The Japanese smart city emerging technologies market is set to grow at a CAGR of 14.7% from $8980.5m in 2020 to $22,750 in 2027, according to Report Ocean.

To comprehend a market holistically, various factors must be evaluated, including demographics, business cycles and microeconomic requirements that pertain precisely to the market under study. In addition, the study provides a detailed examination of the business state, which represents creative ways for company growth, financial factors such as production value, key regions and growth rate.

The digital economy affects the world’s trajectory and the societal well-being of common citizens. In addition, it influences everything from resource assignment to income allocation and economic growth.

The adoption of IoT technology is pushing significant market growth. Additionally, in five to ten years, technologies such as robotics, AI and augmented reality will account for around 27% of ICT spending. Consumer demand for access to content and products at any time and from any location is propelling the ICT market forward. The ICT sector is lucrative for vendors since it has about seven billion mobile subscribers and three billion internet users.

Emerging technologies are used for the development and building of smart cities. The market is majorly driven by the rising need for public safety and communication infrastructure and an increasing number of government initiatives and PPP models for smart cities. However, privacy and security concerns over the IoT are expected to slow market growth. Furthermore, huge initial investments are also anticipated to hamper market growth.

Various government initiatives along with public-private partnerships are boosting the market growth. For instance, in July 2021, Mishima City signed an agreement with Oracle Japan for various smart city initiatives. These initiatives are expected to benefit local businesses and citizens by solving key social problems using digital technology.

For instance, Japan has been experiencing a need for reforms for solving many regional problems and a need to boost the appeal to potential immigrants and tourists. To address this issue, the country launched the Mishima Smart City Promotion Council in 2020 for promoting the use of data held by private organisations and local government.

The successful launch of smart city projects mainly depends on telecommunication infrastructure and its use in public safety. All cities are required to ensure that communication platforms are established as well as accessible for realising the concept of smart cities in a resource-efficient and open manner. The requirement of basic and modern infrastructure for data communication is required for a city to become smart. Therefore, the growing need for public safety and communication infrastructure is expected to boost market growth.

The IoT is anticipated to hold the largest market share of around 34% of emerging technologies owing to its growing adoption as it enables innovation by integrating the internet across various functions. Within this segment, the radio frequency identification segment is estimated to surpass a market size of about $986.1m by 2027. The cloud computing segment is expected to witness the fastest growth rate of 15.8%.

The cloud segment held the largest market share by deployment owing to its cost effectiveness, which has applications in areas such as smart governance, smart utilities, smart transportation and smart buildings.

By application, the smart citizen service segment held the largest market share of about 21% owing to technological advancements for ensuring the safety of citizens. Within the smart utilities segment, advanced metering infrastructure is anticipated to witness a CAGR of 15.9%. Within the smart governance segment, the law enforcement segment is expected to surpass a market size of $1263.6m by 2027.

Key players operating in the Japan emerging technologies in smart cities market include ABB, Accenture, Alphabet, AT&T, Cisco, Ericsson, Foxconn, Fujitsu, Hitachi, General Electric, Honeywell, IBM, Huawei, Intel, LG Electronics, Microsoft, Oracle, Qualcomm, Schneider Electric, Siemens and Toshiba.

The approximate market share of the five major players is near about 35%. These market players are involved in product launches, partnerships, mergers and acquisitions to strengthen their market presence. For instance, in May 2021 ABB Robotics advanced its construction industry automation by enabling sustainable and safer buildings.