Japan Digital Transformation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Japan Digital Transformation Market Report is Segmented by Type [Analytics, Artificial Intelligence, and Machine Learning, Extended Reality (XR), Iot, Industrial Robotics, Blockchain, Additive Manufacturing/3D Printing, Cybersecurity, Cloud and Edge Computing, and Others (Digital Twin, Mobility, and Connectivity)] and End-User Industry [Manufacturing, Oil, Gas and Utilities, Retail and E-Commerce, Transportation and Logistics, Healthcare, BFSI, Telecom and IT, Government and Public Sector, and Others (Education, Media & Entertainment, Environment, Etc. )]. The Market Sizes and Forecasts are Provided in Terms of Value (USD) for the Segments.

Japan Digital Transformation Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Japan Digital Transformation Market Size

Japan Digital Transformation Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 77.71 Billion
Market Size (2030) USD 236.48 Billion
CAGR (2025 - 2030) 24.93 %
Market Concentration Low

Major Players

Japan Digital Transformation Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Japan Digital Transformation Market with other markets in Technology, Media and Telecom Industry

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Japan Digital Transformation Market Analysis

The Japan Digital Transformation Market size is estimated at USD 77.71 billion in 2025, and is expected to reach USD 236.48 billion by 2030, at a CAGR of 24.93% during the forecast period (2025-2030).

  • The market's growth is majorly due to the rising adoption of advanced technologies like cybersecurity, artificial intelligence (AI), big data analytics, business intelligence (BI), and cloud computing. These technologies have led to transformations and innovations in the business landscape, leading to increased revenues. Moreover, there's a notable shift towards conducting business through email, collaboration tools, and digital platforms.
  • The market is witnessing a favorable trend as companies increasingly adopt digital experience platforms (DXPs) to boost customer experiences and foster brand loyalty. Industries like BFSI, retail, IT & telecom, and healthcare are at the forefront, integrating DXPs to enhance customer engagement and expedite product launches. Moreover, these end-use companies are forging partnerships with their industry counterparts to embed DXPs into their business strategies.
  • The UK and Japanese governments have collaborated on a deal to enhance digital government transformation in 2022. The Memorandum of Cooperation (MoC) focused on bridging the UK Government Digital Service (GDS) with Japan's Digital Agency. This partnership entails a mutual exchange of insights and strategies to elevate digital government endeavors in both nations. These initiatives helped both countries share the responsibility of giving civil servants digital training and building their technical capabilities in the current scenario.
  • Companies are investing in advanced technology tools to enhance the convenience of Japanese people. For instance, in May 2024, Toei Transportation pioneered the world's inaugural 2D-code system in collaboration with Denso Wave. This system was designed specifically for the Toei Subway Asakusa Line in Tokyo, enabling the seamless opening and closing of platform doors. These doors, a crucial safety feature, are instrumental in preventing passengers from falling onto the tracks or accessing restricted areas. Toei Subway, which serves approximately 2.2 million passengers daily across its four Tokyo lines, initially deployed platform doors on the Mita Line. The implementation resulted in a significant reduction in platform-related accidents.
  • By the close of 2023, Japan's digital competitiveness hit a record low in global rankings. The International Institute for Management Development, a Swiss business school renowned for its yearly evaluations of nations' digital readiness, placed Japan 32nd out of the 64 economies under review. The major cause of concern was Japan's resistance to change, and concerns over data privacy and security pose major obstacles to digital transformation efforts. Moreover, the growth of data breaches, unauthorized access, and personal information misuse has increased consumer, regulator, and business concerns regarding data safety.
  • Post-COVID-19 enhanced Japan's digital transformation initiatives, as organizations increased their investments in automation, AI, and IoT technologies across various sectors. There is a continuous focus on the digitalization of public services, making government services accessible online and improving efficiency.

Japan Digital Transformation Industry Overview

The Japanese digital transformation market is fragmented, with many players present in the market, such as Fujitsu Japan Limited, NEC Corporation, Siemens AG, IBM Corporation, and NTT DATA Group. Players in the market are adopting strategies such as partnerships and acquisitions to enhance their product offerings and gain sustainable competitive advantage.

