Asia Pacific Renewable Energy Market

Asia Pacific Renewable Energy Market Size and Share:

The Asia Pacific renewable energy market size was valued at USD 330.50 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 711.80 Billion by 2033, exhibiting a CAGR of 8.90% from 2025-2033. The market is expanding rapidly, driven by government policies promoting sustainability, technological advancements, and increasing energy demand. Solar, wind, and hydroelectric power are the dominant segments, with heavy investments in renewable energy ventures as well as infrastructure across countries encompassing China, India, and Japan.

The renewable energy industry in Asia Pacific is primarily driven by government policies and regulations aimed at addressing climate change and ensuring energy security. Countries like Japan, China, and India have set aggressive renewable energy objectives, with strong commitments to reducing greenhouse gas emissions. For instance, as per the Press Information Bureau, India attained a notable milestone pertaining to its renewable energy sector as the nation's total capacity for renewable energy surpassed 200 GW in 2024. This accomplishment caters to India's aim of attaining 500 GW by the year 2030. In line with this, such nations are increasingly adopting frameworks such as feed-in tariffs, subsidies, and tax incentives to encourage investment in solar, wind, and hydroelectric power. In addition, the region's escalating energy requirement, combined with the demand for sustainable solutions, has led to substantial investments in renewable energy infrastructure to meet both economic and environmental objectives.

Technological advancements are significantly accelerating the growth of renewable energy in the Asia Pacific region. Innovations in energy storage systems, grid modernization, and the efficiency of renewable power generation technologies are enhancing the overall performance and reliability of renewable energy options. The lowering expenditure of energy storage systems, solar panels, and wind turbines has made renewable energy more economically viable, attracting both public and private investments. For instance, industry reports indicate that as of 2024, utility-based solar photovoltaic prices reduced significantly in Asia Pacific, making it the cheapest, with renewable energy being 13% more cost-effective than coal. Moreover, China leads in cost reduction with offshore wind, utility PV, and onshore wind being 40% to 70% more affordable than in other Asian markets. Besides this, ongoing research and development in emerging technologies, such as offshore wind and green hydrogen, are further boosting the region's transition to sustainable energy sources, ensuring long-term market expansion.

Asia Pacific Renewable Energy Market Trends:

Increased Investment in Solar Power

Solar energy continues to be at the forefront of the Asia Pacific renewable energy industry, driven by its cost-effectiveness and scalability. Governments across the region are providing strong incentives for solar installations, leading to a surge in both utility-scale and rooftop solar projects. The decreasing cost of solar panels and advancements in photovoltaic technology are making solar power more accessible. Furthermore, countries like China and India are leading the way with large-scale solar parks, and the sector is attracting substantial foreign investments, strengthening its position as a key driver and significantly aiding in expansion of Asia Pacific renewable energy market share. For instance, the Omkareshwar Floating Solar Park in Madhya Pradesh, India's largest, showcases significant progress in the nation's clean energy ambitions. With a total capacity of 600 MW, the park has already commissioned 278 MW. It uses innovative floating solar technology that maximizes efficiency by utilizing the cooling effect of water on solar panels. The project is expected to generate over 4600 million units of clean energy over the next 25 years, marking a major step towards achieving India’s renewable energy goals.

Growth of Offshore Wind Energy

Offshore wind power is emerging as a significant trend in the renewable energy sector of Asian nations. With vast coastlines and favorable wind conditions, countries such as Japan, South Korea, and China are investing heavily in offshore wind farm projects. Technological advancements in floating wind turbines and large-scale offshore wind farms are boosting the sector's growth. These developments offer a potential solution to land constraints for onshore wind projects and are expected to play a critical role in catering to the region’s renewable energy aims, especially for countries with limited land availability. For instance, as per industry reports, the offshore wind potential in Asia Pacific is set to grow fourfold by 2030 compared to 2023 levels. In Taiwan, offshore wind capacity reached 2.25 GW in 2023, with projections of nearly 5 GW by 2028.

