APAC Ancillary Services Power Market Research Report By Service Type (Frequency Regulation, Voltage Support, Reactive Power Supply, Black Start Services), By Technology (Energy Storage Systems, Demand Response, Smart Grids, Distributed Generation), By Market Application (Utilities, Independent System Operators, Electricity Retailers), By End Use Sector (Residential, Commercial, Industrial) and By Regional (China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC)-Forecast to 2035

APAC Ancillary Services Power Market Overview

As per MRFR analysis, the APAC Ancillary Services Power Market Size was estimated at 13.01 (USD Billion) in 2023. The APAC Ancillary Services Power Market Industry is expected to grow from 13.6(USD Billion) in 2024 to 22 (USD Billion) by 2035. The APAC Ancillary Services Power Market CAGR (growth rate) is expected to be around 4.472% during the forecast period (2025 - 2035).

Key APAC Ancillary Services Power Market Trends Highlighted

The APAC Ancillary Services Power Market is currently witnessing significant market trends driven by the growing demand for reliable and efficient electricity supply amidst increasing peak loads and intermittent renewable energy integration. Governments across the region are placing emphasis on improving grid stability and security, which has led to enhanced investments in ancillary services.

The shift towards renewable energy sources, particularly solar and wind, necessitates new support services such as frequency regulation and voltage control to stabilize the grid. In response, many countries in the APAC region are revamping their regulatory frameworks to promote ancillary services and encourage private sector participation.Numerous possibilities exist in the APAC Ancillary Services Power Market, particularly for technology developers and service providers who offer new solutions that improve grid functions.

The growth of electric vehicles is creating new possibilities for ancillary service offerings through vehicle-to-grid technologies. In addition, the use of energy storage systems is becoming more important to improve demand response and energy management. Southeast Asia is also looking at market-based strategies to better control the balance between supply and demand and strengthen the framework for ancillary services. Recent trends indicate that there is a shift towards power sector digitization.

The implementation of advanced metering infrastructures and data analytics tools is transforming how ancillary services are monitored and managed. This digital shift allows for real-time information sharing and enhances operational efficiencies.

Moreover, collaborative efforts and regional integration initiatives are becoming more prevalent as countries recognize the benefits of shared resources for stabilizing intermittent supplies from renewable energy sources. The APAC Ancillary Services Power Market is thus positioned to evolve rapidly, driven by these converging trends and forces within the electricity sector.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Ancillary Services Power Market Drivers

Increasing Demand for Grid Stability and Reliability

As the Asia-Pacific (APAC) region continues to experience rapid urbanization and industrial growth, the demand for a stable and reliable power grid is increasing significantly. The Asian Development Bank has reported that by 2030, the region is expected to see a 50% increase in electricity demand. This escalation has spurred governments and organizations, such as the International Energy Agency, to advocate for the enhancement of ancillary services to ensure grid stability.

Enhancements in technology, along with a more significant push towards renewable energy integration, necessitate the need for ancillary services to support managing supply and demand effectively. Furthermore, countries like India and China are actively investing in these services as part of their energy transition strategies, showcasing the importance of the APAC Ancillary Services Power Market Industry in maintaining grid reliability across the rapidly evolving energy landscape.

Integration of Renewable Energy Sources

The movement towards increasing renewable energy integration within the APAC region is becoming a prominent driver for the ancillary services market. Reports indicate that the share of renewables in the energy mix of APAC countries is projected to rise from approximately 25% in 2020 to about 45% by 2035.

This shift is largely driven by national policies focused on sustainability and reducing carbon emissions, exemplified by China’s commitment to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.Given the intermittent nature of renewable energy, there is a growing requirement for ancillary services to stabilize and balance the electric grid, which directly benefits the APAC Ancillary Services Power Market Industry. Organizations such as the National Renewable Energy Laboratory have documented best practices in integrating renewables while highlighting the necessity of a robust ancillary services framework.

Technological Advancements in Energy Storage Solutions

Technological advancements in energy storage systems are playing a vital role in accelerating the growth of the APAC Ancillary Services Power Market Industry. Over the past few years, the cost of battery storage technology has dramatically decreased, which has been supported by various initiatives from governments and private sectors within APAC countries.