  • In July 2024, Fujitsu and Cohere announced a strategic partnership to offer generative AI solutions tailored for enterprises. Their collaboration centers on crafting an advanced Japanese large language model (LLM) specifically designed for private cloud applications, utilizing Fujitsu's Kozuchi AI services. This joint effort is planned to empower enterprises with top-tier Japanese language capabilities, enhancing both customer interactions and employee experiences.
  • In July 2024, SoftBank Corp and NEC Corp unveiled a strategic alliance centered on biometric authentication, with the goal of propelling digital transformation (DX) within Japanese enterprises and governmental bodies. This partnership merges NEC's renowned biometric authentication suite, notably its "Bio-IDiom Services," with the robust 5G network and security offerings of SoftBank. The firms strive to deliver customized solutions to a broad spectrum of industries.

Japan Digital Transformation Market Leaders

  1. Fujitsu Japan Limited

  2. NEC Corporation

  3. Accenture PLC

  4. NTT DATA Group

  5. Siemens AG

  6. *Disclaimer: Major Players sorted in no particular order
Japan Digital Transformation Market Concentration
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Japan Digital Transformation Market News

  • March 2024: Itochu, a prominent Japanese trading and investment corporation, partnered with the renowned consulting firm Boston Consulting Group to unveil a digital transformation consultancy. This collaboration aimed to guide businesses in crafting and executing successful digital transformation strategies, particularly in navigating intricate technology changes.
  • January 2024: Monstarlab Holdings Inc., a global digital transformation consultancy based in Shibuya-ku, joined hands with PwC Consulting LLC, headquartered in Chiyoda-ku, Tokyo. The newly formed partnership planned to focus on bolstering digital transformation (DX) and cloud initiatives, primarily targeting Japanese enterprises with a global footprint. Leveraging Monstarlab's expertise in agile development, the collaboration aimed to enhance PwC Consulting's service offerings in this domain.

Japan Digital Transformation Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. INDUSTRY ECOSYSTEM ANALYSIS (Detailed Coverage of Key Stakeholders in Digital Transformation Industry Product/Solution Providers, System Integrators/VARs, Connectivity Providers, Regulatory Bodies, End-users, Service Providers, etc.)

5. MARKET DYNAMICS

  • 5.1 Market Drivers
    • 5.1.1 Increase in the adoption of big data analytics and other technologies in the country
    • 5.1.2 The rapid proliferation of mobile devices and apps
  • 5.2 Market Restraints
    • 5.2.1 Concerns about the Privacy and Security of Information

6. CURRENT MARKET SCENARIO AND EVOLUTION OF DIGITAL TRANSFORMATION PRACTICES

7. KEY METRICS

  • 7.1 Technology Spending Trends
  • 7.2 Number of IoT Devices
  • 7.3 Total Cyberattacks
  • 7.4 Technology Staffing Trends
  • 7.5 Internet growth and penetration in the Country
  • 7.6 Digital Competitiveness Ranking
  • 7.7 Fixed and Mobile Broadband Coverage
  • 7.8 Cloud adoption
  • 7.9 AI adoption
  • 7.10 E-commerce Penetration

8. MARKET SEGMENTATION

  • 8.1 By Type
    • 8.1.1 Analytics, Artificial Intelligence and Machine Learning
    • 8.1.1.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.1.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.1.3 Use Case Analysis
    • 8.1.1.4 Market Outlook
    • 8.1.2 Extended Reality (XR)
    • 8.1.2.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.2.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.2.3 Use Case Analysis
    • 8.1.2.4 Market Outlook
    • 8.1.3 IoT
    • 8.1.3.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.3.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.3.3 Use Case Analysis
    • 8.1.3.4 Market Outlook
    • 8.1.4 Industrial Robotics
    • 8.1.4.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.4.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.4.3 Use Case Analysis
    • 8.1.4.4 Market Outlook
    • 8.1.5 Blockchain
    • 8.1.5.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.5.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.5.3 Market Outlook
    • 8.1.6 Additive Manufacturing/3D Printing
    • 8.1.6.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.6.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.6.3 Use Case Analysis
    • 8.1.6.4 Market Outlook
    • 8.1.7 Cybersecurity
    • 8.1.7.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.7.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.7.3 Use Case Analysis
    • 8.1.7.4 Market Outlook
    • 8.1.8 Cloud and Edge Computing
    • 8.1.8.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.8.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.8.3 Use Case Analysis
    • 8.1.8.4 Market Outlook
    • 8.1.9 Others (digital twin, mobility, and connectivity)
    • 8.1.9.1 Current Market Scenario and Market Projections for the Forecast Period
    • 8.1.9.2 Key Growth Influencers (Drivers, Challenges, and Opportunities)
    • 8.1.9.3 Market Breakdown by Type (Digital Twin, Mobility and Connectivity)
    • 8.1.9.4 Use Case Analysis
    • 8.1.9.5 Market Outlook
  • 8.2 By End-User Industry
    • 8.2.1 Manufacturing
    • 8.2.2 Oil, Gas and Utilities
    • 8.2.3 Retail & e-commerce
    • 8.2.4 Transportation and Logistics
    • 8.2.5 Healthcare
    • 8.2.6 BFSI
    • 8.2.7 Telecom and IT
    • 8.2.8 Government and Public Sector
    • 8.2.9 Others (Education, Media & Entertainment, Environment etc)

