Japan IoT Market, By Hardware (Processor, Memory Device, Logic Device, Sensor, Connectivity IC), By Service (Professional Services, Managed Services), By Platform (Device Management Platform, Application Management Platform, Network Management Platform), By Software (Real-Time Streaming Analytics, Application and Network Security, Data Management, Remote Monitoring System, Network Bandwidth Management), By Application (Consumer Electronics, Building Automation, Industrial, Automotive & Transportation, Healthcare, Retail, Oil & Gas, Agriculture, Others) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: October 2021
  • Report ID: BWC21133
  • Available Format: PDF
  • Page: 117

Report Overview

The Japan IoT market is growing at a high CAGR because of the technological advancements, availability of a wide range of consumer goods and IoT devices at competitive prices, and growing application of IoT in various industries.

Japan IoT Market- Industry Trends & Forecast Report 2027

Japan IoT market is likely to grow at a CAGR of 23.0% in the forecast period. The market is flourishing at a high rate because of the increasing government investment in smart public infrastructures such as smart parks and the launch of a wide range of IoT sensors and solutions. Furthermore, the growing adoption of IoT in various industries such as agriculture, healthcare, manufacturing, etc., is also propelling the growth of the Japan IoT market.

Japan IoT Market- Overview

A network of physical objects equipped with software, sophisticated sensors, and other technologies that communicate with other devices and systems through the Internet is known as the Internet of Things (IoT). Through this amalgamation of software and hardware, IoT devices form a network of interconnected devices that collect and exchange data with each other and other non-IoT devices in the system. Some of the most commonly used IoT devices are fitness trackers, medical sensors, smart security systems, smart fire alarms, smart bicycles, etc. IoT devices are making waves across Japan. For instance, Nestlé Japan decided to leverage the Internet of Things (IoT) to revolutionize its business processes. To automate the order and reorder process, they created and deployed a solution.

Japan IoT Market Forecast and Trends

Growth Drivers

A Surge in the Launch of Advanced IoT Devices

Japan has always been at the forefront of technological advancements and developments. Therefore, companies are increasingly launching advanced IoT technologies and developing infrastructure to support it. For instance, CollaboGate Japan has recently formed a business alliance with Tessera Technology to develop a decentralized IoT platform that will use robust hardware-based security functionality of the Renesas’ microcontrollers (MCUs) to verify contactless transactions conducted through IoT devices. Such developments are expected to boost the Japan IoT market in the forecast period.

Growing IoT Application in Manufacturing Industry

Japan is one of the leading consumer goods and automobile manufacturers in the world. The country is also investing significantly in expanding its manufacturing capacity. IoT is prominently being used to optimize the equipment and operations in manufacturing plants and helps track casualties by predictive analysis, which further optimizes the safety of the workers. With this, the application of IoT in the manufacturing industry is emerging as one of the major driving factors for the Japan IoT market.

Restraints

Privacy Concerns and High Risk of Data Breach

IoT devices and privacy seem to have incompatible relationships. Whether being used in personal or private spaces, IoT technologies collect crucial information that is very intrusive and track normative behavior of the people, which may be used legally and illegally. In addition, experts claim that corporations can misuse the data collected by IoT technologies, and governments can use them to gain more control over citizens by using the data collected. This acts as a major threat to the growth of the Japan IoT market.

Impact of COVID-19 on Japan IoT Market

The Japan IoT market witnessed a significant boom after the sudden outbreak of the COVID-19 pandemic. An increasing number of COVID-19 patients in the country had placed a heavy burden on the healthcare system. IoT emerged as a useful technology by facilitating remote healthcare services during the global health emergency created by the COVID-19 outbreak. The COVID-19-affected patients in quarantine were monitored remotely using IoT sensors, and the data was shared with the healthcare providers. Furthermore, IoT tracking devices also proved valuable in ensuring the delivery of medicines and medical equipment.

Japan IoT Market - By Service

Based on services, the Japan IoT market is segmented into professional services and managed services. Professional services account for the largest share in the Japan IoT market because of the increasing penetration of IoT devices in the country. These services ensure uninterrupted communication among IoT devices, internet connectivity and also maintain the highest security. Therefore, the IoT ecosystem industries are hiring professional services to outsource the management to prevent any hindrance. On the other hand, managed services are also gaining significant traction in the market and are likely to register healthy growth over the forecast period.

