ASEAN Energy Transition Market Size was valued at USD 597.8 Billion in 2022. The Energy Transition market industry is projected to grow USD 1383.03 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.80% during the forecast period (2023 - 2032). The rising environmental consciousness and an increasing demand for environmentally friendly hydrogen are major market drivers driving the ASEAN energy transition market. The growth of the energy transition industry is also expected to experience a surge in energy-efficient structures and the expansion of power grid capabilities during the forecast period.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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, with greater emphasis on enhancing the efficiency of buildings and administrations through revising its rules, regulations, and targets to encourage the use of renewable energy sources and decrease carbon emissions, ASEAN confirmed its backing for the energy transition in this market in ASEAN. Market growth prospects are anticipated to be enhanced throughout the projected period due to factors such as a reliable supply of energy, the rise of prosumer business models, and the shift in consumer behavior toward renewable energy. 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 ASEAN Energy Transition market segmentation, based on type, includes renewable energy, energy efficiency, electrification, and hydrogen. The renewable energy segment dominated the market. There are several reasons why renewable energy is becoming more popular in the market. One is that it helps improve air quality by reducing pollution from fossil fuel combustion, one of the main causes of climate change. Additionally, it is a green energy source, which contributes to lower carbon emissions and other pollutants. Consequently, this contributes to better public health by lowering the incidence of heart disease and respiratory illness.
The ASEAN Energy Transition market segmentation, based on application, includes residential, commercial, and utility-scale. The residential category generated the most income because the expansion of the ASEAN energy transition is expected to be influenced by an increasing number of factors. One such issue is the rising popularity of electric water heaters, which heat water for various purposes such as dishwashing, showering, cooking, and even heating entire homes. Inspiring individual households to adopt more sustainable lifestyles is the main objective of this movement. Reduced waste and carbon emissions are additional factors causing this segment to grow throughout the forecast period.
Figure 1: ASEAN Energy Transition Market, by Application, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The surge in the popularity of energy transition and more investment in clean energy projects has resulted in a boom in demand for the energy transition in ASEAN. Demand for energy transition is expected to rise in ASEAN due to several factors, including the fast-paced development of cities, rising industries, and more financing alternatives for renewable energy infrastructure. Furthermore, the demand for the ASEAN energy transition market is expected to be propelled by a rise in government expenditure on research and technical innovation. In addition, rural electrification and electricity generation for standalone systems are two of the most common uses of energy transition in ASEAN. Furthermore, renewable energy consumption has increased throughout the ASEAN region due to the expanding the telecommunications, aerospace, and defense industries. The need for an energy transition in the ASEAN area is anticipated to be driven by these causes in the coming years. The ASEAN market is expected to be propelled during the projected period by a growing consciousness of sustainability and a greater interest in sustainable goods and services.
Figure 2: ASEAN Energy Transition Market Share By Region 2022 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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.
October 2023:Brookfield, the operator of one of the world’s largest publicly traded pure-play renewable power platforms, has acquired Duke Energy's unregulated utility-scale Commercial Renewable business, according to the energy company.
October 2023:Duke Energy has announced that it will construct and operate the first system in Brunei to produce, store, and burn only environmentally friendly hydrogen in a combustion turbine.
| Market Size2022 | USD 597.8 Billion |
| Market Size2032 | USD 1383.03 Billion |
| Compound Annual Growth Rate (CAGR) | 8.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Application, and Region |
| Region Covered | ASEAN |
| Countries Covered | Brunei, Burma (Myanmar), Cambodia, Timor-Leste, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and Rest of ASEAN |
| Key Companies Profiled | 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. |
| Key Market Opportunities | Raise government policies and incentives that encourage renewable energy source New technological developments in energy transition |
| Key Market Dynamics | Growing smart grid technology integration Rapid urbanization |
ASEAN energy transition market Market Highlights:
Frequently Asked Questions (FAQ) :
The ASEAN energy transition market size was valued at USD 597.8 billion in 2022.
The market is projected to grow at a CAGR of 8.80% during the forecast period, 2023-2032.
The key players in the market are 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..
The renewable energy category dominated the market in 2022.
The residential category had the largest share of the market.
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