Floating Solar Farm Market to reach $5.2 Billion by 2030; Advancements in technology, further cost reductions, expansion into offshore installations, government incentives, increased integration with energy storage and smart grids and growing global

The Floating Solar Farm Market size is estimated to reach $5.2 Billion by 2030, growing at a CAGR of 20.0% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Floating Solar Farm Market – By Location ( On-shore and Off-shore), By Capacity (Up to 1MW, 1MW - 5MW and Above 5MW), By Size (Utility Scale and Community ), By Connectivity (On-Grid and Off- Grid) By Application (Residential, Commercial, Industrial and Others) and By Geography - Opportunity Analysis & Industry Forecast, 2024-2030.

Growing energy demand and ambitious renewable energy goals are significantly driving the floating solar farm market as countries seek sustainable solutions to meet their increasing electricity needs while reducing carbon emissions. Additionally, land scarcity and the need for more efficient land use are prompting the adoption of floating solar technology which allows for the utilization of water bodies like reservoirs, lakes and coastal areas fueling the growth in the Floating Solar Farm market during the forecast period.

In 2023, the Asia-Pacific region led the global floating solar farm market, accounting for 55% of the market share, driven by significant investments in renewable energy infrastructure and the rapid expansion of floating solar technologies. The region’s dominance is largely attributed to major players like China, India, and Japan, which have been at the forefront of deploying large-scale floating solar projects. For instance, in August 2024, the export of solar equipment, particularly solar PV modules, saw a substantial rise in India, and reached $1.03 billion in FY2023. This indicates a growing market for solar technologies in India, which is poised to support its renewable energy goals and contribute to the overall growth of the floating solar farm market. Additionally, China’s advancements in floating solar are a key factor in Asia’s market leadership. In November 2024, China Energy connected the first phase of its 1GW offshore solar farm to the grid in Shandong Province. This project, which covers a massive 1,200 hectares of ocean surface, will be the largest of its kind upon completion and is expected to generate 1,800 GWh of power annually, enough to meet the needs of about 2.7 million people. The scale and success of such projects further cement Asia’s dominant position in the floating solar farm market and highlight the region's capacity to drive the adoption of renewable energy technologies at an unprecedented scale.

Growing energy demand and ambitious renewable energy goals are significant drivers propelling the growth of the floating solar farm market. As countries around the world strive to meet their carbon reduction targets and enhance energy security, the demand for renewable energy sources continues to rise. According to the International Energy Agency's (IEA) Renewables 2024 report, global renewable energy capacity is expected to increase by more than 5,500 gigawatts (GW) by the end of this decade, marking a significant leap in the adoption of clean energy technologies. This surge in renewable energy capacity underscores the growing need for innovative solutions like floating solar farms to contribute to the global energy mix, particularly in regions where land availability is limited. Floating solar farms offer a unique opportunity to tap into water bodies and complement existing power generation sources, making them an essential part of meeting future renewable energy targets and ensuring a sustainable energy future.

Land scarcity and land use optimization are leading drivers for the growth of the floating solar farm market. As urbanization increases and available land for traditional solar farms becomes more limited, floating solar farms present a viable solution to meet rising energy demands without competing for valuable land space. Floating solar systems, which are installed on water bodies such as lakes, reservoirs, and ponds, allow for the efficient use of underutilized areas, especially in regions where land is scarce or where large-scale land-based solar projects would disrupt ecosystems or local communities. According to a March 2024 article by the World Bank, deploying floating solar panels on existing hydropower reservoirs alone could meet up to 50% of the world’s total electricity demand. While the global installed capacity of ground-mounted solar exceeds 1,000 GW, floating solar systems still represent a small fraction, with less than 10 GW of installed capacity. This highlights the significant untapped potential of floating solar technology, which can effectively address land scarcity issues while helping countries achieve their renewable energy goals. Several nations have already begun deploying floating solar technology, but there is still much room for expansion, making it a key area of growth in the renewable energy sector.

• In January 2024, Semarak Renewable Energy (RE), a Malaysian company, and China Hydropower (Malaysia), a subsidiary of PowerChina, entered into an agreement to develop Malaysia's first large-scale green hydrogen production project powered by floating photovoltaic technology. The total value of the agreement is approximately $398 million.

• In May 2024, Dutch offshore solar company Oceans of Energy successfully completed the North Sea Three (NS3) floating solar farm in the port of Oostende, Belgium. By efficiently constructing offshore structures and assembling them from factory to water, the company is positioned to scale up to larger formats, with plans to expand to 200 MW capacity.

• In December 2023, KSEBL installed a pioneering 500 kWp floating solar plant at the Banasura Sagar reservoir in Wayanad which includes operation and maintenance for the first five years. This Floating Solar Photovoltaic Project, utilizing Crystalline technology, is designed to export a maximum power of 500 kWp under normal operating conditions. 

Key companies profiled in the Floating Solar Farm Market are Sulzer Energy Ltd., Trina Solar, KYOCERA Corporation, Wuxi Suntech Power Co., Ltd., Talesun, Ciel & Terre International, LONGi Solar, JA SOLAR Technology Co. Ltd., Hanwha Group, Yellow Tropus Pvt. Ltd. and others.

Solar Backsheet Market – Solar Backsheet Market Size is valued at $7.44 Billion by 2030, and is anticipated to grow at a CAGR of 7.8% during the forecast period 2024 -2030. The advancements in solar technology have increased efficiency, driving higher installation rates globally, supported by environmental policies favoring renewable energy sources are  stimulating market growth. 

Floatovoltaics Market - The Global Floatovoltaics Market size is estimated to reach US$3.5 billion by 2027, growing at a CAGR of 12.5% from 2022 to 2027 owing to increasing demand for sustainable solar energy. Additionally, increasing investment in solar-based energy projects and growing awareness about clean and sustainable energy have boosted the market growth

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