No.4108
IT Market for Public Infrastructure and Public Safety in Japan: Key Research Findings 2026
Domestic IT Market for Public Infrastructure and Public Safety Valued at 702.8 Billion Yen in FY2024, Marking a 5.5% Year-Over-Year Increase
Yano Research Institute (the President, Takashi Mizukoshi) conducted a survey of the information technology (IT) market for public infrastructure and public safety in Japan. The survey revealed the market size, trends by segment and region, trends in bidding and IT solution business for public infrastructure and safety, and future perspectives. This paper highlights the IT market size transition and forecast for public infrastructure and public safety.
Summary of Research Findings
This research defines the IT market for public infrastructure and public safety as comprising eight categories: 1) roads, 2) railways, 3) airports, 4) ports, 5) rivers, 6) dams, 7) water-related infrastructure, and 8) disaster prevention, fire safety, and police services. Market size is calculated based on order amounts placed by government entities, municipalities, and infrastructure operators, including expressway operators, railway operators, and private airport operators.
The market steadily grew to reach 666.0 billion yen in FY2023, marking a 3.7% year-over-year increase, though the growth rate slowed from FY2022 in the aftermath of the pandemic. Notable growth was seen in the road sector in FY2023. Large projects for highway operators, including electronic toll collection (ETC) systems, tollgate safety facilities, and closed-circuit television (CCTV) systems, fueled this growth. Additionally, there was an extra-large general road project, exceeding 10 billion yen.
The market size grew significantly in FY2024, reaching 702.8 billion yen, a 5.5% increase from the previous fiscal year. This growth was driven by three major sectors: railways, roads, and water-related projects. The road sector had several extra-large projects exceeding 10 billion yen. Railways experienced robust IT investments to support their IT systems. Water-related infrastructure was fueled by enthusiastic orders and projects from major operators.
Noteworthy Topics
IT solutions for Public Infrastructure
This research defines IT solutions for public infrastructure as part of the IT market for public infrastructure and public safety. Unlike existing technologies used in this market, these IT solutions use newer communication technologies, including the Internet of Things (IoT), local 5G networks, and artificial intelligence (AI) for image and/or data analysis. They also include smart devices, sensor networks, and drones with AI image analysis capabilities.
These solutions are expected to be used for advanced infrastructure maintenance (including next-generation and condition-based maintenance), work optimization (including work efficiency, labor savings, traffic congestion relief, and inspection optimization), and decision-making support for policy development and strategy planning.
Of these IT solutions, remote and IoT-based monitoring have proliferated in various fields. AI applications that use camera images for tasks such as inspection support, deterioration diagnosis, and disaster prevention simulations, are also becoming more prevalent. Drones combined with AI image analysis are increasingly being used for inspecting power transmission towers and bridges, as well as for disaster prevention applications. Implementations have also begun for cloud-based ledger solutions, which are ledger systems connected to the cloud via tablets, as well as for on-site solutions using smart glasses equipped with augmented reality (AR) and/or virtual reality (VR). In this context, the market size for IT solutions for public infrastructure increased significantly, reaching 13.0 billion yen, a 44.4% increase from the previous fiscal year.
Research Outline
2.Research Object： Public offices (including MLIT, METI, and MIC), local governments, public institutions (including AIST, PWRI, and NILIM), IT solution providers, system integrators, telecommunication carriers, construction businesses, heavy electric machinery manufacturers, construction consultants, etc.
3.Research Methogology： Face-to-face and telephone interviews (including online interviews), and literature research by expert researchers
What is the IT Market for Public Infrastructure and Public Safety?
This research defines the IT market for public infrastructure and public safety as comprising eight categories: 1) roads (including expressways, national highways, national highways under directly control, local roads, traffic signals, and traffic control systems) 2) railways (including JR groups, Tokyo Metro, and private and public railways), 3) airports (including hub airports, regionally managed airports, shared-use airports, and other airports), 4) ports (including international strategic ports, international hub ports, major ports, regional ports, and ports under Article 56), 5) rivers (including Class I and Class II), 6) dams, 7) water-related infrastructure (including waterworks systems, small-scale water supply systems, sewage systems, water treatment plants, effluent treatment systems, and irrigation water systems), and 8) disaster prevention, fire safety, and police.
Market size includes engineering works, such as those involving electrical installations and communication equipment, as well as hardware, software, equipment, devices, system integration, consulting, service and maintenance support, and engineer dispatch. These amounts are calculated based on orders placed by the government, municipalities, and infrastructure operators, including expressway operators, railway operators, and private airport operators.
＜Products and Services in the Market＞
IT for public infrastructure and public Safety categorized into eight categories: 1) roads, 2) railways, 3) airports, 4) ports, 5) rivers, 6) dams, 7) water-related infrastructure, and 8) disaster prevention, fire safety, and police services.
Published Report
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