Global Floating Power Plant Market Forecast 2024-2032

Global Floating Power Plant Market Forecast 2024-2032

The global floating power plant market size was $11,262.96 million in 2023 and is expected to reach $27,988.30 million by 2032, growing at a CAGR of 10.51% during the forecast period 2024-2032. The base year considered for the study is 2023, and the estimated period is between 2024 and 2032.

The floating power plant industry is witnessing significant growth due to the increasing demand for floating power plants and the rising adoption of renewable energy sources. A key player in this market, the floating nuclear power plant Russia, exemplifies advancements in floating electricity generation technologies. As a floating plant magnet, Russia is leading the way with its innovative approach to floating power supply. Floating solar energy and offshore wind energy infrastructure are pivotal in driving the market forward. These technologies contribute to clean energy projects and support the development of sustainable energy sources.

The market's expansion is further fueled by numerous floating power plant projects and offshore wind projects that aim to harness renewable energy from oceans and large water bodies. The industry's growth is also bolstered by IC engine-based floating power plants, which provide a flexible and efficient solution for remote areas and disaster-prone regions. These floating power plants can be deployed quickly to meet urgent energy needs, making them a valuable asset in the global energy landscape. As countries strive to reduce carbon emissions and transition to greener energy solutions, the floating power plant industry is poised for substantial expansion.

The combination of floating solar energy and offshore wind energy infrastructure plays a crucial role in achieving global energy sustainability goals. With increasing investments in floating power plant projects, the market is set to grow exponentially, driven by the need for reliable, clean, and efficient energy sources. Moving ahead, the global floating power plant market is emerging as a critical component of the global energy sector, supported by advancements in renewable energy sources and innovative technologies. The ongoing development of clean energy projects and the strategic implementation of offshore wind projects highlight the industry's potential to transform energy generation and consumption.

MARKET INSIGHTS

Key growth enablers of the global floating power plant market:
• Surging demand for clean energy

The rapid increase in carbon dioxide emission from fossil fuels has encouraged the government to increasingly adopt clean energy from renewable energy sources such as solar, wind, etc.

Moreover, installing solar panels on water bodies such as oceans prevents the over-exploitation of land areas. The rising power demand is also boosting the capacity of renewable energy, leading to the widespread adoption of floating power plants.
• Government investments in the energy industry

Key growth restraining factors of the global floating power plant market:
• High project costs

Offshore wind farms have higher installation costs compared to onshore wind farms. These increased costs are due to the need to set up and maintain wind turbines in the challenging marine environment.

As a result, planning and project development expenses are higher, and lead times are longer. Greater sea depths require more expensive foundations, and logistical costs increase depending on the distance of the plant from the port.
• Technical challenges involved in floating power plants

Global Floating Power Plant Market | Top Market Trends
• Internal combustion (IC) engine-based floating power plants are emerging as a popular trend in the industry. IC engines, a non-renewable power generation method, utilize the expansion of hot gases to drive a piston within a cylinder. The piston’s linear motion is further converted into rotational action through a crankshaft, generating power.
• The global wind energy sector saw substantial growth in 2023 and 2024. A record 117 GW of new wind energy capacity was installed in 2023, making it the highest year ever for wind energy installations, representing a 50% increase compared to 2022. Of this new capacity, 106 GW came from onshore wind, with offshore wind installations contributing an additional 10.8 GW.

In essence, China played a significant role in this growth by installing 75 GW of new capacity in 2023, accounting for nearly 65% of the global total. Other notable contributors included the United States, Brazil, Germany, and India.

The United Kingdom further increased its wind capacity by 1.4 GW in 2023, reaching a total of 30.2 GW. Germany also experienced significant growth, adding 3.2 GW to achieve a total capacity of 69.5 GW. Meanwhile, offshore wind installations expanded in countries such as the Netherlands, which added 2.8 GW of new capacity.
• Technological advancements are important in the growth of the global floating power plant market. Innovations in materials, design, and construction techniques are enhancing the efficiency, durability, and cost-effectiveness of floating power plants. For example, improvements in turbine design and the development of more robust and corrosion-resistant materials are addressing some of the technical challenges associated with offshore installations.

