Japan ICT Market Insights Forecasts to 2032

• The Japan ICT Market Size was valued at USD 412.6 Billion in 2022.
• The Market Size is Growing at a CAGR of 8.6% from 2022 to 2032.
• The Japan ICT Market Size is expected to reach USD 941.2 Billion by 2032.
• Japan is expected to Grow the fastest during the forecast period.

The Japan ICT Market Size is expected to reach USD 941.2 Billion by 2032, at a CAGR of 8.6% during the forecast period 2022 to 2032.

Market Overview

ICT covers a wide range of resources used to communicate, create, disseminate, store, and manage information. This includes hardware (computers, smartphones, servers), software (applications, operating systems), and networks (internet, LANs, WANs). ICT is a major driver of economic growth. It not only creates direct employment opportunities but also spurs innovation and productivity in various sectors. The ICT sector is marked by rapid innovations. Technologies like 5G, artificial intelligence, cloud computing, and IoT (Internet of Things) are the latest in a long line of advancements. Japan, a global powerhouse in technology and innovation, has a well-established and mature Information and Communication Technology (ICT) sector. The nation's commitment to technological advancement, coupled with its deep-rooted culture of precision and excellence, places it at the forefront of the ICT landscape globally. Japan boasts a robust ICT infrastructure, marked by high-speed internet connectivity, including widespread fiber-optic networks and advanced mobile communication systems. The country was among the pioneers in launching 5G services. The Japanese government plays a proactive role in the ICT sector, promoting initiatives like "Society 5.0" – a vision for a human-centric, super-smart society where various challenges are addressed using big data and AI. Japan maintains strong ICT trade relationships with countries around the globe, exporting electronics, software, and services. It's also a significant player in international tech standards and policy-making forums.

Report Coverage

This research report categorizes the market for Japan ICT Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan ICT Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan ICT Market.

Driving Factors

Japan is home to numerous multinational corporations like Sony, Toshiba, NEC, and Fujitsu that have set global benchmarks in electronics, computing, and telecommunications. The domestic market benefits from a robust infrastructure, including extensive fiber-optic networks and advanced cellular systems. Japan's early adoption of technologies like 5G exemplifies its commitment to staying at the industry's cutting edge. While hardware manufacturing has historically been Japan's forte, there's a palpable shift towards software solutions, cloud services, and digital platforms to diversify the market offerings. Significant investments are channeled into R&D in fields like robotics, Artificial Intelligence (AI), and the Internet of Things (IoT). Such endeavors aim to uphold Japan's legacy of technological leadership. Additionally, many traditional businesses are undergoing digital transformation, opening avenues for ICT solutions ranging from e-commerce platforms to digital payment systems. As Japanese businesses undergo digital transformation, there's a rising demand for cloud platforms, software-as-a-service (SaaS), and related services. Furthermore, Japan's emphasis on environmental sustainability and energy efficiency brings opportunities in green data centers, energy-efficient devices, and sustainable ICT solutions.

Market Segment

• In 2022, the IT services segment is witnessing a higher growth rate over the forecast period. 

Based on the Offering, the Japan ICT Market is segmented into devices, software, hardware, IT services, data center systems, communication, and others. Among these, the IT services segment is witnessing a higher growth rate over the forecast period. IT services encompass consulting, system integration, application services, and outsourcing services. As businesses in Japan adopt more advanced technologies, the demand for IT services, particularly consultation and system integration, has risen. The emphasis on digital transformation has further boosted this segment. The integration of emerging technologies into traditional businesses is also propelling the demand for IT services.

• In 2022, the cloud computing segment accounted for the largest revenue share of more than 32.6% over the forecast period.

On the basis of Technology, the Japan ICT Market is segmented into IOT, big data, cloud computing, content management, security, and others. Among these, the cloud computing segment is dominating the market with the largest revenue share of 32.6% over the forecast period. Cloud computing is the internet-based delivery of computer services such as storage, servers, databases, networking, analytics, and more. In Japan, cloud computing is increasing, particularly among organizations wanting to lessen infrastructure costs and boost scalability. The Japanese market is served by major cloud providers such as AWS, Azure, and Google Cloud.

• In 2022, The BFSI segment accounted for the largest revenue share of more than 34.2% over the forecast period.

On the basis of Industry Vertical, the Japan ICT Market is segmented into BFSI, IT & telecom, government, retail & e-commerce, manufacturing, energy & utilities, and others. Among these, the BFSI segment is dominating the market with the largest revenue share of 34.2% over the forecast period. This segment involves the application of ICT in the financial sector, including banking, insurance companies, investment banks, and other financial institutions. Japan's BFSI sector leverages technologies for online banking, automated insurance claims, risk management, and fintech innovations. With a highly developed financial sector, cybersecurity and data analytics also play critical roles. Furthermore, Japan has recently experienced an increase in fintech firms and innovations, which has bolstered ICT use in this sector.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan ICT Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Hitachi Ltd.
• IBM Japan Ltd.
• TIS Inc.
• Fujitsu Limited
• NEC Corporation
• Sumitomo Corporation
• Panasonic Corporation
• Sony Corporation
• FUJISOFT
• Rakuten Group, Inc.
• Sharp Corporation
• Nomura Research Institute Ltd.
• NTT Communications Corporation
• Mercari, Inc.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• On September 2023, NEC Corporation has launched a "Management and Business Optimization Consulting Service," which visualizes a company's supply chain strengths and weaknesses and formulates optimal measures and implementation plans from management, business process, and IT perspectives for customers in the manufacturing and distribution industries. In this service, NEC's experienced digital transformation (DX) strategy consultants and experts in AI, quantum computing, mathematical optimization technology, and other areas form a team to provide end-to-end support ranging from visualization of management and business issues to strategy concept formulation, implementation, and establishment.

• On June 2023, Hitachi, Ltd. developed the Hitachi Application Reliability Centers Service, which supports both agility and reliability, security enhancement, and cloud cost optimization based on the SRE approach, which encourages automation of system operations. Furthermore, the service will utilize best practices created by Hitachi in Japan through repeated experiences in the migration of mission-critical systems to the cloud and operational upgrades. It will also handle diverse cloud utilization requirements, such as modernization and multi-cloud operations.

• In June 2022, Fujitsu and Salesforce Japan Co., Ltd. (hereinafter Salesforce Japan) today announced the start of a collaboration to create new digital solutions for the healthcare sector in the Japan market. The two companies will promote this initiative by leveraging Fujitsu's expertise in the trusted handling of medical and pharmaceutical data and computing technologies and Salesforce Japan's track record and expertise as an industry leader in customer relationship management (CRM).

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan ICT Market based on the below-mentioned segments:

Japan ICT Market, By Offering

• Devices
• Software
• Hardware
• IT Services
• Data Center Systems
• Communication
• Others

Japan ICT Market, By Technology

• IOT
• Big Data
• Cloud Computing
• Content Management
• Security
• Others

Japan ICT Market, By Industry Vertical

• BFSI
• IT & Telecom
• Government
• Retail & E-commerce
• Manufacturing
• Energy & Utilities
• Others