Market Trends of Japan Satellite Communication Industry
The Media and Entertainment Segment is Expected to Hold a Considerable Market Share
- There is a significant international audience for the content produced by Japan's media and entertainment sector. The distribution of Japanese media content internationally depends heavily on satellite transmission. Satellites allow TV shows, films, anime, and other media content to be sent to many parts of the world, enabling global audiences and promoting the export of Japanese entertainment.
- Japan's media and entertainment sector depends on satellite communication for broadcasting, distribution, delivering worldwide content, providing emergency services, and creating material. The industry's use of satellite communication has improved its operations and helped the Japanese satellite communication market expand and prosper.
- Satellite communication is frequently used for broadcasting radio and television transmissions. The distribution of radio and television shows to a large audience relies primarily on satellite communication in Japan's media and entertainment sector. Satellites are used by broadcasting firms to transmit their signals across the nation, assuring coverage in outlying regions and enabling universal access to media content.
- Additionally, satellite communication has aided Japan's media and entertainment sector's expansion of DTH services. DTH operators use satellites to send television signals straight to subscribers' homes. The reach of media material can now be extended to remote or underserved locations. This technology enables viewers to access various channels and services without requiring terrestrial infrastructure.
- As per the Ministry of Internal Affairs and Communications (Japan), in 2023, there were around 38.07 million fiber-to-the-home (FTTH) subscriptions in Japan, making FTTH the most widely utilized form of fixed-line broadband. Cable television (CATV) and digital subscriber line (DSL) connections came after that. Over 44.71 million fixed-line broadband subscriptions were made in total during that year.
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Increase in IoT and Autonomous Systems is Driving the Market
- Japan has been actively utilizing its IoT systems to enhance the satellite communication sector. Japan has a long history of developing satellite technology and space exploration, and the incorporation of IoT has increased its capabilities in this area.
- The market is expanding due to the increased focus on digital technology, AI, robots, cyber security, and healthcare IT. The development of the ICT market in Japan is primarily driven by the growing adoption of IoT-based devices across numerous industries, including consumer electronics, the military, agriculture, and construction. The presence of prominent ICT companies in Japan, such as Sony, Panasonic, Fujitsu, NEC, and Toshiba, contributes significantly to the country's growth as a major ICT hub. The proper development of various modernization and improvement projects around the nation and the rising government spending on sustaining superior and innovative infrastructures are also fueling the market's expansion.
- Major competitors are investing in the market through mergers, acquisitions, and other means to expand their client base and better meet their demands across various applications. For instance, in December 2022, KDDI announced that the first mobile tower in Japan to use Starlink had started commercial operation in Hatsushima, a remote island in Sagami Bay. Starting with this location, KDDI would expand its coverage to 1,200 remote towers to pursue its vision of bringing an urban mobile experience to its rural customers.
- In March 2023, Nippon Telegraph and Telephone Corporation and KDDI Corporation signed an MoU to promote global standardization in the field of optical networks, such as optical transmission technology, mobile network technology, and operations management technology, where both companies can leverage their technological strengths. Both companies would accelerate open innovations with partners worldwide, aiming to contribute to global standardization.
- As per the Ministry of Internal Affairs and Communications (Japan), in FY 2021, the private investment in the Japanese information technology (IT) market was estimated at JPY 13.55 trillion. In part because of increasing investments in the telework infrastructure during the COVID-pandemic, it surged by around JPY 580 billion from the previous year. By FY 2024, it was anticipated that the investment volume would increase even more and reach JPY 14.6 trillion.
