PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1521015
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1521015
The Japanese chemical licensing market will reach US$1,495.732 million in 2029 at a CAGR of 3.71% from US$1,246.778 million in 2024.
Japanese chemical licensing market showing significant growth owing to the demand from the core sectors like oil and gas, petrochemicals, and pharmaceuticals. With the aging population in Japan, the domestic demand for pharmaceuticals will continue to rise, giving rise to the opportunity to input chemicals for production. According to the World Economic Forum, Japan has an estimated 36.23 million, or 10% of the population, now aged 80 or older.
Japan's developed chemical market further entices investors to collaborate with its leading players. The country has a robust logistics and supply chain capability for easy transportation. Additionally, it has robust trade regulations and government support.
Furthermore, one of the leading imports of the country is chemicals. The United States exported $80.3 billion, or 21.3% of the total exports to the country of chemicals, plastics, rubber, and leather goods. Another major sector where chemical licensing is used is oil, minerals, lime, and cement, which make up 17.6% of the total exports by the US to Japan.
Companies worldwide, including in Japan, are actively collaborating with artificial intelligence startups for new drug development. The introduction of AI drug discovery techniques in Japan will enable companies to develop and design pharmaceutical molecules in significantly less time.
Utilization of AI is not only limited to pharmaceuticals but also material chemicals, where the application of AI developments is necessary to fast forward to generate the materials likely to be used in various sectors. The chemicals used for digital devices, lead, nickel, hexavalent chromium, etc. further drive the market for chemical licensing in Japan.
The companies are looking for sustainable technologies and materials as the end user industry for reduced wastage, resource efficiency, and cleaner production processes. These goals are important for keeping the ESG (environmental, social, and governance) targets of the company. In October 2023, Axens, IFPEN, and JEPLAN announced the operation of Rewind(R) PET semi-industrial unit for recycling PET. This will put the future innovative PET recycling process for industrial users.
Furthermore, the climate change goals and sustainability targets are pushing companies for products and processes conducive to the environment. Chemical licensing offers a faster and more cost-effective way to chemical production processes.
Japan Chemical Licensing Market Segmentation Analysis
Japanese chemical licensing market by application is segmented into oil and gas, petrochemicals, pharmaceuticals, and others. With oil remaining the significant energy source in Japan, accounting for 40% of the country's total energy supply, the usage of chemical licensing in the oil and gas sector would be significant. The pharmaceutical sector shows a steady rise as the demand for new and novel drugs will rise with the growing aging population and increasing chronic diseases.
Japan Chemical Licensing Market - Geographical Outlook
The regions of Osaka and Tokyo are flourishing with various industrial and manufacturing companies such as Osaka Gas Chemicals, Daiwa Chemical Industries Co., Ltd., Arakawa Chemical Industries, Ltd, and Koushi Chemical Industry, among others in Osaka. Albion Co., Ltd., Asahi Kasei, Tokyo Chemical Industry, Kumiai Chemical Industry, and others in Tokyo. These factories give robust growth to the sector and are economically viable.