Building Integrated Photovoltaic in Malaysia Trends and Forecast
The future of the building integrated photovoltaic market in Malaysia looks promising with opportunities in the industrial, commercial, and residential markets. The global building integrated photovoltaic market is expected to grow with a CAGR of 15.8% from 2025 to 2031. The building integrated photovoltaic market in Malaysia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the swift growth of solar photovoltaic installation capacities globally, driven by rising demand for renewable energy sources and growing recognition of energy security, self-sufficiency, and supportive government regulations.
• Lucintel forecasts that, within the application category, the roof segment is expected to witness the highest growth over the forecast period due to enhanced strength and superior aesthetic charm in integrated roofs and skylights.
• Within the end use industry category, industrial will remain the largest segment due to increasing utilization to decrease dependence on non-renewable energy sources.
Emerging Trends in the Building Integrated Photovoltaic Market in Malaysia
The building integrated photovoltaic (BIPV) industry in Malaysia is gaining traction as part of the country’s efforts to achieve sustainable development and renewable energy goals. The growing popularity of green technology, energy efficiency in buildings, and other environmental initiatives are contributing to this trend. The integration of solar energy into windows, roofs, and facades of buildings is now more feasible due to the country’s tropical climate and strong solar radiation. Emerging trends that expand the scope of BIPV in both the residential and commercial sectors of Malaysia are discussed below.
• Government Support and Policies: To support the adoption of BIPV and other renewable energy technologies, the Malaysian government has developed several policies and incentives. The Net Energy Metering (NEM) and Feed-in Tariff (FiT) policies subsidize BIPV adoption in residential and commercial buildings, making solar energy significantly more affordable. Such initiatives are facilitating the faster adoption of solar technology in buildings across the nation, further helping Malaysia transition to a low-carbon economy.
• Focus on Sustainable Urban Development: As urbanization increases in Malaysia, there is a push to integrate renewable energy solutions in urban settings. One crucial step in this effort is the implementation of BIPV systems in new residential and commercial buildings. BIPV helps reduce carbon emissions in urban buildings while increasing energy retention through renewable energy on-site. As Malaysia strives to create smarter, more sustainable cities, the self-sufficient urban BIPV system, especially in high-rise buildings, is becoming increasingly important.
• Integration with Smart Building Technologies: In Malaysia, the adoption of smart building technologies is on the rise, and BIPV is being incorporated into systems that optimize energy management. Smart BIPV systems perform well in real-time energy generation and consumption optimization with the help of smart meters, sensors, and energy storage. This integration allows building owners and operators to monitor and manage energy more effectively, improving the system’s profitability. The increasing use of modern, environmentally friendly buildings enhances the desire to combine BIPV with building automation, which will further contribute to the development of this field.
• Adoption in the Commercial Sector: Malaysia’s commercial sector is actively embracing BIPV to meet sustainability objectives. Corporate offices, shopping malls, and factories are installing solar-integrated materials such as BIPV glass, tiles, and solar roofs to fulfill corporate sustainability targets. These installations enable companies to lower operational costs, improve their environmental standing, and comply with energy regulatory frameworks. The commercial adoption of BIPV is significantly contributing to the energy transition in Malaysia’s construction industry.
• Integration of Energy Storage: The adoption of energy storage technologies is increasing within BIPV systems to improve the efficiency and reliability of solar energy generation. In Malaysia, energy storage devices are being integrated with BIPV installations to store excess solar energy for use during peak demand periods or nighttime. This integration helps create buildings with higher levels of energy self-sufficiency and reduced energy costs. As innovation in storage technology accelerates, the combined use of BIPV and energy storage systems will be implemented more frequently in both residential and commercial settings.
Due to government policies, urban development trends, and the introduction of smart technologies, the BIPV industry in Malaysia is growing rapidly. The increasing use of BIPV systems in residential and commercial properties, along with energy storage devices, is transforming energy-efficient architecture in Malaysia. As the market matures, more competition for residents’ attention will emerge, making BIPV a vital part of Malaysia’s transition to a more environmentally friendly and sustainable economy.
