Floating Solar Panels Market Size, Share & Trends Analysis Report By Product Type (Tracking Floating Solar Panels, Stationary Floating Solar Panels), By Region, And Segment Forecasts, 2025 - 2030

Floating Solar Panels Market Size & Trends

The global floating solar panels market size was estimated at USD 50.82 million in 2024 and is projected to grow at a CAGR of 23.0% from 2025 to 2030. Increasing focus on clean fuel power generation energy sources coupled with insufficiency of land area will boost the global market size during the projection period. Regulatory boards across the world are setting up several targets related to clean energy, which will help to control the pollution level. The technical aspect of floating solar technology is projected to observe substantial growth over the estimated period owed to the growing demand for dependable renewable sources of energy for power generation.

The market is experiencing rapid growth, driven by the increasing demand for renewable energy and innovative solutions to land scarcity. Floating solar, also known as "floatovoltaics," has become a viable alternative to traditional land-based installations, especially in regions where land costs are high, or space is limited. This trend is particularly strong in countries like Japan, China, and India, where bodies of water, such as reservoirs and lakes, are used to deploy floating solar farms. In addition, the integration of floating solar with other sustainable practices, like hydropower or water management systems, is gaining traction, further boosting the adoption of this technology.

Drivers, Opportunities & Restraints

A key driver of the market is the push for renewable energy to meet global carbon reduction targets. Governments worldwide are implementing policies and offering incentives to promote clean energy sources, and floating solar panels provide a way to meet these goals without taking up valuable land. The technology is particularly attractive in densely populated areas and regions with limited land availability, as it helps solve the challenge of competing land use. In addition, floating solar panels benefit from cooler temperatures on water surfaces, improving efficiency compared to traditional solar installations.

The untapped potential of large water bodies presents a significant opportunity for the market growth. Countries with abundant lakes, reservoirs, and dams can leverage these spaces to expand their renewable energy capacity without impacting agriculture or urban development. Furthermore, floating solar installations can reduce water evaporation in arid regions, creating synergies with water conservation efforts. Emerging markets in Southeast Asia, Africa, and South America, where energy demand is rising and land availability is constrained, offer substantial growth potential for floating solar projects in the coming years.

Despite its benefits, the market faces challenges related to the higher upfront costs of installation and maintenance. The need for specialized anchoring systems, materials that can withstand water exposure, and additional logistical complexities can make these projects more expensive than traditional solar farms. Moreover, environmental concerns, such as potential impacts on aquatic ecosystems and water quality, are significant barriers in some regions, where regulatory scrutiny may delay or increase the costs of deployment. These factors can slow the adoption rate, especially in regions with limited financial resources or technical expertise.

Product Type Insights

The stationery floating solar panels segment led the market with the largest revenue share of 80.51% in 2024.Stationary floating solar panels can be deployed easily on a body of water such as a reservoir or a lake. Stationary floating solar panels also double as shades for the water body which reduce evaporation of water. Due to the use of low-cost, high-strength elastic in the construction of the panels, the cost of installing a stationary floating solar panel is cheaper than that of installing a tracking floating solar panel. Growing expenditures in the manufacturing and installation of solar panels in developing countries are expected to enhance demand in the coming years due to the stable, lasting, and dependable nature of solar tracking technology with lower maintenance costs. Tracking solar panels are very competitive due to their ability to follow the sun, increasing the system's operating output.

Due to its higher operational productivity, tracking solar technology is projected to gain traction in floating solar farms, which will have a beneficial impact on demand. However, due to its moving elements, tracking solar panels requires more maintenance than fixed floating solar panel farms, which is expected to slow segment growth in the coming years.

The tracking floating solar panels segment is anticipated to grow at a substantial CAGR over the forecast period. Solar tracking technology is more efficient as compared to its counterpart; stationery panels are preferred over solar tracking panels owing to the high cost associated with the product. However, the growing research & development investments by the panel manufacturers are expected to bring down the maintenance cost, which in turn is expected to drive market growth over the next nine years. The solar tracking technology is expected to grow faster as compared to its counterpart in developed economies on account of high-performance efficiency.

Regional Insights

The floating solar panels market in North America is anticipated to grow at a CAGR during the forecast period. The growing focus on sustainability and decarbonization is a key driver for the market. Many states and provinces are setting aggressive renewable energy goals, creating opportunities for floating solar to be integrated into existing energy grids. This is particularly appealing in regions with agricultural and water management challenges, where floating solar can reduce water evaporation and improve water quality.

