Japan Photovoltaic Market Research Report By Type (Organic PV, Inorganic PV)- Forecast to 2035

Japan Photovoltaic Market Overview

As per MRFR analysis, the Japan Photovoltaic Market Size was estimated at 5.7 (USD Billion) in 2023. The Japan Photovoltaic Market Industry is expected to grow from 6.03(USD Billion) in 2024 to 11.45 (USD Billion) by 2035. The Japan Photovoltaic Market CAGR (growth rate) is expected to be around 6.003% during the forecast period (2025 - 2035)

Key Japan Photovoltaic Market Trends Highlighted

Japan's photovoltaic market is witnessing several important trends influenced by governmental policies and societal shifts toward renewable energy. The commitment by the Japanese government to enhance energy security and reduce reliance on fossil fuels has propelled the adoption of solar energy. This aligns with the nation's long-term energy strategy aimed at increasing the share of renewables in the energy mix. Key market drivers include the Feed-in Tariff (FiT) system, which has provided financial incentives to produce solar energy, enabling both individual consumers and commercial entities to invest in solar technology. 

Also, advancements in solar panel technology and efficiency are contributing to making solar systems more accessible and cost-effective.Opportunities for innovation in energy storage solutions are emerging within the market as Japan endeavors to increase its contribution to global climate objectives. The potential for the integration of battery storage technology with solar power presents new opportunities for energy management, enabling consumers to have more direct control over their energy consumption and to stabilize the supply. Additionally, Japan's power sector provides a substantial opportunity to improve energy efficiency and resilience through the integration of smart grid technologies. 

In recent years, there has been a surge in the demand for photovoltaic systems due to the growing public consciousness of environmental sustainability. The trend toward decentralized energy production is becoming increasingly common as consumers attempt to reduce their carbon footprint by generating their own power. Additionally, there is an increasing interest in community solar initiatives, which enable multiple households or businesses to share the advantages of a single solar installation. Japan's photovoltaic market is dynamic and evolving in response to both consumer preferences and regulatory frameworks, as these shifts reflect a broader societal movement toward energy independence and sustainability.

   

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

Japan Photovoltaic Market Drivers

Government Support and Incentives

The Japan Photovoltaic Market Industry has seen significant growth due to strong government initiatives aimed at promoting renewable energy. The Japanese government has established programs such as the Feed-in Tariff (FiT) system, which guarantees a fixed payment for renewable energy producers for a specific duration. According to the Ministry of the Environment in Japan, investments in solar energy have increased to reach approximately 8 trillion Japanese yen (USD 73 billion) in 2020 due to these incentives.

This robust backing not only encourages the installation of photovoltaic systems but also catalyzes technological advancements and competitive pricing, further stimulating market growth. Additionally, the government aims for renewable energy to account for 24% to 26% of its energy mix by 2030, as outlined in its long-term energy plan, which directly supports the ongoing expansion of the Japan Photovoltaic Market Industry.

Technological Advancements

The Japan Photovoltaic Market Industry is propelled by continuous advancements in solar technology. Companies like Panasonic and Sharp are leading the way in developing high-efficiency solar panels that convert a greater portion of sunlight into electricity. Recent studies indicate that the efficiency of photovoltaic cells has increased significantly, with new technologies reaching efficiencies of over 25%. 

This enhancement reduces the overall cost per watt of solar energy produced, making solar installations more attractive to consumers and utilities alike.As a result, the growing availability of cutting-edge solar technology is expected to boost the adoption rates and overall capacity of photovoltaic systems within Japan.

Rising Electricity Prices

In Japan, the rising prices of conventional electricity are a key driver for the Japan Photovoltaic Market Industry. As per recent energy reports, electricity prices in Japan have increased by over 20% in the last decade, partly due to the increased dependency on imported fossil fuels. This upward trend in electricity costs motivates consumers and businesses to seek alternative energy sources such as solar power. 

The establishment of photovoltaic systems presents a viable solution for cost saving in the long run.Furthermore, the Central Environment Council of Japan indicates that enhancing the adoption of solar energy can mitigate electricity price increases, indicating an urgent need for the nation to transition towards renewable energy.

Japan Photovoltaic Market Segment Insights

Photovoltaic Market Type Insights

The Japan Photovoltaic Market is experiencing notable transformation and growth, attributed to its diverse range of segments categorized by Type. Within this market, two prominent categories are Organic PV and Inorganic PV, each playing a pivotal role in shaping the landscape of solar energy in Japan. The country's commitment to transitioning to renewable energy has positioned photovoltaic technologies at the forefront of its energy agenda. Organic PV is recognized for its lightweight properties and flexibility, allowing it to be incorporated into various applications, including building-integrated photovoltaics, thus enhancing aesthetic appeal and energy efficiency. Meanwhile, Inorganic PV dominates the market largely due to its efficiency and reliability as crystalline silicon technology becomes increasingly optimized for performance. 

This segment holds a significant share in Japan due to the high demand for dependable energy sources, especially in residential sectors where space efficiency is crucial. Additionally, government incentives aimed at boosting solar energy adoption provide a conducive environment for that segment. The continuous investment in Research and Development is further enhancing the capabilities of both Organic and Inorganic PV technologies, driving innovations such as improved energy conversion rates and lower production costs. As Japan strives to meet its ambitious energy targets, the interplay between these segments leads to enhanced market competition, fostering a diverse energy portfolio that addresses both environmental and economic objectives. 

