Market Dynamics
Japan holds the proud distinction of having the world’s largest consumer electronics market, making it a major player in this ever-evolving market. In 2017 the tech industry as a whole was worth ¥13.4 trillion yen ($121.3 billion), accounting for 9.7% of Japan’s total GDP. The country has the highest spending to GDP ratio in the world for consumer electronics, mainly driven by Japanese manufacturers such as Sony, Panasonic and Sharp. Other domestic technology companies such as SoftBank, NTT and Hitachi have also helped to drive the market’s growth. As Japan’s population continues to age, demand for products such as wearable technology and robot companions is increasing, resulting in a notable increase in sales of consumer tech. Emerging technologies such as augmented reality, AI and IoT-enabled devices are also capturing the imagination of the younger generations of tech-savvy Japanese consumers. In order to remain ahead of the game, Japanese companies are pouring large amounts of money into research and development, resulting in innovation in the areas of robotics, privacy, connected devices and services, and smart energy. With the country’s tech giants investing heavily in such forward-thinking projects, the future of the Japanese consumer electronics market looks extremely promising.
Considering the advancements in technology, it is expected that there will be a continuous rise in the use of consumer electronics over the next decade. This demand is likely to result in more opportunities for new entrants in the market as well as an expansion of existing product lines. Moreover, with the rapid expansion of e-commerce, Japanese consumers are able to purchase consumer electronics at prices that are low enough to match their budgets. According to a recent survey, more than half of all consumers in Japan prefer to buy their consumer electronics online. The trend is expected to continue and is a notable driver of growth in the market. Overall, the demand for Japanese consumer electronics is likely to remain healthy in the long-term, driven by factors such as technological advancements, continuous innovation and the convenience of e-commerce.