For instance, the Australian Renewable Energy Agency reported a 70% reduction in lithium-ion battery prices from 2010 to 2020, making energy storage more accessible and attractive.

The deployment of improved storage solutions enables better management of peak demand and integration of variable renewable energy sources, thus strengthening the grid and enhancing ancillary services. Countries like Japan are heavily investing in energy storage projects, further substantiating the growth trajectory of the APAC Ancillary Services Power Market Industry driven by these technological innovations.

Regulatory Support and Policy Changes

Government regulations and supportive policies play a crucial role in shaping the future of the APAC Ancillary Services Power Market Industry. Several APAC countries are implementing policies encouraging ancillary service deployment to promote grid reliability and support renewable energy usage.

According to the Ministry of Energy of Thailand, new regulatory frameworks have been set to improve the ancillary services market, ensuring better resource allocation and efficiency enhancement in the power sector.

Additionally, initiatives like the ASEAN Plan of Action for Energy Cooperation indicate a concerted effort among APAC nations to cooperate on energy supply and ancillary services to meet the increasing electricity demands. Such regulatory frameworks not only help create a conducive environment for ancillary services to flourish but also enhance investor confidence in the industry, boosting market potential.

APAC Ancillary Services Power Market Segment Insights

Ancillary Services Power Market Service Type Insights

The Service Type segment in the APAC Ancillary Services Power Market has shown considerable significance in the overall landscape of the energy sector. This segment, instrumental in maintaining the reliability and stability of power systems, encompasses critical areas such as Frequency Regulation, Voltage Support, Reactive Power Supply, and Black Start Services.

Frequency Regulation is pivotal for balancing supply and demand in real-time. It helps in keeping the grid frequency stable, which is essential for the smooth functioning of electrical appliances and industrial processes. With the increasing integration of renewable energy sources in APAC, the need for robust frequency regulation mechanisms has intensified, positioning this service as a major player.Voltage Support serves as another crucial component, ensuring that voltage levels remain within acceptable limits for the secure operation of transmission networks.

This service is particularly vital in regions with significant industrial activity, where fluctuations in voltage can lead to operational inefficiencies and potential equipment damage. Reactive Power Supply is equally important, as it helps maintain voltage levels necessary for electricity transmission, especially in long-distance transmission networks. It mitigates issues related to power factors, enhancing the overall efficiency of power systems.Lastly, Black Start Services are essential for the recovery of power systems following a blackout.

This service enables the restart of power stations without relying on the external grid, a necessity for maintaining electricity supply integrity in APAC, given its diverse geography and varying power demands. As APAC continues to expand its power infrastructure and invest in renewable energy sources, the Role of ancillary services, particularly in this Service Type segment, will be paramount in meeting the region's energy needs while ensuring reliability, stability, and efficiency in power delivery. The overall growth trajectory across these areas indicates increasing investment and innovation, reflecting the evolving dynamics of the APAC Ancillary Services Power Market.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Ancillary Services Power Market Technology Insights

The Technology segment of the APAC Ancillary Services Power Market plays a crucial role in enhancing the efficiency and reliability of electricity supply across the region. Energy Storage Systems are increasingly recognized for their ability to store excess energy generated from renewable sources, thus stabilizing the grid and allowing for optimal use during peak demand hours.

Demand Response initiatives empower consumers to alter their energy consumption patterns based on supply conditions, contributing to a balanced and resilient grid. Smart Grids are transforming traditional power networks into intelligent systems that utilize real-time data for improved monitoring and management, facilitating better integration of renewable energy sources.Meanwhile, Distributed Generation is becoming significant as it enables localized energy production, reducing transmission losses and supporting regional grid stability.

Together, these technologies drive the market forward as they address increasing energy demands, sustainability goals, and the need for enhanced grid reliability, aligning with various governmental and industrial efforts to transition toward cleaner and more efficient energy systems in the APAC region.

Market growth in this arena is driven by a combination of technological advancements, regulatory frameworks favoring renewable energy integration, and rising consumer awareness of energy efficiency.The APAC market is expected to see strengthening investment activities aimed at overcoming challenges such as infrastructure adaptability and regulatory harmonization to fully leverage the potential of these technologies in shaping a resilient energy future.

