Internet of Things (IoT) in Japan

Market data, vendors, use cases, case studies

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IoT market in Japan 2023

The latest IoT Analytics data indicates that Japan will grow by 18% to $13.7 billion in 2023. The IoT market size grew to $11.6 billion in 2022.

The largest industries in 2023 will be discrete manufacturing ($3,2 billion), followed by hybrid manufacturing ($2.3 billion) and automotive ($1.8 billion).

IoT vendors headquartered in Japan

Our IoT enterprise spending dashboard does not only contain the spending numbers but also a vendor list with their IoT revenue. Here are some numbers directly from the latest update:

Sony generated an IoT revenue of $2 billion in 2022 (The revenue generated by sensors was considered IoT). Another company headquartered in Japan, Renesas, generated $541 million (86% from chipsets and 14% from sensors). KDDI generated $231 million of IoT revenue with its wireless connectivity services.

Company name IoT revenue in 2022 (in USD) Growth 2021-2022
Sony $2B 13.8%
Renesas $541M 23.8%
KDDI $231M 31.5%

Adoption of key IoT use cases in Japan

We evaluate a number of IoT use cases in our research. Here are some stats from our IoT Use Case Adoption Report 2021:

The most adopted IoT use cases in Japan in 2021 are quality control using AI-based modern machine vision,  AI-based plant network optimization, and condition-based maintenance of equipment with respectively 63%. 

# Use case Adoption rate Japan 2021 Adoption rate global 2021
1 Quality control using AI-based, modern machine-vision 63% 40%
2 AI-based plant network optimization 63% 40%
3 Condition-based maintenance of equipment 63% 55%
4 Remote asset monitoring 56% 51%
5 Quality control using traditional machine-vision 56% 60%

Sample case study of IoT technology in Japan

Furthermore, we cover numerous IoT case studies in our research. Here is one from our LPWAN Market Report 2021-2026:

Case study Industry Description
Retrofitting gas meters with Sigfox Energy Rather than replacing gas meters, these were retrofitted with the “Space Hotaru,” a network controlling unit (NCU) that can read and transmit gas consumption data.
Foxconn Logo
NICIGAS is an energy company engaged in the business of liquefied petroleum gas (LPG), city gas, and electricity, with over 1.67 million customers in the Kanto region, Yamanashi prefecture, and Shizuoka prefecture.
IoT in Japan - NICIGAS case study

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Prajwal Praveen                      Customer Success Manager

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