China has overtaken Japan in global hydrogen-related patent competitiveness, marking a significant milestone in the global race toward decarbonized energy. A new analysis shows that Chinese companies now lead the world in hydrogen technologies, particularly in the manufacturing of electrolysis equipment used to produce hydrogen from water.
The findings come from Tokyo-based data analysis firm Astamuse, which evaluated approximately 180,000 hydrogen-related patents filed globally between 2013 and 2022. The study assessed patents across five categories—production, storage, transportation and supply, safety management, and utilization—by analyzing their technological feasibility and remaining protection periods.
China ranked first in four out of the five segments, with Japan only maintaining a lead in “utilization” technologies, such as applications in consumer fuel cell vehicles. In the previous survey (2011–2020), Japan had topped the overall rankings, with China in second place. But since Beijing pledged in 2020 to peak carbon emissions by 2030, China's annual hydrogen patent filings have more than doubled those of Japan.
China's most pronounced advantage lies in hydrogen production. With the scale-up of electrolysis systems, Chinese manufacturers have improved operational efficiency and drastically lowered costs. According to BloombergNEF, the cost of Chinese-made electrolysis systems in 2023 was roughly one-quarter that of their European counterparts.
Chinese firms now account for around 60% of global electrolyzer manufacturing capacity, according to research firm Wood Mackenzie. Some foreign companies have also started to outsource production to Chinese suppliers. "Rather than focusing on immediate profits, Chinese players are prioritizing market share and capacity expansion," said Zhang Xiaoguang of Daiwa Institute of Research. “Some are even planning to set up factories in Europe and the Middle East to support overseas growth.”
China is also drawing on its dominance in solar and wind to expand its hydrogen footprint. Solar giants like LONGi Green Energy and Sungrow Power Supply are venturing into hydrogen equipment, leveraging existing customer networks and capital from renewables to gain a foothold in the sector.
Beijing's national hydrogen strategy, released in 2022, elevated hydrogen to the same strategic level as renewable power. The government initially set a target of producing 100,000 to 200,000 tons of green hydrogen annually by 2025, but actual progress appears to be ahead of schedule.
In contrast to Japan, where hydrogen applications focus on consumer fuel cell vehicles, China's demand is being driven by industrial users such as the chemicals and steel sectors. In 2024, steel giant Baowu Group began incorporating hydrogen into its blast furnaces, underscoring China's push into hydrogen-based industrial heat, which is difficult to electrify.
China’s total hydrogen demand reached 28 million tons in 2023—around 30% of global consumption—making it the world’s largest market. To meet this growing demand, the country is investing in pipelines to connect inland renewable energy bases with coastal industrial zones, aiming to establish a domestic hydrogen supply chain.
In Europe, hydrogen ambitions have been dampened by rising interest rates and surging material costs. Utilities like ENGIE and Iberdrola have scaled back their hydrogen production targets. The EU has also tightened subsidy rules to restrict the use of Chinese-made equipment in local hydrogen projects, a move seen as part of a broader effort to promote regional self-reliance.
Japan, meanwhile, is attempting to bridge the cost gap between hydrogen and fossil fuels through subsidies, but the number of eligible projects remains limited. Without faster deployment and broader participation, Tokyo risks ceding its early-mover advantage in a sector it once hoped to lead.