Floatovoltaics Market - Forecast(2023 - 2028)

Floatovoltaics Market Overview

The Global Floatovoltaics Market size is estimated to reach US$3.5 billion by 2027, growing at a CAGR of 12.5% from 2022 to 2027. Increasing demand for sustainable solar energy is the primary factor driving the growth of the Floatovoltaics Market. Additionally, increasing investment in solar-based energy projects and growing awareness about clean and sustainable energy have boosted the market growth. Floating solar photovoltaic systems have widespread applications across various industrial, commercial and residential sectors. These photovoltaic systems which are a series of floating solar arrays have many benefits in comparison to ground-mounted photovoltaic systems such as powering electrical equipment, electricity generation and others. These floating solar arrays are also cost-effective systems compared to ground-mounted photovoltaic systems. As these floatovoltaics are generally installed on water bodies such as reservoirs, lakes and oceans, they tremendously help grow the water-energy nexus to another level. As a result of these factors along with government initiatives with renewable solar energy are expected to influence the Floatovoltaics Industry Outlook over the forecast period.

Floatovoltaics Market Report Coverage

The report: “Floatovoltaics Industry Outlook – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Floatovoltaics industry.

By Product Type: Stationary Floating Solar Panels and Tracking Floating Solar Panels.
By Rated Capacity: Less than 5MW, 5MW–50MW and Greater than 50MW.
By Technology: Thin Film, Mono-Si, Multi-Si and Others.
By Location: Onshore and Offshore.
By Applications: Residential, Industrial and Commercial.
By Geography: North America (the U.S., Canada and Mexico), South America (Brazil, Argentina and Others), Europe (the UK, Germany, France, Italy, Spain and Others), APAC (China, Japan, South Korea, India, Australia and Others) and RoW (the Middle East and Africa).

Key Takeaways

• In the Floatovoltaics market report, the Stationary Floating Solar Panels segment is analyzed to grow at a significant CAGR of 13.8% during the forecast period 2022-2027. This growth is due to the growing need for sustainable and clean electricity generation and technological advancements in solar panels.
• By Location in Floatovoltaics Market report, the Onshore Location segment is expected to grow at the highest rate with a CAGR of 14.2% during the forecast period. This is due to factors such as favorable environmental conditions and cost benefits in comparison to other counterparts.
• APAC region had the largest market share of 51% in the global Floatovoltaics Market size, owing to factors such as less availability of land, growing electricity consumption and government initiatives.

Floatovoltaics Market Value Share, by Region, 2021 (%)

Floatovoltaics Market Segment Analysis - by Product Type

By Product Type, the Stationary Floating Solar Panels segment in the Floatovoltaics Market report is analyzed to grow at the highest CAGR of 13.8% during the forecast period 2022-2027. The growth of this segment is mainly attributed to the growing focus on clean and renewable electricity generation, technological advancements in the solar panels segment and the cost-effectiveness of these stationary floating solar panels over ground-mounted photovoltaic systems. These floating solar arrays are mainly installed on water bodies and are changing the water-energy nexus and thereby boosting the Floatovoltaics Market Size. In January 2020, Masdar and PLN formed a partnership to build Indonesia's first Floatovoltaics solar power plant, marking a significant milestone in Indonesia's approach to renewable energy generation. These factors would continue to boost the Floatovoltaics Market size during the forecast period.

Floatovoltaics Market Segment Analysis - by Location

Based on Location, the Onshore location segment in the Floatovoltaics Market report is analyzed to grow at the highest CAGR of 14.2% during the forecast period 2022-2027. The growth of this segment is primarily attributed to the favorable environmental conditions of the onshore water bodies such as lakes, rivers and ponds in comparison to offshore water bodies such as seas and oceans. Floating solar arrays on such onshore water bodies are less expensive to build and maintain because they are not subjected to high winds, wave action, moisture or harsh corrosive environments. In September 2020, Vattenfall inaugurated its first Floatovoltaics farm in Gendringen, the Netherlands. The solar farm has a capacity of 1.2 megawatts and is able to produce half of the electricity that was being consumed on the site of the sand and gravel extraction company Netterden. Such factors are expected to influence the Floatovoltaics Industry Outlook. 

