Floating Power Plant Market Size, Share Global Analysis Report, 2024 – 2032

Industry Insights

[229+ Pages Report] According to Facts & Factors, the global floating power plant market size was valued at USD 10.89 billion in 2023 and is predicted to surpass USD 23.35 billion by the end of 2032. The floating power plant industry is expected to grow by a CAGR of 8.84% between 2024 and 2032.

Market Overview

Floating power plants are energy generation sources that are installed on water bodies like reservoirs, lakes, and oceans. Floating power plants are built on floating platforms, thereby offering unique advantages, flexibility, modularity, and thereby conserving land and water. Floating power plants can be deployed in less time and relocated if required.

These plants offer offshore potential; thereby, investors can tap into abundant wind and marine resources. Floating power plants utilize renewal as well as conventional energy. These power plants are sustainable and offer resilient power generation in extreme environments.

Key Insights

• As per the analysis shared by our research analyst, the global floating power plant market size is estimated to grow annually at a CAGR of around 8.84% over the forecast period (2024-2032).
• In terms of revenue, the global floating power plant market size was valued at around USD 10.89 billion in 2023 and is projected to reach USD 23.35 billion by 2032.
• Growing demand for renewal energy is driving the growth of the global floating power plant market.
• Based on the platform, the floating structures segment is growing at a high rate and is projected to dominate the global market.
• Based on the capacity, the up to 50 MW segment is projected to swipe the largest market share.
• Based on the plant type, the nuclear segment is expected to dominate the global market.
• Based on the source, the non-renewable source segment is expected to dominate the global market.
• Based on region, North America is expected to dominate the global market during the forecast period.

Growth Drivers

• Growing demand for renewal energy is driving the growth of the global market.

Rising concerns regarding greenhouse emissions and climate change are boosting the use of renewable energy sources. Floating power plants make use of wind and solar energy in locations where traditional land-based installation is not possible. Technological advancements are one of the major factors propelling the growth of the global floating power plant market. The ongoing advancements in developments in energy generation equipment, moving systems and floating platform technology are expected to positively impact the growth of the industry.

Additionally, innovations in construction techniques, design and materials are expanding the scope of the industry. Floating power plants are flexible and mobile in nature and, thereby, can easily be deployed and relocated. It means there is also room for temporary power generation, which further helps offshore operations like maritime activities, oil & gas exploration and disaster relief efforts. For instance, The Electricity Generating Authority of Thailand unveiled its blueprint to set up a floating solar plant across 8 dams in February 2019.

Restraints

• High initial cost is likely to hamper the growth of the global market.

Installing floating power plants involves high upfront costs when compared to other traditional options. However, the added complexity in construction activities further increases the expenses. Therefore, it deters the price-sensitive investors and developers in the global floating power plant market. Also, the complexity and technological challenges are anticipated to slow down the growth trajectory of the floating power plant industry.

Opportunities

• Offshore wind development is likely to foster growth opportunities in the global market.

The fast expansion of offshore wind energy poses huge growth opportunities for floating wind farms. Offshore wind help end users use clean energy generation opportunities. The floating technology helps the execution of processes in deeper waters where fixed bottom installations are not possible.

However, government policies and incentives also encourage the growth of floating power plants in the market. Tax incentives feed, tariffs, and carbon pricing mechanisms further promote the floating wind, solar, and other renewable energy projects.

The floating power plants help in energy, security, and resilience, thereby lowering the dependency of the world on fossil fuels. These work as a backup electricity generation source during natural disasters, grid outages, and other emergencies. For instance, Principle Power set up its Wind Float concept in 2023. It's the fourth generation with low-cost industrialization and supply chain participation in different regions.

Challenges

• Regulatory approval is a big challenge in the global market.

Getting approvals from regulatory authorities for floating power projects is time-consuming and difficult. The approval process involves stakeholder consultation, navigation guidance, and safety & environmental impact assessments, which further delay the project initiation and also add up to the expenses.

However, supply chain constraints are another big barrier to the growth of the floating power plant industry. The inconsistent supply of power plant components like construction services, specialized marine equipment, and many others further negatively impact the market.

Segmentation Analysis

The global floating power plant market can be segmented into platform, capacity, plant type, source, and region.

By Platform Insights

On the basis of the platform, the market can be segmented into a power barge and a floating structure. The floating structures segment is likely to dominate the floating power plant industry. The floating structure involves the inclusion of different types of floating platforms that support the power generation equipment. The floating structures are much in demand because they reduce the requirement of land place and equally increase the potential for higher energy generation. The growing interest of people in renewable energy is boosting its demand in the market. Floating structures offer site flexibility as they can be deported into a number of water bodies like deep waters and locations where traditional installations cannot be done.

