Why the future of Asia's niche solar markets looks sunny

It's expected to gain ground quickly.

According to a forecast from research and advisory firm Lux Research, niche solar markets are expected to grow to 1.2 GW in 2024 due to the combination of a suite of niche applications, led by building-integrated photovoltaics (BIPV) that incorporate PV panels directly in building roofs, skylights or facades.

Though Europe, Middle East, and Africa (EMEA) will remain the largest niche PV market--growing from 66 MW in 2013 to 505 MW in 2024--the Asia-Pacific market is seen to expand faster, growing at a 23% compound annual growth rate (CAGR) from 27 MW to 315 MW.

Here's more from Lux Research:

Technology barriers including the need for high-quality barrier films, and integrators’ hesitance, have slowed growth in these markets to date,” said Edward Cahill, Lux Research Analyst and lead author of the report titled, “Into the Niche: Putting a Magnifying Glass on PV’s Tiniest Markets.”

“Market adoption has been limited and will remain small relative to conventional solar demand, but the niche application can be a profitable side business that supports a core business market,” he added.

Lux Research analysts used a logistics curve analysis to forecast markets for niche applications through 2024. Among their findings:

Facades are the fastest-growing segment for BIPV. Roofing products like solar shingles have the most traction in BIPV, accounting for 425 MW, or nearly half its market. But facades will grow faster – at a 20% compound annual growth rate (CAGR) – to 407 MW.

Skyrocketing rechargers drive electronics. Electronics will emerge the fastest-growing segment of the thin-film PV market, driven by solar chargers popular with outdoor enthusiasts and off-grid users. The rechargers will grow 31-fold to 125 MW (199 MW) in 2024.

Asia gains momentum. EMEA will remain the largest niche PV market – growing from 66 MW in 2013 to 505 MW in 2024. However, Asia-Pacific will expand faster, growing at a 23% CAGR from 27 MW to 315 MW, while the Americas market will grow steadily from 61 MW to 340 MW.