Floating Solar Panels Market Size, Share, Growth, and Industry Analysis, By Type (Solar-tracking floating solar panels, Stationary floating solar panels), By Application (Off-shore Floating Solar Panels, On-shore Floating Solar Panels), Regional Insights, and Forecast To 2031

Updated On: 22 April 2024

Floating Solar Panels Market Report Overview

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The global floating solar panels market size was expected to be USD 133.8 million in 2022 and the market is projected to touch USD 766 million by 2031, exhibiting a Compound annual growth rate (CAGR) of 21.4% during the forecast (2024-2031). In the market study, our analysts have considered floating solar panels players such as GEITS, SPG Solar, Kyocera, Japan Mega Solar Power, Suntech Power, Trina Solar, Yingli Solar and Sharp

The global COVID-19 pandemic has been unprecedented and staggering, with floating solar panels market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Floating solar panels, also known as floating photovoltaic (FPV) systems or floating solar farms, are solar panel arrays that are installed on bodies of water such as lakes, reservoirs, ponds, or even offshore areas. Instead of being mounted on rooftops or on the ground, these solar panels are placed on floating structures that are specifically designed to support the panels and withstand water conditions.

The floating solar panels market has been experiencing rapid growth worldwide. Factors such as the increasing demand for renewable energy, land scarcity for large-scale solar projects, and the potential to utilize water bodies for solar power generation have contributed to the market's expansion. Floating solar panel offers several advantages over their land-based counterparts. They help to reduce water evaporation from reservoirs, reduce algae growth, and provide cooling effects on the solar panels, which can enhance their efficiency. Additionally, floating solar farms can make use of underutilized water bodies and can often generate more electricity due to the natural cooling effect of the water.

COVID-19 Impact: Pandemic Hampered the Demand for Market

The COVID-19 pandemic has had both direct and indirect impacts on various industries worldwide, including the floating solar panels market. The pandemic led to disruptions in global supply chains, including the manufacturing and distribution of floating solar panel components. Lockdown measures, restrictions on transportation, and reduced workforce availability affected the production and delivery of floating solar panel. Many floating solar panel projects experienced delays due to the pandemic. Construction activities were hampered by restrictions on movement, social distancing measures, and labor shortages. This resulted in project delays and rescheduling, impacting the overall market growth. The economic uncertainty caused by the pandemic led to a decline in investments in renewable energy projects, including floating solar panel. Investors became more cautious, diverting their funds to more immediate priorities, which affected the overall market expansion.

Latest Trends

"Capacity Expansion to Fuel Market Growth"

The capacity of floating solar installations has been increasing globally. Many countries, such as China, Japan, South Korea, and India, have been actively investing in floating solar projects, with several large-scale installations coming online. The solar panels market experienced significant growth due to several factors, including increasing demand for renewable energy, declining solar panel costs, and the availability of suitable water bodies for installation. Floating solar panels have found applications in various types of water bodies, including reservoirs, ponds, lakes, and even offshore areas. This versatility allows for the utilization of otherwise unproductive water surfaces, leading to increased adoption. Floating solar panel offers environmental advantages such as reduced water evaporation from reservoirs, reduced algae growth, and minimized land use. They can also help to reduce the carbon footprint of power generation and contribute to achieving renewable energy targets.

Floating Solar Panels Market Segmentation

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• By Type Analysis

According to type, the market can be segmented into solar-tracking floating solar panels, stationary floating solar panels.

• By Application Analysis

Based on application, the market can be divided into off-shore floating solar panels, on-shore floating solar panels.

Driving Factors

"Government Incentives and Policies to Stimulate Market Growth"

Many governments around the world are implementing supportive policies and incentives to promote the adoption of renewable energy sources, including solar power. These policies often include feed-in tariffs, tax incentives, grants, and subsidies, which encourage the development and deployment of floating solar projects. Advances in technology, such as the development of new materials and design techniques, have made floating solar panel more cost-effective and feasible. These advancements have led to improved panel durability, easier installation, and increased overall system efficiency.

"Several Advantages of Product to Surge Market Growth "

Floating solar panel has minimal environmental impact. They do not require land clearing or excavation, and their installation on water bodies can lead to additional environmental benefits, such as improved water quality and reduced algae growth. Floating solar projects can also coexist with other water-based activities like fish farming, creating a symbiotic relationship. These solar panels have the potential to generate more electricity compared to traditional solar installations on land. The cooling effect of water reduces the temperature of the panels, enhancing their efficiency and power output. Additionally, the reflection of sunlight off the water surface can increase the overall solar generation capacity. All these factors are boosting floating solar panels market growth.

Restraining Factors

"Limited Availability of Suitable Water Bodies to Restrict Market Growth "

Floating solar panels require access to suitable water bodies, such as lakes, reservoirs, and ponds. However, the availability of such water bodies is limited, especially in densely populated areas or regions with strict regulations on water use. Identifying suitable sites and obtaining necessary permissions can be challenging, restricting the deployment of floating solar panel.

Floating Solar Panels Market Regional Insights

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"Presence of Key Players in Asia-Pacific Anticipated to Drive Market Expansion"

Asia-Pacific holds leading position in floating solar panels market share. The region has a high demand for renewable energy sources to meet its growing energy needs while reducing carbon emissions. Many countries in Asia-Pacific, such as China, Japan, and South Korea, have densely populated areas with limited land availability for large-scale solar installations.

Key Industry Players

"Adoption Innovative Strategies by Key Players Influencing Market Growth"

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio.

The top key players in the market are GEITS, SPG Solar, Kyocera, Japan Mega Solar Power, Suntech Power, Trina Solar, Yingli Solar, Sharp. The strategies to develop new technologies, capital investment in R&D, improve product quality, acquisitions, mergers, and compete for the market competition help them to perpetuate their position and value in the market. Besides, collaboration with other companies & extensive possession over market shares by the key players stimulates market demand.

List of Market Players Profiled

• GEITS
• SPG Solar
• Kyocera
• Japan Mega Solar Power
• Suntech Power
• Trina Solar
• Yingli Solar
• Sharp

Report Coverage

This report examines an understanding of the Floating solar panels market’s size, share, and growth rate, segmentation by type, application, key players, and previous and current market scenarios. The report also collects the market’s precise data and forecasts by market experts. Also, it describes the study of this industry’s financial performance, investments, growth, innovation marks, and new product launches by the top companies and offers deep insights into the current market structure, competitive analysis based on key players, key driving forces, and restraints that affect the demand for growth, opportunities, and risks.

Furthermore, the post-COVID-19 pandemic’s effects on international market restrictions and a deep understanding of how the industry will recover, and strategies are also stated in the report. The competitive landscape has also been examined in detail to provide clarification of the competitive landscape.

This report also discloses the research based on methodologies that define price trend analysis of target companies, collection of data, statistics, target competitors, import-export, information, and previous years’ records based on market sales. Moreover, all the significant factors which influence the market such as small or medium business industry, macro-economic indicators, value chain analysis, and demand-side dynamics, with all the major business players have been explained in detail. This analysis is subject to modification if the key players and feasible analysis of market dynamics change.