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The ASEAN energy transition market is set to reach a significant value by 2032, growing at a 10.50% CAGR between years 2023-2032. One of the main factors is high demand in energy resources due to growing economies, urbanization and population is creating dynamic changes in ASEAN energy transition market. Sustainable development is an issue that ASEAN nations have recently focused on promoting the transition from dirty sources to cleaner and more sustainable ones.
This is a transitional stage being fuelled by varied factors such as environmental concerns, international commitments to cut carbon emissions and the economic benefits that come with phase out of fossil fuel dependence. Technology development is critical in controlling the dynamics of ASEAN energy transition market. Technical progress in those energy renewable technologies, energy storage solutions and intelligent network systems help to strengthen the efficiency and reliability of transition process.
The technologies that are being adopted in the 10 ASEAN member countries avail energy from environment friendly sources such as solar, wind and hydro power which is a diversified type of resilient landscape. These technological advances shape market trends and prompt investment development in sustainable energy infrastructure.
Other factors that also greatly affect market dynamics within the ASEAN region are extensive government policies and regulatory frameworks.
Governments are rolling out ambitious energy transition master plans where targets have been set on renewable capacity, whilst supportive policies aimed at attracting investments in the industry. In the industry, subsidies and regulatory incentives could generate better market opportunities to businesses and investors who thus get an opportunity for a cleaner energy solution.
The economic backdrop in the ASEAN region plays an essential role as one of many factors that influence market dynamics concerning energy transition. More importantly, economic growth often leads to increased demand for energy as is the case with industrialization and infrastructural development. The energy efficiency initiative supports economic aims. However, the renewable power integration ensures there is a way out to sustainable development and while it minimizes reliance on traditional nonrenewables as sources of fossil fuel.
Cost of the renewable technologies, as one of economic factors influencing investment decisions and overall market dynamics also affect this process. This is a geopolitical approach towards the consideration of ASEAN energy transition market. The regional cooperation of the ASEAN states, international partnerships and geopolitical alignments have an impact on knowledge transfer and technology transfers as well cross- border energy initiatives.
Energy transition sphere regional cooperation changes market mechanisms through the creation of a favorable environment for investments, technology exchange and interconnected energy grids. The market transition of energy in ASEAN is also affected by public awareness and the demand for society. Greater environmental awareness and the associated need to reduce carbon footprint serves as a stimulus for demand on more renewable, eco-friendly energy.
ASEAN energy transition market Market Highlights:
ASEAN Energy Transition Market Overview:
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
Energy Transition Market Trends
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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, 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.
Energy Transition Market Segment Insights:
Energy Transition Type Insights
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.
Energy Transition Application Insights
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
Energy Transition Country Insights
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
Energy Transition Key Market Players & Competitive Insights
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.
Key Companies in the Energy Transition market include
- Exelon Corporation
- Duke Energy Corporation
- Pacific Gas and Electric Company
- Southern Company
- American Electric Power
- Edison International
- Repsol
- Brookfield Renewable Partners
- Ørsted A/S
- NextEra Energy, Inc
Energy Transition Industry Developments
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.
Energy Transition Market Segmentation:
Energy Transition Type Outlook
- Renewable Energy
- Energy Efficient
- Electrification
- Hydrogen
- Other
Energy Transition Application Outlook
- Residential
- Commercial
- Utility-Scale
Energy Transition Regional Outlook
- ASEAN
- Brunei
- Burma (Myanmar)
- Cambodia
- Timor-Leste
- Indonesia
- Laos
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of ASEAN
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