The Japan Hydrogen market demand stood at 2 million tonnes in 2023 and is expected to grow at a CAGR of 3.6% during the forecast period until 2034. Japan, which initially introduced its Basic Hydrogen Strategy, recently unveiled an updated objective to increase hydrogen supply to 12 million tonnes per year by 2040. Looking ahead to 2050, Japan envisions a scale-up to approximately 20 million tonnes.This strategic revision underscores Japan's commitment to significantly expanding its hydrogen capabilities over the upcoming years, aligning with the nation's broader vision for a sustainable and hydrogen-driven future.
Hydrogen primarily functions as a feedstock for ammonia production, extensively utilized in sectors like fertilizers. Serving as an energy carrier rather than a direct source, hydrogen demonstrates the capability to store and convey substantial energy. Its applications range from fuel cells generating electricity, power, and heat. Currently employed in petroleum refining and fertilizer production, hydrogen's expanding markets include transportation and utilities. When consumed in a fuel cell, hydrogen, as a clean fuel, produces water, electricity, and heat. The future holds significant potential for hydrogen and fuel cells, offering versatile applications in transportation, commercial, and industrial sectors. These potential spans distributed or combined-heat-and-power, backup power systems, renewable energy storage and utilization, portable power solutions, and auxiliary power for various vehicles like trucks, aircraft, rail, and ships, and both passenger and freight vehicles such as cars, trucks, and buses.
The predominant application lies in utilizing hydrogen for ammonia production. Ammonia, in turn, serves various industries such as Agriculture & Fertilizers, Explosives, Refrigeration, and other sectors. Japan is positioned for a substantial surge in hydrogen adoption driven by its strategic commitment to advancing hydrogen technologies and achieving carbon neutrality. The Japanese government has earmarked significant investments in research, development, and infrastructure to bolster hydrogen production and utilization. With a dedicated Hydrogen Society Roadmap, Japan aims to expand its hydrogen infrastructure, encompassing production facilities, storage solutions, and distribution networks across various sectors. The automotive industry in Japan is actively pursuing hydrogen fuel cell vehicles (FCVs), and the nation is establishing a robust network of hydrogen refuelling stations. Beyond transportation, Japan is exploring the integration of hydrogen in heavy industries to contribute to decarbonization initiatives. Aligned with global efforts to combat climate change, Japan's comprehensive approach to hydrogen positions it as a key player in the global shift towards cleaner and sustainable energy sources, paving the way for a notable surge in hydrogen adoption in the forecast period. In June 2023, Japan unveiled an updated Hydrogen Basic Strategy, prompted by G7 pledges to diversify from Russian energy sources, increasing calls for climate action, and evolving global energy and policy dynamics. The strategy outlines key strategic domains crucial for enhancing Japan's industrial competitiveness in the global hydrogen landscape, emphasizing the commercialization of domestically developed hydrogen-related technologies like electrolysers. Collaboratively, the Japanese government and corporations are actively engaging international partners to establish a robust hydrogen supply chain, upscale hydrogen and ammonia production, and drive cost reductions. Due to these reasons, the Japan Hydrogen market size is estimated to reach roughly 2.98 million tonnes in 2034.
Based on the end-user industry, the Japan Hydrogen market is segregated into Ammonia, Refining, Methanol, Fuel, and Others. The largest chunk of Hydrogen goes towards Ammonia segment. In 2023, this industry consumed about 40 percent of the net Japan Hydrogen market.
Major players in the Japan Hydrogen market are Iwatani, Air Liquide, Iwatani, and Kawasaki. Other players in the Global Hydrogen market are Sinopec, Air Products, Air Liquide, Linde plc, Shanghai HuaLin Industrial Gases, and Messer Praxair, Chevron Usa Inc, Sinopec, Valero, Martinez Refining Co Llc, Phillips 66 Company, Wrb Refining Lp, Flint Hills Resources Lp, Cenex Harvest States Coop, Deokyang, Bp West Coast Products Llc, Sinclair Wyoming Refining Co, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2023
Estimated Year: 2024
Forecast Period: 2025-2034
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Objective of the Study:
• To assess the demand-supply scenario of Hydrogen which covers production, demand and supply of Hydrogen market in Japan.
• To analyse and forecast the market size of Hydrogen
• To classify and forecast Japan Hydrogen market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Hydrogen market in Japan.
To extract data for Japan Hydrogen market, primary research surveys were conducted with Hydrogen manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Japan Hydrogen market over the coming years.
ChemAnalyst calculated Hydrogen demand across the Japan region by analysing the volume of Hydrogen consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Hydrogen manufacturers and other stakeholders
• Organizations, forums and alliances related to Hydrogen distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Hydrogen manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Japan Hydrogen market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2023
2 million tonnes
Market size Volume by 2034
2.98 million tonnes
Growth Rate
CAGR of 3.6% from 2024 to 2034
Base year
2023
Estimated Year
2024
Historical Data
2015 – 2022
Forecast period
2025 – 2034
Quantitative units
Demand in million tonnes and CAGR from 2024 to 2034
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process.
Segments covered
By End-Use: (Ammonia, Refining, Methanol, Fuel, and Others)
I am satisfied with overall performance of ChemAnalyst. Weekly updates before the final report were especially helpful and reassuring. Additional requests on the interim and/or final reports were handled in a swift and professional manner
Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What was the size of Japan Hydrogen market in terms of volume in 2023?
Ans:
The size of Japan Hydrogen market has grown significantly in the historic period and reached approximately 2 million tonnes in 2023.
Q2.
Which industry is leading as the leading consumer of Japan Hydrogen market?
Ans:
Ammonia industry is the leading consumer of Japan Hydrogen market.
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