Japan Renewable Energy Market Insights Forecasts to 2032

• The Japan Renewable Energy Market Size was valued at USD multimillion in 2022.
• The Market Size is Growing at a CAGR of 3.5% from 2022 to 2032.

The Japan Renewable Energy Market Size was valued at USD multimillion in 2022 and is expected To Grow at a CAGR of 3.5% during the forecast period 2022-2032.

Market Overview

Renewable energy is derived from natural sources such as wind and sunlight. Renewable energy sources include solar, geothermal, wind, biofuel, hydropower, and ocean power. Renewable energy is now used in the heating, electrical, cooling, and transportation sectors. Renewable energy accounts for around 7% of Japan energy consumption. Renewable energy is more costly than fossil fuel energy. The most important issue driving the use of renewable energies is the attribution of global warming owing to carbon dioxide (CO2) emissions from the burning of fossil fuels. Issues about reducing greenhouse gas emissions, an increase in the search for energy security, aversion to traditional nuclear power, and a lack of progress in the application of nuclear power are expected to drive demand for geothermal power during the forecast period. Governments in both emerging and wealthy countries have concentrated on encouraging renewable energy sources due to increased production efficiency, less pollution, and cheap maintenance costs. All of these reasons, taken together, increase demand for renewable energy, hence boosting Japan renewable energy market growth.

Report Coverage

This research report categorizes the market of Japan renewable energy 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 renewable energy 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-segments of the Japan renewable energy market.

Driving Factors

Rising demand for clean energy sources is expected to boost expansion in Japan's renewable energy sector in the long run. Furthermore, favorable government initiatives and improvements in renewable energy technology are likely to promote the market's growth. On the other side, rising natural gas penetration for power production is predicted to constrain Japan's renewable energy sector throughout the projection period. Also, Technological improvements in solar PV production are projected to generate profitable growth prospects for the Japanese renewable energy industry throughout the forecast period. Moreover, the decreasing prices of renewable energy and the rising competitiveness of battery storage systems are favorably benefiting the expansion of the renewable energy business.

Market Segment

• In 2022, the solar segment is dominating the market with the largest market share over the forecast period.

Based on the type, Japan renewable energy market is segmented into solar, wind, hydro, bioenergy, and other types. Among these segments, solar is the largest market share during the forecast period. Due to the dropping costs of solar modules and the adaptability of these systems for different applications such as electricity production, water heating, and so on, the solar energy category is expected to have the biggest market share over the projection period. As of 2021, Japan had installed 74.1 GW of solar energy capacity, entirely from solar PV, and the country is the fastest-growing in terms of solar PV promotion. With 45% of solar cells made in Japan, it leads the worldwide photovoltaic market. As a result, increased investments in the solar energy sector are likely to boost the growth of the Japanese renewable energy market throughout the forecast period.

• In 2022, the residential segment is dominating the highest market growth during the forecast period

Based on the end users, the Japan renewable energy market is bifurcated into residential, industrial, commercial, & others. Throughout these segments, the residential segment is the largest market share value during the forecast period. Geothermal energy is in high demand for heating applications in the residential sector in Japan. Because of increased energy consumption, demand for geothermal power is likely to rise dramatically in the residential segment shortly. Increased consumer awareness in established and emerging economies is predicted to drive the adoption of renewable energy sources throughout the forecast period, resulting in the residential sector dominating the market during the forecast period.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan renewable energy 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

• Japan Renewable Energy Co., Ltd
• Canadian Solar Inc.
• JinkoSolar Holding Co. Ltd
• Trina Solar Co., Ltd.
• Solar Frontier KK

Key Target Audience

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

Recent Development

• In June 2022, the government of Japan announced the winner of its 12th solar energy contract. Pacifico Energy KK was awarded the contract for the 76.8 MW solar project. The firm is scheduled to provide a rate of USD 0.073 per kWh. The project is anticipated to be located in Yamaguchi prefecture and to be operational by 2027.

• In April 2022, JERA Co. Inc., one of the major power providers, signed an agreement with West Holdings Corp., one of the top renewable engineering companies, to create a 1GW solar facility. The project is expected to be finished by 2025. In the next three years, the corporation plans to invest around USD 1.4 billion.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2022 to 2032. Spherical Insights has segmented the Japan Renewable Energy Market based on the below-mentioned segments:

Japan Renewable Energy Market, By Type

• Solar
• Wind
• Hydro
• Bioenergy
• Other Types

Japan Renewable Energy Market, By End User

• Residential
• Industrial
• Commercial
• Others