Asia Pacific Solar Power Market to Hit Valuation of USD 2,738.9 Billion By 2032: Astute Analytica
The Asia Pacific region is experiencing a surge in renewable energy investments, with a focus on solar power. Increased funding, favorable economic projections, and declining costs for solar-plus-storage solutions are driving growth, particularly in Southeast Asia, where solar capacity is rapidly expanding.
New Delhi, April 24, 2024 (GLOBE NEWSWIRE) -- According to Astute Analytica, the Asia Pacific solar power market is projected to reach US$ 2,738.9 billion by 2032, up from US$ 349.6 billion in 2023, at a CAGR of 25.7% during the forecast period 2024–2032.
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The Asia Pacific region is demonstrating a strong commitment to solar energy. The Asia Pacific region has firmly staked its claim as a powerhouse in the global solar power market. In 2023, the region accounted for over 65% of global solar PV installed capacity. China leads the charge, reaching an astounding 394 GW of installed solar capacity by the end of 2022 and newly added 210 GW in 2023, which was over 60% of the global newly added capacity– a testament to its large land area and dominance in photovoltaic (PV) panel manufacturing (six of the world's top ten manufacturers are Chinese). India has surged forward as well, surpassing 81 GW of solar capacity in 2023 (adding 25 GW that year alone), driven by the Jawaharlal Nehru National Solar Mission's goal of 100 GW by 2022 and over $10 billion in solar sector investments in 2020. Japan, spurred by the Fukushima disaster, reached approximately 90 GW of installed solar capacity by the end of 2023 thanks initially to generous feed-in tariffs. Australia boasts a different success story, with over 3.60 million rooftop solar installations by the end of 2023, adding 3.8 GW of capacity in 2023. Nearly 21% of Australian households harness solar energy, fueled by a 60% drop in installation costs over the last decade alongside rising electricity prices.
Japan and South Korea demonstrate their dedication to clean energy as well, with Japan aiming to increase its renewable energy share to 36-38% and South Korea aiming for 30-35% by 2030 and 2040 respectively. Solar power market will undoubtedly play a vital role in achieving these targets.
*Investment, Financing, and Innovation*
Investments in renewable energy across the Asia Pacific solar power market reached a staggering $226 billion in 2022. As per Astute Analytica, the Asia Pacific region is projected to witness investments of over $3.3 trillion in the next 10 years across power sector, with solar projects claiming a substantial portion. Green bonds dedicated to solar initiatives surpassed $100 billion in the same year. Additionally, multilateral development banks, like the Asian Development Bank, are increasingly providing financial support for solar projects. The region is also leading in solar technology innovation with floating solar installations gaining prominence, bifacial modules boosting yields, and energy storage solutions like lithium-ion batteries ensuring grid stability.
*Solar Workforce Development and Sustainable Goals*
The solar boom brings employment opportunities, with the Asia Pacific solar power market projected to generate over 5 million solar jobs by 2030. Countries are investing in skills training programs to meet this demand Solar energy is also directly contributing to the United Nations' Sustainable Development Goals by providing clean electricity to remote areas, powering agricultural water pumps to increase crop yields, and helping the region as a whole combat the devastating effects of climate change. With multiple countries pledging to achieve net-zero emissions in the coming decades, solar energy is positioned to be a key contributor to this vital mission.
*Key Findings in Asia Pacific Solar Power Market *
Market Forecast (2032) US$ 2,738.9 billion
CAGR 25.7%
Largest Country (2023) China (54.6%)
By Technology Photovoltaic systems (89%)
By Solar Module Monocrystalline Solar Panels (44%)
By End Users Electricity Generation (65%)
Top Trends · Growing focus on decentralized solar installations (e.g., rooftop systems).
· Increasing popularity of solar-plus-storage solutions for grid stability.
· Rising corporate adoption of renewable energy through power purchase agreements (PPAs).
