The global floating solar market size was valued at US$ 4 billion in 2022 and is expected to hit US$ 54.09 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 29.80% during the forecast period 2023 to 2032.
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The Asia Pacific floating solar market size reached US$ 1.96 billion in 2022 and is predicted to be worth US$ 26.50 billion by 2032, growing at a CAGR of 16.5% between 2023 to 2032.
The Asia Pacific region experiences high levels of solar irradiance, making it conducive to solar energy generation. Floating solar panels on water bodies benefit from increased sunlight exposure, leading to higher energy yields compared to land-based solar installations. Several countries in the Asia Pacific have implemented supportive government initiatives and policies to promote renewable energy, including floating solar. Incentives, subsidies, and favorable regulations have encouraged the adoption of floating solar technologies.
Countries such as India, China, and Japan have embraced technological advancements in floating solar technology. Ongoing research and development initiatives, along with collaborations with international innovators, have led to improved efficiency and cost-effectiveness of floating solar installations.
China is observed to be one of the largest contributors to the market’s development in the upcoming period. China has embraced large-scale deployment of floating solar projects, leveraging its expansive water surfaces, including lakes, reservoirs, and ponds. This commitment to scale has propelled the country to the forefront of the global floating solar market. In April 2023, Chinese yard CIMC Raffles delivered China’s first ever semi-submersible photovoltaic power generation platform to CIMC Offshore Solar Technology.
North America is observed to witness the fastest rate of growth in the floating solar market during the forecast period. North America has witnessed a growing commitment to renewable energy sources, including solar power. Governments, businesses, and communities are increasingly recognizing the environmental and economic benefits of transitioning to cleaner energy alternatives. The region has seen innovative deployments of floating solar projects on various water bodies, including reservoirs, ponds, and lakes. These projects often involve collaborations between government entities, utilities, and private companies to maximize energy generation and address specific energy needs.
The solar panels attached to a structure that floats on a body of water, usually a reservoir or lake, are known as floating solar or floating photovoltaics. The fundamental benefit of floating photovoltaic plants is that they do not require any land, with the exception of the small areas required for the electric cabinet and grid connections. Their cost is equivalent to that of land-based plants, but they offer a smart option to avoid using up the land.
The use of floating solar panels has been highlighted as a viable and cost-effective alternative to land-based photovoltaic systems. It's a novel way to generate solar energy by utilizing the available water surface on dams, reservoirs, and other bodies of water. Solar panels that float on water, such as irrigation ponds, reservoirs, lakes, canals, and the ocean, are known as floating solar panels.
The companies in the floating solar industry are optimistic about the expansion of large-scale projects all around the world. They're putting more emphasis on utility-scale floating solar plants, which will help to reduce fossil fuel imports in various parts of the world while saving countries money in foreign currencies.
|Market Size by 2032
|USD 54.09 Billion
|Growth Rate from 2023 to 2032
CAGR of 29.80%
|Fastest Growing Market
|2023 to 2032
|Capacity, Type, Geography
|KYOCERA Corporation, JA SOLAR Technology Co. Ltd, Yellow Tropus Pvt. Ltd, Ciel & Terre International, Trina Solar, Vikram Solar Limited, Sharp Corporation, Yingli Solar, Sulzer Ltd., Hanwha Group
The stationary floating panels segment held the dominating share of the market in 2022. Stationary floating solar panels are often considered more cost-effective to install and maintain compared to other floating solar technologies. Their simpler design and fixed structure can result in lower upfront costs and reduced maintenance requirements. Stationary floating panels are relatively easier to install and require less complex engineering compared to some other floating solar solutions, such as tracking systems. This ease of installation can make them a preferred choice for project developers seeking efficient deployment.
The 5 MW-50 MW segment held the significant share of the floating solar market in 2022; the segment is observed to sustain the position throughout the forecast period. Floating solar projects within the 5 MW to 50 MW range are often considered optimal in terms of size. They strike a balance between being large enough to benefit from economies of scale and small enough to efficiently manage and deploy. This size range allows for substantial electricity generation without facing some of the challenges associated with extremely large projects.
Moreover, the feasibility, grid integration and cost-effectiveness of the solar projects that hold the capacity of 5 MW to 50 MW propel the overall growth of the segment. Floating solar projects in the 5 MW to 50 MW range can be designed to have a positive environmental impact without causing significant disruption to aquatic ecosystems.
The on-grid segment held the largest share of the floating solar market in 2022. On-grid floating solar systems are directly connected to the existing electricity grid. This integration allows for a seamless supply of solar-generated electricity to the grid, contributing to the overall energy supply. Utilities and energy providers find on-grid connectivity more convenient for managing and distributing solar power efficiently.
Due to the existence of large industries across various regions, the global floating solar market is characterized by severe competition. The research and development projects, as well as product innovation are two main tactics by the major floating solar market players.
Segments Covered in the Report
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