Japan IT Services Forecast by Vertical Segment, 2025-2029

Description

This IDC study covers the overview of and trends in the Japan IT services market. It analyzes user companies by 18 industry segments (subcategories), as well as IT services spending by six industry segments (main categories) and three service segments (subcategories). We predict the market size and growth rate for each market segment from 2025 to 2029. Moreover, we add IDC recommendations for service vendors.Masaru Muramatsu, senior research analyst, Software and Services, IDC Japan, says, "In the Japan IT services market, we are seeing increasing demand in a wide range of industries for cloud migration/modernization of existing systems, as well as for building new systems to implement digital innovation. In addition to this demand, we expect to see a sustained expansion in IT service spending from 2025 onward, due in part to the full-scale modernization of systems in custom development. The transition from proof of concept (POC) to practice in AI use among Japan companies, and AI use case expansion, will likely be driving factors for this."This is the English translation of the Japanese document IDC #JPJ52160425.

Product Code: JPE52719625

IDC Market Forecast Figure

Executive Summary

Advice for Technology Suppliers

Market Forecast

Japan IT Services Spending by Foundation
Japan IT Services Spending by Industry Sector
Japan IT Services Spending by Industry Sector (Main Category) and Service Segment (Subcategory)

Market Context

Drivers and Inhibitors
- Drivers
  - Modernization of Existing IT Systems
  - Evolving AI Use Cases
  - Japan Macroeconomics
- Inhibitors
  - Digital Talent Shortage at Vendors
  - Existence of Alternative Products and Services
Significant Market Developments
- Progression from POC to Implementation Phase of AI Utilization
- Expanding Delivery Capabilities in Terms of Both Technology and Resources
- Increase in Spending on IT Services for Government Agencies and Local Governments
Changes from Prior Forecast
Reference: Forecast Information

Market Definition

What Is a Service?
Services Size
Foundation Sector
- Project Oriented
  - IT Consulting
  - Systems Integration
  - Custom Application Development
  - Network Consulting and Integration Services
- Managed Services
  - IT Outsourcing
  - Network and Endpoint Outsourcing Service
  - Application Management
  - Hosted Application Management
  - Hosting Infrastructure Services
- Support Services
  - Hardware Support and Maintenance
  - Software Support and Maintenance
  - IT Education and Training
Industry Segment
Nonconsolidated Basis