Expansion of Energy Storage Solutions

As renewable energy adoption increases, energy storage techniques are emerging as highly requisite to facilitate grid stability and effectively manage intermittent power generation from solar and wind sources. For instance, industry reports indicate that as of 2024, Asia Pacific has established itself as the biggest region in the advanced energy storage system industry. Moreover, the Asia Pacific market is witnessing a surge in investments in advanced energy storage solutions, encompassing pumped hydro storage or lithium-ion batteries. For instance, in September 2024, Central Electricity Authority announced approval of two new pumped storage ventures in India, with 1 GW and 1.5 GW of capacity each. This advancement will facilitate the expansion of energy storage systems for power grid in the country.  In addition to this, these technologies help to store residual energy when production cycle is at peak and release it when demand is high. With continuous advancements in storage technologies and declining costs, energy storage is anticipated to exhibit a critical role in the region’s shift to a energy grid with low-carbon profile.

Asia Pacific Renewable Energy Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Asia Pacific renewable energy market, along with forecasts at the regional and country levels from 2025-2033. The market has been categorized based on type and end user.  

Analysis by Type:

• Hydro Power
• Wind Power
• Solar Power
• Bioenergy
• Others

The Asia Pacific renewable energy market emphasizes hydropower as its essential segment because it enables three major river-abundant nations, that are China, India and Laos, to generate power. The area hosts tremendous unexploited hydropower resources that companies are developing through massive dam constructions and river-flow projects. Furthermore, the stable nature and reliable delivery of energy by hydropower makes it essential for creating energy security because it generates continuous baseload power. In addition, the growing concern about environmental impacts has not interfered with hydropower serving as the leading renewable energy solution, which depicts robust contributions to regional energy systems.

The Asia Pacific region is currently witnessing strong advancement in wind power generation as it installs more land-based wind turbines, together with sea-based wind farms. The nations such as China and India, along with South Korea, actively commit substantial funds toward wind energy development as they actively seek to improve their energy diversity while cutting carbon pollution. Moreover, wind turbine installation costs have been dramatically lowered through technological developments, which makes large-scale wind energy projects increasingly beneficial. The growth of offshore wind farms in coastal nations like Japan and South Korea stands as one of the future key industry expansion sectors.

The Asia Pacific renewable energy sector experiencing its fastest growth for solar power because government support has increased while installation expenses keep decreasing. Solar photovoltaic systems find extensive use as utility-level and residential solutions throughout both power generator sectors. In addition, the nations like China, alongside India and Japan have taken the lead in solar power deployment through their major investments in solar parks, combined with rooftop arrays and electric utility networks. Furthermore, solar energy growth keeps accelerating because customers are actively acknowledging environmental concerns and need independent power supplies, while governments support solar usage through enabling policies.

Bioenergy plays a significant role in the renewable energy segment of Asia Pacific, especially in countries with abundant agricultural resources like Indonesia, India, and Thailand. The sector includes biomass, biogas, and biofuels, all of which contribute to reducing reliance on fossil fuels. In addition to this, biomass and biogas are used in power generation, while biofuels, particularly biodiesel and ethanol, are key components of the transport sector. Furthermore, government policies supporting sustainable bioenergy production and the availability of raw materials position bioenergy as a vital part of the region's renewable energy ecosystem.

Analysis by End User:

• Industrial
• Residential
• Commercial

The industrial sector represents a main pillar in the Asia Pacific renewable energy industry because businesses currently demand affordable sustainable energy systems which can perform effectively. The manufacturing industries and mining operations, along with heavy machine companies, are actively opting for solar, wind, and biomass solutions to cut operational expenses and reach sustainability goals. Furthermore, the industrial sector is increasing renewable energy system investments because of rising energy requirements and government incentives that provide tax breaks, along with renewable energy mandates. In addition to this, the push to achieve decarbonization goals and embrace corporate social responsibility (CSR) initiatives serves as a strong motivator for the industrial sector throughout Asia Pacific to adopt renewable energy solutions.

The residential market for renewable energy within Asia Pacific is expanding swiftly because customers seek independence from energy sources and money savings, together with sustainability in the environment. The implementation of solar photovoltaic systems leads as the most popular domestic renewable solution because governments offer incentives while the installation prices constantly decline. In addition, the market for small-scale wind energy systems along with residential battery storage systems is experiencing growing popularity in specific markets alongside solar technologies. Homeowners are turning to renewable energy because they acknowledge the necessity of climate change, further being prompted by growing electricity prices. Moreover, rooftop solar installation is popular among China, India, as well as Australia, contributing significantly to the Asia Pacific renewable energy market price.

