The global floating power plant market size was valued at USD 1219.9 million in 2020 and is expected to reach USD 1990.6 million by 2027 at a compound annual growth rate (CAGR) of 7.2% . Increasing demand for clean electricity among end-use sectors along with the lack of power infrastructure across several nations is anticipated to propel the market growth over the forecast period. Floating power plants (FPPs) act as a distributed power source with high efficiency and stability. This peak power source is capable of responding to steep load fluctuation and offers quick start-up. The plants are towable and suitable for seasonal and periodic operation, providing grid stabilization for various kinds of renewable energy. These factors are anticipated to positively influence the industry landscape over the forecast period.
The market in China is expected to witness a significant growth owing to the presence of major FPP developers along with ever-increasing demand for continuous power supply across end-use markets in the nation. China is one of the largest manufacturers of solar PV panels and the government is deploying solar energy-operated FPPs to boost its energy structure and grid power services.
Non-renewable segment occupied the dominant market position in 2019 accounting for more than 50% of the overall share owing to the high-power density, high reliability, and low operating costs of gas turbines or IC Engine-based FPPs. Leading manufacturers are emphasizing on overcoming the limited power output capacity of floating gas turbines, thereby boosting the segment growth over the forecast period.
The high-power segment led the market in 2019 accounting for a share of over 66%. The segment will retain its dominant position throughout the forecast period owing to large scale power demand in South Asian economies, such as China, India, Singapore, and Malaysia. Continuous population growth and rapid development of infrastructure in end-use industries, such as healthcare, manufacturing, and construction, are also likely to boost FPP market growth over the forecast period.
The Floating power plant market is segmented on the basis of power source, power rating, and region. On the basis of Power source Non-renewable, Renewable. On the basis of power rating Low-power FPP, Medium-power FPP, High-power FPP.
Asia Pacific is accounted for the largest revenue share of over 38% in 2019 and will remain dominant expanding at the fastest CAGR over the forecast period. This growth is attributed to the lack of power infrastructure and the high adoption rate of renewable energy sources for power generation in developing economies, such as China and India.
An increasing number of potential projects of renewable energy-based FPPs have resulted in attracting major market players to the region thereby fast-tracking the market growth over the next seven years. However, higher installation and maintenance costs of these plants at sea are anticipated to partially hinder the industry growth.
Some of the prominent players in the floating power plant market include: Wartsila, Siemens Gas and Power GmbH & Co., Kawasaki Heavy Industries, Ltd., Floating Power Plant A/S, Ciel& Terre international.