Market Trends of Japan ICT Industry
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.
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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.
