The Internet of Things (IoT) user expenditure in Japan was estimated at a value of about 6.8 trillion Japanese yen in 2022. It was expected to grow with a compound annual growth rate (CAGR) of 8.6 percent until 2027, resulting in a value of almost 9.2 trillion yen by that year.
Market situation in Japan
Japan’s IoT market is experiencing significant growth across various sectors, with notable expansion in the automotive industry and logistics. The demand for IoT solutions is increasing as industries seek to enhance operational efficiency and address labor shortages. Key use cases driving this growth include agricultural field monitoring, smart warehouse management, and in-hospital clinical care. The number of wireless IoT devices is projected to reach almost 36 million by the 2026 fiscal year.
AI and IoT synergy
The IoT describes a network of devices that can process data and communicate with each other via the internet or other types of networks. The market for connected home devices, including smart appliances, security systems, and energy management solutions, is expanding rapidly. Moreover, the convergence of IoT with artificial intelligence, known as AIoT, is driving innovation in smart homes and beyond. AIoT enables devices to not only connect and communicate but also to learn and adapt, offering enhanced convenience, efficiency, and personalization for consumers. However, a survey conducted in Japan reveals that many companies lack personnel to lead AI implementation, while others are skeptical about the potential merits or results relative to the costs.
Internet of Things (IoT) user expenditure in Japan in 2022 with a forecast for 2027
(in trillion Japanese yen)
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IDC. (November 1, 2023). Internet of Things (IoT) user expenditure in Japan in 2022 with a forecast for 2027 (in trillion Japanese yen) [Graph]. In Statista. Retrieved October 31, 2024, from https://www.statista.com/statistics/1326088/japan-iot-market-size/
IDC. "Internet of Things (IoT) user expenditure in Japan in 2022 with a forecast for 2027 (in trillion Japanese yen)." Chart. November 1, 2023. Statista. Accessed October 31, 2024. https://www.statista.com/statistics/1326088/japan-iot-market-size/
IDC. (2023). Internet of Things (IoT) user expenditure in Japan in 2022 with a forecast for 2027 (in trillion Japanese yen). Statista. Statista Inc.. Accessed: October 31, 2024. https://www.statista.com/statistics/1326088/japan-iot-market-size/
IDC. "Internet of Things (Iot) User Expenditure in Japan in 2022 with a Forecast for 2027 (in Trillion Japanese Yen)." Statista, Statista Inc., 1 Nov 2023, https://www.statista.com/statistics/1326088/japan-iot-market-size/
IDC, Internet of Things (IoT) user expenditure in Japan in 2022 with a forecast for 2027 (in trillion Japanese yen) Statista, https://www.statista.com/statistics/1326088/japan-iot-market-size/ (last visited October 31, 2024)
Internet of Things (IoT) user expenditure in Japan in 2022 with a forecast for 2027 (in trillion Japanese yen) [Graph], IDC, November 1, 2023. [Online]. Available: https://www.statista.com/statistics/1326088/japan-iot-market-size/