A report by Rystad Energy said Europe’s offshore wind sector is facing a structural supply constraint as turbine prices have risen by 40-45% since 2020 amid a shrinking pool of manufacturers.
Rystad Energy said GE Vernova has paused new offshore wind orders, leaving Siemens Gamesa and Vestas to account for virtually all turbines available to European developers.
The analyst group added that turbine selling prices have outpaced manufacturing cost increases of 20-25% over the same period.
The supply pressure is most acute in nacelles and blades, where supplier concentration is high and substitution options are limited.
Rystad Energy said towers remain comparatively flexible due to a broader supplier base and lower barriers to entry.
The analyst group noted that the market has shifted toward larger 14-15MW turbines from earlier 9-10MW models, increasing complexity and costs.
Rystad Energy said Siemens Gamesa holds the larger overall share of deliveries, cementing its position as market leader.
Pricing has reset sharply since 2023 as earlier fixed-price contracts expired and manufacturers passed higher costs to developers.
Sander Baksjoberget, senior analyst offshore wind research at Rystad Energy, said: “Europe’s offshore ambitions are real, and the pipeline reflects genuine political commitment.
“But the market has moved into structurally tight territory: high demand, limited supplier diversity and rising turbine complexity.”