Japan IT Spending Forecast by Vertical Segment, Company Employee Size, and Company Revenue Forecast, 2025–2029

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.