Floating Power Plants Market Share, Size, Trends, Industry Analysis Report, By Power Source (Non-renewable and Renewable); By Power Rating; By Platform Type; By Region; Segment Forecast, 2024 – 2032
- Published Date:Jan-2024
- Pages: 114
- Format: PDF
- Report ID: PM4088
- Base Year: 2023
- Historical Data: 2019-2022
The global floating power plants market was valued at USD 11.03 billion in 2023 and is expected to grow at a CAGR of 9.20% during the forecast period.
The continuous increase in the need and demand for clean electricity among several end-use sectors and the lack of developed and advanced power infrastructure across various developing nations are the leading factors propelling the demand and growth of the global market. In addition, with the growing awareness about the importance and advantages of Floating power plants, such as faster electricity supply even for regions with limited power infrastructure, provision of power supply during natural disasters, easy relocation, and less requirement for land, among others, the market for FPPs is likely to increase substantially in the near future.
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- For instance, according to a report published by IEA, the renewable electricity capacity across the globe is projected to increase by over 60% from the 2020 levels to approx. 4,800 GW. Also, the addition of new renewable power capacity was estimated to rise to 290 GW in 2021, surpassing the all-time high of the previous year.
Moreover, some of the leading companies in the market are exploring ways to improve or enhance the capacity and efficiency of their power plants. Thus, companies are increasing the use of materials such as thermal barrier coatings and ceramics that help to enhance the overall efficiency of microturbine systems and are opening up new growth avenues for the floating power plants market.
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However, the substantial upfront capital required for the design, construction, and installation of floating power plants and the high complexity associated with the connection of power plants to the grid, mainly in remote areas, are among the major restraints for global market growth.
- Increasing demand for green energy and government focus towards promoting renewable energy boosting the market.
With the rapid transition of the world towards sustainable and cleaner energy sources and the increased number of governments and businesses prioritizing renewable energy in order to reduce greenhouse gas emissions and also combat climate change, the need for floating power plants is substantially increasing, as they offer a wider range of advantages which aligns with government energy transition goals.
Besides this, governments, especially emerging economies like India and China, are increasingly introducing new initiatives and schemes to promote the use of green or renewable energy that have resulted in significant market growth over the years.
- For instance, according to a recent report, the Government of India announced the installation of new transmission lines & and the development of a new sub-station under the “Green Energy Corridor Scheme” to generate renewable power.
The market is primarily segmented based on power source, power rating, platform type, and region.
By Power Source
By Power Rating
By Platform Type
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By Power Source Analysis
- Non-renewable segment accounted for the largest market share in 2022
The non-renewable segment accounted for the largest market share. The growth of the segment market is highly attributable to its numerous benefits, including high power density, low operating costs of gas turbines, and higher reliability. In addition, non-renewable floating power plants are also being widely used for temporary power generation needs such as construction projects, disaster relief efforts, and different events, including concerts or festivals, which, in turn, propel the market growth at an extensive pace.
The renewable segment is expected to grow at the highest growth rate over the next coming years, mainly due to the increasing implementation of several favorable environmental policies that support the utilization or usage of clean fuels for various purposes, including power generation and surging awareness of environmental issues and climate change that are leading to greater adoption for renewable energy projects.
By Power Rating Analysis
- High power segment held the maximum market share in 2022
The high-power segment held the maximum market share in terms of revenue in 2022, which is largely attributed to continuous growth in the global population and rapid development of infrastructure across various industries, including construction, manufacturing, healthcare, and petroleum & energy that all require power generation units with higher or significant capacity. Apart from this, the ability of these plants to provide stable power generation from intermittent renewable sources while reducing the reliance on fossil fuels is further likely to create lucrative growth opportunities for the segment market.
- For instance, as per the US Census Bureau, the world’s total population as of September 2022 was 7,922,312,800 people, a significant increase from the 2015 global population of 7.2 billion people.
By Platform Type Analysis
- Power Barges segment is expected to witness highest growth over the estimated years
The power barges segment is expected to gain substantial growth and a healthy growth rate during the anticipated period on account of its numerous advantageous characteristics and beneficial features, including higher flexibility and mobility, remote area electrification, and a reduction in overall infrastructure costs. In addition, power barges can be easily deployed as compared to traditional or conventional power plants, which makes them a highly preferred and convenient solution for providing electricity to regions with urgent need of power.
The floating structures segment led the industry market with substantial revenue share in 2022, which is majorly driven by its environmental benefits and their easier relocation to areas with changing power needs, as they often have reduced land use requirements and smaller environmental footprints as compared to traditional land-based power plants.
- Asia Pacific region dominated the global market in 2022
The Asia Pacific region dominated the global market. Regional market growth is highly accelerated by the high adoption rate of various renewable energy sources for power generation to meet the energy needs of densely populated countries in the region. Besides this, the presence of abundant water bodies and hydro resources such as rivers and lakes among various APAC countries, which makes it a suitable place to utilize the potential of FPPs to generate clean energy, is further escalating the market for FPPs in the region.
- For instance, according to a report published in 2022, China targets renewables to supply nearly 33% of the national power consumption by 2025 and is also expected to increase renewable generation capacity to 3,300 TW hours by 2025 with a CAGR of 7 to 8% in next 4 years.
The North America region is anticipated to register the highest growth rate over the next coming years, owing to a rapid increase in the energy demand, particularly in remote and off-grid areas, and continuous innovations and technological advancements in floating power plant technology like mooring systems, advanced energy storage solutions, and better materials.
Key Market Players & Competitive Insights
The market is highly competitive, with the presence of several regional and global market players. The top players operating in the market are significantly focusing on research & development activities to advance their technologies and improving their focus on energy efficiency, mooring systems, and platform design to keep their market ahead of their competitors.
Some of the major players operating in the global market include:
- Caterpillar Inc.
- Ciel & Terre International
- Flack Renewable SpA
- Floating Power Plant A/S
- General Electric Company
- Kyocera Corporation
- MAN Diesel & Turbo SE
- Mitsubishi Corporation
- Principle Power Inc.
- SeaTwirl AB
- Siemens AG
- Vikram Solar
- Yingli Solar
- In July 2023, Shyam Metalics & Energy announced that they are setting up a new 50 MW floating solar power in India. With this new plant, the company aims to be the state’s 1st organization with significantly reduced carbon footprints.
- In October 2021, Handle Energy announced its first floating solar power plant. The newly launched floating power plant is on the surface of the water, with a total capacity of 360 KWs and a product of approximately 644 Mw hrs/year.
Floating Power Plants Market Report Scope
Market size value in 2024
USD 11.84 billion
Revenue forecast in 2032
USD 24.00 billion
9.20% from 2024 – 2032
2019 – 2022
2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Power Source, By Power Rating, By Platform Type, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
Report customization as per your requirements with respect to countries, region and segmentation.