The global floating power plant market is forecasted to reach a value of USD 11.04 billion in 2023, with an anticipated increase to USD 26 billion by 2033, reflecting a CAGR of 9% over the forecast period. The next decade will witness a transformative shift in global energy systems, largely fueled by the rapid expansion of the renewable energy sector. Declining costs of renewable technologies are accelerating their adoption, particularly in developing regions.
For instance, the average contracted price for solar power dropped from USD 250/MWh in 2010 to USD 56/MWh in 2018, while onshore wind prices fell from USD 75/MWh to USD 48/MWh in the same timeframe. Record-low clean energy prices were also achieved in 2019 and 2020, highlighting the ongoing trend towards cost-effective and sustainable energy solutions.
The rising popularity of floating solar plants is expected to fuel the expansion of the global floating power plant market throughout the forecast period, with decreasing costs and favorable government policies.
The growth of floating wind farm technologies is primarily driven by the additional advantages they offer. Offshore wind farms benefit from high rotational speeds, where even a small increase in wind speed results in a significant boost in energy production.
Offshore wind speeds tend to be stable, ensuring a reliable energy supply. Additionally, countries with extensive coastal areas, such as the United States and India are prominent renewable energy markets and are anticipated to experience substantial growth in the floating power plants market in the coming years.
Increased awareness of the benefits, such as rapid electricity supply to underserved areas, mobility for easy relocation, compact footprint, and secure power during natural disasters, is driving the market growth for floating power plants (FPPs). Furthermore, strict environmental regulations are expected to drive floating power plants deployment in multiple regions.
Compared to traditional land-based systems, floating power plants have minimal environmental impact, requiring only a small coastal or up-river land area. Also, the increasing utilization of renewable energy in floating power plants is expected to fuel market growth in the forecast period.
Key Takeaways
- The market in Asia Pacific is projected to expand with a promising CAGR of 9.2% during the forecast period.
- Asia Pacific is expected to accumulate over 40% market share by end of 2023.
- The market in Europe is expected to thrive at a CAGR of 8.8% during the forecast period.
- By source, the non-renewable segment is expected to generate demand with a CAGR of 9.8% during the forecast period.
Competitive Landscape
The market for floating power plants is characterized by intense competition, as notable industry players are making significant investments to enhance their manufacturing capabilities.
Notable developments in the Floating Power Plant Market:
- In April 2023, Wartsila, Hoegh LNG, IFE, University of South-East Norway, Sustainable Energy, and BASF SE secured around EUR 5.9 million in funding from the Norwegian Government.
- In April 2023, Wärtsilä renewed its Operation & Maintenance agreement with Geradora de Energia do Amazonas (Gera Amazonas), an independent energy producer based in Brazil.
- In August 2021, Falck Renewables SpA from Italy and floating wind specialist BlueFloat Energy from Spain unveiled their joint plan to establish and deploy floating offshore wind farms along the Italian coast.
- In October 2020, Wärtsilä and JB Corporation entered into a nine-year optimized maintenance agreement to ensure the operational reliability of a power plant located in South Korea.
Key Segments Profiled in the Floating Power Plant Market Industry Survey:
By Source:
- Non-renewable
- Gas Turbines
- IC Engines
- Renewable
- Solar
- Wind
By Capacity:
- Below 5.0 MW
- 0 MW–20 MW
- 0 MW–100 MW
- 0 MW–250 MW
- Above 250 MW
By Type:
- Ships
- Barges
- Others (Platforms. Etc.)
By Region:
- North America
- Latin America
- Western Europe
- Eastern Europe
- South Asia and Pacific
- East Asia
- The Middle East and Africa
Report Preview: https://www.futuremarketinsights.com/reports/floating-power-plant-market
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