APAC Renewable Energy Market Outlook to 2030

APAC Renewable Energy Market Overview

• The APAC renewable energy market is valued at USD 495 billion, propelled by ambitious governmental policies targeting clean energy transitions and significant investments across solar, wind, hydro, and other renewable sources. The markets growth trajectory remains robust as countries across the region prioritize sustainable energy solutions to address climate change and reduce dependency on fossil fuels. Factors such as technological advancements, growing consumer demand for clean energy, and declining costs of renewable technologies contribute to the stability and long-term expansion of this sector, making APAC a global leader in renewable energy adoption.

• Major markets driving renewable energy demand in APAC include China, India, and Japan. China leads due to its extensive investments in solar and wind energy, backed by favorable policies and a commitment to net-zero emissions. Indias large-scale solar projects and proactive government initiatives enhance its standing, while Japans transition towards renewable sources, driven by energy security needs, also bolsters its position in the market. This proactive approach by the regions dominant economies supports further growth, with infrastructure and regulatory support paving the way for sustained expansion in clean energy.
• APAC countries are establishing ambitious renewable targets. China aims for renewables to comprise 25% of its total energy by 2025. India has set a target of achieving 175 GW of renewable energy capacity by the end of 2025, while South Korea plans for renewables to cover 20% of total energy consumption. These targets reflect APAC governments' commitment to transitioning towards sustainable energy sources.

APAC Renewable Energy Market Segmentation

• By Energy Type: The Market is segmented by energy type into solar, wind, hydro, biomass, and geothermal. Recently, solar energy has emerged with a dominant market share due to its cost-effectiveness, rapid technological advancements, and strong government incentives. Nations like China and India lead in large-scale solar installations, leveraging favorable policies and investment in infrastructure, which further consolidates the dominance of this segment in APAC's renewable energy mix.

• By Application: The market is further segmented by application into residential, commercial, industrial, and utility-scale. Utility-scale projects maintain a dominant market share due to their capacity to meet high energy demands in urban and industrial sectors. Governmental support in APACs major economies, including China, Japan, and India, facilitates the development of extensive renewable energy infrastructure, positioning utility-scale renewable projects as essential to the regions energy landscape.

APAC Renewable Energy Market Competitive Landscape

The APAC renewable energy market is primarily led by a few major companies with substantial investments and technological expertise. These companies leverage their brand recognition, distribution networks, and advancements in renewable technologies to secure leading positions in the market.

APAC Renewable Energy Market Analysis

Growth Drivers

• Government Incentives and Subsidies: Governments across the APAC region have increasingly allocated substantial resources to bolster renewable energy initiatives, driven by environmental goals and commitments to reduce carbon emissions. In 2024, Japan has allocated 1.5 trillion JPY towards its Green Transformation Fund to support renewable energy projects, while Indias Ministry of New and Renewable Energy has allocated around INR 35 billion to provide subsidies and incentives in the solar sector. China has also committed nearly CNY 500 billion to renewable projects across its 14th Five-Year Plan period. These substantial investments showcase regional governments' focus on reducing reliance on fossil fuels, ensuring that APAC's renewable energy market grows with strong policy support.
• Increasing Demand for Sustainable Energy Solutions: The APAC region's demand for renewable energy is escalating rapidly as urban populations increase and energy consumption rises. China consumed over 7,800 TWh of electricity in 2024, with renewable sources contributing over 2,500 TWh. India's total energy demand reached around 1,500 TWh, with renewables fulfilling nearly 23% of this need. With these growing numbers, APAC nations are scaling up renewable adoption to meet this demand sustainably. This trajectory is evident in urban development projects across regions like Southeast Asia, where green buildings and renewable-powered infrastructure are mandated in new projects.
• Declining Cost of Renewable Technologies: The cost of renewable energy technologies has been on a steady decline, which is making them more accessible across the APAC region. The cost of solar photovoltaic modules dropped from 30 CNY per watt in 2015 to below 10 CNY per watt in 2024, driven by economies of scale in production. Wind energy installation costs in India, meanwhile, have decreased from INR 7 per kWh in 2017 to INR 3 per kWh by 2024. This cost reduction is fostering higher adoption rates, allowing more entities, especially in emerging markets like Vietnam and Indonesia, to integrate renewables without high financial barriers.

Challenges

• High Initial Infrastructure Costs: Initial capital requirements for renewable energy infrastructure in APAC countries can be prohibitive. Building renewable projects involves significant expenses for land acquisition, equipment, and installation. These costs pose challenges for regions with limited funding access, particularly in rural and remote areas where infrastructure development is more complex. Although governments provide financial support through subsidies and incentives, the high upfront investment remains a critical barrier for widespread adoption and scalability of renewable energy projects.
• Energy Storage Limitations: Energy storage remains a critical challenge in the renewable energy sector in APAC. Limitations in storage capacity hinder the ability to maintain consistent energy supply during peak demand periods or adverse weather conditions. Without adequate storage solutions, the integration of renewable energy into national grids faces inefficiencies, impacting reliability and long-term stability. This constraint is a significant obstacle for industries and regions requiring uninterrupted power, highlighting the need for advancements in storage technologies.

APAC Renewable Energy Market Future Outlook

The APAC renewable energy market is set to experience substantial growth, driven by governmental initiatives to achieve energy security and meet carbon neutrality goals. Rising investments in sustainable energy projects and the growing acceptance of renewable technologies position this market for a favorable growth trajectory over the coming years. The integration of storage solutions and smart grids will also enhance the markets capacity to handle renewable energy intermittency and ensure stable power supply.

Future Market Opportunities

• Expansion of Distributed Energy Resources: The distributed energy resource (DER) market in APAC is witnessing growth as countries like Japan and South Korea promote decentralized energy. In Japan, distributed solar accounts for nearly 40 GW, allowing for energy self-sufficiency in various regions. South Koreas government initiatives are supporting 10 GW of DER installations by 2025. This shift towards distributed energy resources helps reduce grid dependency, presenting substantial opportunities for market players to tap into localized energy production needs.
• Renewable Energy Export Potential: Countries in APAC are becoming major exporters of renewable energy technology and services. China exported over USD 18 billion worth of solar panels in 2024, supplying markets in Africa, Europe, and Latin America. Australia is working on renewable hydrogen exports, with plans to produce 20,000 tons by 2025. This export potential positions APAC as a significant player in the global renewable supply chain, opening avenues for trade-driven growth.