Ancillary Services Power Market Market Application Insights

The APAC Ancillary Services Power Market is experiencing a noteworthy evolution, particularly within the Market Application segment. This segment includes key players such as Utilities, Independent System Operators, and Electricity Retailers, each contributing uniquely to the sector's dynamics. Utilities serve as backbone entities, ensuring reliable electricity supply and maintaining grid stability, which is increasingly crucial as renewable energy sources penetrate the market.

Independent System Operators play a vital role in coordinating the supply and demand, facilitating competition and optimal resource use.Electricity Retailers are significant as they serve the end consumers, driving innovations in customer engagement and service delivery. In APAC, the push towards modernization and sustainability in energy management has favored these segments as they adapt to regulatory changes and technological advancements.

The integration of smart grids and demand response programs is reshaping operational strategies, showing how these market applications are becoming essential to meet the region's growing energy demands while maintaining sustainability. Observing emerging trends, such as the increased focus on renewable energy and energy efficiency initiatives, is critical as they shape the future landscape of the APAC Ancillary Services Power Market.

Ancillary Services Power Market End Use Sector Insights

The End Use Sector of the APAC Ancillary Services Power Market plays a crucial role in the overall dynamics of energy consumption in the region. This sector encompasses various applications, including Residential, Commercial, and Industrial, each contributing uniquely to the region's energy landscape. The Residential segment is pivotal, driven by increasing urbanization and a growing demand for reliable power supply amid the rise of smart homes and energy-efficient appliances.

The Commercial sector, fueled by rapid economic development and the expansion of retail and service industries, demands enhanced power quality and reliability, further elevating the importance of ancillary services.Meanwhile, the Industrial segment, characterized by its significant energy requirements and complex operations, necessitates an increasing focus on service flexibility and operational efficiency.

The growth drivers in this segment are closely linked to advancements in technology, regulatory support, and the pressing need for sustainable energy solutions. However, challenges such as managing peak loads and integrating renewable energy sources remain pertinent. As economies across APAC continue to develop, opportunities for innovative ancillary services are emerging, with an emphasis on optimizing power distribution and consumption across all end-use applications.

Ancillary Services Power Market Regional Insights

The APAC Ancillary Services Power Market has been experiencing significant growth, driven by increasing demand for reliable and efficient power supply across the region. The market is heavily influenced by major economies such as China and India, which are not only leading in power consumption but also investing substantially in enhancing their grid infrastructure.

China dominates the market foreground with extensive investments in smart grid technologies, contributing to the overall advancement in ancillary services. India, with its rapidly growing population and industrial sector, emphasizes the importance of ancillary services to support renewable energy integration and grid stability. Japan is focused on diversifying its energy mix post-Fukushima and significantly relies on ancillary services to manage intermittent renewables. South Korea is also advancing in this area, particularly through technological innovations and policies aimed at ensuring grid resilience.

Meanwhile, Malaysia and Thailand are growing steadily, increasingly recognizing the role of efficient ancillary services in supporting their emerging power markets. Indonesia's focus on improving energy access in rural areas positions it as a potential growth hub. The combined efforts and commitments of these countries underline the substantial potential within the APAC Ancillary Services Power Market, making it a pivotal sector for regional energy stability and sustainability initiatives.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

APAC Ancillary Services Power Market Key Players and Competitive Insights

The APAC Ancillary Services Power Market has evolved significantly over the years due to increasing demand for reliable power supply and the integration of renewable energy sources. The competitive landscape is marked by diverse players, each striving to enhance energy efficiency, provide grid stability, and ensure effective management of power system resources.

As the region shifts towards a more sustainable energy framework, the quest for ancillary services that support the primary power market has become critical for balancing supply and demand. This market provides an array of services, including frequency regulation, voltage support, and reserve capacity, which are increasingly essential as countries work to modernize their electricity grids and incorporate fluctuating renewable generation like solar and wind.

The competition among major suppliers is intensifying as they seek opportunities to leverage technological advancements and capture a share of the growing market.Hitachi's presence in the APAC Ancillary Services Power Market is characterized by its strong commitment to innovation and technological advancement. The company harnesses advanced technologies such as IoT and AI to enhance system operations, thus contributing significantly to the reliability and efficiency of power services in the region.

