Floating Solar Panels Market Size was valued at USD 0.8 billion in 2021. The floating solar panels market industry is projected to grow from USD 0.9 billion in 2022 to USD 4.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 24.40% during the forecast period (2022 - 2030). The growing demand for clean and renewable energy around the world is the main market driver for the global market for solar floating panels. Today, many nations are turning to clean energy sources. Due to its significant untapped potential, floating solar is becoming more popular among the available sources with the availability of government incentives and tax refunds over the installation of photovoltaic technology.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Floating Solar Panels Market Trends
One of the main factors fueling the market expansion for floating solar panels is the rising investments in renewable energy. Economic, social, and environmental development can only be attained by moving away from fossil fuels and toward renewable sources like wind and solar. This can be attributable to the low cost of manufacturing PV system components due to technology advancements that lower the overall capital expenditure per MW of electricity generated. Renewable energy is increasingly being used as the main energy source in various nations. For instance, renewable energy initiatives are rising in Mindanao, Philippines. According to Jose Layug Jr., the head of the National Renewable Energy Board in the Philippines, 40% of Mindanao's energy mix is made up of renewable sources. The proportion of renewable energy is anticipated to rise during the projection period, therefore, this mix is likely to continue to develop. Thus, this factor is driving the market CAGR.
Another primary market trend for floating solar panels that is fostering market expansion is the rising conversion efficiency of solar PVs. When compared to other renewable energy technologies, which have more than 30% generation efficiencies, solar panels currently have a very low conversion efficiency rate. The emphasis of businesses like SunPower is increasing the effectiveness of solar panels. The company states that the greatest conversion rate for its E-series panels is roughly 22.2%. The system's overall conversion rate is high because the presence of the surrounding water prevents the floating solar panels from heating up very much. Additionally, as technology advances, the cost of installing a complete PV system is probably going to go down. Therefore, over the projection period, increased conversion efficiency and falling PV system prices will positively impact the market.
Furthermore, the increasing desire for renewable energy sources to fulfill the rising global energy demand is what propels the global market. The favorable government programs to encourage the use of solar panels are a major factor in the market's expansion. Additionally, the lack of available land is anticipated to increase demand for floating solar panels, which can utilize water bodies like irrigation ponds, reservoirs, lakes, canals, and others to supply a variety of energy needs. For instance, the units in the quarry and mining industries are situated in distant locations with expensive and difficult water and electricity supplies. Therefore, floating solar panels provide an affordable way to satisfy these companies' energy needs. So, it is anticipated that this aspect will accelerate floating solar panels market revenue globally.
Floating Solar Panels Market Segment Insights:
Floating Solar Panels Product Insights
The Floating Solar Panels Market segmentation has been segmented by product into stationary floating solar panels and tracking floating solar panels. The stationary floating solar panels segment dominated the floating solar panels market data in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. On a body of water stationary floating solar panels can be installed. The amount of water evaporation is decreased by stationary floating solar panels that also serve as a water body's shade.
Floating Solar Panels Location Insights
The Floating Solar Panels Market segmentation, based on location, onshore and offshore. The onshore segment dominated the floating solar panels market revenue in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Less likelihood of damage from strong sea currents and high tides are the primary factors contributing to the onshore market segment's improved performance. The main elements influencing the onshore market segment's increased performance include low construction and maintenance costs, as well as a decreased risk of damage from strong sea currents and high tides.
Figure 2: Floating Solar Panels Market by Location, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Floating Solar Panels Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific floating solar panels market accounted for USD 0.3 billion in 2021 and is expected to exhibit a 42.80% CAGR during the study period. In the Asia-Pacific region, they are widely used because there is a dearth of suitable land and a steady supply of fossil fuels. To fulfill the growing need for electricity while minimizing environmental harm, the government has approved a wide range of designs and constructions for floating solar panels.
Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: FLOATING SOLAR PANELS MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America floating solar panels market is expected to grow at a significant CAGR from 2022 to 2030. The demand for floating solar in the region is expected to increase over the projection period due to factors including the capacity of floating solar technology to reduce evaporation and land availability. In areas with high temperatures, like the central regions of the United States, the installation of floating solar farms lowers the rate of evaporation, which helps to lessen the likelihood of drought. Further, the US floating solar panels market held the largest market share, and the Canada floating solar panels market was the fastest-growing market in the region
Europe floating solar panels market accounts for the second-fastest growing market share because of laws that favor the use of solar energy for generating electricity. Additionally, land availability and solar technology's capacity to float to reduce the impact of evaporation are projected to increase product demand. Moreover, Germany floating solar panels market held the largest market share, and the UK floating solar panels market was the fastest-growing market in this region.
