The market size of Japan's environment industry in 2010 was approximately 69 trillion yen (US$873 billion), a four percent increase from 2009, according to the Report of Japan's Environmental Industry Growth Engine issued by the Ministry of the Environment on May 15, 2012. The report also shows that employment in the industry reached 1.85 million in 2010, a three percent increase from 2009. The comprehensive report on the current status and prospects of Japan's environment industry was compiled to analyze estimates of the industry's market size in 2010 and the trend in Japan's economic growth driven by environmental protection.
The report points to several factors contributing to this growth, including supplier technology, business models, competitive quality and costs of products and services, efficient use of local resources, competent human resources, and external collaborations and strong networking. It also recognizes demand-side factors such as a growing awareness of and change in behavior toward green products, changes in the economic environment, and an increase in foreign demand.
As effective policies to sustain the growth of the environment industry, the report suggests supporting suppliers by promoting technological development, providing financial incentive programs, encouraging the use of local resources, expanding into international markets, and deregulating the industry. It also recommends boosting demand through regulations and standards that favor environmental products and services, subsidies and tax incentives for green purchases, outreach and marketing, and public procurement support.