Japan Carbon Capture and Storage Market Size and Growth Overview (2025-2033)
Market Size in 2024: USD 175.65 Million
Market Forecast in 2033: USD 354.35 Million
Market Growth Rate 2025-2033: 8.11%
According to IMARC Group’s latest research publication, “Japan Carbon Capture and Storage Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033”, the Japan carbon capture and storage market size reached USD 175.65 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 354.35 Million by 2033, exhibiting a growth rate (CAGR) of 8.11% during 2025-2033.
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How AI is Reshaping the Future of the Japan Carbon Capture and Storage Market?
AI is expected to change the CCS operation in Japan, mainly through improving the carbon capture rate, monitoring, and cost reduction. AI technologies are used to control the CCS process, evaluate the real-time carbon capture rate, suggest the best carbon capture operating conditions, and predict equipment performance failure before breakdowns. Machine learning software trained on large quantities of operating data can improve the capture rate and energy efficiency of carbon capture and storage systems, reducing their overall cost and improving their environmental performance.
At the more advanced end of the scale, predictive analytics can be used in geologic carbon storage to monitor, analyze, and predict the integrity of the storage site, detect leaks, and optimize injection. With seismic data, pressure data, and historical performance data, predictive analytics can identify early warning signs and generate a complete risk picture to ensure that carbon storage can be done reliably and safely. This can help to greatly reduce the main barrier to common carbon storage.
AI is also being used with carbon capture and storage (CCS) in industry and with renewables, for example, coordinating CCS in response to energy prices and the availability of renewables to reduce costs and increase impact. As Japan works to reach its carbon neutrality target, the use of carbon capture and storage systems powered by AI is emerging as a key technology for reducing emissions from hard-to-decarbonize industries while also providing data for cleaner industrial practices.
Japan Carbon Capture and Storage Market Trends & Drivers
Japan CCS market is supported by Japan’s emission reduction initiatives and deployment of advanced capture technology in the industrial sector and power sector. Growing pilot plant projects, better storage potential assessment, and increasing policy support for CCS are increasing the market growth for Japan CCS. The combination of CCS with hydrogen production and with renewables is becoming a market trend.
Demand is being driven by national decarbonization strategies, stricter emissions regulations, increasing financial support for low-carbon technologies, and improvements in technology that are making capture, transport, and storage more economical. Increased collaboration between research centers and industry and growing corporate sustainability commitments are further driving the uptake of CCS as a proven emissions reduction technology.
Japan Carbon Capture and Storage Market Industry Segmentation
The report has segmented the market into the following categories:
Service Insights:
- Capture
- Transportation
- Storage
Technology Insights:
- Post-combustion Capture
- Pre-combustion Capture
- Oxy-fuel Combustion Capture
End Use Industry Insights:
- Oil and Gas
- Coal and Biomass Power Plant
- Iron and Steel
- Chemical
- Others
Regional Insights:
- Kanto Region
- Kansai/Kinki Region
- Central/ Chubu Region
- Kyushu-Okinawa Region
- Tohoku Region
- Chugoku Region
- Hokkaido Region
- Shikoku Region
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Competitive Landscape:
The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.
Recent News and Developments in Japan Carbon Capture and Storage Market
- In February 2025, Japan’s Ministry of Economy, Trade and Industry identified its first ‘specified area for carbon capture and storage to promote its carbon neutrality objectives. This site, selected for its appropriateness, was located offshore from Tomakomai, a city found on the northern island of Hokkaido. The carbon capture and storage technology, which included the separation and underground storage of CO2 released by factories, was key to this effort.
- In July 2024, the Japan Energy and Metals National Corporation (JOGMEC) chose nine carbon capture and storage initiatives as ‘Advanced CCS Projects’ for the fiscal year 2024. The nine projects chosen this time were also intended to capture around 20 Million Tons of CO2 annually, with five projects set for storage in Japan and the other four designated for the Asia-Pacific region. JOGMEC invited applications for design tasks and more associated with advanced carbon capture and storage projects, which would incorporate design efforts for the complete carbon capture and storage value chain and assessments of storage capacity.
Future Outlook
Strong growth in Japan carbon capture and storage market is anticipated during the forecast period. This is attributed to the country-wide carbon neutrality goal, strong government policies to ease the clean energy transition, and the increasing need to control emissions produced by the wide range of sectors, which is expected to drive the market growth. The market is expected to grow with capture efficiency improvements in addition to reduced costs, storage infrastructures, and international collaboration. Carbon capture and storage will be essential during the decarbonization transition in Japan’s energy-intensive industries count on it to achieve their decarbonization goals.
Key highlights of the Report:
- Market Performance (2019-2024)
- Market Outlook (2025-2033)
- COVID-19 Impact on the Market
- Porter’s Five Forces Analysis
- Strategic Recommendations
- Historical, Current and Future Market Trends
- Market Drivers and Success Factors
- SWOT Analysis
- Structure of the Market
- Value Chain Analysis
- Comprehensive Mapping of the Competitive Landscape
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