Japan IoT Market - By Platform

Based on platforms, the Japan IoT market is segmented into device management platform, application management platform, and network management platform. Among all the segments, the device management platform holds the highest market share. This is because these platforms are used for interconnecting IoT devices with each other and other storage and transfer mediums such as smartphones. The device management platform performs a variety of functions but most prominently assists in creating an IoT ecosystem by giving access to the network of IoT devices.

Japan IoT Market - By Software

Based on software, the Japan IoT market is segmented into real-time streaming analytics, application, and network security, data management, remote monitoring system, network bandwidth management. Among these, the real-time streaming analytics segment accounts for the largest market share. The real-time streaming analytics software accesses and analyzes real-time ‘in-motion’ data and compares it with historical data to determine or track any issues in the process or hardware and promptly take necessary preventive measures. Therefore, Japanese companies are increasingly adopting real-time streaming analytics to detect security threat patterns and their risks. On the other hand, the remote monitoring system is expected to witness the highest growth rate during the forecast period.

Japan IoT Market: Competitive Landscape

The leading players in the Japan IoT market are Amazon Web Services, Inc., Fujitsu Ltd., Hitachi, IBM Japan, Microsoft Corporation, NTT Docomo Inc., SoftBank Group Corp., Intel Corporation, Siemens AG, Sakura Internet, and other prominent players.

The Japan IoT market is highly concentrated with the presence of global giants such as Amazon, IBM, Microsoft, etc. But regional players such as NTT, Fujitsu, Sakura internet Inc., etc., also have strong and deeper penetration in the market. In addition to launching new products with improved connectivity, the companies focus heavily on advancing their IoT technologies. Furthermore, This market also includes the adoption of competitive strategies, such as joint ventures, acquisitions, and mergers, etc.

Recent Developments

  • In September 2021, Chugoku Electric Power, an electric utility company, announced its partnership with IoT firms FogHorn and Energia Communications for optimizing hydropower generation plant performance and enhancing workforce safety.
  • In June 2021, Rakuten Mobile announced its plans of adopting new routing technologies from network gear maker Cisco to expand its capacity to support business customers with 5G and Internet of Things (IoT)-related services.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Million

Product Service/Segmentation

By Hardware, By Service, By Platform, By Software, By Application

Key Players

Amazon Web Services, Inc., Fujitsu Ltd., Hitachi, IBM Japan, Microsoft Corporation, NTT Docomo Inc., SoftBank Group Corp., Intel Corporation, Siemens AG, Sakura Internet, and other prominent players.

 

By Hardware

  • Processor
  • Memory Device
  • Logic Device
  • Sensor
  • Connectivity IC

By Service

  • Professional Services
  • Managed Services

By Platform

  • Device Management Platform
  • Application Management Platform
  • Network Management Platform

By Software

  • Real-Time Streaming Analytics
  • Application and Network Security
  • Data Management
  • Remote Monitoring System
  • Network Bandwidth Management

By Application

  • Consumer Electronics
  • Building Automation
  • Industrial
  • Automotive & Transportation
  • Healthcare
  • Retail
  • Oil & Gas
  • Agriculture
  • Others
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Increasing Launches of Advanced IoT Devices
        2. Growing IoT Application in Manufacturing Industry
      2. Market Restraints
        1. Privacy and Security Concerns with IoT Devices
      3. Market Challenges
        1. Traditional Government Structure
      4. Market Opportunity
        1. Growing Penetration of Artificial Intelligence
        2. Positive Influence of the COVID-19 Pandemic
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. Japan IoT Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Hardware
        1. Processor
        2. Memory Device
        3. Logic Device
        4. Sensor
        5. Connectivity IC
      2. By Service
        1. Professional Services
        2. Managed Services
      3. By Platform
        1. Device Management Platform
        2. Application Management Platform
        3. Network Management Platform
      4. By Software
        1. Real-Time Streaming Analytics
        2. Application and Network Security
        3. Data Management
        4. Remote Monitoring System
        5. Network Bandwidth Management
      5. By Application
        1. Consumer Electronics
        2. Building Automation
        3. Industrial
        4. Automotive & Transportation
        5. Healthcare
        6. Retail
        7. Oil & Gas
        8. Agriculture
        9. Others
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on Japan IoT Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Amazon Web Services, Inc.
    2. Fujitsu Ltd.
    3. Hitachi
    4. IBM Japan
    5. Microsoft Corporation
    6. NTT Docomo Inc.
    7. SoftBank Group Corp.
    8. Intel Corporation
    9. Siemens AG
    10. Sakura Internet
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: Japan IoT Market Segmentation

