Japan Artificial Intelligence (AI) Market Size, Share, and COVID-19 Impact Analysis, By Solution (Hardware, Software, Services), By Technology (Deep Learning, Machine Learning, Natural Language Processing (NLP), Machine Vision, Others), By Industry Verticals (Automotive & Transportation, Agriculture, Manufacturing, Government, Retail, Advertising & Media, BFSI, Healthcare, Energy and Utilities, Others) and Japan Artificial intelligence (AI) Market Insights Forecasts to 2032Industry: Electronics, ICT & Media
Japan Artificial Intelligence Market Insights Forecasts to 2032
- The Japan Artificial Intelligence Market Size was valued at USD 3.89 billion in 2022
- The market is growing at a CAGR of 21.43% from 2022 to 2032
- The Japan Artificial Intelligence Market Size is expected to reach USD 27.12 billion by 2032
- Japan is expected to grow the fastest during the forecast period
The Japan Artificial Intelligence Market Size is expected to reach USD 27.12 billion by 2032, at a CAGR of 21.43% during the forecast period 2022 to 2032.
Japan has shifted to artificial intelligence (AI) as a solution to its aging population and reduced workforce. Interaction with foreign startups and SMEs is increasing as a result of collaborative innovation development, generating new possibilities for Swiss companies. For Swiss businesses to learn about opportunities in Japan, the Swiss Business Hub Japan created an AI Industry Report.
The application of artificial intelligence (AI) is a technological innovation that has been growing more and more significant in industrialized nations. This trend is evident in global AI revenues, which are expected to rise dramatically in future years. Artificial Intelligence (AI) is a technology that processes data using machine intelligence and human-thinking abilities to formulate estimations, suggestions, and alternate choices.
Many people in Japan anticipate that artificial intelligence will be critical for next-generation growth and development. AI is one of the key components that the Japanese government believes will contribute to "Society 5.0," a future society in which cyberspace and physical space are more closely connected. The popularity pertaining to AI has resulted in increased research endeavors among both institutions and individual businesses. Various Japanese business enterprises, such as SoftBank and Toyota, are seeking third-party collaborators to help them achieve their goals.
In comparison to competitors such as IBM, which has heavily endorsed its AI-based Watson system for a variety of services, Japan has a poor marketing approach. In Japan, deep learning is still not widely used in artificial intelligence. To create driverless cars, Japan's automotive industry must utilize deep learning solutions. Recently, it has become apparent that automakers like Toyota and Honda lack the specialized personnel needed to create the technological infrastructure required for self-driving vehicles. The opportunities for Japan in the field of artificial intelligence (AI) are further highlighted by such challenges.
This research report categorizes the market for Japan Artificial Intelligence (AI) Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Artificial Intelligence (AI) Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Artificial Intelligence (AI) Market.
Japan's AI industry has traditionally concentrated on robotics as a distinct domain of artificial intelligence, with companies developing AI, particularly in the domains of technology for healthcare and industrial applications. Artificial Intelligence, or AI, is a modern technology that is able to analyze multiple pieces of information and generate predicted outcomes, suggested changes, and recommendations employing algorithms and human cognitive abilities. Increased corporate R&D spending, a rise in the variety of collaborative ventures among large-scale businesses and new startups, and an acceptance by major Japanese corporations that open innovation is critical to maintaining their worldwide competitiveness have resulted in numerous possibilities for overseas entrepreneurs and small and medium-sized enterprises in Japan at the moment.
Artificial intelligence is expected to grow at an exponential rate in Japan, with AI robots performing half of the workforce by 2032. While the robotics sector of the AI market in Japan has received the majority of attention, foreign-owned companies have focused more on developing software, which presents a business opportunity for foreign enterprises that want to penetrate the Japanese AI market.
The demand for large-scale initiatives in the AI market in Japan has also increased as a result of the development of smart cities. Smart Cities are being developed in response to rising environmental issues and the demand for community-based energy administration alternatives. For example, Toyota's Woven City, which will be built at the base of Mt. Fuji in Japan, is an upcoming Smart City project.
The AI market in Japan is leading the advancements in the development of hardware, including the manufacture of robots and motor vehicles. Additionally, there is currently an increasing shift toward open-sourcing software systems because of multi-party partnerships which can research and employ AI more effectively compared to operating independently. Foreign nations and Japanese artificial intelligence (AI) businesses will have more opportunities to collaborate in areas such as autonomous driving technology, digital marketing, database services, integrity, and automatic recognition of images.
- In 2022, the software segment is witnessing a higher growth rate over the forecast period.
Based on the solution, the Japan Artificial Intelligence (AI) Market is segmented into hardware, software, and services. Among these, the software segment is witnessing a higher growth rate over the forecast period. The rise in demand can be credited with logical developments in data storage capacity, powerful computing, and parallel processing capabilities to provide sophisticated services. Libraries for developing and implementing applications based on artificial intelligence, which include basic concepts of linear equations, deductive reasoning, sparse matrices, visual analytics, and numerous devices engagement capabilities, are included in artificial intelligence software solutions. Additionally, this segment's ability to collect statistics, offer real-time intelligence and support decision-making has enabled it to capture the majority of the Japanese market.