Top Drivers · Declining costs of solar panels and related equipment.
· Government policies and incentives promoting renewable energy.
· Increasing demand for clean energy to combat climate change.
Top Challenges · Grid integration and stability issues due to intermittent solar power.
· Limited land availability in some densely populated areas.
· Competition from other renewable energy sources (e.g., wind power).
*The Future is Solar: Why Companies are Choosing PV Power*
Solar PV technology boasts remarkable modularity, enabling both large-scale manufacturing (which drives economies of scale) and deployment in small, tailored installations across Asia Pacific solar power market. This flexibility paves the way for a diverse range of applications, from residential rooftop systems to sprawling utility-scale power generation plants. The modular nature of PV systems also means they can be easily scaled up or down, ensuring adaptability to shifting energy requirements and space limitations.
China's dominance within the solar market is undeniable, leading in both PV installations and total installed capacity. The United States holds more distant positions in these categories. This Chinese supremacy in solar PV manufacturing and installation poses a significant competitive challenge for other nations vying for a place in the global market.
A noteworthy trend in the Asia Pacific solar power market is the substantial decline in solar installation costs, exceeding 40% over the past decade. This cost reduction has fueled industry expansion, unlocked new markets, and facilitated the widespread deployment of solar systems throughout India, China, Japan, Australia, and other regional countries. Additionally, companies are showing increasing interest in corporate power purchase agreements (PPAs). They are directly contracting with solar PV plant operators to acquire the generated electricity. Notably, solar PV plants hold a commanding position within the renewables PPA landscape, claiming a market share of nearly 70% in 2023.
*Monocrystalline Solar Panels: Power, Efficiency, and a 44% Market Share *
Monocrystalline solar panels are renowned for their superior efficiency, typically ranging from 17% to 22%. In fact, many home solar panels now reach efficiencies of 19% to 21%, with some manufacturers in the Asia Pacific solar power market even attaining 22% or higher. This exceptional efficiency is due to their single-crystal silicon structure, which facilitates enhanced conversion of sunlight into usable electricity compared to their polycrystalline counterparts. Most monocrystalline panels on the market boast power output ratings of at least 320 watts, with some reaching 375 watts or higher. A standard 60-cell monocrystalline solar panel averages 310W - 350W, surpassing the 250W - 300W range of polycrystalline panels. Furthermore, with proper care, monocrystalline solar panels have a lifespan of 25 to 30 years or more. Many manufacturers back this reliability with a 25-year power production warranty, with some brands now extending that coverage to 30 years.
The high efficiency of monocrystalline panels is particularly advantageous when roof space is limited, as fewer panels are necessary to generate the desired amount of electricity. Their greater heat resistance contributes to their longevity, withstanding extended periods up to 30 years.
Monocrystalline solar panels have steadily gained share in the solar power market, overtaking multicrystalline Si solar cell-based modules in recent years. Their superior efficiency and sleek aesthetics make them the standard for most residential solar installations today. Additionally, monocrystalline panels typically have a lower average temperature coefficient (-0.38% /°C) than polycrystalline panels (-0.40% /°C). Certain advanced monocrystalline cells perform even better, with N-type IBC at -0.30%/°C and HJT cells reaching -0.25% /°C. This lower temperature coefficient means monocrystalline panels maintain better performance in warmer conditions.
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*Rapid Solar Adoption, Growth, Government Support and Initiatives*
The solar power market in Asia Pacific is booming. China made history by adding a record-breaking 210 GW of solar capacity in 2023, pushing its total installed capacity beyond 610 GW. India also achieved impressive growth with a solar capacity of 81 GW by the end of 2022 and plans to add another 20 GW in the following year. Japan solidified its position as a global solar leader, surpassing 90 GW of capacity in 2023. In Australia, the solar sector thrived with over 31 GW of capacity thanks largely to widespread rooftop installations.
