No.3677
IoT/M2M Market in Japan: Key Research Findings 2024
Domestic M2M Market for FY2023 Grew by 10.4% YoY to 266,000 Million Yen
Yano Research Institute (the President, Takashi Mizukoshi) surveyed the global M2M market and the domestic IoT markets in Japan, and found out the market size, the trends by segment, the trends of market players and noteworthy technology, and future perspectives.
Market Overview
This research focuses on M2M (Machine-to-Machine) technology, which allows devices to exchange information autonomously without human involvement. These devices are equipped with communication modules that adhere primarily to mobile phone and PHS telecommunication standards. The study also examines trends in system development using networks and the adoption of various platforms.
In FY2023, the domestic M2M market grew by 10.4% compared to the previous fiscal year, reaching a value of 266,000 million yen, based on the sales of businesses. This continued growth followed the positive momentum from the prior year, moving the market past the low-growth period experienced in FY2020 and FY2021. Factors such as the increased preference for remote operations following the pandemic, the worsening shortage of human resources, and the shift towards workstyle reform have all contributed positively to the M2M sector.
Noteworthy Topics
Local 5G Trends
The implementation of local 5G solutions is progressing rapidly in FY2024, with expectations that these solutions will enter the penetration phase after FY2025.
Local 5G solutions are expected to deliver significant benefits, including real-time response and remote monitoring, operational optimization, decision-making support, automation and automatic control, as well as data-driven prediction/forecasting/predictive maintenance, and value enhancement.
From a medium- to long-term perspective, the adoption of 5G Industry IoT (IIoT) is expected to grow steadily. By approximately FY2030, it may start to replace existing communication standards such as 4G/LTE, 3G, cellular LPWA, and wired networks. However, at that stage, local 5G will likely be used alongside cellular 5G IoT networks.
*Reference: “Local 5G Solution Market: Key Research Findings 2024”
https://www.yanoresearch.com/en/press-release/show/press_id/3473
Future Outlook
The domestic M2M market is forecasted to grow at an annual rate of approximately 10% from FY2025 onward, reaching 530,000 million yen by FY2030.
The introduction of 5G-compatible communication modules is expected to drive new M2M demand, particularly for camera and imaging solutions. Additionally, the increasing share of "connected cars" in new vehicle sales will significantly contribute to this growth. The expansion of new IoT networks in recent years, especially LPWA and the 920MHz bandwidth, is also fueling the demand for M2M technology.
Given these trends, the domestic M2M market is poised for substantial growth leading up to FY2030.
Research Outline
2.Research Object： IT vendors, system integrators, platform vendors, IT start-ups, overseas vendors, etc.
3.Research Methogology： Face-to-face interviews with expert researchers (including online interviews), surveys via telephone, questionnaire, and literature research
About M2M Market
M2M (Machine to Machine) indicates a mechanism that enables the exchange of information between devices without human assistance, with such devices embedded with communication modules compliant mainly to telecommunication standards of mobile phones/PHS.
The M2M market in this research includes network (i.e., network appliances, communication modules, and sensors/devices), platform (cloud), and systems (application, middleware, etc.) that enable M2M, and the market size is calculated based on the sales of businesses.
About IoT
Internet of Things (IoT) refers to all kinds of objects and services connected to network, i.e., not only M2M but also home appliances, furniture, personal computers, smartphones, tablets, humans (through information such as social media,) animals and pets, transportation and distribution, security, watch services, etc. Therefore, as a market structure, IoT in this research is positioned to include M2M.
＜Products and Services in the Market＞
Fees for network connection and communication, communication module, sensors and devices, fees for using platforms and cloud, development expenses for systems and applications, fees for packaging and middleware, operation expenses.
Published Report
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