Japan Photovoltaics Market Size, Share, and COVID-19 Impact Analysis, By Component (Modules, Inverters, and BOS), By Material (Silicon and Compounds), By Application (Residential, Commercial & Industrial, and Utilities), and Japan Photovoltaics Market Insights, Industry Trend, Forecasts to 2035

Japan Photovoltaics Market Insights Forecasts to 2035

• The Japan Photovoltaics Market Size is Expected to Grow at a CAGR of around 8.5% from 2025 to 2035
• The Japan Photovoltaics Market Size is Expected to hold a significant share by 2035

According to a research report published by Spherical Insights and Consulting, The Japan Photovoltaics Market Size is Anticipated to hold a significant share by 2035, Growing at a CAGR of 8.5% from 2025 to 2035. This is due to strong government support for clean energy, carbon neutrality targets by 2050, and rising electricity demand. Technological advancements, declining solar panel costs, and increased commercial adoption further drive market expansion through 2035.

Market Overview

The Japan photovoltaics (PV) market encompasses the production, installation, and utilization of photovoltaic systems that convert sunlight into electricity. This market plays a pivotal role in Japan's energy strategy, especially. The Fukushima nuclear disaster prompted a significant shift towards renewable energy sources. The Japan photovoltaics market offers strong opportunities driven by the country's ambitious carbon neutrality goals and transition to renewable energy. Rising electricity costs, grid decentralization, and supportive government policies, such as feed-in tariffs and green investment incentives, are fueling solar adoption. Advancements in photovoltaic technologies, including high-efficiency panels and building-integrated photovoltaics (BIPV), further enhance market potential. Additionally, Japan’s aging nuclear infrastructure and disaster resilience strategies are encouraging investments in solar energy, particularly in residential, commercial rooftop, and floating solar installations.

Report Coverage

This research report categorizes the market for the Japan photovoltaics market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan photovoltaics market. Recent market developments and competitive strategies such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the Japan photovoltaics market.

Driving Factors

The photovoltaics market in Japan is fueled by a mix of government policies, technological innovation, and rising concern for the environment. Positive government support in the form of feed-in tariffs (FiTs), renewable energy subsidies, and policies for national energy transition has materially driven solar uptake. Furthermore, Japan's lack of indigenous fossil fuel resources increased the concern for energy independence, and hence solar power became a strategic imperative. Innovations in technology regarding solar panel efficiency, energy storage, and smart grid connectivity have also increased the attractiveness of photovoltaic systems. Increased awareness of climate change and carbon emissions has further fueled public and private funding in clean energy. In addition, increasing electricity prices and the decreasing cost of solar installations are gradually making photovoltaics economically attractive to residential, commercial, and industrial consumers, further fuelling market growth nationwide.

Restraining Factors

The Japan photovoltaics market faces restraining factors including limited land availability for large-scale solar installations, grid integration challenges due to variable solar output, and declining government subsidies. Additionally, high initial installation costs and complex regulatory frameworks deter investment. These factors collectively hinder rapid expansion despite Japan’s strong commitment to renewable energy and carbon neutrality goals.

Market Segmentation

The Japan photovoltaics market share is classified into component, material, and application.

• The BOS segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan photovoltaics market is segmented by component into modules, inverters, and BOS. Among these, the BOS segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is attributed to the increasing solar PV installations in Japan. Rising demand for inverters, mounting systems, and electrical components to support grid integration and efficiency is driving growth. Technological advancements and infrastructure upgrades will fuel a strong CAGR going forward.

• The silicon segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan photovoltaics market is segmented by material into silicon and compounds. Among these, the silicon segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is attributed to its widespread use in high-efficiency photovoltaic cells. Japan’s focus on proven, reliable solar technologies supports strong demand for silicon-based modules. Continuous advancements in monocrystalline and polycrystalline silicon are expected to drive growth at a significant CAGR during the forecast period.

• The commercial & industrial segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The Japan photovoltaics market is segmented by application into residential, commercial & industrial, and utilities. Among these, the commercial and industrial segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. The segmental growth is attributed to rising energy costs and sustainability goals among Japanese businesses. Government incentives, net metering, and demand for energy independence have accelerated solar adoption. Ongoing industrial decarbonization efforts will drive strong CAGR growth throughout the forecast period.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan photovoltaics market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers and acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Sharp Corporation
• Kyocera Group
• Panasonic Corporation
• Mitsubishi Electric Corporation

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the Japan photovoltaics market based on the below-mentioned segments:

Japan Photovoltaics Market, By Component

• Modules
• Inverters
• BOS

Japan Photovoltaics Market, By Material

• Silicon
• Compounds

Japan Photovoltaics Market, By Application

• Residential
• Commercial and Industrial
• Utilities