Japan ICT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Japanese ICT Market is Segmented by Type (Hardware, Software, IT Services, and Telecommunication Services), Size of 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 segments.

Japan ICT Market Size

Japan ICT Market Summary
Study Period: 2018 - 2028
CAGR: 11.25 %

Major Players

Japan ICT Market Major Players

*Disclaimer: Major Players sorted in no particular order


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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 Trends

This section covers the major market trends shaping the Japan ICT Market according to our research experts:

Rising need to explore and adopt digital technologies and initiatives

  • According to EU-Japan Center for Industrial Cooperation, Japan is characterized by the stability of its business environment and society as well as by the quality of infrastructure and services, including ICT infrastructures, communication technologies, education, and healthcare.
  • The Government of Japan (GoJ) is taking initiatives to accelerate the digital transition of the private sector and support emerging SMEs. The Japanese government published guidelines in 2021 under the initiative of the METI and the MIC to promote digital transformation within organizations, with guidance specifically targeting SMEs. Similarly, guidelines for AI, cybersecurity, and secure cloud services implementation were published in the same year.
  • In November 2022, Equinix, a digital infrastructure provider, announced the expansion of its digital infrastructure footprint in Japan by investing USD 115 million in a new data center. The new data center will strengthen connectivity for global network and cloud service providers and enterprises, allowing them to scale and empower Japan's growing digital economy.
  • Moreover, in June 2022, according to its basic policy aimed at promoting digitalization, the Japanese government announced that it would expand wireless networks to cover 99% of the country's population by the end of 2030, and seabed cables are planned to be completed across Japan by the end of 2025.
Japan ICT Market - Internet Penetration Rate in Japan, In Percentage, by Device, September 2021

IT and Telecommunication Industry to Drive Market Growth

  • The Government of Japan’s Digital Agency promotes cloud services utilization for both central government and local government offices. For instance, in October 2022, the Digital Agency announced that the Government of Japan agencies would adopt “Government Cloud” services.
  • Significant players in the market are providing enhanced cloud services in order to meet the rising demand for cloud infrastructure in the IT sector. For instance, in October 2022, Fujitsu announced the launch of “Fujitsu Computing as a Service” (CaaS) to deliver customers access to emerging computing technologies through the public cloud to the Japanese market, with a global rollout to follow in fiscal 2023.
  • Moreover, the introduction of the 6G system is expected to exceed the performance of 5G and simultaneously provide high-speed, large capacity, and low latency capabilities, use new high-frequency bands such as sub-terahertz bands above 100 GHz, expand communication coverage in the sky, at sea, and in space, and enable both ultra-low-power consumption and low-cost communications.
  • In June 2022, Japanese telecom equipment manufacturers NEC and Fujitsu, and Nokia collaborated to conduct experimental trials of new mobile communications technologies for the targeted commercial launch of 6G services by 2030.
  • According to METI (Japan), in 2020, the volume of private investment in the Japanese information technology (IT) sector was around JPY13 trillion. The market is expected to grow further and reach approximately JPY13.9 in the next few years.
Japan ICT Market - Private Investment Volume in the Information Technology (IT) Market, in JPY Trillion, Japan, 2017-2023

Japan ICT Industry Overview

The Japanese ICT market is highly competitive, owing to the presence of several global players. These players focus on further expanding their client base across the country and adopting organic and inorganic growth strategies. The companies leverage strategic collaborative initiatives, acquisitions, and product launches to increase market share and profitability.

  • In June 2022, Fujitsu, an ICT provider, announced its partnership with Salesforce Japan, a customer relations management service company, to develop new digital solutions for the insurance sector.
  • In June 2022, Hitachi announced the launch of a sovereign cloud service in Japan designed to meet local data storage and privacy laws. The service would enable customer data to be stored in data centers in Japan managed and operated by Hitachi and designed to meet local privacy and security requirements.

Japan ICT Market Leaders

  1. Fujitsu Limited

  2. Hitachi Ltd

  3. TIS Inc

  4. IBM Japan Ltd

  5. NEC Corporation

*Disclaimer: Major Players sorted in no particular order

Japan ICT Market Concentration

Japan ICT Market News

  • October 2022: Google announced that it will launch its first data center in Japan by 2023. The data center would provide more reliable, faster access to the company's products and services, support employment and economic activity, and connect Japan to the rest of the global digital economy.
  • February 2022: KDDI, a Japanese telecom company, announced the deployment of the world's first commercial 5G standalone open radio access network (Open RAN) in Japan. The network launch would also enable the company to accelerate the deployment of Open RAN across Japan, including in rural areas.

Japan ICT Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Value Chain Analysis

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Market Drivers

      1. 5.1.1 Rising need to explore and adopt digital technologies and initiatives

    2. 5.2 Market Challenges

      1. 5.2.1 Growing Incidence of Data Breaches and Lack of Supporting Infrastructure

    3. 5.3 Impact of COVID-19 on the IT Spending


    1. 6.1 Cloud Technology

    2. 6.2 Artificial Intelligence

    3. 6.3 Cyber Security

    4. 6.4 Digital Services


    1. 7.1 By Type

      1. 7.1.1 Hardware

      2. 7.1.2 Software

      3. 7.1.3 IT Services

      4. 7.1.4 Telecommunication Services

    2. 7.2 By Size of Enterprise

      1. 7.2.1 Small and Medium Enterprises

      2. 7.2.2 Large Enterprises

    3. 7.3 By Industry Vertical

      1. 7.3.1 BFSI

      2. 7.3.2 IT and Telecom

      3. 7.3.3 Government

      4. 7.3.4 Retail and E-commerce

      5. 7.3.5 Manufacturing

      6. 7.3.6 Energy and Utilities

      7. 7.3.7 Other Industry Verticals


    1. 8.1 Company Profiles

      1. 8.1.1 Fujitsu Limited

      2. 8.1.2 Hitachi Ltd

      3. 8.1.3 TIS Inc

      4. 8.1.4 IBM Japan Ltd

      5. 8.1.5 NEC Corporation

      6. 8.1.6 ITOCHU Techno-Solutions Corporation (ITOCHU Corporation)

      7. 8.1.7 Panasonic Corporation

      8. 8.1.8 Sony Corporation

      9. 8.1.9 Salesforce

      10. 8.1.10 SCSK Corporation (Sumitomo Corporation).



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Japan ICT Market Research FAQs

The Japan ICT Market is studied from 2019 - 2027.

The Japan ICT Market is growing at a CAGR of 11.25% over the next 5 years.

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

Japan ICT Industry Report

Statistics for the 2023 Japan ICT market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan ICT analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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