U.S. Floating Solar Panels Market Trends

The floating solar panels market in the U.S. is driven by a combination of federal and state-level renewable energy mandates and a growing interest in optimizing underutilized water bodies for energy generation. Several states, particularly California and Florida, are exploring floating solar to address land-use conflicts, water management challenges, and rising energy demands. Floating solar also fits well with the U.S. focus on grid modernization and energy storage solutions, making it an attractive option for utilities looking to enhance energy resilience and reduce carbon emissions. Federal incentives and clean energy investment initiatives continue to push the market forward.

Asia Pacific Floating Solar Panels Market Trends

Asia Pacific dominated the floating solar panels marketwith largest revenue share of 71.76% in 2024.In Japan, the level of penetration of floating solar panels is high due to its less availability of land tied to limited amount of fossil fuels. As a result, the government has authorized several plans for floating panels to meet the growing electricity consumption with lesser damage to the environment. In the APAC region, the penetration of the floating solar technology is expected to surge owing to its high market potential. Besides, a decrease in solar panel cost in the region coupled with growing awareness of floating solar technology is anticipated to endorse growth over the upcoming years. For instance, in 2018, KYOCERA Corporation of Japan started its operation at Japan’s largest 13.7 MW floating solar panel plant.

The floating solar panel market in China is anticipated to grow at the fastest CAGR during the forecast period. China, the world’s largest solar power producer, is driving the market growth through strong government support and its commitment to achieving carbon neutrality by 2060. With vast water resources, including artificial reservoirs and water bodies created by mining activities, China has embraced floating solar as a solution to reduce air pollution and diversify its renewable energy sources. The country's ambitious renewable energy policies and large-scale investment in solar power infrastructure, coupled with technological advancements and lower manufacturing costs, are fueling the rapid deployment of floating solar farms. China's state-backed initiatives to integrate floating solar with other energy and water management systems further boost the market’s growth.

Europe Floating Solar Panels Market Trends

The floating solar panel market in Europe is anticipated to grow at the fastest CAGR during the forecast period. The region's focus on innovative renewable energy solutions aligns with floating solar technology, especially in countries like the Netherlands and the UK, where land is scarce. Europe’s regulatory framework favors clean energy adoption, with numerous funds and grants available for renewable projects.

Key Floating Solar Panels Company Insights

The market is highly competitive, with several key players dominating the landscape. Major companies include KYOCERA Corporation; Trina Solar, Yellow Tropus Pvt. Ltd; Wuxi Suntech Power Co., Ltd.; Yingli Solar; Ciel & Terre international; LONGi Solar; JA SOLAR Technology Co. Ltd.; Hanwha Group; Vikram Solar Limited; GCL-SI; Talesun; Pristine Sun Corp; Sharp Corporation. The market is characterized by a competitive landscape with several key players driving innovation and market growth. Major companies in this sector are investing heavily in research and development to enhance the performance, cost-effectiveness, and sustainability of their product.

Recent Developments

• In August 2024, the Electricity Generating Authority of Thailand (EGAT) has announced the start of commercial operations for a hybrid hydro-floating solar power project at the Ubol Ratana Dam. This innovative project combines hydroelectric power with floating solar panels, aiming to enhance energy efficiency and sustainability. The initiative is expected to contribute significantly to Thailand's renewable energy goals by increasing electricity generation while minimizing land use.

• In March 2024, the Solar Energy Corporation of India (SECI) has selected Larsen and Toubro Ltd (L&T) as the lowest bidder for a 100 MW floating solar project in Jharkhand, specifically at Getalsud Dam in Ranchi. L&T will handle the entire process, which includes the design, engineering, supply, construction, and commissioning of the solar plant, along with five years of operations and maintenance. The project is expected to be completed within 12 months, with a total contract value of INR 606.14 crore (approximately USD 73.24 million) for both the construction and maintenance phases.

Floating Solar Panels Market Report Scope

Global Floating Solar Panels Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global floating solar panels market report based on the product type, and region:

• Product Type Outlook (Capacity, MW; Revenue, USD Million, 2018 - 2030)

  • Tracking Floating Solar Panels

  • Stationary Floating Solar Panels

• Regional Outlook (Capacity, MW; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

  • Europe

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central and South America

  • Middle East and Africa