As per MRFR analysis, the Japan 5G Service Market Size was estimated at 2.93 (USD Billion) in 2023.The Japan 5G Service Market is expected to grow from 3.67(USD Billion) in 2024 to 46 (USD Billion) by 2035. The Japan 5G Service Market CAGR (growth rate) is expected to be around 25.842% during the forecast period (2025 - 2035).
Key Japan 5G Service Market Trends Highlighted
The market for 5G services in Japan is expanding significantly due to a number of important factors. To keep its position as a leader in technology, the Japanese government is making significant investments in 5G infrastructure. It is also supporting programs like the "Society 5.0" vision, which aspires to build a smart and connected society.
In order to improve connectivity and increase demand for 5G services, Japanese telecom firms are aggressively growing their 5G networks to encompass both urban and rural regions. Furthermore, because IoT devices need fast internet connections to work properly, their increasing use across a range of industries, including manufacturing, healthcare, and automotive, is driving the market for 5G services.
The potential for creative 5G applications in sectors like gaming and entertainment, where Japan is already a world leader, is one of the opportunities to be investigated in this industry. Businesses may employ 5G technology to improve streaming quality and provide engaging content to draw in more customers.
Furthermore, Japan is increasingly concentrating on the creation of smart cities, which offers opportunities for service providers and infrastructure developers to work together and create integrated solutions.
Recent trends show that edge computing is becoming more and more popular, which is crucial for optimizing 5G's advantages. In order to improve performance and lower latency, Japanese companies are increasingly aiming to process data closer to where it is created.
This change is in line with 5G technology, which makes edge computing a crucial part of upcoming innovations. The growing cooperation between the public and private sectors suggests a coordinated strategy for maximizing the benefits of 5G services in Japan.
All things considered, the Japan 5G Service Market is expected to undergo significant change, which is indicative of the nation's dedication to innovation and technological growth.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Japan 5G Service Market Drivers
Growing Demand for High-Speed Internet and Enhanced Connectivity
The Japan 5G Service Market is experiencing substantial growth driven by the increasing demand for high-speed internet and enhanced connectivity among consumers and businesses. With the government's commitment to advancing digital infrastructure, Japan aims to have ultra-reliable low-latency communication as a key component of its 'Digital Japan' initiative.
According to the Ministry of Internal Affairs and Communications of Japan, internet usage rates have surpassed 90%, with increasing reliance on digital services during the COVID-19 pandemic, which emphasized the need for robust connection infrastructures.
Furthermore, leading telecommunications companies in Japan, such as NTT Docomo and KDDI, are investing heavily in the development of 5G networks to provide ultra-fast internet speeds and support demand from both urban and rural populations.
By the end of 2025, it is projected that 5G subscriptions will cover around 60% of the total mobile user base in Japan, making it pivotal for the overall market growth.
Expansion of IoT Applications
The proliferation of Internet of Things (IoT) applications is a major driver for the Japan 5G Service Market. The Japanese government has set a goal to foster a digital society equipped with automated and interconnected devices, under their 'Society 5.0' initiative.
This vision is supported by a report from the Ministry of Economy, Trade and Industry, projecting that the number of connected devices in Japan will exceed 10 billion by 2025, thereby further necessitating high-speed 5G services. Major corporations like Sony and Panasonic are investing in IoT development, leading to a strong demand for advanced connectivity, which is essential for the growth of the 5G market in Japan.
Increased Investment in Smart Cities
The drive towards the development of smart cities across Japan is significantly contributing to the Japan 5G Service Market. Various municipalities are integrating advanced technologies to improve urban living and manage resources efficiently.
The Japanese government has committed around 1 trillion yen (approximately USD 9.1 billion) to enhance smart city projects, as detailed in their National Strategy for Regional Vitalization. Prominent entities such as Hitachi and Fujitsu are actively contributing to smart city initiatives requiring upgraded communication networks.
With the demand for seamless connectivity in urban areas, 5G implementation is deemed crucial for supporting smart transportation, public safety, and energy management systems.
5G Service Market Service Type Insights
The Japan 5G Service Market is witnessing significant transformation, particularly in its Service Type, which includes essential categories such as Professional Services and Managed Services. Professional Services play a vital role in the deployment and optimization of 5G networks.
These services encompass a broad range of activities, including consulting, system integration, and training, which are crucial for telecom service providers and enterprises seeking to harness the full potential of the 5G technology.
With Japan being a leader in technology and innovation, the demand for Professional Services is driven by the need to ensure seamless network transitions and improve operational efficiency across various sectors. Managed Services, on the other hand, are essential for providing continuous support and managing the complexities associated with 5G networks.
