…… Menon Economics and TGS | 4C Study Finds
A new analysis from Menon Economics and TGS | 4C Offshore estimates that the construction and operation of European offshore wind farms supported around 180,000 full-time equivalents and approximately EUR 26 billion in gross value added across Europe in 2025. The effects reach far beyond the wind farms themselves, spreading through an increasingly integrated European supply chain.
The study provides developers, suppliers, investors and policymakers with a clearer view of where offshore wind activity is creating economic value and how project activity in one market can translate into opportunities across the wider European supply chain.
Key findings
New wind farm development generates large ripple effects. Of the roughly 180,000 FTEs, around 55,000 stem from companies supplying goods and services directly to offshore wind projects, while a further 125,000 are supported through the wider supply chain. In other words, each direct job supports around two more jobs further upstream. The direct effects include turbine manufacturers, foundation suppliers, cable producers, installation vessel operators, engineering firms and offshore construction contractors. Most of the employment is linked to the development and construction of new wind farms. These activities support around 155,000 FTEs, with the largest footprint within fabrication, installation, engineering and maritime supply. Operations and maintenance account for around 25,000 FTEs.
Operations account for a growing share of value creation
Of the approximately EUR 26 billion in gross value added, around EUR 16 billion stems from construction activity and around EUR 10 billion from the operational phase. In value-added terms, operations therefore account for a far greater share than they do for employment. This is because the power the wind farms produce has significant societal value: around EUR 7 billion can be traced to the power production itself, while operation and maintenance services account for around EUR 3 billion. While the investment-driven effects fluctuate with the pace of deployment, the operational effects are long-term in nature and will grow as more capacity comes online.
Value creation spread across Europe
The largest value-added effects are concentrated in Northern and Western European countries with strong offshore wind industries, advanced manufacturing and established maritime supply chains. Germany, the United Kingdom, Denmark, Spain and the Netherlands capture particularly large shares. At the same time, the economic footprint reaches well beyond the leading countries: Norway, France, Poland and Belgium capture significant value through leading companies within maritime transport, installation, manufacturing and technical advisory services. This underlines how integrated the European offshore wind industry has become.
About the analysis and how it can be extended
The analysis uses Menon’s multi-regional input-output model, calibrated to project-level supplier and expenditure data from TGS | 4C Offshore. The model quantifies employment and value creation across the European supply chain at industry and country level. The work has focused on pan-European effects but can be extended to country-specific analyses based on the same modelling framework. The analysis will be updated annually, providing an overview of how the offshore wind industry develops over time.
About the study
Economic Impact Analysis of European Offshore Wind in 2025 was carried out by Menon Economics in cooperation with TGS | 4C. The economic effects are estimated using Menon’s multi-regional input-output (MRIO) framework, based on the OECD Inter-Country Input-Output (ICIO) tables. The model was calibrated to project-level data from TGS | 4C covering project timing, suppliers and expenditure across development, capital and operational cost categories. An economic impact analysis is a gross analysis and does not account for the alternative use of labor or capital. The analysis will be updated annually, providing an overview of how the offshore wind industry develops over time
