This IDC study presents the actual IT spending (for 2023 and 2024) and forecasts (from 2025 to 2029) in the Japan IT market, categorized by industry sector, company size (number of employees), and annual revenue scale. This study also analyzes IT spending by dividing the industries into 21 categories, company size and product segments into five categories, and annual turnover into four categories; and discusses IT spending trends observed in each industry segment.Although the Trump administration in the United States announced the implementation of its tariff policy against major countries worldwide, including Japan, in April 2025, as of the end of April 2025, high tariffs have been suspended for 90 days for most countries except for a few, such as China. As negotiations between the United States and various countries are expected to take place in the future, this study assumes that the impact of this tariff policy on Japan will be relatively minor. Additionally, as a reference, the study includes a forecast for the Japan IT market that considers a scenario in which the impact of the U.S. tariff policy worsens and leads to an economic slowdown.Many Japan companies are intensifying their digitalization and digital transformation (DX) projects with the aim of improving productivity, expanding revenue, and building new business models. Additionally, large and medium-sized enterprises are taking the lead in renewing existing systems and modernizing infrastructure. In such circumstances, the economic trends both in Japan and internationally have become uncertain because of the tariff policies and exchange rate revisions in the U.S. administration. If the impact of the U.S. tariff policy worsens in the future and leads to an economic slowdown, it could have a severe impact on Japan companies.Although many companies have been advancing digitalization and digital business initiatives with high priority regardless of the economic environment, we anticipate that they will be forced to review their IT spending in light of the current economic slowdown both in Japan and internationally. In this context, Hitoshi Ichimura, senior research manager of Verticals and Cross Technologies at IDC Japan, says, "IT suppliers need to review their support structure for users' digital transformation, anticipating potential changes in IT spending trends of user companies in the future."This is the English translation of the Japanese document IDC #JPJ52157925.
IDC Market Forecast Figure
Executive Summary
Advice for Technology Suppliers
Market Forecast
Japan IT Spending by Product, 2025–2029
Japan IT Spending by Industry Sector, 2025–2029
Japan IT Spending by Employee Size, 2025–2029
Japan IT Spending by Annual Revenue Scale, 2025–2029
Japan IT Spending by Region, 2025–2029
Market Context
Drivers and Inhibitors
Drivers
Macroeconomic Trends
Advancement of Digitalization/Digital Business
Inhibitors
Deterioration of Profitability due to Unstable Exchange Rates
Delayed Recovery of Local Economies due to Population Decline and Enterprise Exodus
SMBs and Local Governments Lag Behind in Establishing Systems for Promoting Digitalization
Significant Market Developments
IT Spending Trends in the Financial Services Segment
Banking
Insurance
Securities and Investment Services
IT Spending Trends in Manufacturing and Distribution Segments
Discrete Manufacturing
Process Manufacturing
Retail and Wholesale
IT Spending Trends in the Social Infrastructure Segment
Transportation
Communication and Media
Utilities
IT Spending Trends in the Public Sector: Government, Healthcare, and Education
Healthcare
Central and Local Governments
Education
IT Spending Trends in Other Industries such as Services
IT Services
Construction
Resources
Professional and Personal Services
Consumers
IT Spending Trends by Employee Size
1–9 Employees (SOHO)
10–99 Employees (Small Companies)
100–499 Employees (Lower Midsize Companies)
500–999 Employees (Upper Midsize Companies)
More than 1,000 Employees (Large Companies)
IT Spending Trends by Region
IT Spending Trends in Hokkaido and Tohoku Regions
IT Spending Topics in the Kanto Region (Excluding Tokyo)
IT Spending Trends in Tokyo
IT Spending Trends in Hokuriku/Koshinetsu Region
IT Spending Trends in the Tokai Region
IT Spending Trends in the Kinki Region
IT Spending Trends in the Chugoku and Shikoku Regions
IT Spending Trends in the Kyushu/Okinawa Region
Changes from Prior Forecast
[Reference] Japan IT Market Estimate in Case of Serious Impact from U.S. Tariff Policy (Downside Scenario)
Market Definition
Definition of Industry Sector Classification
Methodology
Scope of Study
IT Product Categories Surveyed
Industry Classifications
Points to Keep in Mind on Company Classification Methods
Company Size Categories
Classification of Annual Turnover
Regional Classification
Calendar Year
Related Research
Research Assistance
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook