Floating Power Plant Market

 Global Floating Power Plant Market Size (2024-2029):

The Global Floating Power Plant Market was worth US$ 1535.95 million in 2023 and is anticipated to reach a valuation of US$ 2796.09 million by 2029 and is predicted to register a CAGR of 10.50% during 2024-2029.

Market Scenario

A floating power plant, which has a power generation capacity, is made from an existing cargo ship. In general, floating power plants are usually self-propelled and can be relocated abroad and connected to the national grid, where required. Floating power plants can be a potential alternative to land-based power plants, as these types of power plants can meet the growing call for energy, especially in remote and rural areas. Floating power plants also have certain advantages that will help drive the worldwide market. Some of these advantages include the rapid supply of electricity to areas with limited infrastructure, relocation to areas where electricity is needed, less space compared to land-based power plants, and a secure power supply in the event of earthquakes and floods. Factors driving the plant market of floating energy include a growing call for energy, along with a lack of electrical infrastructure, benefits over land-based power plants (mainly because it eliminates problems related to land acquisition), and energy efficiency mandates and calls for clean energy (source renewable energy).

Market Trends

Floating power plants have not received great popularity around the world despite being vital. However, the trend is predicted to change in the coming decades, as the construction of a number of new floating power plants is in the pipeline or nearing completion.

Rapidly escalating call for green energy amid growing environmental concerns have led to the development of the worldwide floating power plant market. Also, floating power plants are gaining popularity around the world as construction does not require a large site, so there is a negligible level of land footprint. In recent years, floating power plants have gained immense popularity in various parts of the world due to the increasing calls for low-cost flexibility.

Market Drivers

The growing call for clean energy to power renewable floating power plants, several advantages over land-based power plants, and the escalating call for energy, along with the lack of adequate infrastructure, are some of the key drivers of the global floating power plant market. Europe is determined to be the fastest-growing region within floating energy, as the region has the highest offshore wind potential, and countries in the region are focusing on power generation from renewable sources. The entry of powerful and technologically advanced wind turbines has led to a considerable increase in the call for wind energy in recent years. Wind farms represent a significant part of the power generation segment in several developed regions, including Europe and North America. Growing concerns related to climate change have accelerated innovations in the wind power sector as floating wind turbines have emerged as a cost-effective and advanced solution. The call for offshore wind turbines has seen a notable increase in recent years, especially in regions that have a large coastline. The sustained expansion of wind power over the past decade is predicted to play a key role in driving the worldwide floating power plant market during the forecast period as several countries including the UK, Denmark, the US, And France are increasingly leaning toward building wind turbines. A greater emphasis on minimizing emissions and reducing the carbon footprint is likely to increase the call for floating wind turbines during the evaluation period.

Market Restraints

Due to the outbreak of the COVID-19 pandemic, energy call in the commercial and industrial sectors has experienced a sharp decline. The lockdown measures in several major nations around the world, along with the closure of several major industries during the first two quarters of 2020, have caused a considerable drop in energy calls a result of which, the energy market is likely floating power plants experience slow expansion.

Market Opportunities

The entry of several established and new start-ups and small-scale companies has led to the construction of a number of new floating power plants in recent years and the trend is projected to continue over the foreseen period. The Asia Pacific region is anticipated to provide a plethora of opportunities for players involved in the worldwide floating power plant market due to growing interest among nations to invest in green power generation and a vast multi-nation coastline.

Market Challenges

Higher installation and maintenance costs for these plants offshore are expected to partially hamper the expansion of the industry.

Impact of COVID-19 on the Global Floating Power Plant Market

The governments in different nations imposed a national lockdown as part of their measures to contain the spread of coronavirus. During the closure, several restrictions on the movement of people have been imposed and economic activities that prohibit activities related to essential goods and services have been interrupted. Restrictions have been relaxed in less affected areas on a limited basis since April 20. In this blog, we analyze how the lockdown has impacted electricity call and supply and what possible repercussions its prolonged effect may have on the electricity sector. As electricity cannot be stored in large quantities, the generation and supply of energy for a given day are planned based on the call foreseen.

FLOATING POWER PLANT MARKET REPORT COVERAGE:

Market Segmentation:

Global Floating Power Plant Market Analysis By Power Source

• Non-renewable
• Renewable

The non-renewables segment occupied the dominant position in the market in 2019 and accounted for more than 50% of the total share due to the high power density, high reliability, and low operating costs of gas turbines or FPPs based On IC motors.

Global Floating Power Plant Market Analysis By Power Rating

• Low-power
• Medium-power
• High-power

The high-power segment led the market in 2023 with a share of more than 66%. Due to large-scale energy calls in the South Asian economies, the segment will maintain its dominant position throughout the conjecture period.

Market Regional Analysis:

• North America 
• Europe 
• Asia Pacific
• Latin America 
• Middle East & Africa 

The European region is supposed to be the quickest developing sector of the floating power plant industry, as the European region has the maximum offshore wind potential,

and nations in the region are focusing on generating energy from sources renewable. The rest of the world market dominated the market in 2023 due to increased calls from countries in the Middle East and Africa, closely followed by the Asia-Pacific region. The market in the area is foreseen to dominate the market in 2029 due to the rise of renewable floating power plants in countries such as Japan and China.

 Asia Pacific represents the largest revenue share of over 38% in 2021 and will remain dominant, expanding at the fastest CAGR over the foreseen period. This expansion is attributed to the lack of energy infrastructure and the high rate of adoption of renewable energy sources for power generation in developing economies such as China and India. North America is also predicted to see outstanding expansion during the foreseen period due to the implementation of strict regulatory reforms that focus on cleaner power generation initiatives, and Canada is the main contributor to revenue, as these countries are emphasizing the development of LNG-based cleaner fuel motor ships, which, in turn, supports the expansion of the industry.

Market Key Players:

Some of the leading players in the global floating power plant market include

1. MAN Diesel & Turbo SE (Germany)
2. Mitsubishi Corporation (Japan)
3. Wartsila (Finland)
4. General Electric Company (U.S.)
5. Siemens AG (Germany)
6. Caterpillar, Inc. (U.S.)
7. Ciel & Terre International (France)
8. Floating Power Plant A/S (Denmark)
9. Ideol (France)
10. Kyocera Corporation (Japan)
11. Principle Power, Inc.(U.S.)
12. Upsolar (Hong Kong)
13. Vikram Solar Pvt., Ltd. (India)
14. Yingli Solar (China)
15. SeaTwirl AB (Sweden)

Market Recent Developments:

• Russia introduces the world's first floating nuclear reactor in the Arctic region. Russia's Akademik Lomonosov floating nuclear power plant is predicted to change the Arctic, environmentalists warn.
• The world's largest floating solar plant will be installed in Madhya Pradesh. At 600 MW, it has been proposed that the world's largest floating solar power plant be built on the Omkareshwar dam reservoir on the Narmada River in the Khandwa district of Madhya Pradesh.