The commercial sector in the Asia Pacific renewable energy sector is experiencing rapid adoption, with businesses seeking to reduce energy costs, improve sustainability profiles, and meet regulatory requirements. Commercial buildings, majorly involving hotels, office complexes, and shopping malls, are rapidly integrating solar PV systems, energy storage, and energy efficiency measures. Moreover, with governments offering tax incentives and renewable energy targets, commercial entities are increasingly investing in green technologies to enhance operational efficiency and align with environmental goals. This sector's growing interest in green buildings and corporate social responsibility (CSR) initiatives is further stimulating demand for renewable energy solutions, especially in urban centers across the region.

Country Analysis:

• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Others

China is a major player in the Asia Pacific renewable energy segment, accounting for a significant share due to its massive investments in solar, wind, and hydroelectric power. The country’s aggressive renewable energy targets and government policies, including subsidies and tax incentives, have accelerated the growth of renewable energy infrastructure. In addition, China’s commitment to reducing carbon emissions, coupled with its advanced manufacturing capabilities, positions it as a global leader in renewable energy production, particularly in solar panel manufacturing and large-scale wind farms.

Japan holds a prominent position in the Asia Pacific renewable energy sector, driven by its emphasis on energy security and decarbonization goals. The country has heavily invested in solar energy following the 2011 Fukushima disaster, alongside growing investments in offshore wind and hydrogen technologies. In addition to this, Japan's supportive government policies, such as feed-in tariffs and green energy subsidies, continue to drive market expansion. As the country transitions away from nuclear and fossil fuels, renewable energy is becoming increasingly central to Japan's long-term energy strategy.

India is rapidly expanding its renewable energy capacity, becoming one of the biggest markets in Asia Pacific. The government’s ambitious targets, including a robust aim to attain 500 GW capacity of renewable energy by the year 2030, drive market growth. Solar power is particularly prominent in India, with significant investments in large-scale solar parks. Furthermore, wind energy also plays a key role, especially in coastal regions. India’s focus on rural electrification and energy access further supports the expansion of renewable energy, attracting both domestic and international investments.

Competitive Landscape:

The market is exhibiting intense competition, with leading players mainly encompassing multinational corporations, large utilities, and independent power producers. Major companies are increasingly focusing on diversifying their energy portfolios, investing in solar, wind, and energy storage projects to capitalize on the region's growth potential.  Tactical collaborations and acquisitions are common as companies seek to expand their market share and leverage advanced technologies. For instance, in February 2025, MSIG Asia Pte Ltd. strategically formed an alliance with The RiskPoint Group to significantly improve insurance for renewable energy across Asia Pacific region. In addition to this, local players are also growing in prominence, particularly in countries like China and India, where government policies and incentives create opportunities for regional firms to compete effectively.

The report provides a comprehensive analysis of the competitive landscape in the Asia Pacific renewable energy market with detailed profiles of all major companies.

Latest News and Developments:

• July 2024: TotalEnergies deployed distributed solar assets of capacity above 200MW across Asia Pacific, post the completion of a 6MWp rooftop venture in Vietnam. This initiative was prompted in partnership with Chin Well Fasteners, a provider for carbon steel fastener.
• October 2024: Vena Energy launched the commercial operation for a solar project named Kasama with 53 MW of capacity in Ibaraki Prefecture, Japan. This venture is created to offer lean, renewable energy to approximately 14,000 households per year.
• In December 2024, Vestas announced securing an offshore wind project in Japan with 315 MW of capacity.  The project includes 21 new wind turbines, along with an agreement for long-term service to guarantee ideal performance of the components involved.
• In September 2024, Avaada Group, an India-based sustainable energy firm, announced significant investment of USD 30 Billion in green energy solutions by the year 2031, aiming for generation of 30 GW of renewable energy by 2030.
• In July 2024, Google announced a strategic collaboration with BlackRock’s Climate Infrastructure arm to facilitate the construction of a new solar pipeline with 1 GW capacity in Taiwan. This initiative will significantly improve clean energy utilization.

Asia Pacific Renewable Energy Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Asia Pacific renewable energy market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Asia Pacific renewable energy market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Asia Pacific renewable energy industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.