Japan Hydrogen Market Size Insights Forecasts to 2033

• The Hydrogen Market Size was valued at USD 2.11 Million tonnes in 2023.
• The Market Size is Growing at a CAGR of 3.72% from 2023 to 2033
• The Japan Hydrogen Market Size is Expected to Reach USD 3.04 Million tonnes by 2033

The Japan Hydrogen Market Size is Anticipated to Reach USD 3.04 Million tonnes by 2033, growing at a CAGR of 3.72% from 2023 to 2033.

Market Overview

Hydrogen is an energy-efficient chemical that can be created from a variety of sources, including wind, solar, coal, natural gas, and hydroelectric power. It may also be used to create a wide range of fuel derivatives, including methanol, ammonia, methane, and synthetic liquid fuels. Since hydrogen is a highly efficient energy source, this characteristic should greatly aid in its continued emergence in emerging markets. Additionally, most now, 99.6%, originates from hydrocarbons. Grey hydrogen, which is created by reforming natural gas to create CO2 and hydrogen, makes up around 71% of the total. Brown hydrogen is produced mostly via the gasification of coal. Furthermore, customers can buy hydrogen and its derivatives, including methanol and ammonia, in the hydrogen market, and exchange them directly with the applicable manufacturer.

Report Coverage

This research report categorizes the market for the Japan hydrogen 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 hydrogen market. Recent market developments and competitive strategies such as expansion, product launch, and 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 hydrogen market.

Driving Factors

The use of hydrogen to decarbonize railroads is also becoming more popular. The first domestic hydrogen hybrid train, known as HIBARI, was built in collaboration with Toyota Motor Corporation and Hitachi and is currently undergoing test drives by JR East. Additionally, the Japanese government updated its Basic Hydrogen Strategy in June 2023 to encourage these business endeavors. This strategy aims to invest about JPY 15 trillion ($98.8 Million) over the next 15 years in nine essential technologies, such as fuel cells and electrolysis of water devices. By 2040, it also wants to boost the amount of hydrogen used to 12 million tons yearly. Furthermore, Tokyo also wants to accelerate the construction of large-scale hydrogen stations and set up facilities on property held by the government along the coast to generate and distribute green hydrogen using energy produced from renewable sources.

Restraining Factors

Large-scale hydrogen production is facing significant obstacles, prominent among them being high production costs and mounting safety concerns.

Market Segmentation

The Japan hydrogen market share is classified into generation type and application.

• The gray segment is expected to hold the largest market share through the forecast period.   

The Japan hydrogen market is segmented by generation type into gray, blue, and green. Among these, the gray segment is expected to hold the largest market share through the forecast period. The main factor driving the production of gray hydrogen is the accessibility of inexpensive natural gas. Many places have an abundance of natural gas, a hydrocarbon resource that is attractive as a feedstock for hydrogen synthesis when it is inexpensive.

• The ammonia production segment is expected to dominate the Japan hydrogen market during the forecast period.       

Based on the application, the Japan hydrogen market is divided into methanol production, ammonia production, and petroleum refining. Among these, the ammonia production segment is expected to dominate the Japan hydrogen market during the forecast period. The main use is in the synthesis of ammonia through hydrogen use. In turn, ammonia benefits several companies, including those in refrigeration, explosives, agriculture, and fertilizers.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan hydrogen 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 & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Iwatani Corporation
• ENEOS Corporation
• Kawasaki Heavy Industries
• Toyota Motor Corporation
• Toshiba Corporation
• Mitsui & Co., Ltd.
• Sumitomo Mitsui Financial Group
• Others

Key Target Audience

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

Recent Developments

• In December 2024, Nippon Steel Corporation has verified that the use of hydrogen reduction technology resulted in a 33% decrease in CO2 emissions from blast furnaces.

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Japan Hydrogen Market based on the below-mentioned segments:

Japan Hydrogen Market, By Generation Type

• Gray
• Blue
• Green

Japan Hydrogen Market, By Application

• Methanol Production
• Ammonia Production
• Petroleum Refining