By Capacity Insights

On the basis of capacity, the market can be segmented into above 300 MW, 151-300 MW, 51-150 MW, and up to 50 MW. Up to 50 MW is the fastest-growing segment in the global floating power plant market. Small-scale projects make customization and adaptation easy to different energy demands. It offers greater modularity and scalability to attract developers and investors who are looking forward to the specific needs of people.

Moreover, there is an increasing demand for grid power generation solutions where power plants with a capacity of up to 50 megawatts are ideal. Additionally, the policy support is further encouraging the adoption of renewal development sources that favor small-scale projects, thereby creating a conducive environment for the growth of the segment.

By Plant Type Insights

On the basis of plant type, the market can be segmented into IC engines, gas turbines, waves & tidal, nuclear, wind, solar, and others. The nuclear power plant type is projected to witness significant growth in the coming years. Nuclear power is known for its consistency and reliability.

Therefore, it improves energy security and stability, thereby boosting the demand in the market. Nuclear power generation involves less carbon emissions, thereby appealing to a lot of growing economies. However, the advancements in floating reactor designs are one of the major factors accentuating the growth of the segment in the forthcoming years. Nuclear power is also much in demand because it reduces the requirement of energy dependency on imported fossil fuels, thereby making it the first choice for the leading companies.

By Source Insights

On the basis of source, the market can be segmented into renewable and non-renewable sources. The non-renewable source segment accounts for the largest share of the global floating power plant market. Major of the existing infrastructure is with non-renewable sources, and therefore, it is expected to lead the market in the coming years. Significant development and investments in infrastructure like natural gas turbines, coal fire, and nuclear reactors are likely to support the growth trajectory. Established supply chains call for non-renewable sources.

Additionally, there is a larger reliability on the baseload capacity of non-renewable fuels. Modern economies pose huge requirements for consistent electricity supply, and therefore, vendors depend on laundry resources to serve the residential consumers' industries and critical infrastructure. Also, the non-renewable sources are cost effective over renewal alternatives.

Report Scope

Regional Analysis

• North America to dominate the local market.

North America accounts for a large share of the global floating power plant market because of the greater availability of offshore wind potential in the region. Offshore wind energy is a part of renewal development and is the spotlight of infrastructure development in the region.

However, the projects were underway for many years, but recently, these are under planning stages alongside the Pacific coast, Atlantic coast and Greater lakes region. End users are also looking forward to states like New York, New Jersey, and California building strong offshore wind targets, thereby driving heavy investments in the regional market. Floating slower projects are gaining immense popularity in the region because of the presence of abundant water bodies. Ponds, reservoirs, and lakes offered immense potential for higher energy generation in the region. The regulatory landscape of the region also supports the growth of the regional market.

Europe is also likely to witness significant growth in the coming years. Europe is leading in the field of offshore wind energy, and therefore, the region is expected to see significant developments in both the fixed-bottom and floating offshore projects.

However, regions like France and the United Kingdom are investing heavily in floating plant technology. The companies are leveraging the potential of the region’s ideal location, like lakes, reservoirs, and other water bodies. For instance, NTPC said to finish its 1MW grid connected floating solar power plant in March 2019 in Gujrat. The work of this power plant took a full 6 months.

Competitive Analysis

The key players in the global floating power plant market include:

• General Electric Company
• Yingli Solar
• Ciel & Terre International
• Vikram Solar Pvt. Ltd.
• Caterpillar Inc.
• Principle Power Inc.
• SeaTwirl AB
• Kyocera Corporation
• Floating Power Plant A/S
• Ideol
• Siemens AG
• Mitsubishi Corporation
• Burmeister & Wain Scandinavian Contractor A/S
• Upsolar
• MAN Diesel & Turbo SE
• Wartsila

For instance, Greenam Energy set up its first-ever solar plant at Tutricon in April 2019. It is a completely owned subsidiary of AM International Holdings based in Singapore. The plant has of 24 MW capacity. 

The global floating power plant market is segmented as follows:

By Platform Segment Analysis

• Power Barge
• Floating Structure

By Capacity Segment Analysis

• Above 300 MW
• 151-300 MW
• 51-150 MW
• Up To 50 MW

By Plant Type Segment Analysis

• IC Engines
• Gas Turbines
• Waves & Tidal
• Nuclear
• Wind
• Solar
• Others

By Source Segment Analysis

• Renewable
• Non-Renewable sources

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America