Global Floating Solar Market Research Report: Forecast (2023-2028)

Market Definition

Floating solar, also Floating Photovoltaic (FPV), involves the installation of solar panels on water bodies like lakes, ponds, & oceans for rapid clean energy generation. Since these set-ups are entirely on water bodies, they depict new horizons across various countries with land constraints. Higher energy yield, improved water quality, reduced evaporation, etc., are prominent benefits of floating solar panels over land-based systems, owing to which they are being increasingly installed worldwide, specifically in countries with high population density & less available land.

Market Insights & Analysis: Global Floating Solar Market (2023-28)

The Global Floating Solar Market is projected to grow at a CAGR of around 38.21% during the forecast period, i.e., 2023-28. The major factors contributing to market growth include the mounting focus of various countries worldwide on producing clean & renewable energy, coupled with government initiatives like providing tax rebates & incentives to users for floating solar plant installations. 

Countries with high population levels & land constraints are actively setting up floating solar plants and scaling their solar energy utilization. With the burgeoning energy requirements and rapidly depleting fossil fuels, the need for renewable energy resources is critically surging worldwide, creating lucrative growth opportunities for the floating solar market. Besides, the improper power infrastructure and the growing need to reach mandatory renewable energy generation targets are other prominent aspects projected to accelerate the market growth in the future.

In fact, several governments are also ambitious about reaching green energy targets, curbing carbon emissions, and addressing severe environmental challenges, which, in turn, would further generate a plethora of growth opportunities for the leading players operating in the industry and attract numerous investors over the coming years. Currently, China, India, Japan, the USA, and Germany act as powerhouses for the solar industry and are playing a crucial role in driving the floating solar market globally.

Global Floating Solar Market Driver:

Increased Emphasis on Renewable Energy Sources: With the swiftly depleting fossil fuel reserves, the demand for sustainable power generation, like floating solar technology, is increasing at an astronomical pace. Solar energy is the fastest-growing renewable source due to the ample sunlight globally. Besides, benefits like sustainability, cost-effectiveness, low maintenance, excellent durability, & minimal effect on the environment are significantly propelling the use of floating solar plants worldwide, which, in turn, would drive the global market in the coming years.

Global Floating Solar Market Possible Restraint:

Additional Costs Associated with the Transportation of Floating Solar Plants: The deployment of floating solar plants incurs additional costs while transporting them across farther locations & remote areas, which increases their overall costs. Hence, these increased prices associated with floating solar plants are projected to act as significant growth restraints for the market during 2023-28. Moreover, the unavailability of a long-standing track record, installation complications, and difficulty maintaining electrical components also challenge the market growth in the coming years.

Global Floating Solar Market (2023-28): Segmentation Analysis

The Global Floating Solar Market study from MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the global, regional, and national levels. Based on the analysis, the market has been further classified as:

Based on Type:

• Stationary
• Solar Tracking

Of both, Stationary Floating Solar Panels dominated the market with the largest share and are anticipated to prevail in the same trend during the forecast period. It owes primarily to the low cost & high strength of elastics used while manufacturing these floating solar panels. Besides, since these panels are cheaper & incur lower installation costs than solar trackers, they have a competitive edge in terms of cost advantages.

On the other hand, Solar Trackers are swiftly gaining momentum in the market. The governments of developed countries and many private companies are massively investing in the manufacturing & installation of highly durable & efficient floating solar panels, i.e., leading to the surging demand for solar trackers.

Besides, the ability of solar trackers to trail the sunlight for superior operational productivity is another crucial aspect expected to surge their production & sales in the coming years. However, since solar trackers have movable parts, the overall maintenance costs of these panels are significantly higher than the stationary ones. Hence, this might act as a critical restraint for their demand during 2023-28.

Based on the Capacity:

• 0.1-1 MW
• 1-5 MW
• ≥ 5 MV

Here, floating solar panels with 0.1-1 MW capacity are observing increasing demand worldwide, principally due to massive utility investments in developing small-scale photovoltaic projects to suffice the rising demand from off-grid consumers across remote locations & minimize costs by vending power back to local utility companies.

However, floating solar panels with 1-5 MW capacity are witnessing an increasing demand owing to the mounting installations of PV systems across different industries, which, in turn, would positively impact the overall market growth. Moreover, a rise in investments by utilities & private investors in deploying large-scale PV projects across various riverbeds would further promote the market growth for floating solar panels with 1-5 MW capacity.

