A recent report by market research firm DataM Intelligence indicates that the global floating solar panel market will experience significant growth over the next seven years, driven by land scarcity, mandatory government renewable energy requirements, and the inherent efficiency advantages of the technology. The Asia Pacific region is leading the way for this technology.

The floating solar panel market reached $55.11 million in 2024 and is projected to grow to $84.9 million by 2032, representing a compound annual growth rate (CAGR) of 5.55% from 2025 to 2032. This growth signifies a transformation in the solar industry: floating photovoltaic (FPV) systems, once a niche application, are becoming a core component of decarbonization strategies in countries with limited land. Global new floating solar capacity reached 1.8 gigawatts in 2024, setting a new annual record.

 
The Asia Pacific region, particularly Japan and China, is leading the global deployment of floating solar technology. In 2024, Japan accounted for 14% of the global market (US$7.7 million), with land scarcity and policy support driving over 70 MW of new installations. The US market size was approximately US$6.4 million (11.6%), with California and Florida promoting the integration of panels with water treatment facilities, and incentive policies such as the Inflation Reduction Act accelerating the development of hybrid energy storage models. In terms of corporate competition, the top five companies, including Ciel & Terre International and Trina Solar, collectively held 64% of the market share in 2024, with Ciel & Terre leading the pack with 1.2 GW of global installed capacity. The report indicates that floating solar power is approaching commercial maturity, and future growth will focus on hybrid systems combining floating solar with hydropower and energy storage to improve grid reliability.

Floating solar technology solves two core challenges of large-scale solar deployment: land competition and high power generation demand. Installing panels on artificial water bodies such as reservoirs, hydropower dams, and industrial pools avoids conflicts with agricultural or urban development. The natural cooling effect of water improves panel efficiency by approximately 9% compared to ground-mounted installations, while covering the water surface reduces evaporation, which is of dual value in arid or water-scarce regions. The US, Japan, South Korea, China, India, and some European countries are prioritizing the promotion of this technology, especially in urban or densely populated areas, to achieve renewable energy targets and improve grid stability.