No.3694
Service Industry in Japan: Key Research Findings 2025
Sales of Domestic Service Industry Amounted to 1,227 Trillion Yen in 2023, 111.7% of 2020
Yano Research Institute (the President, Takashi Mizukoshi) has conducted a survey on the trends of domestic service industry and found out the trends by business category and the market size.
Market Overview
Using the data from the Economic Conditions Survey of the Ministry of Internal Affairs and Communications (MIC) and the Ministry of Economy, Trade and Industry (METI), which began in 2019, this study categorized the “service industry (tertiary industry) in the broad sense” as all businesses except for those in manufacturing, construction, and agriculture and found out the transition of the size of the industry by the amount of sales (revenue) and the overall trend of service businesses.
The revenue of the service industry in 2023 grew to 1,227 trillion yen, which is 111.7% of that of 2020. While experiencing a sharp decline during the COVID crisis, some sectors (markets) jumped forward to recover after the pandemic. The sectors of “Lifestyle-Related, Entertainment Services” and “Accommodation, Food & Beverage Services” each decreased in sales from 2020, while those that grew significantly were infrastructure-related, “Electricity, Gas, Heat Supply, and Water Industry”, and other sectors such as “Real Estate Service, Lending Service”, “Telecommunication”, and “Financial Service, Insurance Service”.
Noteworthy Topics
Transition in Number of Companies of Service Industry in The Broad Sense
According to the data of the Economic Conditions Survey, the number of enterprises in the service industry in the broad sense was 1,377,000 in 2023, which is 119.3% of the number in 2020.
The growth rate was especially high in “Electricity, Gas, Heat Supply, and Water Industry”, “Real Estate Service, Lending Service”, “Telecommunication”, and “Academic Research, Specific/Technical Services”. There seem to be many entrepreneurs who have decided that the post-Covid era is a good business opportunity to start a business.
Research Outline
2.Research Object： 12 fields/100 markets of major service sectors
3.Research Methogology： Data compilation of market research information by our specialized researchers and literature research
Service industry in a broad sense
In this research, the service industry refers to 12 fields / 100 markets as listed below:
1)Information/telecommunication service, 2) IT service, 3) infrastructure service, 4) service related to transportation/traffic, 5) medical service, long-term care and childcare, 6) education service/cram school, 7) lifestyle and living assistance service, 8) food service (restaurants/diners), 9) travel and accommodation service, 10) leisure/sports related service, 11) security service, 12) service for enterprises.
＜Products and Services in the Market＞
1) Broadcasts, newspapers, magazines/book publication, communications (fixed phones, mobile phones), internet service providers, e-books, real estate media (residence/investment), and meteorological data-used services, 2) e-commerce (B2C, C2C), social media/free calls/messenger apps, digital contents delivery service, portal service /online advertising /search engines, sharing services, watch subscriptions, speech synthesis services, 3) electricity, gas, railways, aviation, 4) home delivery/mail delivery, taxi, highway express bus, rental cars/car share, parking service, moving service, 5) medical service, long-term care service, residential care service, retirement homes, group homes, elderly home/apartment with care services, assisting service for elderly, childcare service, 6) special education for gifted children, cram schools/university preparatory schools, schools for acquisition of qualification, e-learning, culture center, language schools, correspondence courses, driving schools, 7) hair salon and barber shop, aesthetic salons, haircare salons, dry cleaners, bank, brokerage, insurance, consumer finance, credit card, real estate agent, home renovation, marriage-related services, funeral services, car maintenance, housekeeping service, laundromats, pet-related services, coin-operated lockers, storage services, sleep tech services, phase-free (disaster prevention without preparation), 8) restaurants, ready-to-eat meals, food delivery service, meal service, 9) tourism, hotels/Japanese inns, exclusive resorts, cruising, vacation rental (“minpaku”), 10) films/cinemas industry, sports games/live/entertainment shows, karaoke box service, pachinko parlors, amusement and gaming facilities, amusement parks/theme parks, bathing facilities, fitness gyms, bowling centers, golf course/driving range, futsal fields, 11) security service, home security, monitoring service for home/for long-term care facilities, 12) leasing, advertising production/advertising agency, event planning/operation, store and trade show space designing, general/specialized outsourcing, human resources business, building maintenance service, linen supply service, enterprise system/software development, warehousing, industrial waste treatment, law firms/accounting firms, share office/co-working space
Published Report
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