Japan Smart Home Market Size (2024 - 2029)

Japan Smart Home Market Analysis

The Japan Smart Home Market size is estimated at USD 10.12 billion in 2024, and is expected to reach USD 19.57 billion by 2029, growing at a CAGR of 14.10% during the forecast period (2024-2029).

• As the world moves more toward digitization, there is a notable push to leverage the data generated in daily life to tackle social issues and innovate. Companies and government bodies across various sectors spearhead IoT (Internet of Things) initiatives. These initiatives involve gathering detailed data from multiple locations, from offices and plants to roads and power grids. This data, often stored in the cloud, is then processed using cutting-edge technologies like artificial intelligence (AI). This movement, which is already prevalent in many industries in Japan, is poised to extend its reach to everyday households, shaping the concept of the smart home.
• With its substantial smartphone user base, Japan stands out in the mobile market landscape. A recent report on Japan's mobile economy highlights a remarkable trend: the average daily mobile device usage has surged, nearly tripling over the past decade to reach around 106 minutes per person. This surge is predominantly driven by the popularity of smart devices, especially smartphones, which dominate the market and fuel the growth of IoT connections.
• Furthermore, the rise of the Internet of Things (IoT) in Japan has been embraced in many unique ways. From automated factory lines to smart home appliances, IoT is transforming almost every aspect of life in Japan, resulting in significant investments. For instance, recently, SoftBank Corp. announced the launch of a full-fledged expansion of its global Internet of Things (IoT) business in Asia-Pacific (APAC), including Japan, with a primary emphasis on marketing IoT services, with a key focus on promoting the ‘1NCE IoT Flat Rate.’
• In April 2024, Google announced that it would invest USD 1 billion to improve digital connectivity between the United States and Japan through two new subsea cables, Proa and Taihei, to boost ties between the two countries. The two subsea cables are expected to improve connectivity between the United States, Japan, and multiple Pacific island countries and territories.
• Rising investments toward smart city development are expected to significantly contribute to creating a smart residential infrastructure. For instance, in March 2023, the Japanese government announced the launch of a program of smart city investment for fiscal 2023 and further announced the inclusion of smart city-related business as a part of the “Strategic Innovation Promotion Programme (SIP) Phase 2/Cyberspace infrastructure technology/architecture construction as well as demonstration research using big data and AI.”

Japan Smart Home Industry Segmentation

A smart home refers to a set of integrated and networked devices that automate different functions within a home and can communicate both with each other and with a centralized control interface. The prominent purpose of this type of system is to enhance comfort, safety, energy efficiency, and management of household resources.

The Japanese smart home market is segmented by product type (comfort and lighting, control and connectivity, energy management, home entertainment, security, smart appliances, HVAC control) and technology (Wi-Fi, Bluetooth, and other technologies). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.