9. COMPETITIVE LANDSCAPE

  • 9.1 Company Profiles
    • 9.1.1 Fujitsu Japan Limited
    • 9.1.2 NEC corporation
    • 9.1.3 Accenture PLC
    • 9.1.4 Siemens AG
    • 9.1.5 IBM Corporation
    • 9.1.6 NTT DATA Group
    • 9.1.7 SAP SE
    • 9.1.8 Oracle Corporation japan
    • 9.1.9 Cisco Systems Inc.
    • 9.1.10 Salesforce.com Inc.
  • *List Not Exhaustive

10. KEY TRANSFORMATIVE TECHNOLOGIES

  • 10.1 Quantum Computing
  • 10.2 Manufacturing as a Service (MaaS)
  • 10.3 Cognitive Process Automation
  • 10.4 Nanotechnology
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Japan Digital Transformation Industry Segmentation

Digital transformation is the process of incorporating digital technologies such as analytics, artificial intelligence, machine learning, extended reality (XR), IoT, industrial robotics, blockchain, additive manufacturing/3D printing, cybersecurity, cloud and edge computing, and others (digital twin, mobility, and connectivity) into various end-user industries across Japan.

The Japanese digital transformation market is segmented by type [analytics, artificial intelligence, and machine learning, extended reality (XR), IoT, industrial robotics, blockchain, additive manufacturing/3D printing, cybersecurity, cloud and edge computing, and others (digital twin, mobility, and connectivity)] and end-user industry [manufacturing, oil, gas, and utilities, retail and e-commerce, transportation and logistics, healthcare, BFSI, telecom and IT, government and public sector and others (education, media & entertainment, environment, etc.)]. The market sizes and forecasts are provided in terms of value (USD) for the segments.

By Type Analytics, Artificial Intelligence and Machine Learning Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type Extended Reality (XR) Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type IoT Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type Industrial Robotics Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type Blockchain Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Market Outlook
By Type Additive Manufacturing/3D Printing Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type Cybersecurity Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type Cloud and Edge Computing Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Use Case Analysis
Market Outlook
By Type Others (digital twin, mobility, and connectivity) Current Market Scenario and Market Projections for the Forecast Period
Key Growth Influencers (Drivers, Challenges, and Opportunities)
Market Breakdown by Type (Digital Twin, Mobility and Connectivity)
Use Case Analysis
Market Outlook
By End-User Industry Manufacturing
Oil, Gas and Utilities
Retail & e-commerce
Transportation and Logistics
Healthcare
BFSI
Telecom and IT
Government and Public Sector
Others (Education, Media & Entertainment, Environment etc)
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Japan Digital Transformation Market Research FAQs

How big is the Japan Digital Transformation Market?

The Japan Digital Transformation Market size is expected to reach USD 77.71 billion in 2025 and grow at a CAGR of 24.93% to reach USD 236.48 billion by 2030.

What is the current Japan Digital Transformation Market size?

In 2025, the Japan Digital Transformation Market size is expected to reach USD 77.71 billion.

Who are the key players in Japan Digital Transformation Market?

Fujitsu Japan Limited, NEC Corporation, Accenture PLC, NTT DATA Group and Siemens AG are the major companies operating in the Japan Digital Transformation Market.

What years does this Japan Digital Transformation Market cover, and what was the market size in 2024?

In 2024, the Japan Digital Transformation Market size was estimated at USD 58.34 billion. The report covers the Japan Digital Transformation Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Japan Digital Transformation Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Japan Digital Transformation Industry Report

Statistics for the 2025 Japan Digital Transformation market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Digital Transformation analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.