This IDC study covers the overview of and trends in the Japan IT services market. It analyzes user companies by 18 industry segments (subcategories), as well as IT services spending by six industry segments (main categories) and three service segments (subcategories). We predict the market size and growth rate for each market segment from 2025 to 2029. Moreover, we add IDC recommendations for service vendors.Masaru Muramatsu, senior research analyst, Software and Services, IDC Japan, says, "In the Japan IT services market, we are seeing increasing demand in a wide range of industries for cloud migration/modernization of existing systems, as well as for building new systems to implement digital innovation. In addition to this demand, we expect to see a sustained expansion in IT service spending from 2025 onward, due in part to the full-scale modernization of systems in custom development. The transition from proof of concept (POC) to practice in AI use among Japan companies, and AI use case expansion, will likely be driving factors for this."This is the English translation of the Japanese document IDC #JPJ52160425.
IDC Market Forecast Figure
Executive Summary
Advice for Technology Suppliers
Market Forecast
Japan IT Services Spending by Foundation
Japan IT Services Spending by Industry Sector
Japan IT Services Spending by Industry Sector (Main Category) and Service Segment (Subcategory)
Market Context
Drivers and Inhibitors
Drivers
Modernization of Existing IT Systems
Evolving AI Use Cases
Japan Macroeconomics
Inhibitors
Digital Talent Shortage at Vendors
Existence of Alternative Products and Services
Significant Market Developments
Progression from POC to Implementation Phase of AI Utilization
Expanding Delivery Capabilities in Terms of Both Technology and Resources
Increase in Spending on IT Services for Government Agencies and Local Governments
Changes from Prior Forecast
Reference: Forecast Information
Market Definition
What Is a Service?
Services Size
Foundation Sector
Project Oriented
IT Consulting
Systems Integration
Custom Application Development
Network Consulting and Integration Services
Managed Services
IT Outsourcing
Network and Endpoint Outsourcing Service
Application Management
Hosted Application Management
Hosting Infrastructure Services
Support Services
Hardware Support and Maintenance
Software Support and Maintenance
IT Education and Training
Industry Segment
Nonconsolidated Basis
Methodology
Related Research
Research Assistance
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