Japan's information and communications technologies (ICT) market is growing, driven by digital transformation, government initiatives, and strong demand for advanced technologies. With one of the world’s most connected populations, the sector is key to Japan’s economy, supporting growth in manufacturing, healthcare, finance and smart cities.
Information and communications technologies market in Japan
Key opportunities for Canadian ICT companies in Japan
- Emerging technologies: There is high demand for solutions in:
- Artificial intelligence (AI) and machine learning
- Cybersecurity
- Cloud platforms and software as a service (SaaS)
- Digital banking and financial technologies (FinTech)
- Internet of Things (IoT) and smart city infrastructure
- Augmented and virtual reality, and metaverse applications
- Quantum computing
- Data center
- Semiconductor sector: The Government of Japan has committed JPY 10 trillion (about CAD 85 billion) by 2030 to advance semiconductors and AI, including major 2025 funding for quantum R&D and chip production.
Industry highlights
10.2% of Japan’s GDP came from ICT in 2025.
USD 1.2 trillion is the projected size of Japan’s ICT market by 2033.
Around 4.5 million people work in Japan’s ICT sector.
8.16% of Japan’s total exports were ICT goods in 2025.
Notable challenges for Canadian ICT companies in Japan
- Cultural and language barriers: Japan’s business culture values trust and consensus, making language skills and localized marketing essential.
- Regulatory complexity: Strict data privacy and cybersecurity regulations require strong compliance efforts, and navigating local standards and procurement can be time-consuming.
- Market entry strategy: Success often depends on local partners or agents, and building brand recognition and trust takes time. This is especially true for small and medium-sized enterprises (SMEs).
Japan's business landscape
Japan’s ICT sector is evolving quickly with strong support from both government and industry. Cloud services are expanding in public and private sectors, helped by programs that promote adoption. Sustainability is also a priority, creating opportunities in energy-efficient data centres and green technologies.
Japan is also positioning itself as a leader in next-generation connectivity. Major players such as NEC, Fujitsu, and Nokia are investing in 6G trials, aiming for commercial rollout by 2030. These projects show Japan’s focus on innovation and building a competitive, future-ready ICT ecosystem.
Summary
Japan’s ICT market is large, growing, and supported by strong government investment in digital transformation, 6G, and green technologies. For Canadian compagnies, this creates opportunities in high-demand areas such as AI, cybersecurity, FinTech, smart cities, and semiconductors, where trusted partners and innovative solutions are valued.
Contact us
For more information on the ICT market in Japan, contact kenji.hirabara@international.gc.ca.