Japan Onshore Wind Energy Market Overview
As per MRFR analysis, the Japan Onshore Wind Energy Market Size was estimated at 7.43 (USD Billion) in 2023.The Japan Onshore Wind Energy Market Industry is expected to grow from 8(USD Billion) in 2024 to 16 (USD Billion) by 2035. The Japan Onshore Wind Energy Market CAGR (growth rate) is expected to be around 6.504% during the forecast period (2025 - 2035)
Key Japan Onshore Wind Energy Market Trends Highlighted
Several key factors are driving the growth of Japan's onshore wind energy industry. The Japanese government has put in place policies that seek to increase renewable energy output, particularly in the wake of the energy crises that followed the Fukushima disaster. Investments in wind energy have improved with the country’s efforts towards reducing greenhouse gas emissions mounting and moving towards a low-carbon economy, thereby increasing focus on renewable energy. Technological advancements in the design and efficiency of wind turbines also help capture more energy at lower operational costs.
Recently, there has been an increase in the number of private and public partnerships aimed at constructing wind farms due to an increase in local government recognition of the potential of onshore wind plants related to employment and additional spending within local communities. Furthermore, there is an increasing focus on inclusion of communities and stakeholders into wind projects that lower opposition and increase acceptance, thereby making them easier to implement. Expansion of the grid infrastructure by the government also improves the prospects for better integration of offshore and onshore wind power into comprehensive energy solutions. While working towards energy self-sufficiency, Japan has the potential to develop hybrid systems that integrate wind energy with other renewables.
There are also opportunities for innovation in storage technologies to mitigate the issues related to the intermittency of wind energy. The future potential appears bright because Japan is aggressively working towards increasing renewable energy sources contributing to its energy mix, with onshore wind energy becoming increasingly central to the country’s energy strategy.
Japan Onshore Wind Energy Market Drivers
Government Support and Renewable Energy Policies
The Japanese government has shown strong commitment to renewable energy development, particularly in the Japan Onshore Wind Energy Market Industry. Following the Fukushima nuclear disaster in 2011, Japan has focused on diversifying its energy sources, leading to the introduction of policies that promote renewable energy. The feed-in tariff system, implemented in 2012, has played a significant role in boosting onshore wind energy investments. According to the Ministry of the Environment, Japan aims to increase its renewable energy share to 36-38% by 2030.
This policy direction indicates a growth potential of around 10,000MW for onshore wind energy on top of existing capacities by 2030, as reported by the Japan Wind Power Association. The financial support and stability from government initiatives reinforce investor confidence, making this a substantial driver for the expansion of the Japan Onshore Wind Energy Market.
Technological Advancements in Wind Energy
Technological innovations have significantly improved the efficiency of wind turbines and the overall productivity of the Japan Onshore Wind Energy Market Industry. Advanced turbine designs, such as larger rotor diameters and taller towers, have increased energy capture in various wind conditions. According to the Japan Wind Energy Association, the average capacity factor for Japanese onshore wind farms has risen to over 30%, up from around 20% a decade ago.
As leading companies such as Mitsubishi Heavy Industries and Hitachi Zosen continue to invest in Research and Development (R&D), the enhancement in technology is expected to further reduce costs and increase output, creating a favorable environment for growth in the market.
Public Awareness of Environmental Issues
There has been a notable increase in public awareness and concern over climate change and environmental degradation in Japan. Surveys indicate that over 70% of the population support the shift towards renewable energy sources, including wind energy. This awareness has catalyzed partnerships between local communities and wind energy developers, promoting the development of onshore wind projects.
The Japan Renewable Energy Foundation reports that numerous local governments are actively engaging in renewable initiatives.As public support strengthens, it paves the way for smoother planning processes and community acceptance of new onshore wind projects, thereby enhancing market growth.
Rising Energy Demand and Market Liberalization
Japan's energy demand continues to rise, particularly in the wake of recovering industrial activity post-COVID-19. The International Energy Agency (IEA) forecasts that electricity consumption in Japan will reach approximately 1,000 TWh by 2030, illustrating a significant market opportunity for renewable energy sources such as onshore wind.
Additionally, the deregulation and liberalization of the energy market have opened up a more competitive landscape, allowing new players to enter the Japan Onshore Wind Energy Market Industry.This increased competition drives innovation and can lead to reduced energy prices, making onshore wind energy an attractive option for consumers and businesses alike.
Japan Onshore Wind Energy Market Segment Insights
Onshore Wind Energy Market Turbine Type Insights
The Japan Onshore Wind Energy Market, particularly the Turbine Type segment, offers a diverse landscape for renewable energy solutions, with various turbine configurations catering to different operational needs and environments. Horizontal Axis Wind Turbines, being the most widely utilized type globally, are recognized for their high efficiency and effectiveness in converting wind energy into electricity. These turbines typically offer better performance in terms of energy output, especially in locations with consistent wind flows, which are prevalent in many regions across Japan.On the other hand, Vertical Axis Wind Turbines, while less common, present advantages in urban settings due to their ability to capture wind from any direction and lower noise levels, making them suitable for residential or mixed-use applications in densely populated areas.