The rapid success of the solar industry is greatly aided by strong government support. In China, the 14th Five-Year Plan focuses on renewable energy development. India promotes domestic solar manufacturing through its Production Linked Incentive (PLI) scheme. Japan recently revamped its feed-in tariff system to drive further renewable growth, including solar energy. South Korea's Green New Deal provides significant investments in solar and other green technologies.
In February 2024, India’s central government has announced PM Surya Ghar Muft Bijli Yojana. This initiative is aiming to install solar power on each rooftop available in the residential sector with a strong subsidy scheme to support the popularity and adoption among residential users. This initiative provides subsidy up to $1000 for each user for new installation.
*Major Developments in Asia Pacific Solar Power Market *
· ADB Climate Initiatives: In 2023, the Asian Development Bank (ADB) allocated an unprecedented amount of climate finance to support developing countries within Asia and the Pacific in mitigating greenhouse gas emissions and adapting to the consequences of climate change. One such project involves funding a new 400-megawatt (MW) solar power plant in Gujarat, India.
· Economic Projections: The October 2023 Regional Economic Outlook for Asia and the Pacific estimated regional growth at 4.6% for 2023, demonstrating an increase from the 3.9% growth experienced in 2022. Projections indicate a slight slowdown to 4.2% in 2024, with the potential for monetary policy adjustments during that year.
· Solar-plus-Storage Outlook: Wood Mackenzie anticipates a significant decline in the average levelized cost of electricity (LCOE) for solar-plus-storage solutions in the Asia Pacific region. This cost is expected to decrease by 23%, from $133/MWh in 2023 to $101/MWh in 2024, potentially improving grid stability and addressing the intermittent nature of renewable energy sources.
· Energy Transition: Focusing on renewable energy sources like solar and wind power promises to accelerate Asia's shift toward cleaner, more sustainable energy systems. Substituting traditional fossil fuels with renewables has the potential to lower energy costs, ultimately benefiting electricity consumers.
· Southeast Asia's Solar Growth: Southeast Asia stands out as a global leader in solar energy expansion. According to Wood Mackenzie, installed solar capacity in Southeast Asia will nearly triple to 35.8 GW by 2024, with Vietnam, Thailand, the Philippines, and Malaysia driving this growth.
*Asia Pacific Solar Power Market Key Players *
· Tata Power Solar System Ltd.
· Trina Solar
· Canadian Solar Inc
· Yingli Solar
· Urja Global Limited
· Vivaan Solar
· Waaree Group
· Shanghai Junlong Solar Technology Development Co., ltd
· Shenzhen Sungold Solar Co., Ltd
· BLD Solar Technology Co.,LTD
· Kohima Energy
· Wuxi Suntech Power Co. Ltd.
· Other Prominent Players
*Key Segmentation Overview:*
*By Technology*
· *Photovoltaic Systems *
· Monocrystalline silicon
· Multicrystalline silicon
· Thin-film
· Others
· *Concentrated Solar Power Systems *
· Parabolic Trough
· Fresnel Reflector
· Power Tower
· Dish-Engine
· *Solar Heating and Cooling Systems *
*By Solar Module*
· Monocrystalline Solar Panels
· Polycrystalline Solar Panels
· Thin-Film Solar Cells
· Amorphous Silicon Solar Cell
· Cadmium Telluride Solar Cell
· Others
*By End Use*
· Electricity Generation
· Lighting
· Heating
· Charging
· Others
*By Country*
· China
· Japan
· India
· Australia & New Zealand
· South Korea
· ASEAN
· Cambodia
· Indonesia
· Vietnam
· Thailand
· Singapore
· Philippines
· Malaysia
· Taiwan
· Hong Kong
· Rest of Asia Pacific
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*About Astute Analytica*
Astute Analytica is a global analytics and advisory company which has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in depth and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising of business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.
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Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World)
Email: sales@astuteanalytica.com
Website: https://www.astuteanalytica.com/