Japan Software Development Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth And Forecast 2024-2030

Report Code: ITR 0430 Report Format: PDF + Excel

Japan Software Development – Market Overview

Japan Software Development Market size is valued at USD 17.8 billion by 2023, and is anticipated to reach at USD 31.94 billion by 2030 by growing at a CAGR of 8.3% during the forecast period 2023-2030. Japan is one of the largest IT hubs in Asia, and IT industry has been driving the Japanese economy for the last years.  High level of support for research and development has made Japan to produce advances in IT software as well as automotive engines, television display technology, videogames, optical clocks, and many other fields. Recently, as the demand for communication and information sharing in the workplace is increasing in Japan, the use of software tools for business chat and RPA (Robotic Process Automation) is spread in companies across various industries. In addition to simple communication tools, partnerships with attendance management software and expense calculation software are underway for the purpose of improving work efficiency in Japan.

Report Coverage

The report: “Japan Software Development Industry Outlook – Forecast (2023-2030)” by IndustryARC covers an in-depth analysis of the following segments in the Japan Software Development Industry.

By Language: Java, Python, C++, JavaScript, TypeScript, PHP, Bash, SQL, Android, iOS, and Others
By Market Demand: In House on Payroll, Hired from Secondment Providers, Hired Freelancers, Fully Outsourced
By Deployment Type: On-Premise, Cloud
By Business Size: Small and Medium Business, Enterprise, and Government
By End-use Industry: Banking And Financial Institution, Insurance Firms, Media and Entertainment, Government, Defence, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing and Others

Key Takeaways

  • Japanese businesses are increasingly investing in digital transformation to improve their efficiency and productivity. This is driving the demand for software development services.
  • Japanese businesses are also increasingly adopting cloud computing. This is providing them with access to scalable and affordable software development platforms.
  • AI and ML are rapidly transforming the Japanese software development market. These technologies are being used to develop new types of software applications and to improve the efficiency of existing software development processes.
  • The Japanese government is strongly supportive of the software development industry. It has introduced a number of initiatives to promote the development and adoption of new software technologies.

Japan  Software Development – Market Scope and Coverage

The base year of the study is 2021, with forecast done up to 2027. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. These provide the key market participants with the necessary business intelligence and help them understand the future of the Japan Software Development Market. 

In 2020, the software market in Japan reached US$11 billion and the market size of Japan Software Development market is increasing year-by-year. Japan Software Development Market size is valued at USD 17.8 billion by 2023, and is anticipated to reach at USD 31.94 billion by 2030 by growing at a CAGR of 8.3% during the forecast period 2023-2030

Japan  Software Development – By Language

By language, the software market is further fragmented into Java, Python, C++, JavaScript, TypeScript, PHP, Bash, SQL, Android, iOS and others. Among others, the C++ segment accounted for the dominant market share in 2021. The C++ programming language can be used to develop operating systems, and browsers, and is one of the most popular languages in game development. Currently, many software developers in major companies are using C++ for the development.

Japan  Software Development – By Market Demand

By market demand, the market is segmented by In House on Payroll, Hired from Secondment Providers, Hired Freelancers and Fully Outsourced. The inhouse on payroll segment generated more than 60% of revenue share in 2021 and is set to boost the growth of the market in upcoming years. According to the Action Plan for Growth Strategy 2020 report, in order to be able to quickly respond troubles with transactions between freelance employees and the business ordering the transaction, enforcement based on the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade and on the Act against Delay in Payment of Subcontract Proceeds to Subcontractors will be strengthened by considering increases to the number of transaction investigators or subcontractor G-Men and the number of staff at the Japan Fair Trade Commission.

Japan  Software Development – By Deployment Type

By deployment type, the Cloud segment had more than 50% of market share in 2021 based on the presence of major clouding computing companies in the country. Most companies in Japan, including financial institutions and enterprises, use cloud services, so the size of the cloud service market continues to increase. According to the 2019 cloud service demand trend survey by the MM Research Institute, a Japanese cloud service market research institute, the size of Japan's cloud service market in 2018 was about 1.9 trillion yen, up 22.7% from 2017. In particular, in the software market, classified as Software as a Service (SaaS) and packaging, there is an increase in demand due to low initial cost and convenience.