They enable organizations to outsource specific IT functions, ensuring that businesses can focus on their core operations while relying on expert service providers to handle infrastructure management, security, and maintenance.
The integration of artificial intelligence and automation into these managed offerings is becoming increasingly prominent, aiding in network optimization and real-time analytics. Both categories not only enhance the service delivery but also help in achieving operational cost reductions and improved customer satisfaction.
As the 5G ecosystem advances, the significance of these services is underscored by a growing emphasis on increased connectivity demands, the expansion of IoT applications, and the strategic initiatives taken by the Japanese government to bolster its digital economy.
Overall, Professional and Managed Services are immense contributors to ensuring that the 5G landscape in Japan progresses robustly, setting a foundation for innovation and competitive advantage in the global market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
5G Service Market Communication Type Insights
The Japan 5G Service Market, particularly through the lens of Communication Type, showcases a diverse array of applications fueling the country's digital infrastructure. Among these, Extreme Mobile Broadband is pivotal, catering to high-speed internet demands in urban areas and supporting applications like augmented reality and ultra-high-definition video streaming.
Massive Machine-Type Communications serve as a backbone for the Internet of Things (IoT), facilitating seamless connectivity among billions of devices and enabling smart city initiatives. Fixed Wireless Access offers an alternative to traditional broadband methods, particularly in rural areas where laying down wired infrastructure is impractical, thus enhancing accessibility and connectivity.
Additionally, the 'Others' category captures emerging use cases that leverage 5G capabilities, reflecting Japan's commitment to innovation. Each of these segments contributes significantly to the transformation of various industries, including healthcare, transportation, and entertainment, by enhancing operational efficiency and fostering new technological advancements.
With a growing demand for superior connectivity and the government's initiatives to advance 5G deployment, the Communication Type segments are poised for substantial growth in Japan’s technology landscape.
5G Service Market Technology Insights
The Japan 5G Service Market, particularly within the Technology segment, is characterized by significant advancements and developments that are driving its growth. The integration of Wi-Fi technology with 5G is gaining traction, enabling seamless connectivity and enhanced user experiences across various applications.
High-Speed Package Access plays a critical role, offering faster data transmission and improving overall network efficiency, which is essential for supporting emerging technologies such as IoT and smart cities in Japan. Radio Access Technologies continue to evolve, providing robust communication solutions that address the increasing demand for high-capacity and low-latency telecommunications services.
The System for Mobile segment is also vital, facilitating the integration of mobile networks with 5G capabilities to enhance user mobility and support real-time applications. Additionally, the Others category encompasses innovative solutions that are contributing to the overall progress in the 5G landscape, emphasizing Japan's commitment to maintaining its leadership in technology advancements.
As such, the various components within the Technology segment are crucial for realizing the full potential of 5G services, reflecting Japan’s strategic focus on enhancing its digital infrastructure.
5G Service Market Vertical Insights
The Japan 5G Service Market is experiencing significant growth, particularly within the Vertical segment, which encompasses various industries such as Energy and Utilities, Automotive, Healthcare, and Others. As industries in Japan increasingly adopt 5G technology, the Energy and Utilities sector stands out for its potential to enhance operational efficiency and smart grid implementation.
The Automotive industry is leveraging 5G for the development of connected and autonomous vehicles, focusing on safety and real-time data transmission. The Healthcare sector is poised for transformation, utilizing 5G to support telemedicine, remote surgeries, and real-time patient monitoring, which enhances the quality of care.
Other sectors are also exploring 5G capabilities, showcasing the versatility and transformative nature of this technology across various applications. The growth drivers include the rising demand for high-speed connectivity, increasing Internet of Things (IoT) applications, and the need for efficient data processing.
However, challenges such as network infrastructure costs and data privacy concerns persist. Overall, the Japan 5G Service Market segmentation reflects a forward-looking approach, with each industry working to harness the potential of high-speed, low-latency networks for future advancements.
Japan 5G Service Market Key Players and Competitive Insights
The Japan 5G Service Market is witnessing a significant transformation fueled by a surge in demand for high-speed connectivity and advanced mobile applications across various sectors. As Japan continues to enhance its technological landscape, competition within this market intensifies, with multiple stakeholders vying for dominance.
The presence of several prominent players has resulted in a combination of innovative service offerings, strategic partnerships, and a focus on customer-centric solutions.
Key players leverage a wide array of technologies and infrastructure to cater to the growing needs of consumers and businesses, thus fostering a dynamic environment characterized by rapid developments, investments in research and development, and a pursuit to expand service availability throughout urban and rural areas alike.
