target audience: TECH SUPPLIER Publication date: Jan 2024 - Document type: Market Forecast - Doc Document number: # JPE50869624
Japan IT Spending Forecast Update by Vertical Segment, Company Employee Size, and Company Revenue, 2023–2027
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Abstract
This IDC study presents the actual IT spending in 2021 and 2022, and the IT spending forecasts from 2023 to 2027 by industry sector, company size, and annual turnover in the Japan IT market. This study also analyzes IT spending by dividing the industries into 21 categories, company size and product segments into five categories, and annual turnover into four categories; and discusses IT spending trends observed in each industry segment.
Despite the uncertainties in the Japan economy, including the sharp depreciation of the yen and soaring raw material prices, as well as worsening geopolitical risks, higher interest rates, and economic slowdown in the United States and Europe, IDC believes the Japan IT market will maintain positive growth in 2023 and beyond. This is because many companies, including small and medium-sized businesses (SMBs), have started to actively promote digitalization and digital transformation (DX) not only to improve productivity, but also to increase profits and develop new businesses. This trend is not affected by a slight slowdown in the economic environment and is expected to expand steadily in the future.
"Therefore, in order for IT suppliers to expand their business in the Japan IT market, they must focus on supporting digitalization and DX promotion. However, the currently leading large companies need to compete with consulting firms, start-ups, and other companies with advanced business know-how and technology, and have not been able to achieve the expected results. Under these circumstances, Hitoshi Ichimura, research manager for Verticals and Cross Technologies, IDC Japan, says, "In order to increase their presence in the digitalization and DX support business in which needs will increase in the future, IT suppliers should actively deploy solutions and build their presence in DX support by leveraging their track record and know-how."