Floating solar PV systems, also called floating solar farms or floating photovoltaic systems, involve the installation of solar panels on water bodies like lakes, reservoirs, or oceans.

The global floating solar PV market was valued at USD 7.6 billion in 2023 and is expected to grow at a CAGR of 1.4% from 2024 to 2032, as reported in the latest study by Global Market Insights, Inc. Floating solar PV systems, also called floating solar farms or floating photovoltaic systems, involve the installation of solar panels on water bodies like lakes, reservoirs, or oceans. These systems utilize floating platforms, enabling electricity generation from sunlight while remaining buoyant on the water's surface.

Growth Factors:
1. Rising Demand for Clean and Renewable Energy
2. Scarcity of Land for Large-Scale Solar Installations
3. Increased Investments and Strategic Partnerships
4. Environmental and Water Management Benefits
5. Declining Costs of Solar Modules

The growing use of floating solar systems on reservoirs connected to hydropower plants, in line with innovations in materials and design, such as more durable platforms and advanced mooring technologies, is driving market expansion. Key benefits like reducing water evaporation and improving panel efficiency through natural cooling fuel adoption, especially in regions facing high temperatures and water scarcity, such as the Middle East and Africa. The deployment of these systems in island nations and coastal areas, where land availability is limited but the demand for renewable energy is rising, is further bolstering the market landscape.

By capacity, the >15 MW segment is expected to surpass USD 3.5 billion by 2032. This growth is attributed to advancements in technology, the development of large-scale projects, and supportive government policies. Countries such as China, India, and South Korea are increasingly implementing large floating solar projects, which not only generate significant electricity but also enhance grid reliability, especially when paired with hydropower plants.

In terms of product, the tracking segment is expected to grow at a CAGR of 5.5% through 2032. The rising integration of tracking technology to optimize energy generation drives this growth. Countries like Portugal and Spain are particularly interested in tracking floating solar systems due to land constraints and the need to maximize renewable energy production. Ongoing innovations in tracking systems are further enhancing their suitability for floating solar applications.

APAC floating solar PV market is poised to exceed USD 7 billion by 2032, favored by growing energy demand, limited land availability, and strong government backing for renewable energy. Many countries in the region are exploring hybrid systems that combine floating solar panels with hydropower, particularly on existing hydropower reservoirs, to enhance energy output. Strong policy frameworks and attractive energy markets are drawing private investments, especially in China, India, and Southeast Asia, contributing to the market expansion.

Source: https://www.gminsights.com/industry-analysis/floating-solar-pv-market