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According to the study published by Astute Analytica, the Japan Emerging Technologies in Smart Cities Market is anticipated to witness a rise in its revenue from US$ 9,968.3 Mn in 2021 to US$ 22,750 Mn by 2027. The market is registering a CAGR of 14.7% over the forecast period 2022-2027. The market is majorly driven by factors such as rising need for public safety & communication infrastructure, increasing number of government initiatives and PPP models for smart cities.
A smart city uses different types of electronic methods, voice activation methods and sensors to collect specific data. It includes data collected from citizens, devices, buildings and assets which is processed and analyzed to monitor and manage traffic and transportation systems, power plants, utilities, water supply networks, waste, crime detection, information systems, schools, libraries, hospitals, and other community services. Smart city technology has been widely adopted in recent years to improve public safety which can range from monitoring areas of high crime rates to improving emergency preparedness with sensors and many more.
The growing impetus of the market is attributed to rising need for public safety & communication infrastructure, increasing number of government initiatives and PPP models for smart cities. AI and IoT driven technologies are being used in smart cities to maintain a healthier environment, improve public transportation, and improve safety. In May 2020, the Super City Law was enacted in Japan. This new law aims to improve the collaboration between the public and private sectors for the digital transformation of cities. Cities selected as Super Cities will deploy AI and big data in medical care, education, energy, crime prevention and transportation, including the development and use of autonomous vehicles. Further, Japan’s national vision for a data-driven, human-centric, next-generation society that uses AI, big data, and IoT is known as Society 5.0, which will provide appropriate solutions using such technology. Moreover, private companies in Japan are also propelling the market growth. For instance, Panasonic was one of the first companies that successfully built a smart city in Japan in Kanagawa Prefecture.
Privacy and security are a major area of concern in smart city projects. As the ecosystem of smart cities depends majorly on IoT and central access points for different data, the vulnerability of the whole ecosystem is high.
The increasing utilization of energy sources results in the rising amount of energy dissipation and carbon emissions, which urgently demand a sustainable and efficient use of energy. Therefore, increasing environmental concerns and demand for green initiatives are the emerging opportunities in the Global Smart Cities Market.
IoT technology leads the Japan Emerging Technologies in Smart Cities Market in 2021
Based on technology, the market is segmented into Internet of Things (IoT), Artificial Intelligence, cloud computing, high performance computing, edge computing, big data analytics, quantum computing and other technologies. Among these, the Internet of Things (IoT) segment dominated the emerging technologies in smart cities market of Japan in 2021. This is because IoT offers multiple opportunities for smart cities to use data for traffic control, pollution reduction, making better use of infrastructure and keeping citizens safe.
Cloud-based deployment dominates the market in 2021
In terms of deployment, the market is bifurcated into cloud-based and on-premises. The cloud-based segment holds the highest market share in 2021. This is due to increased speed and simplified scalability offered by the cloud-based systems. Furthermore, cloud-based deployment has high data security as well as capacity. The cloud-based segment also registers the highest annual growth rate over the projection period.
Smart Citizen Services application dominates the Japan Emerging Technologies in Smart Cities Market in 2021
In terms of application, the market is classified into smart transportation, smart utilities, smart governance, smart home & building, smart citizen services, smart mobility, and others. Out of these, the smart citizen services have the highest market share in the Japan emerging technologies in smart cities market in 2021. This is because citizen safety is the major priority for every government, and it is the same for Japanese government. Further, people are highly dependent on the safety services that are offered by the government at different levels.
Impact of COVID-19
During the COVID-19 pandemic, the demand for smart city technologies slightly reduced in Japan due to the reduced spending by government and private companies in smart city development, which led to cutbacks in service infrastructure. Furthermore, strict lockdown due to Covid-19 led to the shutdown of manufacturing industry thereby disrupting the supply chains. This has created stress on the supplies of the several products and services offered by this industry. However, the adoption of emerging technologies is expected to fuel market growth during the post pandemic times as regulatory authorities of Japan are majorly focused on monitoring the health, safety, and living standard of their citizens.
The following are the different segments of the Japan Emerging Technologies in Smart Cities Market:
By Technology segment of the Japan Emerging Technologies in Smart Cities Market is sub-segmented into:
By Deployment segment of the Japan Emerging Technologies in Smart Cities Market is sub-segmented into:
By Smart Transportation segment of the Japan Emerging Technologies in Smart Cities Market is sub-segmented into:
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