The global market for offshore wind energy has reached a critical juncture in its path toward large-scale deployment, according to a new market study by Emerging Energy Research.

While offshore wind has the potential to reach 40 GW by 2020, and cumulative investment of US$ 120 billion, according to EER's study, supply challenges and escalating development costs present short-term obstacles. Offshore development activity will continue to be concentrated in Europe, with this region accounting for over 70% of the total global installed base through the period, according to EER. Nonetheless, starting in 2010 the industry will begin to transition toward more geographically diverse growth, with operational projects expected in 11 European markets and five markets in North America and Asia by 2020.