The proliferation of Small Wind Turbines signifies an emerging trend in decentralized energy generation, facilitating locals in harnessing wind energy for personal use, thus contributing to energy independence and resilience against grid failures. There is also a noteworthy emphasis on Offshore Turbines, which are primarily deployed in coastal areas to capitalize on stronger wind resources, catering to the demands of large-scale energy projects and promoting the long-term sustainability of Japan’s energy landscape.Additionally, Distributed Wind Turbines are gaining attention as they support localized energy generation, providing an effective solution for rural communities and enhancing the reliability of energy supply in less accessible areas.
As the country aims to enhance its renewable energy portfolio, each turbine type plays a critical role in achieving Japan's energy transition goals, driven by the need to reduce dependency on fossil fuels and mitigate climate change impacts. The continuous advancements in turbine technology, along with supportive policy frameworks, are likely to further boost the adoption of various wind turbine types across the nation, reflecting the dynamic nature of the Japan Onshore Wind Energy Market and its segmentation trends.
Onshore Wind Energy Market Technology Insights
The Japan Onshore Wind Energy Market is evolving with increasing significance attributed to various technological advancements within the sector. Gear Drive Technology is traditionally favored for its mechanical simplicity and proven efficiency in capturing wind energy, making it a common choice for developers. On the other hand, Direct Drive Technology is gaining traction due to its reduced maintenance costs and improved reliability, addressing some of the operational challenges faced by wind farms. Superconducting Technology holds promise for increasing power output and efficiency, leveraging advanced materials to conduct electricity with minimal resistance.
Meanwhile, Variable Speed Technology is crucial for optimizing energy capture across varying wind conditions, ensuring that turbines can adapt effectively to changes in wind speed. With substantial governmental support in Japan for renewable energy initiatives, including the integration of advanced technological solutions in wind energy projects, these sectors are poised for significant growth. The interplay of these technologies underlines the importance of innovation in driving market penetration and enhancing overall efficiency within the Japan Onshore Wind Energy Market.
Onshore Wind Energy Market Installation Type Insights
The Japan Onshore Wind Energy Market has evolved significantly, particularly in the Installation Type segment, which includes Onshore Installations, Hybrid Installations, and Repowering Installations. Onshore Installations represent a substantial portion of the market, thriving due to Japan's commitment to renewable energy sources as part of its energy transition initiatives. This segment is driven by advancements in turbine technology and increased efficiency, making it pivotal for enhancing energy output and reliability in the region. Hybrid Installations combine wind power with other renewable sources, such as solar energy, to optimize energy generation and stabilizing supply, appealing to regions seeking more resilient energy solutions.
Additionally, Repowering Installations are gaining traction, as older wind farms are upgraded with modern technology to maximize performance and return on investment. The Japanese government actively supports these initiatives and provides incentives, which further stimulates growth and innovation in the market. Overall, the Installation Type segment plays a crucial role in meeting Japan's renewable energy targets, bolstering market dynamics, and aligning with global sustainability goals.
Onshore Wind Energy Market Application Insights
The Application segment of the Japan Onshore Wind Energy Market reveals critical insights into the ways wind energy is harnessed in the country. Characterized by diverse implementations, this segment includes Utility Scale, Community Scale, and Distributed Generation applications. Utility Scale wind energy projects dominate the landscape, providing significant energy supply to Japan's grid and contributing to the country's renewable energy objectives, which aim for 24% of total energy consumption to come from renewables by 2030. Community Scale projects play a vital role in fostering local energy independence, allowing communities to generate their own electricity and reduce reliance on centralized power generation, thus enhancing social and environmental sustainability.
Meanwhile, Distributed Generation serves as an innovative approach for individuals and businesses to harness wind energy, promoting energy resilience and efficiency. Overall, these applications are pivotal not only in facilitating the transition to cleaner energy sources in Japan but also in supporting local economies and environmental goals. The Japan Onshore Wind Energy Market segmentation reflects a commitment to diversifying energy sources while responding to the increasing demand for sustainable energy solutions.
Japan Onshore Wind Energy Market Key Players and Competitive Insights
The Japan Onshore Wind Energy Market is characterized by a competitive landscape where various players are striving to enhance their position through innovation, strategic partnerships, and investment in renewable technologies. The country's commitment to increasing the share of renewables in its energy mix has spurred growth in the onshore wind sector, creating opportunities for both domestic and international companies. A key aspect of this market is the regulatory environment, which encourages investment while also presenting challenges in terms of land acquisition and environmental assessments.
Companies in this space are leveraging advanced technology, operational efficiencies, and localized solutions to gain a competitive edge and meet the evolving demands of energy consumers and policymakers.GE Renewable Energy has established a substantial presence in the Japan Onshore Wind Energy Market, capitalizing on its technological expertise and extensive portfolio. The company's strengths lie in its innovative turbine technology, which is designed to maximize energy output while minimizing environmental impact. GE Renewable Energy has engaged in strategic collaborations with local stakeholders to ensure that its solutions are tailored to the specific needs of the Japanese market. This focus on localized adaptation, combined with its commitment to sustainability and efficiency, has positioned GE Renewable Energy as a key player in driving the growth of onshore wind energy in Japan.
