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Japan ICT Market Size (2024 - 2029)

The Japanese ICT market is experiencing significant growth driven by the increasing adoption of digital technologies such as AI, robotics, and cybersecurity, alongside the widespread use of IoT-based devices across various sectors. This expansion is supported by Japan's status as a hub for major ICT organizations and substantial government investment in advanced infrastructure and modernization projects. The E-Japan strategy, focusing on local e-governance and citizen engagement, further contributes to the market's development. However, challenges such as cybercrime and the impacts of the COVID-19 pandemic, which accelerated digitalization across multiple sectors, also shape the market landscape.

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Market Size of Japan ICT Industry

Japan ICT Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 11.25 %
Market Concentration Medium

Major Players

Japan ICT Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan ICT Market Analysis

The Japanese ICT market is anticipated to record a CAGR of 11.25% over the forecast period. The growing emphasis on digital technology, AI, robotics, cyber security, and healthcare IT is driving the growth of the market.

  • Information and communications technology (ICT) is the fusion of computer, communications, and regulatory policies for information access, transmission, processing, and storage.
  • In Japan, the increasing adoption of IoT-based devices across diverse industries, including consumer electronics, military, agriculture, and construction, is primarily driving the growth of the ICT market in Japan.
  • Japan is home to significant ICT organizations, including Sony, Panasonic, Fujitsu, NEC, and Toshiba, which is further playing a major role in the expansion of Japan as a major hub for ICT. Additionally, the rising government expenditures on maintaining the high-end and advanced infrastructures, along with the proper development of numerous modernization and enhancement projects in the country, are also propelling market's growth.
  • The rapid growth of the E-Japan strategy that emphasizes the development of local e-governance projects, including participation of citizens, self-evaluation, and feedback for online government services, is promoting the growth of the Japanese ICT market in the future.
  • However, the digitalization of data and increasing use of high-speed internet have led to crimes, including illegally gaining access to systems to steal money, intellectual property, or private information or to disrupt systems that control critical infrastructure.
  • The COVID-19 pandemic had a tremendous impact on the Japanese technology and telecommunications sector. The pandemic has accelerated the digitalization of several sectors and services, including healthcare, education, online payments, product and service delivery online, and work from home. The telecommunications industry was strengthened by the substantial demand for mobile and residential broadband connections.

Japan ICT Industry Segmentation

Information and Communication Technologies or ICT is a broader term for Information Technology (IT). It refers to all communication technologies, such as wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and other media applications and services enabling users to store, access, transmit, retrieve, and manipulate information in a digital form.

The Japanese ICT market is segmented by type (hardware, software, IT services, and telecommunication services), size of the enterprise (small and medium enterprises and large enterprises), and industry vertical (BFSI, IT & telecom, government, retail, and e-commerce, manufacturing, and energy and utilities).

The market sizes and forecasts are provided in terms of value in USD million for all the above-mentioned segments.

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Japan ICT Market Size Summary

The Japanese ICT market is experiencing robust growth, driven by the increasing adoption of digital technologies such as AI, robotics, and cybersecurity, alongside significant advancements in healthcare IT. The market's expansion is further supported by the widespread integration of IoT-based devices across various sectors, including consumer electronics, military, agriculture, and construction. Japan's position as a major ICT hub is bolstered by the presence of leading companies like Sony, Panasonic, Fujitsu, NEC, and Toshiba. Government initiatives aimed at enhancing digital infrastructure and e-governance projects, such as the E-Japan strategy, are also contributing to the market's development. The COVID-19 pandemic has accelerated digital transformation across sectors, reinforcing the demand for mobile and residential broadband connections.

The Japanese government's proactive measures to promote digital transformation, particularly among SMEs, are pivotal in shaping the ICT landscape. Initiatives by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Internal Affairs and Communications (MIC) have provided guidelines for implementing AI, cybersecurity, and secure cloud services. The expansion of digital infrastructure, exemplified by Equinix's investment in a new data center, and the push towards widespread wireless network coverage are key developments. The introduction of 6G technology and collaborations among telecom equipment manufacturers highlight the market's competitive nature. Major players like Fujitsu and Hitachi are enhancing cloud services and launching new digital solutions, while international companies like Google are establishing data centers in Japan, further integrating the country into the global digital economy.

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Japan ICT Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Hardware

      2. 2.1.2 Software

      3. 2.1.3 IT Services

      4. 2.1.4 Telecommunication Services

    2. 2.2 By Size of Enterprise

      1. 2.2.1 Small and Medium Enterprises

      2. 2.2.2 Large Enterprises

    3. 2.3 By Industry Vertical

      1. 2.3.1 BFSI

      2. 2.3.2 IT and Telecom

      3. 2.3.3 Government

      4. 2.3.4 Retail and E-commerce

      5. 2.3.5 Manufacturing

      6. 2.3.6 Energy and Utilities

      7. 2.3.7 Other Industry Verticals

Japan ICT Market Size FAQs

The Japan ICT Market is projected to register a CAGR of 11.25% during the forecast period (2024-2029)

Fujitsu Limited, Hitachi Ltd, TIS Inc, IBM Japan Ltd and NEC Corporation are the major companies operating in the Japan ICT Market.

Japan ICT Report Snapshots

Japan ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)