Japan Solar Energy Market by End-user and Application - Forecast and Analysis 2022-2026

The solar energy market share in Japan is expected to increase by 505.28 terawatt-hour from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 29.78%.

This solar energy market in Japan research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers solar energy market in Japan segmentations by end-user (utility and rooftop) and application (grid-connected and off-grid). The solar energy market in Japan report also offers information on several market vendors, including Abengoa SA, Acciona SA, BrightSource Energy Inc., Canadian Solar Inc., E Solar, First Solar Inc., Kaneka Corp., Shunfeng International Clean Energy Co. Ltd., SunPower Corp., and Tata Power Co. Ltd. among others.

What will the Solar Energy Market Size in Japan be During the Forecast Period?

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"One of the key factors driving the Argentina solar energy market growth is the increasing demand for electricity."

Solar Energy Market in Japan: Key Drivers, Trends, and Challenges

The high electricity demand is notably driving the solar energy market growth in Japan, although factors such as the rising adoption of alternate renewable sources may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the solar energy industry in Japan. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Solar Energy Market Driver in Japan

The high electricity demand is one of the key drivers supporting the solar energy market growth in Japan. The households sector showed an increase in energy consumption year-on-year due to the increased time spent at home because of COVID-19 in 2020 and other impacts. Japan's power sector has recorded rising sales by small-scale power retailers over the past five years. The marginal rise, despite the expanding market share, shows that the country's retailers increased direct purchases from power generators to ensure stable supplies in response to government recommendations for preventive measures to avoid power shortages. These increased demands contribute to the adoption of solar energy, which is likely to continue during the forecast period. 

Key Solar Energy Market Trend in Japan

The increase in solar PV installations is one of the key trends contributing to the solar energy market growth in Japan. For instance, the new aim was announced by Japan's environment and trade ministries, after the announcement that the country would cut emissions by 46% by 2030 when compared to 2013 levels. Japan aims to hit the target by installing solar panels on 50% of central government and municipality buildings, adding 6GW of capacity, boosting solar on corporate buildings and car parks, which will add 10GW, and adding 4GW in public land and promotion areas in 1,000 Japanese towns and cities. Thus, the Japanese government intends to increase the amount of land available for solar projects while also investing in technology that will make agricultural solar farms easier to implement. Such initiatives will drive market growth during the forecast period.

Key Solar Energy Market Challenge in Japan

The rising adoption of alternate renewable sources is one of the factors hindering the solar energy market growth in Japan. Japan is one of the countries with the most abundant geothermal resources. Geothermal district heating systems might be developed in Japan's snowy regions from Hokkaido to the west coast of Honshu, similar to Iceland, where more than 90% of all homes are heated with geothermal hot water and generate power using Japanese geothermal technology. For instance, in southern Iceland, the Blue Lagoon is a geothermal spa. The spa is situated in a lava field on the Reykjanes Peninsula, in a geothermal power-friendly area, and is fed by water from the nearby Svartsengi geothermal power plant. Thus, the increasing use of alternate renewable resources will decline the demand for solar energy and thereby, hampering the market growth.

This solar energy market in Japan analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the solar energy market in Japan as a part of the global renewable electricity market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the solar energy market in Japan during the forecast period.

Who are the Major Solar Energy Market Vendors in Japan?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Abengoa SA
• Acciona SA
• BrightSource Energy Inc.
• Canadian Solar Inc.
• E Solar
• First Solar Inc.
• Kaneka Corp.
• Shunfeng International Clean Energy Co. Ltd.
• SunPower Corp.
• Tata Power Co. Ltd.

 

This statistical study of the solar energy market in Japan encompasses successful business strategies deployed by the key vendors. The solar energy market in Japan is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Abengoa SA - The company is involved in offering solar energy which uses the heat of the sun to produce large scale clean electricity to the grid when it is demanded even in hours without sunlight.
• Acciona SA - The company is involved in offering solar energy through the photovoltaic segment with greater efficiency and contributes to reducing the carbon footprint of leading companies in wide range of sectors.
• BrightSource Energy Inc. - The company is involved in offering wind and solar photovoltaic in order to produce high efficient renewable energy which delivers clean, reliable and cost competitive option to users.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The solar energy market in Japan forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Solar Energy Market in Japan Value Chain Analysis

Our report provides extensive information on the value chain analysis for the solar energy market in Japan, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the renewable electricity market  includes the following core components:

• Inputs
• Electricity generation
• Electricity transmission
• Electricity distribution
• End-users
• Innovations

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

What are the Revenue-generating End-user Segments in the Solar Energy Market in Japan?

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The solar energy market share growth in Japan by the utility segment will be significant during the forecast period. For decades, utility-scale solar has provided consistent, clean electricity at a low cost. One of the quickest ways to reduce carbon emissions and put Japan on the path to a clean energy future is to develop utility-scale solar power. Solar technologies such as primary PV and CSP can be used in a utility-scale solar power plant. Moreover, many utility-scale solar systems can feature energy storage capacity, which delivers power when the sun is not shining while simultaneously increasing grid dependability and resiliency. Such factors will drive the segment growth during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the solar energy market size in Japan and actionable market insights on post COVID-19 impact on each segment.

 

Solar Energy Market Scope in Japan
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 29.78%
Market growth 2022-2026	505.28 TWh
Market structure	Fragmented
YoY growth (%)	27.81
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Abengoa SA, Acciona SA, BrightSource Energy Inc., Canadian Solar Inc., E Solar, First Solar Inc., Kaneka Corp., Shunfeng International Clean Energy Co. Ltd., SunPower Corp., and Tata Power Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Solar Energy Market in Japan Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive solar energy market growth in Japan during the next five years
• Precise estimation of the solar energy market size in Japan and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the solar energy industry in Japan  
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of solar energy market vendors in Japan 

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