Energy - Industry - Asia Pacific Market, Share and Trends 2023-2028

Summary of Energy

The energy markets in the diverse Asia-Pacific region have undergone significant changes in recent years due to transitions toward more sustainable sources, rising energy demand driven by economic growth and new technologies disrupting traditional business models. Based on our estimates, we project that the Asia-Pacific’s regional energy market is growing at a CAGR of 8.33 % from $713 billion in 2023 to $1159.68 billion in 2029.

According to our analysis of industry data from regional organizations as well as proprietary research, some overarching trends include— increased focus on renewable energy sources like solar and wind, expansion of natural gas utilization, rise of distributed energy resources and investment in new transmission infrastructure. Younger consumers and businesses have also driven demand for greater transparency and sustainability commitments from energy providers. However— the COVID-19 pandemic introduced additional challenges as well as opportunities for acceleration and innovation.

Looking ahead, balancing energy security with decarbonization commitments will require strategic planning from governments and companies. Digital transformation and new service offerings centered around energy efficiency and optimization also present opportunities. By thoughtfully navigating these dynamics, players across the Asia-Pacific energy sector can build resilience and pave the way for long-term growth.

Recent Trends and Insights

Rising renewable energy investments and capacity additions to meet climate targets and address power demand growth. Increased natural gas utilization to support economic development and transition away from coal in some markets like Japan and South Korea.

Proliferation of distributed energy resources like rooftop solar as technology costs decline and consumers seek more sustainable options. Expansion of regional energy infrastructure like transmission interconnectors to facilitate renewable integration and trading.

Emphasis on digital transformation and new customer-centric solutions centered around energy efficiency, demand response and electrification of transport.

The shape of the energy transition in Asia-Pacific may seem doubtful but with that uncertainty comes a vast opportunity. Asia-Pacific has the reserves to be a major global player in the energy transition; pair that with a number of innovative technologies and policies and an opportunity for value creation in the region.

Product Insights

Renewable energy additions, particularly solar and wind, are expected to account for the majority of new power capacity through 2030 as countries work to meet climate targets and address rising demand. According to industry insights— over 50% of global renewable capacity growth between 2020-2025 will occur in the Asia-Pacific. China, India and Japan are leading investment and deployment.

Offshore wind is also gaining traction across markets like China, South Korea and Taiwan that have ambitious offshore targets. Hydropower remains an important renewable resource for countries with suitable resources like China, India and Southeast Asian nations. Meanwhile, natural gas-fired power capacity is expanding to provide flexible generation and back-up for intermittent renewables across developing markets.

Major LNG importers include Japan, China, South Korea and India. Australia and Qatar are leading exporters but the US is also increasing LNG exports to Asia. Meanwhile— exploration and production activity by national oil companies is increasingly focused on developing gas reserves, such as— in Indonesia and Malaysia— to fuel domestic power and manufacturing sectors.

Investments are accelerating across the energy technology space. Battery energy storage installations. For example— are forecast to increase more than 15-fold from 2020 levels by 2030 as countries integrate higher shares of intermittent renewables into their power grids. Electric vehicles and charging infrastructure are also seeing strong government support and consumer adoption in key markets like China, Japan, South Korea, Singapore and India. Continued declines in technology costs will be a key driver. Smart grid deployments incorporating digital technologies are likewise expanding to enable active consumer and distributed energy resource participation in the power system.

Key Companies

Some major players within this vast domain of industry are

• Power Construction Corporation of China Ltd
• NTPC Limited
• Tokyo Electric Power Company Holdings
• State Grid Corporation of China
• Korea Electric Power Corporation
• Iberdrola SA
• Xinjiang Goldwind Science & Technology Co., Ltd.
• Vestas Wind Systems AS
• Tata Power Company Limited
• Trina Solar Ltd.

Regional Analysis

As the world’s largest energy market– China faces balancing rising demand with environmental sustainability. It is the global leader in renewable capacity additions and clean technology manufacturing. However— coal still dominates the power mix due to economic importance. Ongoing reforms aim to liberalize markets and incentivize private sector participation across the value chain.

Energy access remains a key priority for India’s growing economy and population. The country is focusing on expanding domestic oil and gas production while also committing to renewable capacity growth. Sustained investment is needed in infrastructure to help integrate renewables and strengthen regional grid connectivity.

Both countries have limited domestic energy resources and thus rely heavily on imports. As leading LNG importers, diversifying supply through new contracts and infrastructure is a priority. Both markets are also transitioning away from nuclear and coal power with natural gas and renewables.

Rapid economic development and urbanization are driving energy demand across Southeast Asian countries. Hydropower and geothermal are important indigenous resources. However, the region relies heavily on fossil fuel imports and several have become key LNG importers. Transition pathways differ across the diverse national contexts.

As a top global LNG exporter– Australia plays a key role in regional gas trade. It is also a renewable energy leader with vast solar resources. Ongoing integration of distributed and utility-scale renewables presents opportunities for technology exports and investment. Energy exports are central to its economy.

Market Segmentation

By Type:

• Oil & Gas
• Coal
• Nuclear
• Hydroelectric
• Wind
• Solar
• Other Renewables

By End User:

• Residential
• Commercial
• Industrial
• Transportation

By Enterprise Size:

• Large Enterprises
• Small & Medium Enterprises

By Country:

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

Our Methodology

We have offered a well-founded review of the Asia-Pacific’s regional energy market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.