The global floating solar panels market size was valued at USD 35.39 million in 2022 and is likely to reach USD 202.69 million by 2031, expanding at a CAGR of 21.4 % during 2023 – 2031. The market growth is attributed to the increasing adoption of renewable energy sources and the growing shortage of arable land.
Shortage of arable land is expected to boost the demand for floating solar. Floating solar is placed on water bodies and utilizes underutilized bodies of water, freeing up arable land for agriculture. For instance, according to the Union of International Associations (UIA), 56% of potentially arable land is not farmed because of inherent soil problems and man-induced problems.
Floating solar panels are solar panels placed on a structure that floats on a body of water, typically a tailing pond, lake, irrigation canal, or reservoir. It is an eco-friendly method of producing electricity where electricity is sent through underwater cables from a floating body to a transmission tower. It consists of a solar module, vertical and horizontal frames, a buoyancy body, an inspection footrest, and a module mount assembly.
The increasing need for electricity is projected to drive market growth. Floating solar generates more electricity as it rests on bodies of water that help to cool the panels, allowing them to produce efficient electricity.
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For instance, according to a report published by the International Energy Agency on March 16, 2023, electricity demand is forecast to grow by 3% a year over the next three years compared to 2022.
Impact of Artificial Intelligence on the Floating Solar Panels Market
The implementation of artificial intelligence in floating solar is estimated to boost demand for the global market. AI-powered floating solar optimizes solar panels, predicts energy production, and identifies potential issues with solar panels. AI-enabled floating solar provides insights into improving energy production and reducing costs by analyzing and forecasting data from solar panels. AI detects the movement of floating solar panels by integrating with LiDAR and geographic information systems (GIS).
The COVID-19 pandemic hampered the demand for floating solar. Government guidelines and preventive measures such as social distancing and lockdown measures triggered supply chain disruption and delays in project construction, reducing the demand for floating solar. Moreover, the closure of international borders and trade lessens the adoption of floating solar around the world, significantly impeding market growth.
- For instance, according to a report published by the National Library of Medicine on April 28, 2021, the solar industry witnessed a fall in demand of 28% during 2020.
Floating Solar Panels Market Dynamics
Major Drivers
Increasing adoption of renewable energy sources by major companies is expected to drive the market. Governments and major companies across the globe are focusing on renewable electricity generation to reduce CO2 emissions from electrical power plants. This aids companies to reduce their carbon footprint and reach their sustainability goals.
Floating solar generates renewable electricity through the sun's rays, reducing C02 emissions, which encourages companies and governments to adopt floating solar panels as one of the main energy sources. Moreover, the growing renewable energy generation across the globe is expected to boost the market revenue in the coming years.
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For instance, according to a report published by the International Energy Agency, on March 16, 2023, more than a third of the world’s electricity will come from renewables in 2025.
Existing Restraints
High maintenance costs associated with floating solar are expected to restrict market growth. Floating solar costs are high due to the complexity of solar panels working on a floating platform. Moreover, floating solar can't operate on fast-moving water, the open ocean, or on shorelines with big waves, which is expected to hamper the market growth.
Emerging Opportunities
Increasing technological advancements in floating solar to enhance the viability is an immense opportunity in the market. Companies are innovating designs with high-grade materials and offering tracking technology in floating solar to increase the adoption of floating solar for clean energy production. Moreover, emerging economies are focusing on launching schemes and projects for renewable and reliable energy sources.
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For instance, on July 14, 2021, Singapore introduced one of the world's largest floating solar panel farms, to meet a goal of quadrupling solar energy production by 2025 to help tackle climate change.
Scope of the Floating Solar Panels Market Report
The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Floating Solar Panels Market- Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Stationary Floating Solar Panels and Tracking Floating Solar Panels) and Location (Onshore and Offshore).
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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SHARP ENERGY SOLUTIONS CORPORATION; Pristine Sun; GreenYellow; Hitachi, Ltd; D3Energy; KYOCERA Corporation; Wuxi Suntech Power Co., Ltd.; JA SOLAR Technology Co., Ltd; LONGi; Yingli Solar.; Trina Solar; Hanwha Group; and Ciel et Terre International SAS.
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Market Segment Insights
Type Segment Analysis
Based on type, the floating solar panels market is categorized into stationary floating solar panels and tracking floating solar panels. The stationary floating solar panels segment held a large market share in 2022 and is expected to grow at a robust pace during the projected period owing to the high adoption of stationary floating solar panels. Stationary floating solar panels are highly adopted as they are cost-effective.
