Press Release

Release of Report on the Market Size and Employment of the Environmental Industry

June 24, 2021

(June 24, 2021, Tokyo) Ministry of the Environment, Japan (MOEJ), released the "Report on the Market Size and Employment of the Environmental Industry," which summarized the estimated results of the market size and employment of the environmental industry in fiscal year 2019. In FY 2019, both the market size and the employment size of the environmental industry in Japan were the largest ever. Key points of the estimated results are as follows.

Market Size:

The market size of the environmental industry was approximately 110.3 trillion yen in 2019, the largest in history, about 1.9 times larger than in 2000.

The market size of the environmental industry as a percentage of all industrial sectors has increased from 6.1% in 2000 to 10.5% in 2019, and the impact of the environmental industry in Japan is growing.

Employment Size:

In 2019, employment in the environmental industry reached a record high of approximately 2,688,000 people, an increase of approximately 1.49 times from 2000.

Export and import value:

Export revenues from the environmental industry reached approximately 17.3 trillion yen in 2019, with the majority coming from the "climate change countermeasures" sector, of which "fuel-efficient and certificated low-emission vehicles (for export)" and "hybrid vehicles" accounted for the largest share. The import value of the environmental industry is approximately 4.0 trillion yen in 2019, with the majority of the import value coming from the "climate change countermeasures" sector.

OKAMURA, Sachiyo, Senior Planning Officer, Environmental Strategy Division, announced:

I am encouraged by the fact that both the market size and the employment scale of the environmental industry are expanding to the largest ever, about 110.3 trillion yen and 2,688,000 people, toward carbon neutrality in 2050. Solving environmental problems and driving economic growth are closely intertwined. As part of its climate change measures, MOEJ will continue to examine policies to further expand the size of the market and create employment.

The domestic market size is estimated to continue its upward trend and grow to approximately 136.4 trillion* yen by 2050. The largest share of the market is accounted for by "climate change countermeasures" at 46.4%, followed by "waste treatment and effective utilization of resources".

*This estimate only covers changes in existing industries, and does not take into account the creation of new industries. It is possible that the environmental industry market will grow faster than this estimate due to the creation of new industries.

Estimation Results for specific fields:

  • MOEJ conducted a market size survey of businesses that are contributing to, or have the potential to contribute to, avoiding or mitigating the damage caused by the effects of climate change. It was estimated to be approximately 1.47 trillion yen in 2019.

  • As a result of the case study on industries composing the Circular and Ecological Economy in regions, MOEJ was able to collect concrete data on goods and financial flows circulating within regions and resulting from the trade of regional resources with non-regional partners.

  • This report also summarized the market size of 16 products and services in 2020, affected by the "New Normal," or shift to new lifestyles due to COVID-19.

    Definition of the Environmental Industry:

    The environmental industry is defined, in this report, as "an industry whose products and services contribute directly or indirectly to environmental protection and resource management, and to the realization of a sustainable society", based on the definition and concept of the environmental industry by OECD and Eurostat. The report consists of four sections: "environmental pollution prevention," "climate change countermeasures," "waste treatment and effective use of resources," and "natural environment conservation."

    Background of the Estimation Study:

    "The Environmental Industry Market Size Study Group" (chaired by Professor Hitoshi Hayami of Keio University, with a total of eight members) was established to study trends in the environmental industry and analysis and estimation methods based on expert knowledge. MOEJ and the study group analyzed and reviewed the results at three study meetings and compiled the report.

    See the Reports (in Japanese)

    Report on the Market Size and Employment of the Environmental Industry:

    http://www.env.go.jp/press/109722.html

    Outline of the Report:

    http://www.env.go.jp/policy/keizai_portal/B_industry/index.html

For Japanese

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