Airspan Networks has established a notable presence in the Japan 5G Service Market, capitalizing on its robust technological capabilities and innovative solutions. The company is renowned for its advanced radio access network (RAN) solutions, enabling service providers to expand their 5G coverage efficiently and effectively.
Airspan Networks emphasizes flexibility and scalability in its offerings, allowing providers to accommodate varying bandwidth demands and enhance overall user experience. The company benefits from a strong reputation for reliability and performance, which has significantly contributed to its competitive edge in a saturated market.
As service providers in Japan seek to maximize the potential of 5G technology, Airspan Networks' solutions are seen as vital in supporting their strategic initiatives and addressing emerging communication needs.
NEC has positioned itself as a significant player in the Japan 5G Service Market, delivering a comprehensive suite of products and services tailored for network operators and enterprises. The company’s offerings encompass not only advanced 5G infrastructure but also sophisticated software solutions that enhance network management and operational efficiency.
With its long-standing experience and expertise in telecommunications, NEC has developed strong partnerships with various local and regional stakeholders, facilitating accelerated deployment of 5G networks nationwide.
The company's strengths lie in its ability to innovate continuously, adapt to evolving market demands, and lead initiatives in areas such as network security and edge computing. Additionally, through strategic mergers and acquisitions, NEC has enhanced its capabilities and broadened its market reach, solidifying its position as a pivotal entity in the rapid evolution of Japan's 5G landscape.
Key Companies in the Japan 5G Service Market Include
Japan 5G Service Market Developments
NTT Docomo declared in April 2025 that it would be extending its 5G Standalone (SA) network throughout the country, reaching more than 95% of Japan's population. Advanced applications in healthcare, driverless vehicles, and smart cities are made possible by this milestone. To speed up the rollout of Open RAN, the operator also started an innovation program with NEC and Fujitsu.
In order to integrate ultra-low latency features for industrial automation and extend 5G coverage in rural areas by May 2025, KDDI teamed together with Ericsson and Nokia. In June 2025, SoftBank followed suit by launching enterprise edge cloud services powered by 5G that were targeted at financial, retail, and logistics organizations.
Rakuten Mobile debuted its enhanced cloud-native 5G platform, which prioritizes affordability and efficiency, in July 2025. The technology was created in partnership with Qualcomm and Airspan Networks. To strengthen Japan's smart factory environment, Mitsubishi Electric, meanwhile, continued its research on 5G-enabled manufacturing systems.
While Huawei and ZTE's participation was restricted by regulatory constraints, vendors such as Samsung and Cisco provided operators with network solutions and device rollouts.Japan is positioned as a global leader in 5G innovation thanks to these ongoing investments, which are propelling industrial digital transformation and consumer connectivity.
Japan 5G Service Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 2.93(USD Billion) |
| MARKET SIZE 2024 | 3.67(USD Billion) |
| MARKET SIZE 2035 | 46.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 25.842% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Airspan Networks, NEC, ZTE, NTT Docomo, Mitsubishi Electric, Huawei, Cisco Systems, Ericsson, Samsung Electronics, Nokia, Qualcomm, Rakuten Mobile, SoftBank, KDDI, Fujitsu |
| SEGMENTS COVERED | Service Type, Communication Type, Technology, Vertical |
| KEY MARKET OPPORTUNITIES | Smart city infrastructure development, Enhanced mobile broadband services, IoT application expansion, Automotive connectivity solutions, Virtual reality and gaming experiences |
| KEY MARKET DYNAMICS | increased mobile data consumption, government support initiatives, expanding IoT applications, competitive telecommunications landscape, rising demand for low-latency services |
| COUNTRIES COVERED | Japan |
Frequently Asked Questions (FAQ):
The Japan 5G Service Market is projected to be valued at 3.67 billion USD in 2024.
By 2035, the Japan 5G Service Market is expected to reach a value of 46.0 billion USD.
The expected CAGR for the Japan 5G Service Market between 2025 and 2035 is 25.842%.
By 2035, the Managed Services segment is anticipated to dominate with a projected value of 26.0 billion USD.
The Professional Services segment is forecasted to be valued at 20.0 billion USD by 2035.
Key players in the Japan 5G Service Market include NTT Docomo, SoftBank, KDDI, and Huawei among others.
Key applications driving the Japan 5G Service Market include enhanced mobile broadband and IoT connectivity.
Challenges in the Japan 5G Service Market include high infrastructure costs and regulatory hurdles.
The current global scenario is creating both opportunities and challenges for the expansion of the Japan 5G Service Market.
While the overall growth rate is strong, regional variances can impact the specific growth rates within the Japan 5G Service Market.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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