These solar panels are made up of cheap elastic in the construction of the stationary panels. Moreover, the easy deployment of stationary floating solar panels on a body of water, such as a lake or reservoir, encourages people to adopt stationary floating solar panels for clean electricity generation. Additionally, stationary floating solar panels have a low maintenance cost compared to tracking floating solar panels as they have very few movable parts, which is expected to boost the demand for stationary floating solar panels.
The tracking floating solar panels segment is estimated to witness a high CAGR growth during the assessment period due to its ability to generate more electricity by tracking the sun's rays. The tracking floating solar panels produce more electricity as they track and follow sun rays and adjust the panels perpendicular to the sun. It reduces the light reflection and increases the amount of solar energy, which enhances the demand for tracking floating solar panels and propels market growth.
Location Segment Analysis
Based on location, the Floating Solar Panels Market is bifurcated into onshore and offshore. The offshore segment is expected to grow at a significant pace during the assessment period as countries with access to calm equatorial seas are increasingly adopting offshore floating solar panels to generate renewable energy. Even though offshore solar panels do have downsides compared with onshore panels such as salt corrosion and marine fouling, several companies are working to develop engineering defenses so offshore floating panels can tolerate storms and produce renewable energy.
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For instance, on March 8, 2023, Tractebel, DEME, and Jan De Nul partnered to introduce SEAVOLT, a new offshore floating photovoltaic (PV) technology. SEAVOLT technology can withstand harsh offshore conditions while creating large surfaces that are protected from the waves.
Regional Outlook
In terms of region, the Floating Solar Panels Market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a major market share in 2022 due to technological advancement in producing green energy and rising government initiatives. Governments in the region are introducing new initiatives for developing floating solar to cater to the need for electricity by generating clean energy.
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For instance, on July 1, 2022, National Thermal Power Corporation (NTPC) owned by the Ministry of Power and the Government of India commissioned India’s largest floating solar PV project of 100 MW at Ramagundam, Peddapalli District, Telangana. The project is spread over 600 acres of reservoir and would help avoid 4.36 million tons of CO2 emission.
North America is projected to grow at a robust pace during the forecast period owing to the rising government initiatives for renewable energy sources. Governments in the region are taking new initiatives to produce clean energy through floating solar.
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For instance, on December 21, 2022, Representatives of the US government introduced a bill THE POWER OUR RESERVOIRS ACT to advance floating solar energy. The Power Our Reservoirs Act is made to support the research and deployment of floating solar to produce renewable energy and protect our vital water resources
Companies in the region are investing in research in development for utilizing unutilized reservoirs as a source of clean energy. For instance, on June 6, 2023, NJR Clean Energy Ventures (CEV) launched North America’s largest floating solar array. The launch of floating solar plant was to utilize unutilized space on the Canoe Brook reservoir as a source of clean energy. It provides 95% percent of the power needed for New Jersey American Water’s Canoe Brook water treatment plant.
Segments
The floating solar panels market has been segmented on the basis of
Type
- Stationary Floating Solar Panels
- Tracking Floating Solar Panels
Location
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- SHARP CORPORATION
- Pristine Sun
- GreenYellow
- Lennox International Inc
- Hitachi, Ltd
- D3Energy
- KYOCERA Corporation
- Wuxi Suntech Power Co., Ltd
- JA SOLAR Technology Co., Ltd
- LONGi
- Yingli Solar
- Trina Solar
- Hanwha Group
- Ciel et Terre International SAS.
Competitive Landscape
Key players competing in the global market are SHARP CORPORATION; Pristine Sun; GreenYellow; Hitachi, Ltd; D3Energy; KYOCERA Corporation; Wuxi Suntech Power Co., Ltd.; JA SOLAR Technology Co., Ltd; LONGi; Yingli Solar.; Trina Solar; Hanwha Group; and Ciel et Terre International SAS.
These companies adopted development strategies including collaboration, product launches, mergers, acquisitions, partnerships, and production expansion to expand their consumer base worldwide. For instance,
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In May 2022, The Finance Ministry of Israel announced a joint project with the Israel Innovation Authority (IIA), to test an artificial intelligence (AI) based floating system for producing electricity by tracking the sun. It is based on machine learning capabilities that optimize performance to maximize it.
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On February 16, 2021, GreenYellow launched its first floating solar power plant. It is a 2MW floating solar power plant installed at SPM Group’s facilities in Thailand.
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