Floating Solar Market Size, Share, and Trends 2024 to 2034

Floating Solar Market Size to Reach USD 54.09 Bn by 2032

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.

Key Takeaways

• Asia Pacific led the global market with the highest market share in 2022.
• North America region is estimated to expand the fastest CAGR between 2023 and 2032.
• By Type, the stationary floating panels segment has held the largest market share in 2022.
• By Capacity, the 5 MW-50 MW segment captured the biggest revenue share in 2022.
• By connectivity, the on-grid segment is estimated to hold the highest market share in 2022.

Floating Solar Market Size in Asia Pacific 2023 To 2032

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.

• In August 2023, Madhya Pradesh state in India launched its first module of floating solar system in Omkareshwar. This new floating solar project aims to achieve the state’s renewable purchase obligation (RPO) target.

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.

Market Overview:  

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.

Report Scope of the Floating Solar Market

Growth Factors: 

• Companies in the floating solar sector are seeing value-grab opportunities as people become more aware of the benefits of renewable energy. Companies are boosting their research and development efforts in order to plan and create economically viable floating solar generating projects.
• The key market players in the floating solar market are conducting more research to better understand the structure of the waterbed and its suitability for embedding floats. The floating solar, on the other hand, has the capability to improve effectively with hydropower generation. The combination of the two aids in the generation of electricity while utilizing the similar network.
• The demand for floating solar panels in famine-prone nations is expected to increase significantly during the forecast period, as the placement of the solar photovoltaic cells on water bodies slows algae development and reduces evaporation, preserving water purity.
• Several variables such as national government attempts to promote renewable energy practices and the rapid depletion of fossil fuels will drive the growth of the global floating solar market. As the floating solar industry is environment based, the high use of varying non-renewable energy resources acts as a stimulant, increasing its desirability.
• During the projection period, the global floating solar market will also be driven by a growing focus on clean fuel energy generation sources combined with a lack of land. The regulators all across the world are setting a variety of targets for increasing clean energy capacity in order to reduce pollution levels. Some of the advantages that may have positive outlook on the floating solar market include ease of installation and dismantling, adaptability from low to high capacity, and a low demand of heavy equipment.
• The floating solar photovoltaic plants provide developers new possibilities for increasing solar generation capacity, particularly in places where land is scarce. The higher energy generation, lower evaporation, and enhanced water quality are just a few of the benefits of floating solar versus land-based systems.
• Flexible hydropower production can be utilized to mitigate solar energy fluctuation while making greater use of existing transmission assets, which is especially useful in nations with poor grids.

Type Insights

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.

Capacity Insights

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.

connectivity Insights

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.

Key Developments

• KYOCERA Corporation and AVX Corporation formed a new integrated brand called KYOCERA AVX in April 2021, which will be used for the KYOCERA Group’s electronic components industry. The company’s electrical components business is expected to grow as a result of the new structure.

• GreenYellow Limited, a subsidiary of GreenYellow, established 2MW floating solar power plant a SPM Group’s facilities in Thailand in February 2021.

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.

Floating Solar Market Players

• 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

Segments Covered in the Report

By Capacity

• Below 5MW
• 5MW – 50MW
• Above 50MW

By Type

• Stationary Floating Solar Panels
• Tracking Floating Solar Panels

By Connectivity

• On grid
• Off grid

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa