IoT In Japan: Fueling The Digital Transformation And Growth In 2023

IoT In Japan: Fueling The Digital Transformation And Growth In 2023


Japan’s economy is rapidly recovering after the pandemic, with newer technologies reaching the industries. First, it was AI and ML, and now IoT in Japan is gradually becoming a buzzword in the country. It almost led to digital transformation in Japan as it is used in many fields like automobile, healthcare, parking lots, infotainment business, data security, etc. The digital transformation in Japan may be delayed, but the IoT development in Japan is helping with efficient growth and boosting the productivity of the companies. 

CollaboGate Japan, in partnership with Tessera Technology, is ready to build Japan’s first decentralized IoT platform. The companies will be using the ‘hardware-based security functionality of the Renesas Microcontrollers to help verify the contactless transactions done by the IoT devices. These Japan IoT Companies will be helping with the contactless transactions that have emerged after the pandemic at a higher level.

The Tokyo-based organization CG will provide the country’s first decentralized ID platform. It will be known as the UNiD. The platform already in existence with the TSSR, which is Yokohama-based, will have a strong hold in IoT device software development. This Japanese innovation comes in the wake of the stay-at-home economy after the pandemic. Customers are adopting contactless transactions; businesses are watching for great potential in the IoT market.

The shift of IoT in Japanese Healthcare, smart bank branches, digital orders in restaurants, virtual concierges, automated receptionists at hotels and offices, etc., this great shift will help with digital transformation. This decentralized IoT platform developed with the alliance of both these companies would help connect people and things. Using a smart concierge will enable the ‘smart economy concept’ using the UNiD decentralized ID platform. The business transformation Japan companies will help the businesses to identify the data given by the users. This decentralized IoT platform will eliminate the need for manual verification.

Source: FutureIoT

Statistical Analysis of IoT in Japan in the Wake of Digital Transformation

The Japan IoT Companies are contributing to the country’s massive IoT growth. The IoT market will increase by 18%, up to $13.7 billion by 2023. The largest industry that will grow by value in 2023 will be discrete manufacturing, with a valuation of $3.2 billion, Hybrid manufacturing, with a value of $2.3 billion; and automotive, by $1.8 billion. The digital transformation company in Japan, KDDI, showed the biggest IoT revenue in 2022, $231 million with a growth of 31.5%. 

The Internet of Things (IoT) applied device market in Japan has shown tremendous growth as social distancing and remote work have increased during the pandemic. The use of IoT in digital transformation in the healthcare sector may not be massive, but the maintenance of electronic medical records has increased to almost 80%. However, they have to work in the area of the installation of the Cloud-based and online patient care system, as it was just 10%. 

A survey states the demand for digital transformation services will increase to $2.3 trillion by the year 2032. It will exhibit a growth rate of 14.2%. The IoT market will witness a growth of CAGR of 13.8% during the forecast period of 2022 to 2032. The market size of Japan will be $118 billion, which means a projected growth rate of 13.9%. 


The Japanese organizations will watch out for the economy to recover from the pandemic gradually. The growth has jumped to 2.4% in 2022 in the field of increased uses for IoT and will be at the same pace in 2023. The inclusion of IoT will help with reducing inequality, fostering the inclusions, and growing towards a sustainable future. Japan has shown a growth of 20% already in the field of cashless payments. 

How IoT Impacts the Digital Transformation in Japan?

An IoT system allows objects to connect with the everyday products at your home or office in a digital network setting. It enables the sensors to gather information about the device, software that monitors its performance, and users have to control it. It forms the IoT ecosystem with IoT devices, gateway, security, network, users, and Cloud application.

Digital transformation is an ongoing process that helps organizations integrate and increase digital technology’s long-term use. Digitization is associated with new and innovative IoT trends. Let us walk you through:

  • IoT and AI connectivity helps put the data-based inputs to render the highest productivity and efficiency. The varied types of IoT gadgets work well by using the advanced algorithms of AI.
  • 5G technology will help with more secure, fast, and reliable IoT connectivity than ever.
  • IoT is accelerating the digital footprint by creating simplified operations and more opportunities for digital transformation.
  • Blockchain can address the potential security concerns that the IoT can have. This technology helps with decentralized networks and helps companies to store massive amounts of data. IoT companies in Japan can optimize their processes, track orders, manage documents, and improve digital collaboration.
  • IoT will help with providing a personalized experience to the customers. The major focus will be on improving the customer experience. Using IoT sensors in stores can improve the physical security and safety of the products.

Partner With The Best Digital Consultants In The Town!

IoT is a fast-pacing technology that helps with the overall digital transformation of companies, which in turn leads to the country’s digitization. It helps achieve remarkable efficiency along with customer satisfaction too. You can hire a digital transformation consultant from the reputed software product engineering company, Tntra. The experts will help future-proof your business alongside leveraging the latest technologies like IoT.

Call Tntra experts today to stay ahead of the competitive curve and get the best of digitization!

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