Category : Energy and Power | Published at : February-2024 | Delivery Format : PDF | Status: Published | Pages : 250
The Floating Solar Panels Market Size accounted for USD 3.4 Billion in 2022 and is projected to achieve a market size of USD 31.5 Billion by 2032 growing at a CAGR of 25.1% from 2023 to 2032.
Floating Solar Panels Market Highlights
- Global Floating Solar Panels Market revenue is expected to increase by USD 31.5 Billion by 2032, with a 25.1% CAGR from 2023 to 2032
- Asia-Pacific region led with more than 72% of Floating Solar Panels Market share in 2022
- North America Floating Solar Panels Market growth will record a CAGR of more than 26.3% from 2023 to 2032
- By type, the stationary floating solar panels segment captured more than 80% of revenue share in 2022.
- By capacity, the 5MW – 50MW segment is projected to expand at the fastest CAGR over the projected period
- Increasing demand for renewable energy sources, drives the Floating Solar Panels Market value
Floating solar panels, also known as floating photovoltaic (FPV) systems or floating solar farms, are solar panels mounted on platforms floating on water bodies such as lakes, ponds, reservoirs, and even the sea. These systems offer several advantages over traditional land-based solar installations. Firstly, they make efficient use of space, utilizing otherwise unused water surfaces. Secondly, the water helps to cool the solar panels, improving their efficiency and lifespan. Additionally, floating solar panels can reduce water evaporation from reservoirs, thus offering environmental benefits.
In recent years, the market for floating solar panels has experienced significant growth globally. This growth can be attributed to various factors such as increasing demand for renewable energy sources, the scarcity of suitable land for traditional solar installations, and technological advancements improving the efficiency and durability of floating solar systems. Additionally, governments and organizations are increasingly recognizing the potential of floating solar as a viable solution for clean energy generation. The floating solar panel market is expected to continue its upward trajectory in the coming years, driven by factors like supportive government policies, decreasing costs of solar technology, and growing environmental concerns.
Global Floating Solar Panels Market Trends
Market Drivers
- Increasing demand for renewable energy sources
- Scarcity of suitable land for traditional solar installations
- Technological advancements improving efficiency and durability
- Supportive government policies and incentives
- Growing environmental concerns and sustainability initiatives
Market Restraints
- High initial investment costs
- Concerns about ecosystem impact
- Limited installation expertise and infrastructure
Market Opportunities
- Expanding into new geographical regions with ample water bodies
- Integration with existing infrastructure like hydroelectric dams
Floating Solar Panels Market Report Coverage
| Market | Floating Solar Panels Market |
| Floating Solar Panels Market Size 2022 | USD 3.4 Billion |
| Floating Solar Panels Market Forecast 2032 | USD 31.5 Billion |
| Floating Solar Panels Market CAGR During 2023 - 2032 | 25.1% |
| Floating Solar Panels Market Analysis Period | 2020 - 2032 |
| Floating Solar Panels Market Base Year |
2022 |
| Floating Solar Panels Market Forecast Data | 2023 - 2032 |
| Segments Covered | By Type, By Connectivity, By Capacity, And By Geography |
| Regional Scope | North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
| Key Companies Profiled | Ciel & Terre International, KYOCERA Corporation, Vikram Solar Limited, Yellow Tropus Pvt. Ltd, JA SOLAR Technology Co. Ltd, Trina Solar, Sulzer Ltd., Hanwha Group, Yingli Solar, and Sharp Corporation. |
| Report Coverage |
Market Trends, Drivers, Restraints, Competitive Analysis, Player Profiling, Covid-19 Analysis, Regulation Analysis |
Floating solar panels utilize the same photovoltaic technology as traditional land-based solar panels to convert sunlight into electricity. However, they offer unique advantages such as efficient use of space, reduced land requirements, and potential synergies with water bodies for cooling purposes. The applications of floating solar panels are diverse and growing rapidly. One significant application is in the energy sector, where floating solar arrays are being deployed to generate clean electricity. These installations can be grid-connected to supply power to nearby communities, industries, or infrastructure, contributing to renewable energy targets and reducing reliance on fossil fuels. Another important application is in the water sector, where floating solar panels are utilized to reduce water evaporation from reservoirs and water bodies, thus helping to conserve water resources.
The floating solar panels market has witnessed robust growth in recent years, driven by several factors contributing to its increasing popularity as a renewable energy solution. One significant driver is the rising global demand for clean energy sources to mitigate climate change and reduce carbon emissions. Floating solar panels offer a sustainable alternative to traditional fossil fuels and land-based solar installations, making them an attractive option for governments, businesses, and communities striving to transition to renewable energy. Moreover, the scarcity of suitable land for traditional solar farms has fueled the adoption of floating solar panels, particularly in densely populated and urbanized areas where land availability is limited. By utilizing water surfaces such as reservoirs, lakes, and ponds, floating solar installations maximize land use efficiency while tapping into abundant solar energy resources.
Floating Solar Panels Market Segmentation
The global Floating Solar Panels Market segmentation is based on type, connectivity, capacity, and geography.
