July 23, 2024
Global Floating Solar Panels Market

Floating Solar Panels Market Poised To Garner 29% Growth By 2024

The global floating solar panels market is characterized by advantages such as lack of requirement for land and overhead cabling, and lower installation and production costs. By being installed on top of water bodies, floating solar panels help generate solar power without consuming vast tracts of agricultural or forest land. The Global Floating Solar Panels Market is estimated to be valued at US$ 35.9 MN in 2024 and is expected to exhibit a CAGR of 29.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the global floating solar panels market include Ciel & Terre International, Hanwha Group, JA SOLAR Technology Co. Ltd., KYOCERA Corp., LONGi Solar, Trina Solar, Vikram Solar Ltd., Wuxi Suntech Power Co., Ltd., Yellow Tropus Pvt. Ltd., and Yingli Solar. With growing environmental consciousness, many regions and countries are formulating policies to increase reliance on renewable energy. This has propelled the demand for floating solar panels from utilities and commercial establishments looking to lower energy costs and carbon footprint. Moreover, supportive government policies and subsidies in various nations have encouraged private players to enter the floating solar energy generation space.

The growing demand for renewable energy owing to depleting fossil fuel reserves and stringent government regulations regarding carbon emissions is a key factor driving the Global Floating Solar Panels Market Trends  Furthermore, continuous technological advancements to improve the efficiency of floating solar panels along with decreased costs of setting up floating solar farms would encourage wider adoption.

Floating solar installations are also picking up steam globally with many countries actively promoting them as a commercially and technically viable renewable energy generation method. Declining costs of setting up floating solar farms and fast track approvals for such projects are attracting more private players in countries including Japan, China, UK and Netherlands.

Market Key Trends

One of the key trends witnessed in the global floating solar panels market is the rapidly declining Levelized Cost of Energy (LCOE). Traditionally, the LCOE of floating solar energy was higher than that of ground-mounted installations. However, with continuous technological advancements, larger floating solar farm sizes, and streamlined construction and installation techniques, the LCOE of floating solar has fallen below many other renewable technologies. This is expected to provide the critical impetus for global floating solar capacity additions over the coming years.

Porter’s Analysis

Threat of new entrants: High investments required for manufacturing plants and technology pose a barrier for new companies in this market.

Bargaining power of buyers: Solar panel buyers have moderate bargaining power due to availability of many established manufacturers.

Bargaining power of suppliers: Specialized equipment suppliers enjoy some bargaining power due to differentiated products and services required in panel production.

Threat of new substitutes: Threat of new energy sources is moderate as solar will continue to play a major role in clean energy transition.

Competitive rivalry: Intense competition exists among global and regional players to gain market share.

Geographical Regions

The Asia Pacific region currently dominates the global floating solar panels market in terms of value as China, Japan, India are major adopters and developers. Strong government support through policies and subsidies have boosted the market.

The Europe region is expected to witness the fastest market growth during the forecast period due to increasing emphasis on renewable energy goals. Countries like UK, Netherlands, France are actively promoting the deployment of floating solar panel projects.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.