Floating Solar Panels Key Market Players & Competitive Insights
Major market players are spending a lot on R&D to increase their product lines, which will help the floating solar panels industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.
One of the primary business strategies manufacturers adopt in the global floating solar panels industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, floating solar panels industry has provided medicine with some of the most significant benefits. The floating solar panels market major player such as GEITS, Wuxi Suntech Power Co. Ltd., Yingli Solar, SPG Solar, Ciel & Terre, Kyocera Corporation, Japan Mega Solar Power Co., Suntech Power Holdings Co. Ltd., Solaris Synergy, Trina Solar Limited and Sharp Corporation.
With its headquarters in Sakai-ku, Sakai, Osaka Prefecture, Sharp Firm is a Japanese multinational corporation that creates and manufactures electronic goods. Taiwan's Foxconn Group has primarily owned it since 2016. More than 50,000 people work for Sharp worldwide. In July 2020, with a total capacity of over 98 MW-DC, the giant solar power plants built by Sharp Energy Solutions Corporation (SESJ) in Vietnam's Binh Thuan and Long An provinces each have a capacity of about 49 MW-DC. Gia Lai Hydropower Joint Stock Company and TTC-Duc Hue Long, a power joint stock company operating under the Thanh Cong Group's auspices, gave the order to SESJ (TTC Group).
Also, a producer of solar panels is Yingli Green Energy Holding Company Limited, also referred to as "Yingli Solar." Yingli Green Energy's manufacturing spans the whole photovoltaic value chain, from wafer fabrication and ingot casting through solar cell manufacturing and solar panel assembling. In December 2018, a modification to the supply agreements between Yingli Green Energy and Wacker Chemie AG was announced. According to the conditions of the modification, certain operating units of the company in China will keep buying polysilicon (the raw material used to make solar panels) from Wacker in the amounts and at the prices stipulated in the amendment from 2019 to 2028. Wacker is anticipated to put a stop to the company's damage claims resulting from the pre-amendment agreements.
Key Companies in the floating solar panels market includes
Floating Solar Panels Industry Developments
April 2021: KYOCERA Corporation and AVX Corporation merged to create KYOCERA AVX, a new integrated brand that would be utilised for the KYOCERA Group's electronic components sector. The new structure is expected to boost the company's electrical components sector.
February 2021: GreenYellow Limited, a division of GreenYellow, built a 2MW floating solar power plant at SPM Group sites in Thailand.
November 2019: In the Johor strait, which separates Singapore and Malaysia, project developer Sunseap had revealed ambitions to construct the largest PV systems floating on seawater. The Economic Development Board of Singapore is funding the project, which when finished would supply the grid with electricity for 25 years.
Floating Solar Panels Market Segmentation
Floating Solar Panels Product Outlook (USD Billion, 2018-2030)
Floating Solar Panels Location Outlook (USD Billion, 2018-2030)
Floating Solar Panels Regional Outlook (USD Billion, 2018-2030)
|Market Size 2021||USD 0.7 Billion|
|Market Size 2022||USD 0.9 Billion|
|Market Size 2030||USD 4.3 Billion|
|Compound Annual Growth Rate (CAGR)||24.50% (2022-2030)|
|Historical Data||2018 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Location and Region|
|Geographies Covered||North America, Europe, Asia Pacific, and Rest of the World|
|Countries Covered||The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil|
|Key Companies Profiled||GEITS, Wuxi Suntech Power Co. Ltd., Yingli Solar, SPG Solar, Ciel & Terre, Kyocera Corporation and Japan Mega Solar Power Co.|
|Key Market Opportunities||Rising conversion efficiency of solar PVs|
|Key Market Dynamics||Increasing desire for renewable energy sources to fulfill the rising global energy demand Rising investment in renewable energy|
The floating solar panels market size was expected to be USD 0.7 billion in 2021.
The market is expected to register a CAGR of ~24.50% over the next ten years.
Asia Pacific held the largest market share in the floating solar panels market.
GEITS, Wuxi Suntech Power Co. Ltd., Yingli Solar, SPG Solar, Ciel & Terre, Kyocera Corporation and Japan Mega Solar Power Co. are the key players in the floating solar panels market.
The stationary floating solar panels category led the product segment in the floating solar panels market.
The onshore category had the largest market share in the market.