Asia Pacific Solar Panel Market Size was valued at USD 319.2 Billion in 2022. The Solar Panel market industry is projected to grow from USD 402.8 Billion in 2023 to USD 2,591.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 26.20% during the forecast period (2024 - 2032). Growing environmental awareness, declining costs of key raw materials such as silver and polysilicon, and increased energy demand driven by population growth are the main market drivers anticipated to propel the solar panel market in the Asia Pacific.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
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.
The Asia Pacific Solar Panel market segmentation, based on Panel Type, includes Monocrystalline, Polycrystalline, and Thin Film. The Monocrystalline segment dominated the market. Monocrystalline solar panels are widely utilized in residential installation applications due to their superior energy generation capabilities and high capacity compared to other solar panels. With efficiency ranges from 17% to 22%, monocrystalline solar panels are known for their ability to generate more energy. Additionally, they require less space to achieve a given power capacity, thanks to their high efficiency. Moreover, the rapid technological advancements aimed at reducing the production cost of monocrystalline solar cells are further driving the growth and development of monocrystalline solar panels in the Asia-Pacific region.
The Asia Pacific Solar Panel market segmentation, based on End-User, includes Residential Sector and Commercial Sector. The Residential Sector category generated the most income. T Residential solar solutions offer the advantage of providing free and uninterrupted electricity for years while contributing to a more environmentally friendly future. Solar rooftop systems designed for residential use are easy to install and require minimal maintenance, making them a convenient choice for homeowners. According to the Ministry of New and Renewable Energy (MNRE) annual reports published in 2022, the government provides support to rooftop solar projects through various measures. This includes Central Financial Assistance (CFA) of up to 40% of the benchmark cost for rooftop projects ranging from up to three kilowatts, with a reduced rate of 20% for systems beyond 3 kW to 10 kW in the residential sector. Similarly, for Group Housing Societies/Residential Welfare Associations (GHS/RWA), the CFA is limited to 20% for rooftop solar plants with a capacity of up to 500 kW. Such assistance plays a crucial role in promoting the uptake of solar rooftop systems in India.
Figure 1: Asia Pacific Solar Panel Market, by End-User, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Asia Pacific Solar Panel market segmentation, based on Installation, includes Ground-Mount and Rooftop. The ground-mount category generated the most income. Ground-mounted solar panels, also known as ground-mounted solar PV systems, are solar arrays positioned at ground level rather than on rooftops. Although typically more costly than rooftop installations, these systems have the potential to significantly increase energy production on a larger scale. In 2021, ground-mounted solar PVs accounted for over 50% of the total installed solar PV capacity, primarily deployed for commercial and utility purposes. Ground-mounted solar installations for commercial or utility projects benefit from economies of scale facilitated by large-scale deployments and operational efficiencies in maintenance and management. Conversely, rooftop solar is typically utilized for small-scale residential projects with capacities generally less than 1 MW.
China leads the global market for solar PV, boasting a cumulative installed capacity that surpassed 40% of the worldwide market in 2021. By the end of 2021, China's renewable power generation mix included 282 million kilowatts of solar power. The government has introduced various initiatives to bolster the share of solar energy in its energy mix in the coming years. According to the National Energy Administration of China's 2023 national electricity industry statistics, new solar installations reached 216.88 GW in the previous year, marking a notable year-on-year increase of 148.12%. December 2023 saw new solar PV installations amounting to 53 GW, reflecting a 144.24% increase compared to the previous year and constituting nearly a quarter of the total solar capacity additions for the entire year. As of 2021, China's solar PV capacity stood at 306.403 GW, marking a 20.91% increase over the 253.418 GW installed in 2020. Additionally, China announced new policies for subsidy-free solar and wind projects. This policy shift aimed to capitalize on the rapid decline in construction costs and address issues such as payment delays and grid connectivity challenges.
Figure 2: Asia Pacific Solar Panel Market Share By Country 2023 & 2032 (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 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.
January 2022: Huaneng Power International commissioned a 320 MW floating solar PV array in China's Shandong province. Deployed in two phases on a reservoir near its 2.65 GW Dezhou thermal power station, the project aims to harness solar energy efficiently.
September 2022: Hitachi Astemo installed India's first solar PV plant at the Jalgaon manufacturing plant in Maharashtra. Spanning an area of 43,301 sqm, the 3 MW ground-mounted solar power plant comprises 7,128 solar panels and ten inverters. It is slated for commissioning in 2023
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 319.2 Billion |
| Market Size 2023 | USD 402.8 Billion |
| Market Size 2032 | USD 2,591.7 Billion |
| Compound Annual Growth Rate (CAGR) | 26.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Panel Type, End-User and Installation, and Region |
| Region Covered | Asia Pacific |
| Countries Covered | China, Japan, India, Australia, South Korea, Indonesia, Thailand, Vietnam, Malaysia, Singapore, and Rest of Asia-Pacific |
| Key Companies Profiled | 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 |
| Key Market Opportunities | Enhanced Investments Toward Solar Energy Generation |
| Key Market Dynamics | Increased carbon emissions due to fossil fuel and the need for unlimited clean energy |
Frequently Asked Questions (FAQ) :
The Asia Pacific Solar Panel market size was valued at USD 402.8 Billion in 2023.
The market is projected to grow at a CAGR of 26.20% during the forecast period, 2024-2032.
The key players in the market are 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., and Hanwha Group.
The Monocrystalline category dominated the market in 2023.
The residential category had the largest share of the market.
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