Japan Smart Cities Market Research Report 2023

Japan Smart Cities Market Synopsis

Japan Smart Cities Market Size Was Valued at USD 50726.71 Million in 2022 and is Projected to Reach USD 136775.44 Million by 2030, Growing at a CAGR of 13.1 % From 2023-2030.

Japan has been actively working to transform its cities into smart cities by integrating advanced technology and data solutions to improve city services and improve the quality of life for residents. To achieve this, the country has invested heavily in technology infrastructure, including high-speed internet connections, 5G networks, and Internet of Things (IoT) devices. These technologies play a crucial role in collecting and analyzing information from various sources in the city. 

• Sustainable energy solutions are the main focus of Japan's smart city projects, emphasizing the development of renewable energy sources such as solar and wind power, as well as the deployment of smart grid systems to optimize energy distribution. In addition, Japanese cities are actively working to improve traffic and mobility by using intelligent transportation systems to reduce traffic congestion and improve public transportation. This includes the integration of intelligent traffic management and the promotion of electric vehicles.
• Urban design and planning also play an important role in creating smart cities in Japan. The country uses data analytics to optimize urban planning, create green spaces and design energy-efficient buildings. IoT devices and sensor networks are widely used to collect real-time data on various urban aspects such as air quality, waste management, water use, and energy consumption.
• When building smart cities, Japan emphasizes the importance of citizen involvement. The aim is to involve residents in decision-making using digital platforms, feedback systems, and participatory planning. In addition, the country prioritizes the implementation of smart technologies for security, public safety, surveillance systems, emergency coordination, and deployment of disaster management strategies.

Top Key Players:

"Panasonic Corporation (Japan), Hitachi Ltd. (Japan), Mitsubishi Electric Corporation (Japan), Siemens AG (Germany), Toshiba Corporation (Japan), NEC Corporation (Japan), Fujitsu Limited (Japan), Sumitomo Mitsui Construction Co., Ltd. (Japan), NTT Group (Japan), Schneider Electric SE (France), Toyota Motor Corporation (Japan), Ericsson (Sweden), ABB Group (Switzerland), SoftBank Group Corp. (Japan), Honda Motor Co. Ltd. (Japan), Shimizu Corporation (Japan), Sekisui House Ltd. (Japan), Daikin Industries Ltd. (Japan), ORIX Corporation (Japan), Yokogawa Electric Corporation (Japan), and Other Major Players"

Japan Smart Cities Market Trend Analysis

Digital Transformation and Connectivity

• Digital transformation and connectivity are two interrelated concepts that play a crucial role in the development of smart cities. They refer to the integration and use of advanced digital technologies and the seamless connectivity of devices, infrastructures, and people to improve various aspects of urban life.
• Digital transformation refers to the process of using technology to fundamentally change and improve how cities operate, deliver services, and interact with residents and businesses. This includes implementing innovative digital solutions to optimize operations, improve efficiency and improve the overall quality of life in urban areas.
• Smart cities collect vast amounts of data from various sources such as sensors, IoT devices, and social media. Using data analytics and big data processing, city authorities can obtain valuable information, identify patterns and make data-driven decisions to improve service delivery and city planning.

Tourism Enhancement

• Promoting tourism in the context of smart cities means using advanced technologies and innovative solutions to improve the overall tourist experience and boost the tourism industry in a given city or destination. By integrating elements of smart cities into the tourism industry, cities can attract more visitors, increase visitor satisfaction and encourage repeat visits.
• Smart cities can provide interactive digital guides and information kiosks that provide real-time information about tourist attractions, events, cultural sites, and local services. These digital platforms can also provide language translation services to help international tourists navigate the city with ease. AR can be integrated into historical sites, attractions, and museums to provide an immersive and educational experience for tourists.

Through AR applications on smartphones or smart glasses, tourists can get more historical information, virtual guides, or visualizations that bring historical events to life.  Efficient and good transport links are crucial for a positive tourist experience. Smart cities can implement intelligent transportation systems that provide real-time updates on public transportation schedules, traffic conditions, and alternative routes. 

According to the Graph, the revenue data for Smart Cities in Japan from 2019 to 2022 indicates a gradual increase in revenue over the specified period. In 2019, the revenue stood at $1.39 billion, and it rose to $1.49 billion in 2020, reflecting moderate growth. However, there was a noticeable uptick in revenue in 2021, reaching $1.76 billion. By 2022, the revenue further increased to $1.85 billion. The consistent growth in revenue for Smart Cities in Japan from 2019 to 2022 reflects a positive trajectory for the country's Smart Cities market. The combination of government support, technological advancements, environmental considerations, and public participation has contributed to the expansion of smart city initiatives across Japan.