SEGMENTATION ANALYSIS

Market Segmentation – Source and Capacity –

Market by Source:
• Non-Renewable Power Source

In 2023, the majority of the market share was captured by the non-renewable power source segment under the source category.

The non-renewable power source segment includes power generated from thermal, natural gas, nuclear, and fossil fuel sources such as petroleum and coal. Gas turbines, IC engines, and other technologies are commonly used for generating power from these sources.

Moreover, gas turbines enable high efficiency and better emission performance on various gaseous and liquid fuels. Due to these advantages, they find wide applications in offshore platforms within the oil and gas industry.
• Renewable Power Source

Market by Capacity:
• 0 MW - 5 MW
• 5.1 MW - 20 MW
• 20.1 MW - 100 MW

In 2023, the majority of market share was captured by the 20.1 MW - 100 MW segment under the capacity category. In addition, 20.1 MW - 100 MW is anticipated to be the fastest-growing capacity in the global floating power plant market.

The 20.1 MW - 100 MW capacity segment includes gas turbines, IC engines, and other technologies that generate energy ranging from 20.1 MW to 100 MW. These systems utilize various sources such as natural gas, fossil fuels (non-renewable sources), solar, wind, and other renewable sources. Floating power plants of this capacity primarily rely on renewable energy sources, including solar and wind.
• 100.1 MW - 250 MW
• Above 250 MW

REGIONAL ANALYSIS

Geographical Study based on Four Major Regions:
• North America: The United States and Canada
• Europe: The United Kingdom, Germany, France, Italy, Spain, Belgium, the Netherlands, and Rest of Europe
• Asia-Pacific: China, Japan, India, South Korea, Australia & New Zealand, Indonesia, Vietnam, and Rest of Asia-Pacific

The Asia-Pacific is expected to be the leading region in the global floating power plant market over the forecast period.

The Asia-Pacific is witnessing rapid adoption and development of floating power plants, particularly in countries like China, Japan, South Korea, India, Indonesia and Vietnam. These nations are making significant investments in floating offshore wind technology to leverage their extensive coastlines and deep-water sites, which are unsuitable for traditional fixed-bottom wind turbines. This strategy enhances their renewable energy capacity and aligns with their objectives of reducing carbon emissions and strengthening energy security.

Additionally, companies and governments in the region are collaborating with global leaders in floating wind technology to advance and implement innovative solutions. These partnerships aim to enhance the efficiency, stability, and cost-effectiveness of floating power plants, positioning them as a viable alternative to traditional energy sources. Ongoing research and pilot projects are integral in overcoming technical challenges and scaling up commercial operations in the coming years.
• Rest of World: Latin America, the Middle East & Africa

COMPETITIVE INSIGHTS

Major players in the global floating power plant market:
• BW Ideol
• General Electric (GE)
• Karpowership
• KYOCERA Corporation
• Mitsubishi Corporation
• Siemens AG
• Wartsila Corporation

Key strategies adopted by some of these companies:
• Mitsubishi Heavy Industries (MHI) and the Electricity Generating Authority of Thailand (EGAT) signed a memorandum of understanding (MoU) in June 2024. The agreement aims to introduce hydrogen large gas turbine co-firing technology in Thailand as part of efforts to achieve net-zero goals.
• Wartsila launched the world’s first large-scale 100% hydrogen-ready engine power plant in June 2024, aiming to enable future net-zero power systems.

Frequently Asked Questions (FAQs):
• What is the anticipated market revenue value of the global floating power plant market?

A: The global floating power plant market is anticipated to generate a revenue of $27,988.30 million by 2032.
• Why is the Asia-Pacific becoming a promising market for floating power plants?

A: The Asia-Pacific is emerging as a promising market for floating power plants, driven by the rapid adoption of renewable energy sources and infrastructure development in emerging economies such as India, Japan, and China. Moreover, advancements in technologies such as digitization and automation in the power plant sector are further propelling regional growth.
• What is the fastest-growing power source of the floating power plants?

A: The fastest-growing source of floating power plants is renewable power.