The Japan green hydrogen market is witnessing significant growth propelled by government support and increasing investments in renewable energy technologies. Valued at USD 85.6 million in 2024, the market is forecasted to reach USD 326.54 million by 2030 with a compound annual growth rate of about 25%. Japan's commitment to carbon neutrality by 2050 is a key driver, emphasizing hydrogen's role in reducing carbon emissions, especially in industries. The shift towards green hydrogen is evident in the steel sector, which is embracing hydrogen-based processes over carbon-intensive ones. This transition not only offers environmental advantages but also positions Japan at the forefront of the growing green hydrogen sector. The market is segmented by technology, energy source, end-users, and region, showcasing a diversified approach towards green hydrogen adoption. Major drivers include the rise in electric and hybrid vehicles, government incentives for low-carbon emissions, increased investments in renewables, public-private partnerships fostering innovation, and advancements in hydrogen production technologies. Challenges include initial high costs, freshwater sourcing for electrolyzer operations, industry resistance, competition with fossil fuels, regulatory obstacles, and market fluctuations in renewable energy. Leading players in the Japan green hydrogen market include ENEOS Corporation, Idemitsu Kosan Co., Ltd., and other key industry participants. Recent developments include the establishment of a major green hydrogen supply chain and the launch of a pilot plant utilizing alkaline electrolysis, setting the stage for commercial-scale projects. The industry dynamics present numerous opportunities such as government funding, global collaboration for technological advancements, and the development of hydrogen storage infrastructure. To address challenges, efforts are required to mitigate initial high costs, ensure freshwater availability, overcome industry resistance, and navigate regulatory complexities.