Japan Smart Cities Market Segment Analysis

The smart Cities market is segmented into Solutions and Services, Component, Level, and End-user. By Solution and Service, the Smart Mobility Management Segment is Anticipated to Dominate the Market Over the Forecast Period.

• Intelligent mobility management is an important part of smart cities, which focuses on optimizing traffic and mobility solutions to improve the efficiency, safety, and sustainability of urban transport. It involves combining digital technology, data analytics, and real-time information to create a seamless and connected transport ecosystem.
• The main goal of smart mobility management is to improve the overall mobility of citizens and visitors, reducing traffic congestion, emissions, and dependence on traditional modes of transport. ITS forms the backbone of intelligent mobility management. It involves a combination of advanced technologies such as traffic sensors, surveillance cameras, and communication networks that effectively monitor and manage transport systems.
• ITS enables real-time data collection and analysis to optimize traffic flow, signal timing, and congestion management. Smart Mobility Management provides real-time information about public transport options, including bus and train timetables, arrival times, and route planning. Citizens can access this information through mobile apps or digital screens at public transport stops, allowing them to make informed decisions and reduce waiting times.

Japan Smart Cities Market Country Insights:

• Kanagawa Prefecture in Japan has emerged as a dominant state in the smart city market, actively leading various innovative projects to improve urban life and sustainability. One outstanding example of their efforts is the "Tsuzuki Model District" in Yokohama.
• The Tsuzuki Model District project is an ambitious initiative to transform the city of Yokohama into a technologically advanced and environmentally friendly smart city. The focus of the project is the use of cutting-edge technology and data-based solutions to improve the quality of life of residents by promoting energy efficiency and optimizing city services.
• The central focus of the Tsuzuki Model District project is energy management and smart grid deployment. Renewable energy sources such as solar panels and wind turbines are integrated into the region's infrastructure to generate clean electricity. With the help of smart grid technologies, real-time data analysis ensures efficient distribution and consumption of energy, reducing waste and carbon dioxide emissions.

COVID-19 Impact Analysis on Japan Smart Cities Market

• The pandemic has highlighted the importance of digital technology to maintain essential services and minimize physical contact. This has led to the acceleration of digital transformation in various sectors, including healthcare, e-commerce, and public services. Japan's smart cities have adopted digital solutions to improve telehealth services, contactless payments, and virtual communication platforms for remote work and training.
• The pandemic has highlighted the need for efficient and sustainable healthcare infrastructure. Japan's smart cities are investing in telemedicine, artificial intelligence-based diagnostics, and remote monitoring technologies to improve access to healthcare and minimize the burden on hospitals. The purpose of these investments was to ensure effective management of public health during crises.
• Due to the increased demand for remote services and network connections, there has been a growing effort to expand the digital infrastructure and deploy 5G networks. Japan's smart cities are working to strengthen internet connections to support growth in data traffic, enabling faster and more reliable communications. The pandemic has raised concerns about public safety. Japan's smart cities have used technologies such as AI-powered surveillance cameras and crowd monitoring systems to effectively manage public spaces and implement social distancing.

Top Key Players Covered in Japan Smart Cities Market

• Panasonic Corporation (Japan)
• Hitachi Ltd. (Japan)
• Mitsubishi Electric Corporation (Japan)
• Siemens AG (Germany)
• Toshiba Corporation (Japan)
• NEC Corporation (Japan)
• Fujitsu Limited (Japan)
• Sumitomo Mitsui Construction Co. Ltd. (Japan)
• NTT Group (Japan)
• Schneider Electric SE (France)
• Toyota Motor Corporation (Japan)
• Ericsson (Sweden)
• ABB Group (Switzerland)
• SoftBank Group Corp. (Japan)
• Honda Motor Co. Ltd. (Japan)
• Shimizu Corporation (Japan)
• Sekisui House Ltd. (Japan)
• Daikin Industries Ltd. (Japan)
• ORIX Corporation (Japan)
• Yokogawa Electric Corporation (Japan), and Other Major Players

Key Industry Developments in the Japan Smart Cities Market

In March 2023, Otsuka Chemical Co., Ltd., and Yokogawa Electric Corporation announced the establishment of SynCrest Inc., a joint venture that will engage in research, development, and manufacturing in the promising field of middle-molecular pharmaceuticals as a Contract Research, Development, and Manufacturing Organization (CRDMO).

In Aug 2022, Panasonic Life Solutions India - a leading diversified technology company announced 'The Festival of Life' offer for consumers and launched a wide range of consumer appliances. 20 new models of LED TVs – comprising of both 4K and Smart TV portfolio, Smart line-up of Washing Machines powered by Miraie –IoT enabled platform by Panasonic, a 30 Litre Microwave Oven featuring zero oil recipes, and Monster Super Mixer Grinders with Double Safety Lock for enhanced safety.