Analysis: Offshore wind market remains ‘steady’ amid political shifts
The offshore wind sector continues to grow globally, with service operation vessels (SOVs) and construction service operation vessels (CSOVs) playing increasingly important roles, according to a recent analysis from Intelatus Global Partners.
Interest in purpose-built SOVs and CSOVs has surged due to the expansion of offshore wind farms, particularly across Europe. According to Intelatus Global Partners, the current fleet of approximately 60 vessels is projected to double by 2028, reflecting growing demand for vessels capable of supporting large-scale, further from shore offshore operations.
While crew transfer vessels (CTVs) remain effective for near shore and/or smaller wind farms, the increasing size and complexity of offshore projects underscore the need for specialized SOVs and CSOVs.
“The offshore wind industry is evolving rapidly,” said Phil Lewis, Director of Research at Intelatus. “SOVs are typically built against long-term charters, ensuring balanced supply-demand dynamics. In contrast, CSOVs, often constructed speculatively, cater to shorter duration construction and commissioning projects. Aggressive investment in CSOVs is likely to lead to oversupply in the short- to mid-term and impact dayrates.”
Impact of the new Trump administration
Related content:
Trump reaffirms commitment to ‘Gulf of America’ name change
But Offshore will keep to ‘Gulf of Mexico’ for the foreseeable future.
Rystad Energy analysts assess likely impacts of Trump’s ‘energy blitz’
Analysts expect to see the most impact in offshore leasing and the LNG market.
Trump declares national energy emergency
President Donald Trump orders US to withdraw from Paris climate agreement.
The recent change in US political leadership introduces new uncertainties for the offshore wind sector in the USA.
The Trump administration’s emphasis on hydrocarbons over renewables has resulted in policy reviews and slowed some offshore wind projects. Despite these challenges, Lewis says that he remains generally optimistic about the industry’s resilience.
“While key projects may face delays and some investments will be re-evaluated, the U.S. offshore wind industry is far from stalled,” Lewis noted. “The market’s reliance on robust European supply chains and its inherent growth potential support longer-term prospects, despite the current headwinds.”
Interplay between offshore wind and traditional energy markets
Lewis also highlights the ongoing interplay between the offshore wind and traditional oil and gas markets. Many early offshore wind walk-to-work vessels were adapted from oil and gas service vessels. With increased activity in the oil and gas segment, many of these vessels are finding utilization in their traditional markets. In fact, there is some interest in purpose-built offshore wind CSOVs being deployed to support oil and gas projects.
Financial outlook and industry consolidation
The financial landscape for SOV/CSOV operators presents a mixed picture, according to Intelatus Global Partners. Despite lower day rates, companies focused on SOVs benefit from stable, long-term contracts, while CSOV operators experience variable day rates tied to shifting market demands. With substantial capital investments and debt levels, the sector is poised for M&A activity.
“We anticipate the opportunity for M&A activity in the coming years as companies seek to acquire financially distressed players,” said Lewis. “The sector offers substantial growth opportunities, but strategic positioning will be key.”
Want more offshore wind content?
Sign up (it's FREE) for Offshore's monthly Renewable Energy e-newsletter to receive updates on new technology, projects and policy for the development of offshore renewable energy projects—from wind, waves, solar and other resources.
