ブラック ジャック webechnology
Overview

(1) Japan as a Leading Country in Large-scale Investments in Digitalization

In the International Institute for Management Development's (IMD) Digital Competitiveness Ranking (2023) covering 64 countries, Japan ranks 8th overall in the Asia-Pacific region. Notably, Japan held top positions worldwide in the E-Participation (1st) and Wireless broadband (2nd) indices, demonstrating its global leadership in digital infrastructure.1 Similarly, in the Portulans Institute's Network Readiness Index (2023), which covers 134 countries and regions, Japan ranks 13th globally and 3rブラック ジャック webn Asia. Japan excels in areas such as Access to Technology (5th) and Online Information Sharing by Government Agencies, including local authorities (2nd). Additionally, Japan's high willingness to invest in the research and development (R&D) of new technologies is notable, with strong positions in R&ブラック ジャック webnvestment (2nd), R&D Expenditure (4th), anブラック ジャック webnvestment in Emerging Technologies (9th).2 It is evident that Japan has made comparatively more large-scale investments in digitalization and R&D than other countries, led by large private companies with financial power anブラック ジャック webnfluence, as well as by the government.


(2) Continuous Growth is Expecteブラック ジャック webn Digital Market

The market size for ブラック ジャック webransformation-related solution services in Japan grew from 7.69 billion USD* (1,163.4 billion JPY) in 2019 to 12.96 billion USD* (1,961.9 billion JPY) in 2022, recording a steady annual growth rate of 19% (Figure 1).

Figure 1: ブラック ジャック webransformation-related solution services market size in Japan

Source: Created by JETRO based on data from the Information-technology Promotion Agency, Japan (IPA) 3

In addition, the ブラック ジャック webransformation market is expected to see steady long-term growth due to the government's support for digitalization initiatives, including the realization of Society 5.0 and the new taxation system for promoting ブラック ジャック webransformation investment (as detailed in section 2. Government Initiatives)


(3) Company-wide ブラック ジャック webransformation Driven by Large Corporations

With the solid growth of the domestic ブラック ジャック webransformation market, Japanese companies are advancing digitalization across different fields. In addition to streamlining existing operations, such as digitizing physical data, ブラック ジャック webransformation is beginning to be recognized for its diverse benefits, including the creation of new products and services and the transformation of company-wide processes leading to fundamental management reforms.4

On the other hand, there is variation in the level of ブラック ジャック webransformation achieved among industries. According to survey results, the proportion of companies engaged in ブラック ジャック webransformation is highest in the Finance and Insurance industry at 85.1%, followed by the Manufacturing, and Distribution and Retail industries. In contrast, the Service industry tended to have fewer companies involved in ブラック ジャック webransformation (Figure 2).

Figure 2: Companies engaged in ブラック ジャック webransformation based on company-wide strategy (by industry)

Source: Created by JETRO based on data from IPA5

Furthermore, nearly 90% of large companies with over 1,000 employees are engaged in ブラック ジャック webransformation, whereas only about 30% of companies with 100 employees or fewer are involved, indicating a significant gap (Figure 3). Many small and medium-sized enterprises (SMEs) cite the lack of strategic planning and oversight personnel, as well as insufficient personnel to facilitate on-site ブラック ジャック webransformation, as reasons for the slow progress in ブラック ジャック webransformation initiatives. Companies with 100 employees or fewer frequently report a lack of knowledge and information necessary for ブラック ジャック webransformation, highlighting significant concerns regarding expertise and skills.

Figure 3: Companies engaged in ブラック ジャック webransformation based on company-wide strategy (by number of employees)

Source: Created by JETRO based on data from IPA6

As compared to other countries, Japanese companies tend to cite a lack of personnel and lack of knowledge and literacy in ブラック ジャック webechnology as barriers to ブラック ジャック webransformation.7 Securing and developing talent, as well as reskilling existing employees, are key challenges.

In response to this situation, the government has begun implementing multifaceted support aimed at improving the nation's digital capabilities. This includes promoting further investment in companies that are advancing digitalization and ブラック ジャック webransformation through innovation-driven policies, as well as supporting companies that are making efforts to attract and develop talent (as detailed in section 2. Government Initiatives).


(4) Japan's Market Size as a Key Point of Attraction for Foreign-affiliated Companies

According to a survey of foreign-affiliated companies in Japan, the Japanese market is considered attractive due to its market size, social and economic stability, and robust infrastructure. In addition, foreign-affiliateブラック ジャック webCT companies tended to value the size of the Japanese market at a higher rate (68.5%), than those in the finance anブラック ジャック webnsurance industry (68.1%) and academic research, professional and technical services (51.4%). The same respondents also favorably rated the concentration of related clients anブラック ジャック webndustries in Japan, the quality of infrastructure, and the medium- to long-term growth potential of the ICT industry in Japan, indicating that they value opportunities for collaboration and the well-developed business foundations in Japan.8

Furthermore, many foreign-affiliated companies highlighted the importance of advancing ブラック ジャック webransformation as a key theme for both their operations and Japanese society in the aftermath of the COVID-19 pandemic. A similar trend is observed among Japan's domestic companies as well. According to a survey, 24% of Japanese companies reported that the COVID-19 pandemic led them to expanding the segments that they are digitalizing, increasing the budgets allocated towards ブラック ジャック webransformation, and improving their ブラック ジャック webransformation systems.9 Despite the challenges, the ブラック ジャック webransformation market is set to expand in the future due to an increase in the number of companies involved and government support measures (as detailed in section 2. Government Initiatives).

In addition to market size, social and economic stability, and well-developed infrastructure, the wave of digitalization following the COVID-19 pandemic could further incentivize foreign-affiliated companies specializing in ブラック ジャック webransformation, to invest in the Japanese market. In fact, in recent years, various emerging digital markets in Japan have seen the entry of numerous foreign companies, ranging from startups to large enterprises (as detailed in section 3. Attractive Markets).



  1. *

    Calculated based on the Bank of Japan exchange rate of 1 USD for 151.38 JPY (as of April 1, 2024)


References
  1. International Institute for Management Development (IMD). "PEER GROUPS RANKINGS: ASIA – PACIFIC," "TECHNOLOGY: Wireless broadband," "FUTURE READINESS: E-Participation," ブラック ジャック webrends-Overall-Japan.
  2. Portulans Institute. "Network Readiness Index 2023(PDF)," Analysis Benchmarking the Future of the Network Economy.
  3. Japan Electronics anブラック ジャック webnformation Technology Industries Association (JEITA). Solution Services Market Size (2019-2020) (JP), p. 2.
    JEITA. 2021-2022 Solution and Services Market Size by Application, JEITA (JP), p. 2.
  4. Information-technology Promotion Agency, Japan (IPA). ブラック ジャック webransformation Trend 2024 (JP), p. 9.
  5. IPA. ブラック ジャック webransformation Trend 2024 (JP), pp. 2, 3.
  6. See Note 5, pp. 2, 4.
  7. Ministry of Internal Affairs and Communications (MIC). Survey Research on R&D on the Latest Information and Communications Technologies and the Trends of Use of Digital (JP), p. 243.
  8. JETRO. Summary of the Results of Survey on Business Operations of Foreign-affiliated Companies in Japan, 2023 (JP), p. 20.
  9. Japan Electronics anブラック ジャック webnformation Technology Industries Association (JEITA). Results of Survey on DX in Japanese and US Companies, JEITA (JP), p. 5.

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