Recent Developments in the Building Integrated Photovoltaic Market in Malaysia
In Malaysia, the focus of new developments in the BIPV market is to make solar integration in building design more commonplace. As BIPV systems support green building methodologies, their adoption in Malaysia aligns with sustainable development goals, emphasizing economic growth, modern technology, and energy conservation. These opportunities are essential for understanding the market’s evolution and encouraging new businesses or homeowners in Malaysia to adopt integrated solar technologies.
• The Malaysian government has crafted several policies and incentives to support renewable energy integration in buildings. Property owners can participate in schemes like the Net Energy Metering (NEM), which allows them to sell excess solar power to the grid, offsetting their energy expenses. These policies are making BIPV installations more economical for residential and commercial users, resulting in a positive attitude towards solar energy adoption in the construction sector across the country.
• There has been an increase in the number of BIPV-integrated projects in Malaysia, thanks to recent collaborations between solar energy providers and property developers. These collaborations help integrate solar technology into new constructions, residential homes, and large commercial buildings. As a result, developers and solar providers are working together to produce smarter, energy-optimized buildings with sustainable energy sources. These partnerships provide solutions to industry demand and help meet government objectives for renewable energy utilization.
• Technological Innovation in BIPV Products: With improvements in solar panels and construction materials, innovation in BIPV products has greatly increased in Malaysia. The installation of new materials such as solar roof tiles and BIPV glass makes it easier to design architectural structures that are self-sufficient in energy production. These innovations simplify the integration of BIPV systems into various building designs. Additionally, as technology advances, the cost of BIPV systems will decrease, making them more accessible to the market.
• Increased Focus on Energy Independence: Energy autonomy is a growing concern for both commercial and residential property owners in Malaysia. The use of BIPV systems enables buildings to become less dependent on the national electricity grid and reduces electricity expenses. This is especially important for commercial businesses, where energy consumption is significantly higher due to the nature of their operations. Businesses that use solar-integrated buildings gain more energy independence, which translates into lower costs and a more sustainable enterprise.
• Green Building Certifications and Standards: The demand for green building certifications, such as the Green Building Index (GBI) in Malaysia, is growing rapidly, along with the need for energy-efficient and sustainably built technologies like BIPV. Many developers are integrating BIPV systems because these sustainability standards are becoming increasingly important to consumers and investors. Developers can achieve better marketing and environmental performance for their projects by incorporating BIPV into their buildings, helping Malaysia meet green building targets.
The BIPV market in Malaysia is attracting significant activity from investors focused on sustainability, energy efficiency, and innovation. Government policies, rapid technological advancements, and a focus on green building certification are significant factors contributing to the adoption of BIPV in both residential and commercial sectors. These changes in Malaysia’s construction design and processes are set to continue with new policies, making the use of BIPV energy technologies central to the country’s sustainable development and renewable energy strategies. The future market suggests that BIPV will play a crucial role in meeting green building standards in Malaysia’s construction industry.
Strategic Growth Opportunities for Building Integrated Photovoltaic Market in Malaysia
The market potential for building integrated photovoltaic (BIPV) solar panel systems in Malaysia remains untapped and could be realized through sustainability goals, national policies, and technological progress. BIPV systems are increasingly being applied to residential, commercial, and industrial structures in line with the country’s objectives to increase energy efficiency and reduce carbon emissions. The following strategies highlight BIPV’s potential in Malaysia’s evolving building sector.
• Adoption of Residential Solar Systems: The residential sector is one of the fastest-growing markets in Malaysia, and the adoption of BIPV systems is expected to grow along with it. This growth is driven by increased energy consumption, which is encouraging homeowners to become more self-sufficient and invest in energy-solar integrated roofs, windows, and facades. BIPV systems with aesthetic appeal further promote self-sufficiency, especially in the form of energy-efficient buildings. New eco-friendly housing projects that recognize the need to merge form and function should consider integrating BIPV technology to address growing energy needs.
• Adoption of the Commercial Sector: There is a growing interest in BIPV in the commercial sector in Malaysia, driven by high energy costs and a focus on sustainability. BIPV systems are used in commercial buildings such as offices, malls, and factories to reduce energy expenses and improve efficiency. Furthermore, BIPV systems allow businesses to enhance their sustainability branding, making it easier to attract environmentally conscious customers and investors. Government policies and the increasing demand for LEED-certified or energy-efficient buildings further promote BIPV investment for forward-thinking companies seeking long-term operational savings and sustainable energy solutions.
