Floating offshore wind: A high-potential sector at a critical turning point
Key Highlights
- The sector is projected to grow from under $500 million today to $7.5 billion by 2035, with a CAGR of 31.5%.
- Major challenges include high costs, supply chain bottlenecks and lengthy permitting processes that delay project deployment.
- Upgrading port infrastructure and standardizing turbine designs are critical to scaling deployment and reducing risks for investors.
By Sille Grjotheim and Alireza Bayat, DNV
As floating offshore wind enters early commercialization, the sector faces mounting pressure to scale infrastructure, cut costs and overcome supply chain constraints. DNV outlines what it will take to unlock its full contribution to the energy transition.
Floating offshore wind is rapidly gaining traction as a key enabler of global net-zero targets. While still an emerging technology, it offers access to vast wind resources in deeper waters where fixed-bottom turbines are technically or economically unfeasible—unlocking new markets and strengthening energy security.
The growth outlook is substantial. Industry forecasts project that the global floating wind sector will expand from just under $500 million today to $7.5 billion by 2035. This corresponds to a compound annual growth rate of 31.5%, underscoring the urgency of scaling infrastructure, investment and policy frameworks in parallel.
Beyond decarbonization, floating wind presents a strategic advantage: by enabling access to deepwater wind resources, it allows countries to reduce dependence on volatile fossil fuel markets and enhance grid resilience through diversified, domestic energy supply.
But the sector is approaching a critical juncture. Floating wind is transitioning from pilot-scale to early commercialization. Just 0.3 GW of capacity is currently operational worldwide, yet DNV’s 2024 Energy Transition Outlook projects up to 200 GW globally by 2050. That leap signals both the market’s potential and the immense effort required to deliver at scale.
Despite growing interest from policymakers and developers, persistent headwinds are slowing progress. DNV is highlighting the cost pressures and supply chain constraints currently challenging project viability. High cost of capital, surging prices for materials, labor and specialized vessels are compounded by limited manufacturing capacity and long lead times, which are creating bottlenecks across the value chain.
To achieve the projected 200 GW capacity, the sector will need to deploy tens of thousands of floating turbines, intricate mooring systems and millions of tons of steel and concrete foundations—all within tight timelines. This industrial ramp-up will demand significant capital investment, robust supply chains and targeted policy support.
In many markets, these pressures are already leading to project delays and cost reassessments. The levelized cost of energy (LCOE) for floating offshore wind remains the highest across wind technologies.
However, cost convergence is within reach. DNV modeling suggests that by 2050, the LCOE for floating offshore wind will average $96/MWh globally, down from current levels and narrowing the gap with fixed-bottom offshore wind, projected at $67/MWh. Some markets are expected to go even further in closing this cost gap through innovation and scaling efficiencies.
Clear and efficient permitting frameworks are critical for floating wind expansion. Lengthy consent processes and regulatory uncertainty have already caused delays, underscoring the need to streamline approvals and clarify policies. Meanwhile, port infrastructure must evolve; specialized ports with heavy-lift capacity, prepared for mass production, are needed to assemble and deploy floating turbines at scale, which most existing ports cannot accommodate. Upgrading and expanding ports is essential to prevent bottlenecks as floating projects near construction.
Floating wind technology is advancing, with dozens of platform designs under development and spar-buoy, semisubmersible and tension-leg platforms already proven at pilot scale. However, this variety of concepts has hindered standardization and kept perceived risks high. Investors and lenders remain cautious given the limited track record, demanding due diligence and risk mitigation for first-generation projects.
Nevertheless, as the industry converges on a few proven designs and supportive investment frameworks emerge, investor confidence in financing floating wind projects is gradually improving.
Floating offshore wind is on the cusp of transformative growth. With the right interventions across technology, investment, infrastructure and regulation, the sector can move from promise to performance, playing a vital role in accelerating the global energy transition and strengthening long-term energy resilience.
About the Author
Alireza Bayat
Alireza Bayat is a principal consultant in DNV’s Renewable Energy Advisory team in Norway with more than 16 years of international experience in the energy sector. He specializes in technical due diligence, project management, development support, techno-economic analysis and cost of energy assessments, with a focus on onshore and offshore wind.
Bayat has contributed to two DNV International Standards and supported innovation through joint industry projects on floating wind. He holds an MSc in applied mechanics from Chalmers University of Technology.
Sille Grjotheim
Sille Grjotheim is DNV’s global segment director for floating offshore wind, with more than 30 years of international leadership experience across certification, classification and strategy. She has served on the DNV Board for nine years and holds an MSc in metallurgy and corrosion from Norway and France, complemented by leadership training from INSEAD.
Today, she chairs the Project Board for the Ministry of Trade, Fisheries and Industry’s offshore wind export initiative and is a member of the Steering Group Board for Norwegian Offshore Wind.
