Asia Pacific Solar Panel Market

• Growing demand for renewables-based clean electricity coupled with government policies are driving the market growth

The market CAGR for the Asia Pacific Solar Panel market is driven by the demand for renewables-based clean electricity coupled with government policies. India ranks 4th globally in Renewable Energy Installed Capacity, including Large Hydro, Wind Power capacity, and Solar Power capacity, as per the REN21 Renewables 2022 Global Status Report. At COP26, India announced an enhanced target of achieving 500 GW of non-fossil fuel-based energy by 2030. Over the past 8.5 years, India's installed non-fossil fuel capacity has surged by 396%, standing at more than 179.57 GW, constituting about 42% of the country's total capacity as of November 2023.

In 2022, India witnessed the highest year-on-year growth in renewable energy additions, with a rate of 9.83%. The solar energy capacity alone has soared by 30 times in the last 9 years, reaching 73.31 GW as of December 2023. India's solar energy potential is estimated to be 748 GWp by the National Institute of Solar Energy (NISE). Since 2014, the installed renewable energy capacity, including large hydro, has grown by approximately 128%. India is poised to emerge as a global leader in renewable batteries and green hydrogen, potentially creating a market valued at up to $80 billion by 2030.

China has played a pivotal role in driving the growth of renewable energy generation capacity, contributing to 34-53% of the global annual growth from 2013 to 2021, according to IRENA. In 2021, China's total installed renewable power generation capacity surpassed 1,063 GW, accounting for over one-third of the global total renewable power generation capacity and 44.8% of China's total power generation capacity. China aims to increase the share of non-fossil fuels in its primary energy consumption to 25% by 2030, which is an increase of nearly 10 percentage points within a decade starting from 2020.

The combined installed power generation capacity of solar PV and wind turbines is targeted to exceed 1,200 GW by 2030. China also plans to increase government investment in RD&D and innovation support by at least 7% over the next five years, potentially reaching an estimated 2.8% of GDP by 2025, up from 2.3% to 2.4% in 2020. Thus, driving the Asia Pacific Solar Panel market revenue.

Solar Panel Market Segment Insights:

The increasing energy demand in the Asia Pacific region serves as a significant driver for the Global Asia Pacific Solar Panel Market Industry. Rapid urbanization and industrialization in countries like China and India have led to heightened electricity consumption. As traditional energy sources become insufficient to meet this demand, solar energy emerges as a viable alternative. The shift towards renewable energy sources is likely to be accelerated by the need for sustainable solutions. This growing demand is expected to support a compound annual growth rate of 8.67% from 2025 to 2035, reflecting the market's potential for expansion.

The Global Asia Pacific Solar Panel Market Industry is projected to experience substantial growth, with forecasts indicating a market value of 300.75 USD Billion by 2035. This growth trajectory is underpinned by a compound annual growth rate of 8.67% from 2025 to 2035, reflecting the increasing adoption of solar technologies across the region. The expansion is driven by various factors, including government policies, technological advancements, and rising energy demands. As the market evolves, stakeholders are likely to witness significant opportunities for investment and development in solar energy solutions.

Technological advancements play a crucial role in the Global Asia Pacific Solar Panel Market Industry, driving efficiency and reducing costs. Innovations in photovoltaic materials, such as perovskite solar cells, have shown potential for higher energy conversion rates and lower production costs. Additionally, improvements in energy storage solutions, like lithium-ion batteries, enhance the reliability of solar energy systems. As these technologies continue to evolve, they are expected to attract further investments, contributing to the anticipated market growth to 300.75 USD Billion by 2035. This trajectory suggests a strong future for solar energy in the region.

The Global Asia Pacific Solar Panel Market Industry benefits significantly from various government incentives and policies aimed at promoting renewable energy. Many countries in the region, including India and Australia, have implemented feed-in tariffs, tax credits, and subsidies to encourage solar energy adoption. For instance, India's National Solar Mission aims to achieve 100 GW of solar power capacity by 2022, which has likely propelled investments in solar technologies. Such supportive frameworks not only enhance market growth but also contribute to the projected market value of 120.5 USD Billion in 2024, indicating a robust commitment to renewable energy.

Environmental concerns regarding climate change and pollution are increasingly influencing the Global Asia Pacific Solar Panel Market Industry. Governments and consumers alike are becoming more aware of the environmental impact of fossil fuels, prompting a shift towards cleaner energy sources. The adoption of solar energy is seen as a crucial step in reducing carbon footprints and achieving sustainability goals. Countries in the region are setting ambitious targets for reducing greenhouse gas emissions, which further drives the demand for solar technologies. This trend indicates a growing market presence as stakeholders prioritize sustainable energy solutions.

Investment in renewable energy infrastructure is a pivotal driver for the Global Asia Pacific Solar Panel Market Industry. Governments and private sectors are channeling funds into solar projects, enhancing grid connectivity and energy access. For example, significant investments in solar parks and large-scale solar farms are being made across the region. These developments not only create jobs but also stimulate economic growth while addressing energy needs. As the market evolves, the influx of capital is likely to bolster the solar sector, contributing to the projected market value of 120.5 USD Billion in 2024.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Solar Panel market, grow even more. Market participants are also undertaking a variety of 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 Solar Panel industry must offer cost-effective items.

Major players in the Solar Panel market are attempting to increase market demand by investing in research and development operations, including Canadian Solar Inc., Wuxi Suntech Power Co., Ltd., Tata Power Solar Systems Ltd, First Solar, Inc. SunPower Corporation, Trina Solar Ltd., Juwi AG, Motech Industries, Inc., Hanwha Group.