• Integration with Smart Building Technologies: BIPV systems in Malaysia have significant potential for integration with the growing number of modern smart buildings and their energy management systems. BIPV systems can improve overall performance by optimizing energy use through real-time monitoring, smart meters, and energy storage facilities. When paired with smart technology, a building becomes more energy-efficient, reduces operational costs, and enhances sustainability. This trend supports the development of smarter, more integrated, and greener buildings as a goal for urban projects in Malaysia.
• Commercial Development Sponsored by the Government: The Malaysian government has provided support through programs such as the Net Energy Metering (NEM) and Feed-in Tariff (FiT) to promote renewable energy adoption in buildings. These programs are particularly beneficial for the commercial sector, where BIPV systems significantly reduce energy needs. Additionally, the government’s green building and smart city initiatives further facilitate BIPV deployment. Developers are increasingly integrating BIPV solutions into commercial real estate to comply with sustainability commitments and attract energy-efficient tenants.
• Application in Agricultural and Industrial Fields: In Malaysia, BIPV adoption is emerging in the industrial and agricultural sectors, where large buildings and land provide great potential for solar integration. Solar technologies, such as solar shingles and solar pitched roofs, are being used in factories and warehouses to provide weather protection while generating power. Agricultural use, especially solar greenhouses, is also gaining traction. These technologies reduce energy expenditures, improve land use efficiency, and ensure a reliable power supply for industrial activities. With the growth of the industrial sector, BIPV is expected to make a significant contribution to sustainable development.
The Malaysian BIPV market has great growth potential, driven by the increasing demand for energy-efficient solutions in residential, commercial, and industrial sectors. Government support, emerging technologies, and the growing focus on environmental improvement are accelerating BIPV adoption. These factors make BIPV a viable solution for Malaysia’s building initiatives, contributing to cost-effectiveness and carbon emission reduction over time.
Building Integrated Photovoltaic Market in Malaysia Driver and Challenges
Like other countries, Malaysia’s building integrated photovoltaic (BIPV) market faces both opportunities and challenges. The adoption of BIPV systems is influenced by a variety of technological, economic, and policy factors that can either promote or hinder growth. All these factors must be addressed to maximize the market’s potential and ensure its growth.
The factors responsible for driving the building integrated photovoltaic market in Malaysia include:
• Policies and Incentives of the Government: Government policies have played a significant role in promoting BIPV adoption in Malaysia. Incentive programs such as the Net Energy Metering (NEM) and Feed-in Tariff (FiT) have made BIPV systems more accessible to both residential and commercial users. These schemes encourage the adoption of solar energy by financially compensating investors for their solar energy systems, supporting sustainability goals. Greater commitment from the government to green energy goals will further strengthen BIPV adoption in Malaysia’s building sector, alongside more stringent sustainability regulations.
• Advancements in Technology: Technological advancements are key drivers of the BIPV market in Malaysia. The development of advanced solar panels and cost-effective integrated solutions has significantly improved the performance and lowered the installation costs of BIPV systems. Advances in energy storage technologies, such as batteries, have made BIPV installations more reliable and efficient. As BIPV technology continues to improve, more buildings seeking to reduce energy costs and environmental impact will find these systems increasingly attractive.
• Escalating Energy Expenditures: BIPV systems are becoming more popular due to high electricity consumption in Malaysia. Rising utility costs have led both commercial and residential property owners to invest in solar panels to reduce their dependence on utility services. BIPV allows buildings to generate some or all of their electricity, significantly lowering long-term energy costs. As energy prices rise, the Malaysian residential market is expected to increase its investment in BIPV systems.
• Social Awareness and Sustainability Trends: Growing social awareness of environmental issues and sustainability practices is driving the adoption of technologies such as BIPV. The public and businesses are becoming more conscious of their energy consumption, leading to increased demand for energy-efficient BIPV systems. Developers with green building certifications, such as LEED, are now more likely to integrate BIPV technology. The global demand for sustainable buildings is expected to boost the BIPV market in Malaysia.