The dynamic nature of the Japan Photovoltaic Market is underscored by ongoing advancements, regulatory support, and an increasing focus on sustainability, creating diverse opportunities for innovation in both Organic and Inorganic photovoltaic technologies. Furthermore, the increasing awareness about climate change and sustainability is operating as a growth driver for these segments, where consumers and businesses alike are increasingly mindful of their carbon footprint. As this trend continues, both Organic and Inorganic PV segments are expected to contribute significantly to Japan's renewable energy ecosystem, adapting to evolving market needs while aligning with broader environmental goals. The collective movement towards harnessing solar energy not only positions Japan as a leader in renewable technology but also encourages global advancements in the photovoltaic space.

   

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

Japan Photovoltaic Market Key Players and Competitive Insights

The Japan Photovoltaic Market is characterized by its dynamic landscape, propelled by a strong governmental drive towards renewable energy adoption following the Fukushima nuclear disaster in 2011. This market has evolved rapidly, attracting both domestic and international players who contribute to its growth through technological advancements and innovative solar solutions. With a commitment towards achieving ambitious renewable energy targets, the competition within the photovoltaic sector in Japan is intensifying as various stakeholders, including manufacturers, distributors, and installers, strategically position themselves to gain market share. 

The ongoing adjustments to policies and feed-in tariffs have made the market more competitive, encouraging companies to enhance product quality and diversify their offerings to meet the growing demand for clean energy solutions.Sanyo, a notable entity within the Japan Photovoltaic Market, has established itself as a leader with a strong reputation for high-quality solar panels and innovative technology. The company's advanced photovoltaic modules emphasize efficiency and durability, which resonate well with the environmentally conscious consumer base in Japan. Sanyo's distribution channels encompass both residential and commercial sectors, reinforcing its commitment to meeting a diverse range of market needs. 

Their investments in research and development ensure that Sanyo remains at the forefront of solar technology, enabling the company to consistently deliver enhanced energy solutions while reducing the overall cost of solar installations. The company's strong brand recognition and legacy in the Japanese market further bolster its position, allowing it to maintain competitiveness amid evolving market dynamics.Canadian Solar has also made significant inroads into the Japan Photovoltaic Market, offering a variety of high-performance solar panels and energy storage solutions tailored to meet local energy needs. The company boasts an extensive portfolio that includes high-efficiency modules and innovative power optimization technologies that cater to both residential and large-scale commercial applications in Japan. Canadian Solar's local presence is enhanced by strategic partnerships and collaborations, which facilitate the swift deployment of solar projects. 

They focus on sustainable growth through mergers and acquisitions, expanding their market footprint while enhancing their technological capabilities. This approach allows Canadian Solar to leverage its manufacturing strengths, ensuring a reliable supply chain while addressing the increasing demand for renewable energy in Japan. The company's ability to adapt to local market conditions and respond to governmental policy changes further solidifies its status as a key player in the Japanese photovoltaic landscape.

Key Companies in the Japan Photovoltaic Market Include

• Sanyo


• Canadian Solar


• Trina Solar


• Hanwha Q CELLS


• Solaria


• Kyocera


• Toshiba


• First Solar


• Panasonic


• LONGi Green Energy


• GCLPoly Energy


• JinkoSolar


• Sharp


• JA Solar


• Mitsubishi Electric

Japan Photovoltaic Market Industry Developments

The Japan Photovoltaic Market has witnessed significant developments in 2023, especially in terms of technology advancements and market growth. Companies such as Panasonic and Kyocera are focusing on enhancing their photovoltaic efficiency, aiming to meet the increasing demand for renewable energy solutions amidst Japan's commitment to reducing carbon emissions. In September 2023, Hanwha Q CELLS and Mitsubishi Electric announced a strategic partnership aimed at co-developing solar technologies to boost their market competitiveness. The valuation of major players like Canadian Solar and JinkoSolar has notably increased due to rising favorable government policies and consumer interest in sustainable energy investments. 

In 2021, Japan also saw a surge in photovoltaic installations, with over 9 gigawatts added, as the government incentivized solar adoption for residential and commercial sectors. Furthermore, reports from October 2022 indicated a shift in investment trends, with more funding directed towards solar projects to enhance grid stability and reliability. The region continues to see interest from foreign players and collaborations that bolster its position in the global renewable energy landscape.

Japan Photovoltaic Market Segmentation Insights

Photovoltaic Market Type Outlook

• Organic PV


• Inorganic PV

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	5.7(USD Billion)
MARKET SIZE 2024	6.03(USD Billion)
MARKET SIZE 2035	11.45(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.003% (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	Sanyo, Canadian Solar, Trina Solar, Hanwha Q CELLS, Solaria, Kyocera, Toshiba, First Solar, Panasonic, LONGi Green Energy, GCLPoly Energy, JinkoSolar, Sharp, JA Solar, Mitsubishi Electric
SEGMENTS COVERED	Type
KEY MARKET OPPORTUNITIES	Rising solar adoption incentives, Increasing energy independence demand, Technological advancements in efficiency, Expansion in residential installations, Government commitment to renewable energy
KEY MARKET DYNAMICS	Government incentives and subsidies, Technological advancements and innovations, Increasing environmental awareness, Competitive pricing and costs, Energy security and independence
COUNTRIES COVERED	Japan