The Current State of the IT Market in Japan

Market size in Japan

In 2022, the GDP of Japan's ICT industry (information and communications industry) will be 54.7 trillion yen, an increase of 1.5% over the previous year.
The Japanese IT industry mainly includes the following technologies

Robot industry

Compared to a short time ago, orders, production, and shipment performance had been declining, but the decline has begun to stop, and there are signs of a recovery.

Automobile Industry

Automakers such as Toyota and Honda are focusing on automated driving incorporating AI technology, and future developments are expected in recent years, with systems being allowed to drive automatically in all specific locations.

AI (Artificial Intelligence)

Although its global ranking has been declining over the years, it still ranks in the top 10. Japanese companies in the top 10 include NTT.

IT Trends

DX

(Digital Transformations)

It is the use of new digital technologies to improve society and people's lives. Major technologies include AI and IoT.

AI (Artificial Intelligence)

It is a technology that enables computers to recognize and understand human language and other information and to perform intelligent actions.

IoT(Internet Things)

IoT, meaning Internet of Things, is a technology that connects the Internet to appliances, cars, buildings, etc.

Global Expansion

As the domestic IT market matured, the company began aggressively expanding overseas in the 1980s.
Around 2018, 26,233 companies have expanded overseas, with recent expansion into the Association of Southeast Asian Nations (ASEAN) region.
According to the Japan External Trade Organization's “2019 Survey on Overseas Expansion of Japanese Companies,” 56.7% of companies are expanding overseas.

On the other hand, in the “IMD Global Digital Competitiveness Ranking,” Japan ranks a lowly 29th.
While Japan's government actively utilizes IT, the weakness of Japan's overall digital skills is highlighted.