Floating solar technology involves the installation of solar panels on water bodies like lakes, ponds, and oceans, among others, to generate clean energy. It is considered one of the fastest-growing ways of power generation. Since these set-ups are entirely on water bodies, they depict new horizons across various countries that have land constraints.
The Global Floating Solar Market is projected to grow at a CAGR of around 45% during the forecast period, i.e., 2021-26. The market growth is driven primarily by the snowballing focus of various countries worldwide on producing clean & renewable energy. In addition, various government initiatives associated with floating solar plant installations, including tax rebates & incentives, also drive the global market.
Many countries with high populations & land constraints are actively setting up floating solar plants and scaling up the use of solar energy. Moreover, with the burgeoning energy requirements & the rapid depletion of fossil fuels, the need for renewable energy resources is surging critically.
In fact, several governments are also ambitious about reaching green energy targets, curbing carbon emissions, and addressing severe environmental challenges, which generates a plethora of growth opportunities for the leading market players and attracts numerous investors. Across the world, China, India, Japan, the USA, and Germany act as powerhouses for the solar industry and play crucial roles in driving the global market.
|Study Period||Historical Data: 2016-20|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Germany, UK, France, Italy, Spain|
|Asia-Pacific: China, India, Japan, South Korea, Australia|
|South America: Brazil, Argentina|
|Middle East & Africa: UAE, Saudi Arabia, South Africa|
|Key Companies Profiled||Solaris Synergy, Sunengy Pty Ltd., Vikram Solar, Ciel & Terre International, KYOCERA Corporation, Novaton AG, Pristine Sun LLC, SPI Energy Co., Ltd., Yingli Solar, JA Solar Technology Co. Ltd., Ocean Sun AS, Quant Solar, Sharp Corporation, Tata Power Solar System Ltd., Swimsol GmbH, etc.|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the Global Floating Solar Market
The Covid-19 pandemic had a decelerating effect on most industries in 2020. However, the Global Floating Solar market did not observe, as such, any negative impact. Several countries categorized the solar industry under essentials to ensure continuous business operations even during restrictions & uncertainties. Although, floating solar plants were operational amidst the crisis.
Still, with the sudden imposition of lockdown, the industry underwent a temporary halt and witnessed unprecedented challenges during the pandemic. Since most countries worldwide import solar materials, mainly from China, travel bans and import & export restrictions resulted in supply chain disruptions and shortage of raw materials.
However, with the gradual betterment in the pandemic, the governments of different countries uplifted restrictions & permitted the recommencement of business operations. In addition, exports from Chinese ports got reinstated while most countries gradually allowed imports. As a result, the market is projected to observe swift revival and witness substantial growth in the coming years.
Based on the Type:
Of both, the Stationary segment dominated the market with the largest share and is anticipated to prevail 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 2021-26.
Based on the Capacity:
Of all, floating solar panels with 1-5 MW capacity are observing increasing demand and contributing to the overall market growth. It owes principally to their wide application across large-scale photovoltaic projects to fulfill the consumption requirements and reduce the power cost by vending it to local utility companies. With the surging investments by several private & utility companies in the deployment of large-scale floating solar plants, the market for 1-5 MW floating solar plants is anticipated to observe significant growth in the coming years.
On the other hand, floating solar panels with 0.1-1 MW capacity are projected to positively influence the market growth in the coming years due to the rising investments in the development of small-scale photovoltaic projects to fulfill the energy requirements of Off-Grid consumers across remote areas.
Based on the Location:
Of both, the On-shore segment is anticipated to display considerable market growth during 2021-26. 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., that have lower tides & weaker currents than off-shore water bodies like oceans. Furthermore, with less maintenance & construction costs, the demand for an On-Shore floating solar set-up is anticipated to rise considerably and fuel the overall market growth in the years to come.
Based on Geography, the Global Floating Solar Market expands across:
Of them all, Asia-Pacific is anticipated to rule the market with the largest share during the forecast period. Owing to the favorable climatic conditions, extensive availability of reservoirs, and mounting focus on renewable energy production, Asia-Pacific projects numerous promising opportunities for the solar industry. Besides, with several countries across the region substantially investing in the expansion of the floating solar capacity, the market is anticipated to observe a notable upsurge in the coming years. Financial associations like Asian Development Bank, World Bank, etc., are also actively contributing to the overall market growth across several countries in Asia-Pacific. Besides, cited below are a few countries with a prominent contribution to the growth of the Floating Solar Market across Asia-Pacific. For instance:
On the other hand, Europe is a prominent region with remunerative growth opportunities for the Floating Solar Market. Countries like the UK, France, and the Netherlands are massively investing in generating power through renewable resources. The Netherlands, a prominent leader in the solar industry, has a significant contribution to the regional market growth owing to robust support by the government and the increasing number of floating solar installations as a part of its larger renewable energy strategy.
The Sustainable Energy Production Incentive Grant 15 program of the Netherlands is another crucial aspect driving various developments in renewable energy across the country, which, in turn, shall augment the growth of the floating solar market across Europe in the coming years.
In addition, across North America, the US is projected to observe significant market growth during the forecast period, owing primarily to the availability of favorable government initiatives toward maximizing the reliance on clean energy resources. On the other hand, the Brazilian Floating Solar Market across South America expects expansion due to rising investments in installing Photovoltaic (PV) technologies through the vast river beds.
Recent Developments by Leading Companies
Ciel & Terre International is one of the prominent market players & amongst the largest floating solar providers worldwide. The company has extensively expanded across the globe and has set up nearly 50% of the total number of floating panels worldwide.
Key Driver: Increasing Number of 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 amount of 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.
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 2021-26. Moreover, the unavailability of a long-standing track record, installation complications, and difficulty in maintaining electrical components might also challenge the market growth in the coming years.
Growth Opportunity: Mounting Need to Meet Sustainable Energy Generation Targets
The burgeoning energy requirements worldwide and the increasing shift toward renewable energy sources are creating lucrative growth opportunities for the Floating Solar Market over the forecast years. Besides, the improper power infrastructure & rising need to reach mandatory renewable energy generation targets are other prominent aspects projected to accelerate the overall market growth during 2021-26.
According to MarkNtel Advisors, the leading players in the Global Floating Solar Market are Solaris Synergy, Sunengy Pty Ltd., Vikram Solar, Ciel & Terre International, KYOCERA Corporation, Novation AG, Pristine Sun LLC, SPI Energy Co., Ltd., Yingli Solar, JA Solar Technology Co. Ltd., Ocean Sun AS, Quant Solar, Sharp Corporation, Tata Power Solar System Ltd., Swimsol GmbH, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Global Floating Solar Market is projected to grow at a CAGR of around 45% during 2021-26.
A. The soaring demand for Stationary Floating Solar Panels is anticipated to emerge as an area of lucrative growth opportunities for the leading players in the Global Floating Solar Market during 2021-26.
A. The surging need for clean energy sources to suffice the increasing energy requirements entwined with the mounting support of governments worldwide toward setting up more floating solar plants is projected to drive the market and generate remunerative growth opportunities for the leading industry players during 2021-26.
A. With the resumption of import & export of solar materials, the global floating solar market is swiftly regaining its usual pace. Besides, governments of various countries worldwide & market players are massively investing in the market to expand their scalability & produce clean energy while promoting the amplification of sustainable practices.