The Asia-Pacific Agrivoltaic market is anticipated to grow at a CAGR of around 35% during the forecast period of 2023-28, says MarkNtel Advisors in their recent research report. The prominent reasons for the market growth are the rising concerns about climate change, shifting electricity production from non-renewable sources to renewable sources, and government initiatives to assist the adoption of agrivoltaics. Asia-Pacific is the fastest-growing region both in terms of population as well as economic prosperity, which, in turn, is multiplying the demand for electricity from residential, industrial, and commercial sectors. Moreover, the region also lacks proper electricity transmission for the power distribution in the rural areas, which would be a key factor for the growth in the demand for agrivoltaics systems to make the distant rural areas self-sufficient for energy production.
Additionally, the growth in the renewable sectors worldwide boosted the market, as the renewable sector includes a combination of wind & solar plants, along with battery electric storage solutions. Among all renewable energies, solar power is the most abundant source globally. According to the Institute for Energy Economics and Financial Analysis, agrivoltaics is a crucial renewable energy segment worldwide. In addition, the practice of generating solar power on farmland improves agricultural cultivation & the overall production of farm crops. With the government’s emphasis on the growth of the renewable energy sector, India’s solar photovoltaic industry has aimed to launch 100GW of solar power generating capability by 2022.
Moreover, with the ease of land acquisition & legal permits from the federal & state governments, gigantic solar power plants are in the trend, with a tremendous amount of domestic investment in the industry. Hence, the renewable sector would accelerate the industry in the coming years, further states the research report, "Asia-Pacific Agrivoltaic Market Analysis, 2023."
Vegetables & Fruits to Remain the Preferred Crop Type for the Stakeholders
Based on Crop Collaboration, the market is segmented into Vegetables, Fruits, Crops, and Others (Herbs, etc.). Of them, Vegetables & Fruits have been the most preferred crops. Growing collaboration of solar power plants on farmlands would not only generate clean electricity but also solve the food crisis across regions. Fruits & Vegetable farms were the most preferred crop for the installation of agrivoltaics in 2021. Vegetables such as lettuce, tomatoes, spinach, and peppers, along with fruit farms of strawberries, raspberries, blueberries, lingonberries, and grapes in vineyards, have registered high crop yields in the historical period in collaboration with solar power plants across the region. The rising number of alliances among the companies towards the installation of agrivoltaic systems in vegetable & fruit has been also pushing the market expansion due to rising solar radiation & climate change as it is affecting the quality of the harvest.
China Held a Considerable Share Owing to the Growing Construction
Geographically, China held a considerable share in the Asia-Pacific Agrivoltaic market during the historical period owing to the decreasing cost of solar panels with gradual innovations over the course of time, and economies of scale have led to an overall reduction in the installation cost across the country. This has soared the adoption of this technology across China. Further, in light of the severe carbon emissions from the power generation industry, China has launched plans to curtail carbon footprints & investment in clean energy. Thus, such support from the governments would also positively impact the market in the forecast years.
With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Enel Green Power, JS Power, Sun' Agri, Solar Window, BayWa r.e., Akira Nagashima, REM Tec, SolarFarm. Ltd., Next2Sun, and Others are looking forward to strengthening their market position.
Key Questions Answered in the Research Report