Europe’s offshore wind sector is facing increasing supply pressure as turbine prices have risen by 40% to 45% since 2020, according to a report from Rystad Energy.
The analyst group said the market is dealing with structural supply constraints as the number of turbine manufacturers available to European developers continues to shrink.
Rystad Energy noted that GE Vernova has paused new offshore wind turbine orders, leaving Siemens Gamesa and Vestas as the main suppliers for the European market.
The report said turbine selling prices have increased faster than manufacturing costs, which rose by about 20% to 25% over the same period.
Supply pressure is strongest in nacelles and blades, where supplier concentration remains high and replacement options are limited. Towers have remained relatively more flexible because of a broader supplier base and lower entry barriers.
The market has also shifted toward larger 14MW to 15MW turbine platforms, replacing earlier 9MW to 10MW models. According to Rystad Energy, the move toward larger turbines has increased manufacturing complexity and project costs.
The report added that Siemens Gamesa currently accounts for the largest share of turbine deliveries in Europe, leaving the company as the market leader.
Pricing conditions have changed significantly since 2023 as earlier fixed-price contracts expired and manufacturers transferred higher costs to developers.
Sander Baksjoberget, senior analyst for offshore wind research at Rystad Energy, said Europe’s offshore wind expansion plans continue to show strong political backing, but the market is now facing limited supplier diversity, rising demand and increasing turbine complexity.