Floatovoltaics Market Segment Analysis - by Geography

APAC dominated the global market for Floatovoltaics Market with a market share of 51% in 2021. The region is also analyzed to have significant growth over the forecasting period. This growth is owing to factors such as less availability of land, growing electricity consumption in this region, government initiatives and increasing investments by major players. In January 2022, Huaneng Power International (HPI) finished the world's largest floatovoltaics project, a 320 MW facility in Dezhou, Shandong Province, China. The project is expected to generate approximately 150 million kilowatt-hours per year. According to the company, it would be resistant to typhoons and water corrosion, among other harsh environmental factors. This increasing investment and developments are expected to boost the APAC region’s dominance in Floatovoltaics Market.

Floatovoltaics Market Drivers

A surge in demand for sustainable and renewable energy sources: 

Demand for renewable energy is increasing due to the depletion of natural resources such as crude oil, coal and natural gas and the negative environmental effects of these resources. Due to its abundant availability, solar energy is considered a renewable source of energy. This is expected to increase demand for floating solar panels, particularly in countries and regions with a large number of bodies of water and thereby boosting the water-energy nexus. In 2021, according to International Energy Agency, the global energy demand saw a massive increase of 4.6% from the previous year and it is set to increase more over the coming years. This growing demand for energy would boost the adoption of Floatovoltaics which would boost the Floatovoltaics Market size.

Increasing Government Initiatives and Stringent Environment Regulations

The global population is rising at an exponential rate and so does the demand for electricity. To meet the requirement of this growing electricity demand as well as reduce environmental pollution, Floatovoltaics Panels are widely being adopted in all the regions across the globe. As a result, governments across the world are taking initiatives to boost the adoption of Floatovoltaics Solar panels. In March 2022, Omkareshwar Floating Solar Park was granted approval for development by the Indian Government. This 600MW floating solar project is the world’s largest floating solar project so far and is estimated to be operational as early as 2023-24. This increased government support is expected to boost the Floatovoltaics Industry.

Floatovoltaics Market Challenges

High costs associated with Engineering, Procurement and Construction:

The installation cost of a Floatovoltaics plant is higher than the cost of a ground-mounted solar plant installation. This is due to the technical complexity of watercraft design, construction and operation. These technical complexities arise primarily because the structures must be light in weight in order to float on water and must have structural integrity in order to hold the panels in proper position even in low to medium windy weather conditions. The cost of setting up a floatovoltaics power plant is approximate US$650,000–780,000 per megawatt. This huge cost associated with installations and maintenance hinders the growth of the Floatovoltaics Market.

Key Market Players

Product launches, collaborations and R&D activities are key strategies adopted by players in the Floatovoltaics Market. The top companies in the Floatovoltaics industry include:

• Boehringer Ingelheim
• Sembcorp Solar
• NJR Clean Energy Ventures
• Kyocera Corporation
• Trina Solar
• Ciel and Terre International
• Sharp Corporation
• Longi
• Yingli Solar
• Solaris Synergy

Recent Developments

• In May 2022, NJR Clean Energy Ventures began construction on an 8.9MW floating solar installation in New Jersey which would be the largest floating solar array in the U.S. The clean energy generated by this plant would provide 95% of the New Jersey American Water Canoe Brook Water Treatment Plant’s annual power needs. 
• In February 2020, Sembcorp Solar Singapore Pte. Ltd. was granted a contract to develop a 60 MW floating solar power plant on Singapore's Tengeh reservoir. Under the supervision of technical advisor DNV GL AS Group Communications, the project is expected to be completed by 2022. 
• In December 2020, Longi provided 74,469 solar panels for establishing two large-scale Floatovoltaics power plants in Vietnam. The two facilities, each with a 35 MW capacity, were installed on the Gia Hoet 1 and Tam Bo irrigation lakes. These are the largest Floatovoltaics power plants in Vietnam. 

Relevant Report Titles: 

Floating Solar Farm Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: EPR 0029

Building Integrated Photovoltaics Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: ESR 74525

Portable Solar Panel Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis
Report Code: EPR 0034

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