Japan  Software Development – By Business Size

With regard to business size, the enterprise business segment accounted for more than half of market share in the Japan Software Development market in 2021. Key players in this market include Softbank Group, NTT, DOCOMO, NTT, KDDI and so forth. They are believed to have a positive influence in the growth of the large enterprise segment in the Japan Software Development market.

Japan  Software Development – By End-use Industry

By end-use industry, the market is poised with respect to the end use industries to be processed including Banking and Financial Institution, Insurance Firms, Media and Entertainment, Government, Defense, Telecommunication, Automotive, Consumer Goods and Retail, Healthcare, Manufacturing, and others. Considering that Japan is one of the biggest manufacturing hubs in Asia, the manufacturing segment had the largest market share in 2021. The manufacturing industry has been heavily relying on the software program and its role and importance is increasingly raised. 

Japan  Software Development Market drivers

The growing number of mergers and acquisitions in Japan is considered to contribute to the growth of Japan Software Development market for the forecast period. Due to the trend of the development of the 4th Industry centered on IT and the influence of the Japanese Government economic measures, the software development industry sees M&A as a way of technological innovation. Large enterprises are actively seeking mergers and acquisitions to address the shortage of professional software engineers and to expand related businesses. Small and medium-sized enterprises that are difficult to grow independently are choosing an option for expanding the size of their businesses by joining large companies or working in partnership with them. For example, In March 2019, Renesas Electronics Corp. announced the acquisition of Integrated Device Technology for $6.5 billion, which is set to strengthen its product portfolio in the global market.

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1. Japan Software Development Market - Market Overview
    1.1 Definitions and Scope
2. Japan Software Development Market - Executive Summary
3. Japan Software Development Market - Startup companies Scenario Premium 
    3.1 Top startup company Analysis by
        3.1.1 Investment
        3.1.2 Revenue
        3.1.3 Market Shares
        3.1.4 Market Size and Application Analysis
        3.1.5 Venture Capital and Funding Scenario
4. Japan Software Development Market – Industry Market Entry Scenario Premium 
    4.1 Regulatory Framework Overview
    4.2 New Business and Ease of Doing business index
    4.3 Case studies of successful ventures
    4.4 Customer Analysis - Top companies
5. Japan Software Development Market - Market Forces
    5.1 Market Drivers
    5.2 Market Constraints
    5.3 Market Opportunities
    5.4 Porters five force model
        5.4.1 Bargaining power of suppliers
        5.4.2 Bargaining powers of customers
        5.4.3 Threat of new entrants
        5.4.4 Rivalry among existing players
        5.4.5 Threat of substitutes
6. Japan Software Development Market - Strategic analysis
    6.1 Value chain analysis
    6.2 Opportunities analysis
    6.3 Market life cycle
    6.4 Suppliers and distributors Analysis
7. Japan Software Development Market – By Language (Market Size - US$Million)
    7.1 Java
    7.2 Python
    7.3 C#
    7.4 JavaScript
    7.5 TypeScript
    7.6 PHP
    7.7 Bash
    7.8 SQL
    7.9 Android
    7.10 iOS
    7.11 Others
8. Japan Software Development Market – By Market Demand (Market Size - US$Million)
    8.1 In House on Payroll
    8.2 Hired from Secondment Providers
    8.3 Hired Freelancers
    8.4 Fully Outsourced
9. Japan Software Development Market – By Deployment Type (Market Size - US$Million)
    9.1 On-Premise
    9.2 Cloud
10. Japan Software Development Market – By Business Size (Market Size - US$Million)
    10.1 Small and Medium Business
    10.2 Enterprise
    10.3 Government
11. Japan Software Development Market - By End-use Industry (Market Size - US$Million)
    11.1 Banking And Financial Institution
    11.2 Insurance Firms
    11.3 Media and Entertainment
    11.4 Government
    11.5 Defense
    11.6 Telecommunication
    11.7 Automotive
    11.8 Consumer Goods and Retail
    11.9 Healthcare
    11.10 Manufacturing
    11.11 Others

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