Floating Power Plant Market

Floating Power Plant Market Size Analysis

According to a recent survey conducted by ChemView Consulting, the Global Floating Power Plant Market grew at a CAGR of 8.2 % between 2017-2021 and is estimated to be US$ 1,374.6 Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 10.1% and is expected to reach a valuation of US$ 3,597.9 Mn by 2032 end.

Future years are expected to see a rise in the sales of floating power plants due to rising energy efficiency standards and rising power consumption.

Market Dynamic

GROWING GOVERNMENT INITIATION TO SUPPORT OFFSHORE FLOATING POWER PLANT

Various government initiatives are in place to promote the shift towards floating offshore wind power. These include grants and funding for the installation of floating wind turbines and gifts and funding for research projects related to floating wind turbines. Additionally, these efforts at promoting advanced research projects will also help increase the capacity of offshore wind farms along with an increase in floating turbine installations under government support.

HIGH INVESTMENT COSTS  AND MAINTENANCE HAMPER THE MARKET GROWTH

High costs related to installing, operating, and maintaining floating wind turbines are a major challenge to its market growth. Since commercial floating wind farms generally focus on installation in deeper waters, causing key risks with the relative motion of the turbine and a floating maintenance vessel while using conventional jack-up containers non-viable.

In addition, anchoring of floating offshore wind platforms includes inherent challenges associated with deep and shallow water environments, driving the need for efficient mooring systems and adding up to the overall operational costs.

THE RISE IN INVESTMENT FOR FLOATING OFFSHORE WIND FARM PROJECTS WILL CREATE MORE OPPORTUNITIES FOR THE MARKET

Floating offshore wind farms are expected to gain traction because they’re feasible, economically competitive, and can often be built offshore in deep water. As a result, there is an increasing interest in deploying floating offshore wind turbines. Strong government support and growing investment towards installation or commissioning contracts of offshore wind farms, along with adopting floating wind turbines owing to reduced costs, lower emissions, higher efficiency, and so on, have been driving its market growth over time.

COVID-19 Impact

In 2021, the abrupt coronavirus outbreak harmed the sale of Floating Power Plant systems due to the closure of several production facilities worldwide. However, Floating Power Plant systems have been gaining popularity in many more applications since 2020. They are expected to accelerate in 2022 and 2023 due to increased demand from a growing government focus on upgrading the electricity sector and greater government adoption.

Market Segments Covered in Report

By Source:

• Non-renewable
• Gas Turbines
• IC Engines
• Renewable
• Solar
• Wind

By Capacity:

• Below 5.0 MW
• 0 MW–20 MW
• 0 MW–100 MW
• 0 MW–250 MW
• Above 250 MW

By Type:

• Ships
• Barges
• Others (Platforms. Etc.)

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Segment-Wise Analysis

Why are Non-renewable Floating Power Plants projected to ensure the most revenue during the forecast period?

The Non-renewable Floating Power Plant foundation is expected to register the highest revenue share of 55.0% in the Global Non-renewable Floating Power Plant market between 2021 and 2032. Due to their ability to reduce exposed surface area to the water, floating wind turbines with semi-submersible foundations are a superior alternative to other varieties.

Because they include enormous floating hulls that may expand out from the tower and are secured to prevent drifting, semi-submersible platforms have become increasingly popular. This serves as one of the possible causes fueling its market expansion. These foundation models offer considerable advantages over other floating wind turbine designs now on the market, including cost, deployment, maintenance, and site independence.

Why is the 0–100 MW segment expected to expand the fastest during the forecast period?

In 2021, The medium-power segment was expected to register the highest CAGR between January 2020 and 2021. With a capacity of up to 100 MW, the medium-power segment is expected to register the fastest CAGR over the forecast period. This is because renewable energy-based FPP projects are growing rapidly. For instance, EGAT Power and B.Grimm Power signed an EPC contract to construct a hybrid hydro and solar energy FPP at EGAT dam in January 2020.

Region-Wise Analysis

The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.

• In 2021, the Asia Pacific market held a sizeable revenue share of 43.6%. In emerging economies, rapid population development has raised the need for electricity. Over the next seven years, Floating Power Plants will increase flexibility and reduce power disruptions by installing Floating Power Plant devices.
• Europe dominated the global floating wind turbine market in 2020, with a share of around 0%, and is also analyzed to have significant growth during the forecast period 2021-2026. Governmental measures or initiatives towards increasing floating wind capacity targets, along with growing installation projects of floating wind turbines, have contributed to market growth.

Competition Analysis

Major corporations are utilizing organic and inorganic development tactics to strengthen their position in the market by diversifying the products they provide. Many businesses diversify their product lines to gain a boost in sales. This action is often taken to help maximize profits or achieve specific business goals.

Some of the key developments that have taken place in the Floating Power Plant Market include:

• In November 2020, The installation of the most powerful 9.5 MW wind turbine, to be used for the floating wind project, was announced by MHI Vestas for the Kincardine floating offshore wind farm in Scotland.
• In June 2021, The first floating offshore wind tower and 5.5 MW turbine to be manufactured in China were both announced by MingYang Smart Energy. With this, the company had made known that a prototype of the MySE5.5MW typhoon-resistant floating wind turbine was now being built.

A list of some of the key suppliers present in the market are:

• Siemens Games Renewable Energy S.A
• MingYang Smart Energy
• MHI Vestas Offshore Wind A/S
• Senvion S.A.
• Nordex SE
• GE Renewable Energy
• Envision Energy
• Goldwind
• Enercon GmbH
• Adwen GmbH

Report Coverage and Highlights

• Our comprehensive, data-backed, and facts-oriented report provides niche and cross-sectional analysis at global and country levels.
• Assessment of the historical (actual data) and current market size (2017-2021), market projections (2022-2032), and CAGR.
• The market assessment across North America, Europe, East Asia, South Asia & Pacific, Latin America, Middle East, and Africa.
• Competitive tactical intelligence, key strategies adopted by top players, production capacity and company shares analysis, product brand surveys, and export-import analysis
• Pricing analysis to set and benchmark your current or future offerings across each product type helps you understand whether your pricing strategy is aligned with market expectations and can be compared to market disruptions.
• Predictions on critical supply and demand trends and technological expertise needed to address operations scalability.
• Consumer behavior shifts and their implications for players, list of end-users, and their consumption analysis.
• Key drivers, restraints, opportunities, and emerging trends impacting the market growth.
• Value chain analysis (list of manufacturers, distributors, end-users, and average profitability margins).
• Strategic market analysis, recommendations, and future headways on crucial winning strategies.