 

Figure 2: Japan IoT Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: Japan IoT Market Size, By Value (USD Million), 2017-2027

 

Figure 5: Japan IoT Market Share (%), By Hardware, By Value, 2017-2027

 

Figure 6: Japan IoT Market Share (%), By Service, By Value, 2017-2027

 

Figure 7: Japan IoT Market Share (%), By Platform, By Value, 2017-2027

 

Figure 8: Japan IoT Market Share (%), By Software, By Value, 2017-2027

 

Figure 9: Japan IoT Market Share (%), By Application, By Value, 2017-2027

 

 

List of Tables

 

 

Table 1: Japan IoT Market Size, By Hardware, By Value, 2017-2027

 

Table 2: Japan IoT Market Size, By Service, By Value, 2017-2027

 

Table 3: Japan IoT Market Size, By Platform, By Value (USD Million), 2017-2027

 

Table 4: Japan IoT Market Size, By Software, By Value (USD Million), 2017-2027

 

Table 5: Japan IoT Market Size, By Application, By Value (USD Million), 2017-2027

 

Table 6: Amazon Web Services, Inc. Financial Analysis

Table 7: Amazon Web Services, Inc. Business Overview

Table 8: Fujitsu Ltd. Financial Analysis

Table 9: Fujitsu Ltd. Business Overview

Table 10: Hitachi Financial Analysis

Table 11: Hitachi Business Overview

Table 12: IBM Japan Financial Analysis

Table 13: IBM Japan Business Overview

Table 14: Microsoft Corporation Financial Analysis

Table 15: Microsoft Corporation Business Overview

Table 16: NTT Docomo Inc. Financial Analysis

Table 17: NTT Docomo Inc. Business Overview

Table 18: SoftBank Group Corp. Financial Analysis

Table 19: SoftBank Group Corp. Business Overview

Table 20: Intel Corporation Financial Analysis

Table 21: Intel Corporation Business Overview

Table 22: Siemens AG Financial Analysis

Table 23: Siemens AG Business Overview

Table 24: Sakura Internet Financial Analysis

Table 25: Sakura Internet Business Overview

Market Segmentation

By Hardware

  • Processor
  • Memory Device
  • Logic Device
  • Sensor
  • Connectivity IC

By Service

  • Professional Services
  • Managed Services

By Platform

  • Device Management Platform
  • Application Management Platform
  • Network Management Platform

By Software

  • Real-Time Streaming Analytics
  • Application and Network Security
  • Data Management
  • Remote Monitoring System
  • Network Bandwidth Management

By Application

  • Consumer Electronics
  • Building Automation
  • Industrial
  • Automotive & Transportation
  • Healthcare
  • Retail
  • Oil & Gas
  • Agriculture
  • Others
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Frequently Asked Questions:

Ans: Japan IoT market is expected to grow at a CAGR of 23.0%.
Ans: Japan's IoT market is seeing strong growth due to rising launches of advanced IoT devices and growing IoT applications in manufacturing.
Ans: The key players in the Japan IoT market are: Amazon Web Services, Inc., Fujitsu Ltd., Hitachi, IBM Japan, Microsoft Corporation, NTT Docomo Inc., SoftBank Group Corp., Intel Corporation, Siemens AG, Sakura Internet, and other prominent players.
Ans: The consumer electronics segment accounted for the largest share in the Japan IoT market.
Ans: Security and privacy concerns surrounding IoT devices are restraining the growth of the Japanese IoT market.