Digital Technology

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 in infrastructure development.

Overview

Japan's digital transformation market shows solid growth, presenting increased growth opportunities for foreign-affiliated companies

The Japanese government is working together with private corporations to invest in digitalization. A wide range of foreign companies are also entering the Japanese market, attracted by the size of the market and Japan's advanced infrastructure. With the strong support from the government for digitalization, the overall market size is continuing to grow.

Government Initiatives

Implementing wide-range support, from incentivizing the development of leading-edge technologies to promotion of digital transformation

The Japanese government envisions "Society5.0" as its goal - a society which aims to solve social issues through cutting-edge technology. In order to achieve such a society, it is providing multifaceted support, including revisions of existing regulations, cross-border and industrial data linkage, offering incentives for digital technology, and the attraction of overseas companies and talent.

Attractive Markets

In this report, we focus on the following five attractive markets in the digital industry

The chapter will cover markets with high government attention (AI, Web 3.0), markets with a high presence of foreign affiliated companies (cybersecurity, fintech), and markets with high potential in Japan (Metaverse).

(1)

AI: Increasing public and private investment
(2)

Cybersecurity: Remarkable overseas presence in the Japanese market
(3)

Virtual Space (Metaverse): Business opportunities in societal implementation
(4)

Web3.0: An improving business environment
(5)

FinTech: The significant roles of foreign companies