No.3918
IoT/Machine-to-Machine (M2M) Market in Japan: Key Research Findings 2025
Domestic M2M Market Reached 299 Billion Yen in FY2024, A Rise by 12.4％ YoY
Yano Research Institute (the President, Takashi Mizukoshi) surveyed the domestic and global machine-to-machine (M2M) market as well as the domestic IoT market and revealed the market size, trends by segment and of market players, noteworthy technologies and future perspectives. In here highlights the domestic M2M market size and forecast.
Market Overview
This research examines the machine-to-machine (M2M) market to analyze demand by category and trends in market size.
Based on sales of relevant businesses, the M2M market in Japan is estimated to reach 299.0 billion yen in FY2024. This continued growth is driven by the expansion of “connected” technologies, particularly in the automotive sector, and the widespread adoption of remote work in post-Covid society. Japan’s structural issues— such as severe labor shortages, a declining number of skilled workers, and challenges in knowledge transfer—along with external social pressures, including the need to optimize working hours and implement “Work-Style Reform”, also contribute to the market growth.
Noteworthy Topics
Generative AI and IoT
The Internet of Things (IoT) has enabled onsite visibility, abnormality detection, threshold-level signal detection, and operation status monitoring by collecting vast volumes of data. With the integration of generative AI, the IoT can deliver additional value in the following areas:
- Interpreting abnormal values: For example, what caused abnormal values to occur? What impact might these values have?
- Comparative analysis with past cases: Are there similar past incidents? What occurred, and what were the underlying causes?
- Reporting in natural language: For example: "According to past cases, this abnormal value indicates a risk of ___," and "This abnormal value is caused by ___, but ___ helps normalize it."
- Generative AI replaces humans in decision making: This includes highly accurate evidence-based policy making (EBPM), and clear reasoning and explanations of the underlying context; and automation of administrative policy formulation.
Future Outlook
After FY2025, the domestic M2M market is projected to continue growing steadily at an annual rate of approximately 10%, reaching 532.0 billion yen by FY2030.
This growth is driven by the introduction of 5G communication modules, which are expected to create new demand for M2M technologies, including camera and video-based solutions. Looking ahead, the increasing share of connected cars with built-in communication capabilities among new vehicle sales—which will increase communication lines in the automotive category, and the expansion of new IoT networks, such as Low Power Wide Area (LPWA) and the 920MHz band, will further contribute to M2M demand.
As a result, the domestic M2M market is expected to thrive through FY2030.
Research Outline
2.Research Object： IT vendors, system integrators, IoT platform vendors, IT start-ups, overseas businesses
3.Research Methogology： Face-to-face interviews by expert researchers (including online), surveys via telephone, questionnaire, and literature research
What is the M2M Market?
Machine-to-Machine (M2M) refers to a mechanism that enables devices with embedded communication modules to exchange information without human intervention. These communication modules comply with the telecommunications standards used in mobile phones and Personal Handy-phone Systems (PHS).
In this research, the M2M market includes the following components that enable machine-to-machine communication. The market size is based on the sales of relevant businesses:
- Network: including network appliances, connection fees, and communication fees,
- Devices: such as communication modules and sensor devices,
- Platforms: including cloud service fees,
- Systems: such as system development costs, software packages, and middleware,
- Operation and management.
What is IoT?
In this research, the Internet of Things (IoT) refers to all objects and services connected to a network. These include social infrastructure and energy facilities, construction and heavy machinery, personal computers, smartphones, tablets, humans (via information from social networks), agriculture, forestry, fisheries, livestock, home appliances and housing equipment, materials and logistics equipment, crime prevention and security services, and monitoring services, in addition to areas already covered under M2M.
Therefore, this research defines IoT as encompassing the M2M concept.
＜Products and Services in the Market＞
Network (including network appliances, connection fees, and communication fees), Devices (such as communication modules and sensor devices), Platforms (including cloud service fees), Systems (such as system development costs, software packages, and middleware), Operation and management.
Published Report
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