Floating Solar Panels Market By Type
- Tracking Floating Solar Panels
- Stationary Floating Solar Panels
According to the floating solar panels industry analysis, the stationary floating solar panels segment accounted for the largest market share in 2022. Unlike traditional floating solar systems, which are often designed to float on water bodies and move with the water's surface, stationary floating solar panels are anchored in place, providing stability and predictability in energy production. This segment is gaining traction particularly in regions with calm water conditions, such as reservoirs and irrigation ponds, where stationary installations can offer high levels of energy efficiency and reliability. One of the primary factors fueling the growth of the stationary floating solar panels segment is its ability to optimize energy generation by maximizing exposure to sunlight. By anchoring the solar panels in a fixed position, operators can strategically position them to capture the maximum amount of sunlight throughout the day, optimizing energy output. This enhanced efficiency makes stationary floating solar panels an attractive option for energy developers seeking to maximize the return on investment from their solar installations.
Floating Solar Panels Market By Connectivity
- Off grid
- On grid
In terms of connectivity, the on-grid segment is expected to witness significant growth in the coming years. As countries strive to transition towards cleaner energy sources and reduce reliance on fossil fuels, on-grid floating solar installations have emerged as a viable solution to meet growing energy demands. By integrating with existing grid infrastructure, these installations can efficiently feed renewable energy into the power grid, contributing to a more sustainable and resilient energy system. One of the key drivers of growth in the on-grid segment is the supportive regulatory environment and government incentives promoting renewable energy integration. Many countries have implemented policies and incentives such as feed-in tariffs, tax credits, and renewable energy targets to encourage the adoption of on-grid solar projects, including those utilizing floating solar technology. These supportive measures have stimulated investment in on-grid floating solar installations, driving market growth and expanding the deployment of renewable energy capacity.
Floating Solar Panels Market By Capacity
- Below 5MW
- 5MW – 50MW
- Above 50MW
According to the floating solar panels market forecast, the 5MW – 50MW segment is expected to witness significant growth in the coming years. As the technology matures and economies of scale come into play, mid-sized floating solar installations have become increasingly attractive to developers, investors, and utilities looking to deploy renewable energy projects. This segment offers a balance between scale and manageability, making it suitable for a wide range of applications, from industrial and commercial to utility-scale projects. One of the key drivers of growth in the 5MW – 50MW segment is the increasing competitiveness of floating solar technology compared to traditional land-based solar installations within this capacity range. As floating solar technology becomes more cost-effective and efficient, it presents a compelling alternative to ground-mounted solar farms, particularly in regions where land availability is limited or expensive.
Floating Solar Panels Market Regional Outlook
North America
- U.S.
- Canada
Europe
- U.K.
- Germany
- France
- Spain
- Rest of Europe
Asia-Pacific
- India
- Japan
- China
- Australia
- South Korea
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Rest of Latin America
The Middle East & Africa
- South Africa
- GCC Countries
- Rest of the Middle East & Africa (ME&A)
Floating Solar Panels Market Regional Analysis
The Asia-Pacific region has emerged as a dominating force in the floating solar panels market, primarily due to several key factors driving its rapid growth and adoption. One significant factor is the region's abundant water resources, including reservoirs, lakes, and ponds, which provide ample opportunities for deploying floating solar installations. Countries in the Asia-Pacific region, such as China, India, Japan, and South Korea, are leveraging their water bodies to harness solar energy and meet their increasing electricity demand sustainably. Furthermore, supportive government policies and incentives have played a crucial role in driving the proliferation of floating solar projects across the Asia-Pacific region. Many governments in the region have implemented favorable policies, including feed-in tariffs, subsidies, tax incentives, and renewable energy targets, to promote the development of renewable energy projects, including floating solar. These policy measures have created a conducive environment for investment in floating solar installations, attracting both domestic and foreign players to the market. Additionally, the Asia-Pacific region benefits from the presence of leading floating solar technology providers and a robust ecosystem of suppliers, developers, and financiers with extensive experience in renewable energy projects.
Floating Solar Panels Market Player
Some of the top floating solar panels market companies offered in the professional report include Ciel & Terre International, KYOCERA Corporation, Vikram Solar Limited, Yellow Tropus Pvt. Ltd, JA SOLAR Technology Co. Ltd, Trina Solar, Sulzer Ltd., Hanwha Group, Yingli Solar, and Sharp Corporation.
Frequently Asked Questions
The floating solar panels market size was USD 3.4 Billion in 2022.
The CAGR of floating solar panels is 25.1% during the analysis period of 2023 to 2032.
The key players operating in the global market are including Ciel & Terre International, KYOCERA Corporation, Vikram Solar Limited, Yellow Tropus Pvt. Ltd, JA SOLAR Technology Co. Ltd, Trina Solar, Sulzer Ltd., Hanwha Group, Yingli Solar, and Sharp Corporation.
Which region dominated the global floating solar panels market share?
North America region exhibited fastest growing CAGR for market of floating solar panels during the analysis period of 2023 to 2032.
The current trends and dynamics in the floating solar panels industry include increasing demand for renewable energy sources, scarcity of suitable land for traditional solar installations, and technological advancements improving efficiency and durability.
The on-grid connectivity held the maximum share of the floating solar panels industry.