- In 2022, the deep learning and machine learning segment is witnessing significant CAGR growth over the forecast period.
On the basis of technology, the Artificial Intelligence (AI) Market is segmented into deep learning, machine learning, natural language processing (NLP), machine vision, and others. Among these, the deep learning and machine learning segment is witnessing significant CAGR growth over the forecasted period. The most significant investments in AI are supported by machine learning and deep learning. They consist of AI platforms as well as cognitive services such as labeling, grouping, categorization, hypothesis generation, alerting, sorting, navigation, and representation, all of which aid in accelerating the creation of informative, smart, and logically enabled solutions. Rising R&D investments by industry leaders will also play a critical role in increasing the adoption of artificial intelligence technologies.
- In 2022, the BFSI segment is dominating the market with the largest market share of 31.3% over the forecast period.
On the basis of industry verticals, the Japan Artificial intelligence (AI) Market is segmented into automotive & transportation, agriculture, manufacturing, government, retail, advertising & media, BFSI, healthcare, energy and utilities, and others. Among these, the BFSI segment dominates the market with the largest market share of 31.3% over the forecast period, owing to the tremendous need for risk management and compliance applications, as well as controlling and supervisory technologies. The government is increasingly investigating FinTech-based apps used for oversight, supervisory, and regulation objectives for the potential advantages of utilizing AI-based trends in Suptech tools in financial markets. Furthermore, financial institutions are utilizing artificial intelligence (AI) tools for risk mitigation and internal control systems. Financial analysis, risk assessment, and investment/portfolio management solicitations all fall under the umbrella of the BFSI segment.
The report offers the appropriate analysis of the key organizations/companies involved within the Japan Artificial Intelligence (AI) Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Companies
- Softbank Robotics
- Tier 4
- Preferred Networks
- Mynd Corporation
- Cogent Labs
- Babel, Inc.
- Tripla, K.K.
- Heartcore Enterprises
Key Target Audience
- Market Players
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
- On April 2023, Hirokazu Matsuno, the Chief Cabinet Secretary, stated that Japan would consider incorporating artificial intelligence (AI) technology, such as OpenAI's ChatGPT chatbot, into government systems if privacy and cybersecurity concerns were addressed.
- On March 2023, Mitsui & Co., Ltd., one of Japan's largest business conglomerates, is collaborating with NVIDIA on Tokyo-1, an initiative to provide high-resolution molecular dynamics simulations and generative AI models for drug discovery to the country's pharmaceutical leaders. Customers will be able to use NVIDIA DGX H100 nodes for molecular dynamics simulations, large language model training, quantum chemistry, generative AI models that generate novel molecular structures for potential drugs, and other applications.
- In November 2022, TIER IV, an open source autonomous driving startup, announced the launch of commercial autonomous driving software platforms "Pilot.Auto" and "Web.Auto," which provide support for customers' autonomous driving systems from development to operation. These platforms can be used in a variety of operational design domains (ODD), including restricted traffic areas and pedestrian-vehicle mixed traffic in urban areas. Web.Auto is a cloud-native, edge-intensive DevOps software platform required for the development and safe operation of self-driving cars.
- In October 2022, SoftBank Robotics Group Corp. (SBRG) announced its new strategy as a "Robot Integrator (RI)" that offers comprehensive services to both robot manufacturers and various industries interested in robotics solutions. As a forerunner in the robotics industries, new products and services will make use of robotic operations data, as well as its accumulated knowledge and networks.
- In February 2022, LeapMind Co., Ltd., a leading supplier of the standard in edge artificial intelligence (AI), announced the completion of a commercial license agreement for LeapMind's ultra-low power AI inference accelerator IP "Efficiera" with Maxell Frontier Co., Ltd., the Maxell, Ltd. group company. Efficiera is a low-power AI inference accelerator IP that is optimized for CNN inference processing and runs as a circuit on FPGA or ASIC devices.
- In May 2021, NEC Corporation announced the development of artificial intelligence (AI) technology capable of making fast decisions while maintaining high accuracy in real-time time series data analysis. This technology is expected to speed up face recognition and cyberattack detection and analysis by up to 20 times while maintaining the same accuracy as current methods. This technology is being applied by NEC to the facial recognition AI engine "NeoFace," which is at the heart of NEC's portfolio of biometric identification technologies, "Bio-IDiom," and boasts the world's highest authentication accuracy.
This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan Artificial intelligence (AI) Market based on the below-mentioned segments:
Japan Artificial Intelligence (AI) Market, By Solution
Japan Artificial Intelligence (AI) Market, By Technology
- Deep Learning
- Machine Learning
- Natural Language Processing (NLP)
- Machine Vision
Japan Artificial Intelligence (AI) Market, By Industry Verticals
- Automotive & Transportation
- Advertising & Media
- Energy and Utilities
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