Europe’s offshore wind turbine market is increasingly concentrated around two manufacturers. Following the temporary withdrawal of GE Vernova from new offshore turbine orders, the sector is now largely dominated by Siemens Gamesa and Vestas, reshaping competition, pricing power and the future of the EU energy transition
Offshore wind turbines market reshaped by Siemens Gamesa and Vestas
The European offshore wind turbines market has effectively become a duopoly led by Siemens Gamesa and Vestas. Both companies have a long industrial track record and deep expertise in offshore wind, but the current level of concentration is also raising broader questions about competition, supply security and costs for Europe’s energy transition.
The shift did not happen overnight. To understand how the market reached this point, it is necessary to go back to 2023, when Europe’s wind supply chain entered one of the most difficult periods in its history.
read also Global renewable capacity reaches 5.1 TW in 2025, with 692 GW added
From the wind industry crisis to recovery
Rising steel and raw material prices, supply chain bottlenecks, poorly designed EU auctions and aggressive competition from Chinese OEMs pushed Europe’s five leading wind turbine manufacturers into financial losses.
The situation became severe enough for the European Commission to intervene with a dedicated support package. While Brussels’ primary objective was to steer the EU towards 500 GW of wind capacity by 2030, the bloc also introduced measures aimed at protecting the regional industrial supply chain.
These included monitoring potentially unfair trade practices in the turbine market, expanding the use of strategic procurement and introducing new auction criteria designed to reward higher-value equipment and stronger industrial standards.
At the same time, Europe’s wind industry leaders adjusted their strategies. Although European OEMs had already lost their dominance in the global top five rankings based on sales volumes, they increasingly focused on a smaller number of markets, proven technology platforms and operational reliability rather than aggressive price competition.
The strategy also relied heavily on predictive maintenance tools and higher technological quality to improve asset performance and long-term profitability.
The result was a significant improvement in margins over the past year, especially in the European offshore segment, where Siemens Gamesa and Vestas consolidated their market positions.
“The previous year, during the first quarter, we had not yet installed a single one of our new offshore turbines,” said Jakob Wegge Larsen, Chief Financial Officer at Vestas, speaking to Reuters. “We are now installing and producing offshore turbines at a significantly higher level than last year.”
Across both onshore and offshore activities, Vestas reported revenues of €3.966 billion in the first quarter of 2026, up 14.4% year-on-year. Quarterly turbine orders reached 4,504 MW, marking a 44% increase compared with the first quarter of 2025.
“The value of the wind turbine order backlog at 31 March 2026 amounted to €36.3 billion,” the company stated.
The offshore wind turbines market faces rising concentration
In reality, Siemens Gamesa, Vestas and GE Vernova had already represented the dominant suppliers of offshore wind turbines across Western markets.
However, GE Vernova’s suspension of new offshore turbine orders, following technical and operational issues, accelerated market concentration even further. Combined with ongoing logistical challenges, the reduced supplier diversity is also pushing turbine prices higher.
According to Rystad Energy, this is not a short-term spike. Offshore turbine prices have risen by around 40–45% since 2020, significantly above the estimated 20–25% increase in production costs.
The steepest increases concern the most complex turbine components, particularly nacelles and blades.
Larger offshore wind turbines are driving costs higher
Part of the increase also reflects the rapid evolution of offshore turbine sizes. Over recent years, the sector has shifted from 9–10 MW turbines to offshore giants capable of generating 14–15 MW.
Economies of scale, standardisation and improved technological reliability enabled this transition.
A notable example is the SG 15-236 turbine developed by Siemens Gamesa through its Direct Drive offshore platform.
“Rather than rapidly launching new turbines,” explained Steffen Frydendal Poulsen, Senior Vice President for Wind Power Technology at Siemens Gamesa, “we focus on controlled releases: continuous improvements based on field performance and customer requirements. Our factories operate as one global unit, using shared tools, processes and standards.”
Yet larger turbines also mean larger components, more complex logistics and higher manufacturing costs.
Why Europe needs new manufacturing capacity
“The European offshore ambitions are real and the project pipeline reflects genuine political commitment. But the market has moved into structurally tighter territory: high demand, limited supplier diversity and increasing turbine complexity,” said Sander Baksjoberget, Senior Analyst for Offshore Wind Research at Rystad Energy.
“This combination gives OEMs real pricing power and the ability to be selective about which projects they pursue.”
According to Rystad Energy’s modelling, a 30% increase in specific cost categories would translate into an overall production cost increase of roughly 17%, highlighting the uneven exposure of turbine components to inflationary pressures.
The broader concern is that Europe’s offshore wind turbines market is becoming increasingly constrained, with growing implications for the balance between supply and demand.
Without a significant expansion of manufacturing capacity, or a redesign of auction mechanisms to better address supply chain constraints, Europe risks missing its post-2030 offshore wind targets at the pace and cost required by the energy transition.
