Artificial Intelligence - Japan

The Artificial Intelligence market in Japan is experiencing rapid growth, fueled by factors such as increasing adoption of digital technologies, growing awareness of the importance of AI, and the convenience of online services. The market's elevated growth rate can be attributed to advancements in AI technology, increasing investments in the sub-markets, and government initiatives promoting AI research and development.

Customer preferences: As technology continues to play a prominent role in daily life, Japanese consumers are increasingly turning to Artificial Intelligence (AI) for various tasks and services. This includes using AI-powered personal assistants for household tasks, relying on chatbots for customer service interactions, and utilizing AI-based financial advisors for investment decisions. Additionally, there is a growing demand for AI-powered language translation services, as language barriers remain a challenge in a culturally diverse society like Japan. This trend is driven by the desire for convenience and efficiency in daily tasks, and the recognition of AI as a reliable and accurate tool for these purposes.

Trends in the market: In Japan, the Artificial Intelligence market is experiencing a surge in the adoption of AI-powered chatbots and virtual assistants, as businesses seek to improve customer service and streamline operations. This trend is expected to continue as AI technology becomes more advanced and affordable. Additionally, there is a growing focus on developing AI solutions for healthcare, with the potential to revolutionize patient care and reduce costs. These trends have significant implications for industry stakeholders, as they offer opportunities for increased efficiency and innovation, but also raise concerns about job displacement and ethical considerations. As AI continues to evolve and integrate into various industries, it will be important for businesses to stay informed and adapt to these changes.

Local special circumstances: In Japan, the Artificial Intelligence market is experiencing significant growth due to the country's strong technological infrastructure and government support for AI research and development. Additionally, the unique cultural emphasis on precision and efficiency has driven the adoption of AI in various industries, such as manufacturing and healthcare. Furthermore, Japan's aging population and shortage of skilled workers have also contributed to the demand for AI-powered solutions to address these challenges. Moreover, the country's strict data privacy laws have influenced the development and implementation of ethical AI practices.

Underlying macroeconomic factors: The Artificial Intelligence market in Japan is greatly impacted by macroeconomic factors such as technological advancements, government support, and investment in research and development. Japan's strong technological infrastructure and government initiatives such as the "Society 5.0" plan, which aims to promote the use of AI in various industries, have contributed to the rapid growth of the AI market. Additionally, Japan's aging population and labor shortage have led to a growing demand for AI solutions in healthcare, manufacturing, and other sectors to increase efficiency and productivity. Furthermore, Japan's stable economic health and favorable business climate have attracted significant investments from both domestic and international companies, further fueling the growth of the AI market.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.