ASEAN energy transition market

• Advancements in technology driving market growth

The ASEAN energy transition market CAGR is expanding because of the important shift toward improved and more cost-effective energy storage technologies, notably lithium-ion batteries, which is a direct result of the constant investment in clean energy research and development. Energy storage solutions have emerged as an important participant in the energy transition industry in the ASEAN market to mitigate the intermittent nature of renewable power generation and improve grid stability.

Improving grid infrastructure, creating more energy-efficient buildings, having a booming transportation economy, and recommitting to decreasing carbon emissions are all anticipated to promote growth in the ASEAN energy transition market during the forecast period.

Furthermore, the energy transition ASEAN market is expected to be driven by the rising use of transition technology in power generation, which enables the provision of affordable electricity for residential structures and is anticipated to fuel the future energy transition market's progress. For example, Exelon reached a new milestone in its pursuit of leadership in the energy transformation when it completed its applications to transfer government supported by the bipartisan Infrastructure Investment Act to the communities it serves.

The Department of Energy's Smart Grid and Grid Resilience Grants offer promising opportunities to strengthen the grid and make it more suitable for renewable power projects. Thus, driving the energy transition market revenue.

The Global ASEAN Energy Transition Market Industry is poised for substantial growth, with projections indicating a market value of 738.5 USD Billion in 2024 and an anticipated increase to 1781.2 USD Billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 8.33% from 2025 to 2035. Such projections underscore the increasing momentum behind the transition to renewable energy sources within the ASEAN region. Factors such as government policies, technological advancements, and rising public demand are expected to drive this growth, positioning the market as a critical component of the global energy landscape.

Technological advancements play a crucial role in shaping the Global ASEAN Energy Transition Market Industry. Innovations in solar, wind, and energy storage technologies are making renewable energy sources more efficient and cost-effective. For example, the cost of solar photovoltaic systems has decreased significantly, making solar energy more accessible to both consumers and businesses. Furthermore, advancements in battery storage technology are enhancing the reliability of renewable energy, addressing intermittency issues. As these technologies continue to evolve, they are likely to attract more investments, contributing to the market's growth trajectory, which is anticipated to reach 1781.2 USD Billion by 2035.

Public awareness and demand for sustainable energy solutions are increasingly influencing the Global ASEAN Energy Transition Market Industry. As environmental concerns become more pronounced, consumers are actively seeking cleaner energy alternatives. This shift in consumer behavior is prompting governments and businesses to prioritize renewable energy initiatives. Surveys indicate that a significant portion of the population in ASEAN countries is willing to pay a premium for green energy options. This growing demand is likely to drive market growth, as stakeholders respond to consumer preferences. The market is projected to expand at a CAGR of 8.33% from 2025 to 2035, reflecting the increasing importance of public sentiment in shaping energy policies.

Investment in renewable energy is a driving force behind the Global ASEAN Energy Transition Market Industry. As countries within the ASEAN region recognize the economic and environmental benefits of transitioning to cleaner energy sources, investments in renewable projects are surging. In 2024, the market is expected to be valued at 738.5 USD Billion, reflecting a growing commitment to sustainable energy solutions. Countries like Vietnam and the Philippines are leading the charge, with substantial investments in solar and wind energy projects. This influx of capital not only supports the development of renewable infrastructure but also stimulates job creation and economic growth, further solidifying the market's potential.

The Global ASEAN Energy Transition Market Industry is significantly influenced by government policies and incentives aimed at promoting renewable energy adoption. Various ASEAN nations have implemented ambitious targets for renewable energy integration, with many aiming for at least 30 percent of their energy mix to come from renewable sources by 2030. These policies often include tax incentives, subsidies for renewable energy projects, and regulatory frameworks that facilitate investment in clean energy technologies. For instance, Indonesia's commitment to achieving 23 percent of its energy from renewables by 2025 exemplifies the proactive measures being taken. Such initiatives are expected to drive the market, contributing to a projected value of 738.5 USD Billion in 2024.

Regional cooperation and integration among ASEAN countries are pivotal to the advancement of the Global ASEAN Energy Transition Market Industry. Collaborative efforts to share resources, technology, and best practices can enhance the efficiency of energy systems across the region. Initiatives such as the ASEAN Power Grid aim to facilitate cross-border electricity trade, enabling countries to optimize their energy resources. This integration not only promotes renewable energy use but also enhances energy security and reliability. As regional cooperation strengthens, the market is likely to benefit from increased investments and shared innovations, contributing to its anticipated growth trajectory.

Leading market players are investing heavily in research and development to expand their product lines, which will help the energy transition market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the energy transition industry must offer cost-effective items.

Major players in the energy transition market are attempting to increase market demand by investing in research and development operations, including Exelon Corporation, Duke Energy Corporation, Pacific Gas and Electric Company, Southern Company, American Electric Power, Inc., Edison International, Repsol, Brookfield Renewable Partners, Ørsted A/S, and NextEra Energy, Inc.