Hitachi has effectively positioned itself as a leader in developing control systems and energy management solutions that significantly improve grid operation. Their emphasis on sustainable energy solutions not only aligns with regional policies promoting green energy but also supports their aim of fostering a resilient energy future.

Furthermore, Hitachi remains forward-looking by reinforcing collaborations with local stakeholders and investing in joint ventures, all of which solidify their robust market presence in the competitive landscape of ancillary services.Siemens has established itself as a formidable player in the APAC Ancillary Services Power Market by leveraging its comprehensive portfolio of products and services tailored for the energy sector.

The company offers solutions that encompass energy automation, smart grid technologies, and efficiency-oriented services aimed at enhancing system reliability and operational flexibility. Siemens has made significant strides through mergers and acquisitions that have expanded its capabilities and strengthened its footprint in the region.

Their focus on smart infrastructure and digital transformation in energy management positions Siemens as an enabler of modern power systems, practical in addressing emerging challenges in power supply. The ability to provide solutions for various stakeholders in the energy market further emphasizes their strategic importance in driving efficiencies while adapting to the evolving dynamics of energy demand and supply in the APAC region.

Key Companies in the APAC Ancillary Services Power Market Include

• Hitachi


• Siemens


• AEP Energy


• Engie


• GE Power


• Emerson


• Sungrow Power Supply


• Kawasaki Heavy Industries


• Schneider Electric


• Khan Academy


• Mitsubishi Electric


• Toshiba


• Pacific Gas and Electric Company


• NRG Energy

APAC Ancillary Services Power Market Industry Developments

The APAC Ancillary Services Power Market has seen significant developments recently, especially in the face of increasing demand for reliable energy solutions. Companies like Hitachi and Siemens are actively engaged in enhancing their service offerings to support grid operations amid the growing adoption of renewable energy sources.

A prominent trend is the surge in investments in energy storage solutions, with firms such as Sungrow Power Supply and GE Power leading innovative projects. In September 2023, Southwest Power Pool initiated a collaboration with Emerson for advanced demand response technologies to provide better ancillary services in resilience. Additionally, in October 2023, AEP Energy expanded its market presence in Japan to address the rising need for ancillary services, aiming to optimize energy generation and consumption.

The market valuation continues to grow as major players like Kawasaki Heavy Industries and Mitsubishi Electric invest in Research and Development for smart grid technologies. Notably, industry consolidation is underway, with GE Power and Toshiba exploring merger opportunities to enhance operational efficiency. Overall, the APAC Ancillary Services Power Market is experiencing a transformative period, driven by technological advancements and strategic partnerships to improve energy reliability and sustainability.

APAC Ancillary Services Power Market Segmentation Insights

Ancillary Services Power Market Service Type Outlook

• Frequency Regulation


• Voltage Support


• Reactive Power Supply


• Black Start Services

Ancillary Services Power Market Technology Outlook

• Energy Storage Systems


• Demand Response


• Smart Grids


• Distributed Generation

Ancillary Services Power Market Market Application Outlook

• Utilities


• Independent System Operators


• Electricity Retailers

Ancillary Services Power Market End Use Sector Outlook

• Residential


• Commercial


• Industrial

Ancillary Services Power Market Regional Outlook

• China


• India


• Japan


• South Korea


• Malaysia


• Thailand


• Indonesia


• Rest of APAC

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	13.01(USD Billion)
MARKET SIZE 2024	13.6(USD Billion)
MARKET SIZE 2035	22.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	4.472% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Hitachi, Siemens, AEP Energy, Engie, GE Power, Emerson, Sungrow Power Supply, Kawasaki Heavy Industries, Schneider Electric, Khan Academy, Mitsubishi Electric, Toshiba, Pacific Gas and Electric Company, NRG Energy
SEGMENTS COVERED	Service Type, Technology, Market Application, End Use Sector, Regional
KEY MARKET OPPORTUNITIES	Demand response program expansion, Renewable energy integration support, Energy storage systems growth, Grid modernization investments, Market regulatory reforms adaptation
KEY MARKET DYNAMICS	Increased renewable energy integration, Regulatory frameworks and policies, Growing demand for reliability, Technological advancements in storage, Market competition and pricing pressures
COUNTRIES COVERED	China, India, Japan, South Korea, Malaysia, Thailand, Indonesia, Rest of APAC