The global economy is mostly fueled by the Japanese IT sector. Japanese enterprises nevertheless have a substantial global presence and a well-respected reputation, despite the country’s loss of its former leadership in the world’s IT industry and growing competition from international businesses. Japanese IT behemoths and the government are working to overhaul the country’s IT industry and bring it back to its previous splendor.
There are several diverse sectors of the Japanese IT business, including computer hardware, software, the internet, semiconductors, electronics, and others. It is one of the main forces boosting the world economy. Japanese enterprises nevertheless have a substantial global presence and a well-respected reputation, despite the country’s loss of its former leadership in the world’s IT industry and growing competition from international businesses. Japanese IT behemoths and the government are working to overhaul the country’s IT industry and bring it back to its previous splendor.
The IT basic law in Japan
The Basic Bill for the Formation and Advanced Information Communication Network Society, also known as the IT Basic Law in Japan, was published in 2001.
The law mandates that, among other things, the “Formation of an Advanced Information Communication Network Society” must make e-commerce possible.
Additionally, it states that actions for facilitating e-commerce (such as evaluating legislation, offering, etc.) must be taken when adopting policies related to the “Formation of an Advanced Information Communication Network Society”.
IT opportunities in Japan
The sector of information and communications technology (ICT) is expected to be the most developed in Japan.
There are several prospects in Japan’s ICT sector. The third-largest market in terms of average revenue per user in Asia is, most crucially, Japan.
Since e-commerce is becoming more significant across all industries, the online consumer market has enormous potential, especially since the country is the fourth-largest e-commerce market globally.
There are a ton of business chances in the IT industries, including cybersecurity, e-commerce development, etc.
Artificial intelligence
These days, AI is a crucial instrument for company success. The demand for AI in the business world has been rising annually in Japan, where the government has positioned it as a key technology tool for society. The recent increase in public and academic funding for AI research can be linked to the sector’s enormous potential. One might anticipate increased business exchanges between the EU and Japan.
IT industry in Japan
Simply said, Japan’s IT sector is quite large and isn’t expected to slow down anytime soon. Japan’s third-largest economy status, which it only acquired by surpassing the US and China, is due to its position as a global powerhouse of technology and IT innovation. Mobile phones, LED lighting, computers, satellite navigation, and other ground-breaking technologies were all developed in the country, which also helped usher in the fourth industrial revolution.
To put everything into perspective, the IT sector in Japan accounts for around 3% of the global market and exhibits a great potential for sustained expansion in the future. 13 trillion yen is the estimated market size for 2021. Since then, tech companies aiming to grow their customer base have built offices in Yokohama or Tokyo, the capital of Japan.
Although the annual base pay for IT positions is much lower than in the US, the cost of living is comparable. Although it varies by city, the average rent in the US (particularly in New York) is half that in Japan. Japan has the 17th-highest cost of living in the world, while the US is ranked 15th, according to the Independent.
More than 300 IT experts were polled by Tokyo Dev. Although the average pay for developers was 8.5 million per year, more than half of them earned less than that amount.
