The global Floating Power Plant Market is projected to attain a valuation of USD 11.04 billion in 2023 and is expected to reach USD 26 billion by 2033, trailing a CAGR of 9% during the forecast period.
The rising demand for power and growing number of energy efficiency mandates are expected to fuel the sales of floating power plant during the forecast period.
The demand for floating power plants is expected to rise due to growing need for clean electricity in various sectors and the insufficient power infrastructure in many countries. Floating power plants (FPPs) play a crucial role as decentralized power sources, offering both high efficiency and stability.
Floating power plants are capable of handling sudden changes in power demand and can start up quickly. These plants are portable and well-suited for seasonal and intermittent operations, contributing to grid stability for different types of renewable energy sources. These factors are expected to have a favorable impact on the industry's development in the foreseeable future.
Floating power plants are referred to as a type of power generator that is present on an existing cargo ship. These can be connected to the national grid, can go overseas wherever required, and are usually self-driven. Further, these are considered to be a potential alternative to land-based power plants as they can fulfill the ever-increasing demand for power, especially in rural and remote areas.
Floating power plants can provide electricity to areas with limited infrastructure, as well as deliver secure power supply in case of floods and earthquakes. These power plants often reduce dust pollution as these are built on the water. As the water surface is relatively open, it can prevent the shade from mountains and trees. These also help in lowering the formation of blooms and algae.
| Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 11.04 billion |
| Anticipated Forecast Value (2033) | USD 26 billion |
| Projected Growth Rate (2023 to 2033) | CAGR 9% |
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The lack of power infrastructure, the surging demand for clean energy, and the increasing government investments in the energy industry are set to drive the floating power plant market growth in the evaluation period. Also, the low operating costs, high reliability, and high-power density of IC engine-based floating power plants is another significant factor that is estimated to propel the market.
The ongoing implementation of favorable environmental policies that are supporting the adoption of clean fuels for power generation is anticipated to augment the market. Wave, wind, and solar energy are three of the most commonly used renewable sources present on floating power plants for power generation.
The installation of floating power plants involves high cost spending, as compared to the conventional PV systems. As the floating technology is relatively new, it requires specialized equipment and knowledge. But, as the technology advances, the installation cost is anticipated to drop in future years.
Asia Pacific is estimated to generate the leading floating power plant market share in the evaluation period. The region is expected to accumulate over 40% market share in 2023. The region’s market is projected to expand with a CAGR of 9.2% during the forecast period.
This growth is attributable to the increasing adoption of renewable energy sources and the rapid development of infrastructure in various end-use industries in emerging economies, such as India and China.
The rising number of potential projects to develop new renewable energy-based floating power plants is expected to attract various key players to Asia Pacific. Moreover, The ongoing development of innovative technologies, such as digitization and automation in the power plant sector is another vital factor that is likely to bode well for the regional market.
The rising focus of several countries in Europe on the development of novel power generation methods owing to the availability of limited land is anticipated to augment the demand for floating power plants in this region.
Additionally, the demand for floating power plants in the region is anticipated to rise with a CAGR of 8.8% during the forecast period. The European Union is also expected to invest huge sums in various development projects in the assessment period.
Countries, such as Italy, the United Kingdom, and Germany are aiming to install new power plants to lower their reliance on other countries for fossil fuels. They are also striving to reduce the effect of harmful gases on the environment by investing in cleaner energy generation projects. For instance,
Spurred by such aforementioned factors, Europe’s market is expected to thrive at a steady pace in the forthcoming years.
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The non-renewable segment is expected to dominate the market by accounting for more than 52% of the total share. Also, the segment is expected to capture a CAGR of 9.8% during the forecast period. This is primarily attributed to gas turbines or IC Engine-based floating power plants offering high-power density, reliability, and cost-effectiveness.
The leading manufacturers are focusing on addressing the limited power output capacity of floating gas turbines which is expected to drive growth in the segment. For example,
Power plants situated farther offshore receive natural gas supply from ships instead of onshore sources. Additionally, auxiliary platforms near these docked ships are equipped with the necessary technology to convert liquid fuel into a gaseous state.
Start-ups play a vital role in recognizing growth opportunities and driving industry expansion. Also, their efficiency in converting inputs into outputs and adapting to volatile market conditions is valuable. In the floating power plant market, several start-ups are engaged in manufacturing and providing related services.
The market for floating power plant is characterized by intense competition, as notable industry players are making significant investments to enhance their manufacturing capabilities.
The key industry players working in the market are Wartsila, MAN Diesel & Turbo SE, Upsolar, Burmeister & Wain Scandinavian Contractor A/S, Mitsubishi Corporation, Siemens AG, Ideol, Floating Power Plant A/S, Kyocera Corporation, SeaTwirl AB, Principle Power, Inc., Caterpillar, Inc., Vikram Solar Pvt., Ltd., Ciel & Terre International, Yingli Solar, and General Electric Company.
Some Recent Developments in the Floating Power Plant Market
| Report Attribute | Details |
|---|---|
| Market Value in 2023 | USD 11.04 billion |
| Market Value in 2033 | USD 26 billion |
| Growth Rate | CAGR of 9% from 2023 to 2033 |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD billion and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | By source, By capacity, By type, By region |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; South Asia and Pacific; East Asia; The Middle East and Africa |
| Key Countries Profiled | The United States of America, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, India, China, Japan, Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, South Africa, Israel |
| Key Companies Profiled | Wartsila; MAN Diesel & Turbo SE; Upsolar; Burmeister & Wain Scandinavian Contractor A/S; Mitsubishi Corporation; Siemens AG; Ideol; Floating Power Plant A/S; Kyocera Corporation; SeaTwirl AB; Principle Power, Inc.; Caterpillar, Inc.; Vikram Solar Pvt., Ltd.; Ciel & Terre International; Yingli Solar; General Electric Company |
| Customization | Available Upon Request |
The market is valued at USD 11.04 billion in 2023.
The growth potential of the floating power plant market is 9% through 2033
The Asia Pacific is expected to emerge as the lucrative market.
Use of efficiency-promoting materials like thermal barrier coatings to create opportunities for market players.
Key players are making considerable investments to ramp up their manufacturing capacities.
| Estimated Market Size (2023) | USD 1.55 billion |
|---|---|
| Projected Market Size (2033) | USD 4.64 billion |
| CAGR through (2023 to 2033) | 13.5% |
| Microturbines Market Value in 2020 | USD 55 Million |
|---|---|
| Microturbines Market CAGR (2022 to 2032) | 10.8% |
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Floating Power Plant Market
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