Japan Telecommunications Services Forecast, 2023-2027

This IDC study provides market forecasts and future outlook for the Japan telecommunications services market from 2023 to 2027. In 2022, the Japan telecommunications services market continued to grow at a slower rate than the previous year, although L3 best-effort WAN and Ethernet leased line persisted to grow at a higher rate than the other service segments. WAN services for public cloud connectivity, the number of 5G connections, and IoT communication services maintain high growth rates. Going forward, the market is expected to grow steadily as demand for lines to handle the increase in IoT devices and traffic continues to grow, driven by the shift to cloud computing, business streamlining, and digital transformation (DX).In the WAN services market, carriers should focus on datacenter-to-datacenter connectivity, which is expected to grow further because of strong demand for cloud services, to capture revenue opportunities. Sophisticated mobile lines that can cope with redundancy will be a new choice for access lines in the Internet of Things (IoT) communication services. IoT solution providers should aim to win deals by incorporating redundant mobile lines into their solutions and meeting users' reliability requirements while leveraging the advantages of mobile lines," says Takahiro Mizukami, senior market analyst, Infrastructure and Devices, IDC Japan.