Their dedicated research and development efforts aim to further enhance turbine performance and increase the viability of wind energy projects throughout the region.Hitachi has made significant contributions to the Japan Onshore Wind Energy Market by leveraging its expertise in engineering and technology solutions. The company offers a range of products and services, including wind turbine systems, energy management solutions, and smart grid technology. Hitachi’s strength lies in its ability to integrate advanced digital technologies with traditional energy systems, optimizing the performance and efficiency of onshore wind projects.
The company's strong market presence is supported by strategic partnerships and collaborations that enhance its innovation capabilities. Hitachi has also engaged in mergers and acquisitions to expand its footprint in renewable energy, focusing on advanced technologies that cater specifically to the unique challenges of the Japanese market. These efforts reinforce Hitachi's commitment to contributing to Japan's renewable energy objectives while promoting sustainable energy solutions that are both economically and socially beneficial.
Key Companies in the Japan Onshore Wind Energy Market Include
- GE Renewable Energy
- Hitachi
- Orsted
- Suzlon Energy
- Mitsubishi Heavy Industries
- JPower
- NEC
- Vestas Wind Systems
- NextEra Energy
- Iberdrola
- Enel Green Power
- Marubeni
- Toshiba
- EDP Renewables
- Siemens Gamesa Renewable Energy
Japan Onshore Wind Energy Market Industry Developments
Japan's onshore wind energy market continues to evolve with significant developments. In September 2023, GE Renewable Energy announced plans to enhance its presence in Japan by launching localized production of wind turbine components as part of its commitment to sustainable energy. Meanwhile, Hitachi has been actively collaborating with various stakeholders to innovate in offshore wind technologies, contributing to the growth in clean energy sectors. Notably, in August 2023, Orsted expressed intentions to expand its footprint by acquiring a significant stake in several wind projects in Japan, which reflects the increasing competition within the market.
On the financial front, companies like Mitsubishi Heavy Industries are witnessing enhanced valuations driven by ambitious government targets for renewable energy by 2030, with plans to increase the share of onshore and offshore wind energy significantly. In the last couple of years, major projects such as JPower's developments in Aomori and NEC's partnership with Vestas Wind Systems to launch new wind farms have greatly impacted the market landscape, emphasizing a push towards cleaner, sustainable energy sources across the region. The Japanese government remains steadfast in its efforts to meet renewable energy goals, incentivizing growth in the sector.
Japan Onshore Wind Energy Market Segmentation Insights
Onshore Wind Energy Market Turbine Type Outlook
- Horizontal Axis Wind Turbine
- Vertical Axis Wind Turbine
- Small Wind Turbine
- Offshore Turbine
- Distributed Wind Turbine
Onshore Wind Energy Market Technology Outlook
- Gear Drive Technology
- Direct Drive Technology
- Superconducting Technology
- Variable Speed Technology
Onshore Wind Energy Market Installation Type Outlook
- Onshore Installations
- Hybrid Installations
- Repowering Installations
Onshore Wind Energy Market Application Outlook
- Utility Scale
- Community Scale
- Distributed Generation
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
7.43(USD Billion) |
| MARKET SIZE 2024 |
8.0(USD Billion) |
| MARKET SIZE 2035 |
16.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
6.504% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
GE Renewable Energy, Hitachi, Orsted, Suzlon Energy, Mitsubishi Heavy Industries, JPower, NEC, Vestas Wind Systems, NextEra Energy, Iberdrola, Enel Green Power, Marubeni, Toshiba, EDP Renewables, Siemens Gamesa Renewable Energy |
| SEGMENTS COVERED |
Turbine Type, Technology, Installation Type, Application |
| KEY MARKET OPPORTUNITIES |
Government incentives for renewable energy, Technological advancements in turbine efficiency, Increased corporate sustainability commitments, Local community wind projects, Grid integration improvements and investments |
| KEY MARKET DYNAMICS |
Government policy support, Technological advancements, Increased investment, Environmental concerns, Grid integration challenges |
| COUNTRIES COVERED |
Japan |
Frequently Asked Questions (FAQ) :
The Japan Onshore Wind Energy Market is expected to be valued at 8.0 billion USD in 2024.
The market is projected to reach 16.0 billion USD by 2035.
The expected CAGR for the market from 2025 to 2035 is 6.504%.
In 2024, the Horizontal Axis Wind Turbine holds the largest market value at 3.5 billion USD.
The market value for Vertical Axis Wind Turbines is expected to be 2.4 billion USD by 2035.
Major players in the market include GE Renewable Energy, Mitsubishi Heavy Industries, and Vestas Wind Systems among others.
Emerging opportunities include advancements in turbine technology and increased government support for renewable energy.
The projected market value for Small Wind Turbines in 2024 is 1.0 billion USD.
Distributed Wind Turbines are expected to be valued at 3.0 billion USD in 2035.
Challenges may include land acquisition issues and regulatory hurdles impacting project development.
