Japan Smart Home Market Size (2024 - 2029)

The Japan Smart Home Market is experiencing significant growth, driven by the increasing integration of Internet of Things (IoT) technologies into everyday life. This expansion is fueled by the country's strong mobile market, characterized by high smartphone usage, which enhances IoT connectivity. The Japanese government's focus on smart city initiatives and substantial investments in digital infrastructure further support the development of smart residential environments. As these trends continue, the market's scale is expected to expand, reflecting the broader shift towards digitization and smart living solutions in Japan.

Market Size of Japan Smart Home Industry

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Japan Smart Home Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 10.12 Billion
Market Size (2029) USD 19.57 Billion
CAGR (2024 - 2029) 14.10 %
Market Concentration Low

Major Players

Japan Smart Home Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Japan Smart Home Market Analysis

The Japan Smart Home Market size is estimated at USD 10.12 billion in 2024, and is expected to reach USD 19.57 billion by 2029, growing at a CAGR of 14.10% during the forecast period (2024-2029).

  • As the world moves more toward digitization, there is a notable push to leverage the data generated in daily life to tackle social issues and innovate. Companies and government bodies across various sectors spearhead IoT (Internet of Things) initiatives. These initiatives involve gathering detailed data from multiple locations, from offices and plants to roads and power grids. This data, often stored in the cloud, is then processed using cutting-edge technologies like artificial intelligence (AI). This movement, which is already prevalent in many industries in Japan, is poised to extend its reach to everyday households, shaping the concept of the smart home.
  • With its substantial smartphone user base, Japan stands out in the mobile market landscape. A recent report on Japan's mobile economy highlights a remarkable trend: the average daily mobile device usage has surged, nearly tripling over the past decade to reach around 106 minutes per person. This surge is predominantly driven by the popularity of smart devices, especially smartphones, which dominate the market and fuel the growth of IoT connections.
  • Furthermore, the rise of the Internet of Things (IoT) in Japan has been embraced in many unique ways. From automated factory lines to smart home appliances, IoT is transforming almost every aspect of life in Japan, resulting in significant investments. For instance, recently, SoftBank Corp. announced the launch of a full-fledged expansion of its global Internet of Things (IoT) business in Asia-Pacific (APAC), including Japan, with a primary emphasis on marketing IoT services, with a key focus on promoting the ‘1NCE IoT Flat Rate.’
  • In April 2024, Google announced that it would invest USD 1 billion to improve digital connectivity between the United States and Japan through two new subsea cables, Proa and Taihei, to boost ties between the two countries. The two subsea cables are expected to improve connectivity between the United States, Japan, and multiple Pacific island countries and territories.
  • Rising investments toward smart city development are expected to significantly contribute to creating a smart residential infrastructure. For instance, in March 2023, the Japanese government announced the launch of a program of smart city investment for fiscal 2023 and further announced the inclusion of smart city-related business as a part of the “Strategic Innovation Promotion Programme (SIP) Phase 2/Cyberspace infrastructure technology/architecture construction as well as demonstration research using big data and AI.”

Japan Smart Home Industry Segmentation

A smart home refers to a set of integrated and networked devices that automate different functions within a home and can communicate both with each other and with a centralized control interface. The prominent purpose of this type of system is to enhance comfort, safety, energy efficiency, and management of household resources.

The Japanese smart home market is segmented by product type (comfort and lighting, control and connectivity, energy management, home entertainment, security, smart appliances, HVAC control) and technology (Wi-Fi, Bluetooth, and other technologies). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

By Product Type
Comfort and Lighting
Control and Connectivity
Energy Management
Home Entertainment
Security
Smart Appliances
HVAC Control
By Technology
Wi-Fi
Bluetooth
Other Technologies
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Japan Smart Home Market Size Summary

The Japan smart home market is experiencing significant growth, driven by the increasing integration of IoT technologies and the proliferation of smart devices. As digitization advances, both private and public sectors are leveraging data to address social challenges and foster innovation. This trend is evident in the widespread adoption of IoT across various domains, from industrial applications to residential settings, with companies like SoftBank Corp. expanding their IoT services in the Asia-Pacific region. The surge in mobile device usage, particularly smartphones, further fuels the expansion of IoT connections, enhancing the smart home ecosystem. Additionally, substantial investments in smart city initiatives and digital infrastructure, such as Google's investment in subsea cables, are expected to bolster the development of smart residential infrastructures in Japan.

The market is characterized by the presence of major Japanese electronics manufacturers, such as Panasonic, Sony, and Toshiba, who are at the forefront of smart home innovation. These companies are developing advanced automation solutions that integrate lighting, heating, security, and appliance management through IoT technology. The Japanese government's commitment to energy efficiency and renewable energy, alongside initiatives like subsidies for energy-efficient homes, supports the growth of the smart home market. The market is highly competitive, with both large and small players vying for market share through collaborations, partnerships, and product innovations. Recent developments, such as Toshiba's launch of a new smart TV and ABB's introduction of Matter connectivity, highlight the ongoing advancements and strategic moves within the industry.

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Japan Smart Home Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Technology Snapshot

    5. 1.5 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Comfort and Lighting

      2. 2.1.2 Control and Connectivity

      3. 2.1.3 Energy Management

      4. 2.1.4 Home Entertainment

      5. 2.1.5 Security

      6. 2.1.6 Smart Appliances

      7. 2.1.7 HVAC Control

    2. 2.2 By Technology

      1. 2.2.1 Wi-Fi

      2. 2.2.2 Bluetooth

      3. 2.2.3 Other Technologies

Japan Smart Home Market Size FAQs

The Japan Smart Home Market size is expected to reach USD 10.12 billion in 2024 and grow at a CAGR of 14.10% to reach USD 19.57 billion by 2029.

In 2024, the Japan Smart Home Market size is expected to reach USD 10.12 billion.

Japan Smart Home Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)