BMI View: Japan is a high value and technologically advanced IT market and home to world leadingvendors in several areas of the IT market. We expect the market will continue to be lucrative, reflecting theaffluence of local consumers and sophistication of the enterprise base, and there should be a boost in 2019and 2020 as the country prepares for hosting the Olympic Games in Tokyo. However, the overall outlook issubdued due to a challenging economic outlook with subdued purchasing power growth and negativedemographic trends.
Latest Updates And Industry Developments
Computer Hardware Sales: JPY2.67trn in 2017 to JPY2.77trn in 2021, a compound annual growth rate(CAGR) of 0.8%. Demographic and technology trends are negative for the PC market, resulting in longerreplacement cycles and a squeeze on tablet and low-end notebook purchases due to smartphone use.
Software Sales: JPY2.46trn in 2017 to JPY2.86trn in 2021, a CAGR of 3.8%. The large enterprisemarket is mature, but investment in data analytics and cloud solutions represents a growth opportunity forsoftware vendors.