focus on decentralized energy systems, and the emergence of digital and smart substations. Key trends expected during the forecast period include advancements in grid connectivity, integration of energy storage solutions, implementation of technology-driven safety systems, development of hybrid offshore solutions, and the adoption of smart grid technologies.
The growing demand for renewable energy is expected to drive the expansion of the offshore substation market. Renewable energy refers to power generated from naturally replenished resources such as sunlight, wind, rain, tides, waves, and geothermal heat. This demand is fueled by the need to reduce carbon emissions and address climate change, offering a sustainable and long-term solution to global energy challenges. Offshore substations play a crucial role by facilitating the efficient transmission of electricity from offshore wind farms to the mainland, supporting the integration of renewable energy into national power grids. For example, in December 2024, Eurostat, a Luxembourg-based non-profit organization, reported that renewable energy accounted for 24.5% of the European Union's energy consumption in 2023, up from 23.0% in 2022. Thus, the increasing focus on renewable energy is contributing to the growth of the offshore substation market.
Leading companies in the offshore substation market are innovating with advanced technologies such as floating substations to expand energy transmission capabilities in deeper offshore environments. Floating substations are marine-based power distribution facilities installed on floating platforms, primarily used to transmit electricity from offshore wind farms to onshore grids. For instance, in October 2024, DNV Group, a Norway-based risk management company specializing in energy supply chains, launched Phase 2 of its Floating Substation Joint Industry Project (JIP). This initiative aims to set industry standards for offshore substations within the growing floating wind sector. The project is focused on minimizing risk, enhancing safety, and improving the efficient deployment of floating wind farms by addressing technical challenges related to electrical infrastructure, platform stability, and grid integration.
In November 2022, Burns & McDonnell Inc., a U.S.-based construction engineering firm specializing in EPC (engineering, procurement, and construction) of offshore substations, formed a partnership with Bay Ltd. to reinforce the domestic offshore wind substation supply chain. This collaboration aims to accelerate the development of offshore wind energy in the U.S. by providing localized engineering, fabrication, and construction services. The partnership seeks to reduce dependence on foreign suppliers and promote job creation within the U.S. Bay Ltd. is a U.S.-based construction firm known for its multidiscipline capabilities, large-scale industrial project execution, and commitment to safety, quality, and productivity.
Major players in the offshore substation market are Hitachi Energy Ltd, General Electric Company (GE), Schneider Electric SE, ABB Ltd, Prysmian S.p.A, Siemens Energy AG, Nexans S.A., Burns And McDonnell Engineering Company Inc., Keppel Offshore And Marine Ltd., John Wood Group PLC, Aker Solutions ASA, DNV Group, Ramboll Group A/S, Van Oord Dredging and Marine Contractors B.V., Aibel AS, MHI Vestas Offshore Wind A/S, Semco Maritime A/S, Petrofac Limited, CS Wind Corporation, STX France SA.
Europe was the largest region in the offshore substation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in offshore substation report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the offshore substation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The offshore substation market consists of revenues earned by entities by providing services such as installation and commissioning, operation and maintenance, decommissioning, and design and engineering. The market value includes the value of related goods sold by the service provider or included within the service offering. The offshore substation market also includes sales of maintenance and monitoring solutions, auxiliary systems, HVAC and HVDC transmission systems, control and protection systems, and high voltage electrical equipment. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Offshore Substation Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on offshore substation market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for offshore substation ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The offshore substation market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.