Japan IT Services Forecast by Vertical Segment, 2023-2027

This 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 6 industry segments (main categories) and 3 service segments (subcategories). The report forecasts the market size and growth rate from 2023 to 2027 for each market segment. Moreover, we add IDC recommendations for service vendors. Although the market was affected by the shortage of semiconductors/components mainly in 1H22, it expanded steadily driven by an increase in projects related to the renewal of existing systems/cloud migration and the shift of companies to digital business. Growth was also assisted by spending related to the expansion of scope. IDC expects that the market will continue to grow steadily in 2023 and beyond, supported by demand for system renewal, modernization, and new system construction by Japan companies seeking to shift to digital business."IT services vendors need to shift the focus of their service portfolios from relatively simple cloud migration support focusing on the infrastructure of traditional IT systems to infrastructure/application modernization and support for building and operating new systems to help customers digitalized their businesses," says Takuya Uemura, group manager, Software and Services, IDC Japan.