• Urban Expansion and Need for Energy-Efficient Structures: As Malaysia’s urban population grows, the demand for energy-efficient buildings rises. BIPV technology meets this need by being more efficient and space-saving compared to traditional solar systems. City planners and builders are increasingly incorporating BIPV into new construction projects to achieve lower emissions and comply with green building standards. This trend will further accelerate BIPV adoption in residential and commercial markets.
Challenges in the building integrated photovoltaic market in Malaysia are:
• Reluctance Due to Cost: The high initial cost of BIPV systems remains a major barrier to adoption, despite the long-term savings they offer. The upfront investment required for BIPV installation is a key reason why many property owners and developers hesitate to adopt this technology. Although government support helps cover some expenses, many businesses and individuals still find it difficult to afford BIPV systems without additional assistance. Increased funding and advances in technology that reduce initial costs could encourage broader consumer adoption.
• Lack of Knowledge About BIPV’s Benefits: A lack of understanding of the benefits and financial advantages of BIPV technology slows its adoption in Malaysia. While government policies support renewable energy, many property owners and developers remain unaware of how solar technologies can be integrated into building designs. This knowledge gap can be addressed through awareness campaigns and educational programs about BIPV’s ability to reduce energy costs and enhance sustainability.
• Legal Obstacles and Slow Adoption Due to Regulatory Issues: In some cases, legal obstacles and slow adoption of BIPV infringe on Malaysia’s sustainability goals. Some local building codes are not updated to accommodate BIPV installations, which can delay project approvals. Additionally, new buildings with BIPV designs require extensive planning and expertise. Simplifying the regulatory processes and improving industry standards for BIPV installations would help accelerate adoption.
Government support, technological innovation, and public awareness are key drivers of Malaysia’s BIPV market. However, significant barriers, such as high initial costs, regulatory challenges, and limited awareness, continue to hinder adoption. To overcome these obstacles, more policy backing, improved technology, and public education are needed to increase the use of BIPV in energy-efficient buildings. As these factors evolve, the market for BIPV is expected to grow, contributing to Malaysia’s sustainability and energy self-sufficiency goals.
List of Building Integrated Photovoltaic Market in Malaysia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, building integrated photovoltaic companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the building integrated photovoltaic companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Building Integrated Photovoltaic Market in Malaysia by Segment
The study includes a forecast for the building integrated photovoltaic market in Malaysia by technology, application, and end use industry.
Building Integrated Photovoltaic Market in Malaysia by Technology [Analysis by Value from 2019 to 2031]:
• Crystalline Silicon
• Thin Film
• Others
Building Integrated Photovoltaic Market in Malaysia by Application [Analysis by Value from 2019 to 2031]:
• Roof
• Glass
• Wall
• Facade
• Others
Building Integrated Photovoltaic Market in Malaysia by End Use Industry [Analysis by Value from 2019 to 2031]:
• Industrial
• Commercial
• Residential
Features of the Building Integrated Photovoltaic Market in Malaysia
Market Size Estimates: Building integrated photovoltaic in Malaysia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Building integrated photovoltaic in Malaysia market size by technology, application, and end use industry in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different technology, application, and end use industry for the building integrated photovoltaic in Malaysia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the building integrated photovoltaic in Malaysia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the building integrated photovoltaic market in Malaysia?
Answer: The major drivers for this market are swift growth of solar photovoltaic installation capacities globally, driven by rising demand for renewable energy sources and growing recognition of energy security, self-sufficiency, and supportive government regulations.
Q2. What are the major segments for building integrated photovoltaic market in Malaysia?
Answer: The future of the building integrated photovoltaic market in Malaysia looks promising with opportunities in the industrial, commercial, and residential markets.
Q3. Which building integrated photovoltaic market segment in Malaysia will be the largest in future?
Answer: Lucintel forecasts that roof installation is expected to witness the highest growth over the forecast period due to enhanced strength and superior aesthetic charm in integrated roofs and skylights.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the building integrated photovoltaic market in Malaysia by technology (crystalline silicon, thin film, and others), application (roof, glass, wall, facade, and others), and end use industry (industrial, commercial, and residential)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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