Floating Power Plant Market Size Expected to Reach USD 3.32 Bn by 2033
The global floating power plant market size is calculated at USD 1.53 billion in 2024 and is expected to reach around USD 3.32 billion by 2033, growing at a CAGR of 8.98% between 2024 and 2033.
Ottawa, Nov. 22, 2024 (GLOBE NEWSWIRE) -- The global floating power plant market size is predicted to increase from USD 1.65 billion in 2025 to approximately USD 3.32 billion by 2033, According to Precedence Research. The Asia Pacific floating power plant market size was valued at USD 547.93 million in 2023 and Europe held the second-largest market share in 2023.
The floating power plant market is emerging as a very important industry that provides innovative alternatives to energy demands. As the name suggests, floating power plants are built on structures built on water's surface for energy production. These power plants use different generation technologies like wind, solar, nuclear, LNG, and even conventional plants. There are several benefits due to which floating power plants are in high demand. With technological advancements and better opportunities, the market is expected to grow rapidly in the future.
Floating Power Plant Market Key Insights:
· Asia Pacific led the floating power plant market with the highest market share of 38.59% in 2023.
· By power source type, the non-renewable segment recorded the highest market share of 79.10% in 2023.
· By power rating type, the high-power segment generated the biggest market share of 46.67% in 2023.
· By power rating type, the medium-power segment is the fastest-growing during the forecast period.
What is the Future of the Floating Power Plant Market?
Floating power plants are going to be in high demand in the future for several reasons. One of the major reasons for this is mobility, which allows FPPs to be transported anywhere to supply energy. Also, the continuous technological advancements are set to improve the efficiency, and cost of the FPPs. To reach their full potential, floating solar power plants require more study and funding. The prospects for floating solar energy appear bright, given the ongoing advancements in technology and the emphasis on renewable energy sources.
Floating Power Plant Market Revenue (USD Million), By Power Source Type, 2021 to 2023
AI Impact on the Floating Power Plant Market
Artificial Intelligence (AI) is revolutionizing the floating power plant market, addressing challenges related to energy efficiency, sustainability, and operational complexities. This transformation is evident across various aspects of the market, from operational optimization to environmental monitoring.
Floating power plants are increasingly being integrated with renewable energy sources like solar and wind. AI plays a pivotal role in managing these hybrid systems by forecasting energy production and optimizing resource allocation. For example, AI algorithms can predict periods of low wind or reduced sunlight and adjust operations to ensure uninterrupted energy output. This capability not only enhances energy reliability but also accelerates the adoption of sustainable energy solutions within the market.
Major Trends in the Floating Power Plant Market
· Geopolitical advantages: Floating power plants serve as an economic advantage, due to which they empower bilateral and regional ties. Countries use floating power plants to provide energy to other countries in order to gain geopolitical advantages.
· Energy supply to remote areas: Floating power plants are highly beneficial in providing a fast supply of electricity, especially in remote areas and where the power generation infrastructure is limited.
· Mobility of plants: One of the biggest advantages of these plants is their mobility, due to which they can be relocated to better areas and traded to gain geopolitical advantages by fulfilling energy shortages,
· No land acquisition: Floating power plants do not require land as they are built to be used on water surfaces. It is highly useful considering the growing demand for land for real estate, agriculture, and other purposes.
· Sustainability: The water body on which the plants are built acts like a cooling system, which improves power conversion efficiency. The plants also reduce the evaporation rate, which saves gallons of water. These factors make floating plants a sustainable energy source.
Floating Power Plant Market Geographical Analysis
Asia Pacific Floating Power Plant Market Size and Forecast 2024 to 2033
The Asia Pacific floating power plant market size is estimated to grow from USD 585.53 million in 2024 to USD 1,172.58 million by 2033, with a CAGR of 8.02% from 2024 to 2033. The global floating power plant market size was valued at USD 1,420 million in 2023.
Hydroelectric Dams are Promoting Asia Pacific’s Market
Asia Pacific dominated the floating power plant market in 2023. In the Asia-Pacific region, where land is limited, but hydroelectric dams are widely distributed and connected to the electrical grid, the technology is especially well suited. Japan constructed the first floating solar plant in history. Currently, 73 of the 100 largest floating solar plants in the world are located in the nation's inland lakes and reservoirs.
Nearly 78,000 megawatts (MW), or enough to power 21,000 households, are produced by a floating solar facility in East China. 35,000 households might be powered by the 102.5 MW delivered by a South Korean facility. The island state of Singapore has built a solar farm in the Strait of Johor with 13,000 FPV panels.
The farm can generate up to 5 MW of energy, which is enough to power 1,400 residential apartments year-round. It is projected that a project at Thailand's Sirindhorn Dam will contribute to a reduction of 0.546 tons of carbon emissions for every 1,000 kWh produced.
The year 2022 saw the construction of a floating solar power plant at Khandwa, Madhya Pradesh, India. It is reportedly the biggest floating solar plant in the world and is expected to produce 600 megawatts of electricity by 2022–2023. It is projected that the project will cost more than ₹3000 crores. Coal usage of 1,65,000 tons annually and CO2 emissions of 2,10,000 tons annually can be saved with the new FPP.[DH1]
Strong Emphasis on Renewable Energy Drives the European Market
Europe held the second-largest share of the floating power plant market in 2023. The region's strong emphasis on renewable energy and cutting-edge technology breakthroughs is driving the market's enormous growth. The United Kingdom is leading the way in the adoption of floating solar and wind power systems, as are other nations with long coasts. The market for floating power plants in Europe is mostly driven by regulatory frameworks and government assistance.
In order to promote renewable energy sources and lower carbon emissions, the European Union has set aggressive climate goals. Floating power plants are among the renewable energy projects that are encouraged by national and EU policies and subsidies.
The government announced its British Energy Security Strategy in April 2022, with the goal of installing up to 50 gigawatts of offshore wind power in the UK by 2030, of which up to 5 gigawatts will come from floating wind. 11 floating offshore wind projects totaling £60 million were announced in January 2022 as part of the Net Zero Innovation Portfolio.
The government launched the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) in March 2023 to assist vital port infrastructure that makes it possible to deliver floating offshore wind. Up to £160 million is available through this award program.
· The French government will spend EUR 1 billion on renewable energy innovation initiatives as part of the France 2030 national investment plan. The ultimate goal is to reach 100 GW of installed renewable power capacity by 2050, a tenfold increase. Of this installed capacity, 40 GW will come from offshore wind farms. In order to transform the ports of Sète and Port-la-Nouvelle into centers for the construction, logistics, and maintenance of two offshore floating wind farms, the region is investing €340 million in their renovation.
· The Occitania area is receiving a €150 million loan from the European Investment Bank, which is owned by the 27 EU member states, to renovate the ports of Sète and Port-la-Nouvelle. With loans of €85 million to Eolmed and €75 million to Les Éoliennes Flottantes, the EIB also backs the two experimental floating wind farms.
Floating Power Plant Market Report Coverage
The non-renewable segment held the largest floating power plant market share in 2023. Non-renewable energy resources have several advantages that make them dominant. Non-renewable FPPs have a strong presence because of their inherent advantages and well-established nature. Non-renewable sources have high power density, which makes them the main source of energy. The renewable segment is estimated to grow at a remarkable rate during the forecast period. The major factors contributing to the segment’s growth are sustainability and the depletion of non-renewable energy sources. Stakeholders are focusing on developing more and more renewable FPPs to replace non-renewable sources.