• In March 2023, China Energy Engineering Corp. announced its plans to construct a 1,000-megawatt floating solar plant worth $1 billion on Zimbabwe's Kariba dam.

Governments of different countries worldwide are actively working on attaining extensive utilization of floating solar panels, and most of them are offering subsidies, tax rebates, & feed-in tariffs, which, as a result, would further boost the market in the coming years.

Based on the Location:

• On-Shore
• Off-Shore

Here, floating solar panels at on-shore locations are anticipated to continue dominating the global market during 2023-28. It owes principally to the lower chance of damages to solar panels & floating structures at on-shore water bodies, which include irrigation ponds, dam reservoirs, etc., and have lower tides & weaker currents than off-shore water bodies like oceans. Furthermore, the less maintenance & construction costs of an on-shore floating solar set-up is another crucial aspect of their global burgeoning demand.

However, these solar panels are also gaining recognition in the off-shore locations, fetching a substantial investment by the market players to advance offshore solar energy solutions worldwide.

• In June 2023, Dutch-Norwegian company SolarDuck and a subsidiary of Malaysia's largest utility, Tenaga Nasional Berhad (TNB), came together to develop a 780kW offshore floating solar plant off the coast of Tioaman island by signing a letter of intent.

Global Floating Solar Market Regional Projection:

Geographically, the Global Floating Solar Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

Amongst all regions globally, Asia-Pacific is anticipated to rule the Floating Solar Market with the largest share during the forecast period. With an extensive availability of reservoirs, a favorable climate, and a mounting focus on renewable energy production, Asia-Pacific holds plenty of promising opportunities for the solar industry. Several countries in the region are massively investing in expanding the floating solar capacity.

A notable example would be Japan, where floating solar panels are being increasingly adopted, owing to the surging energy requirements of the dense population, lack of natural resources, and the country's dependency on renewable energy for power generation. Likewise, Malaysia has identified 78 lakes across the peninsular area that exhibits higher suitability for floating solar plant setups, and as a result, came up with the largest floating solar project in the country built on Ulu Sepri Dam by Cypark Renewable Energy. Backed by more such developments, the Asia-Pacific market is anticipated to observe a notable upsurge in the coming years.

On the other hand, Europe holds remunerative growth opportunities for the Floating Solar Market, with countries like the U.K., the Netherlands, & France massively investing in power generation through renewable resources. The Netherlands, a prominent leader in the solar industry, is witnessing an increasing number of floating solar installations as a part of its larger renewable energy strategy and, in turn, contributing significantly to the regional market growth.

Nevertheless, in North America, the U.S. is projected to witness significant market growth during the forecast period, owing primarily to various favorable government initiatives for intensifying its reliance on clean energy resources. Also, the utility of floating solar panel systems in water conservation by preventing excessive evaporation has contributed to their rapid adoption in the U.S. As the demand for solar power continues to surge in the country, leading players are planning to develop new facilities to cater to the growing need for locally sourced solar wafers, further expanding their market presence. For instance:

• In April 2023, SPI Energy Co., Ltd announced the addition of a newly leased facility in South Carolina to expand the solar wafer and solar module manufacturing capacities for its two wholly owned subsidiaries. SEM Wafertech aims to deliver and produce its first solar wafers in the U.S. by 2023, with capacity ramping to 3.0 gigawatts by 2024, while Solar4America is all set to ramp solar module production capacity to 2.4 GWs by the end of the year.

Global Floating Solar Industry Recent Development:

• In June 2023, Ciel & Terre created a world record by solidifying its position with the higher number of floating solar plant projects by exceeding 1.5GWp of floating solar projects in its pipeline. Taiwan and India remained the prime sites for the company's two large-scale floating solar projects.

Gain a Competitive Edge with Our Global Floating Solar Market Report

1. Global Floating Solar Market report provides a detailed and thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics and make informed decisions.
2. This report also highlights current market trends and future projections, allowing businesses to identify emerging opportunities and potential challenges. By understanding market forecasts, companies can align their strategies and stay ahead of the competition.
3. Global Floating Solar Market report aids in assessing and mitigating risks associated with entering or operating in the market.
4. The report would help in understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks and optimize their operations.

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