PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410222
PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1410222
Japan's data monetization market is expected to grow at a CAGR of 7.62% from US$5.466 billion in 2021 to US$9.141 billion in 2028.
Japan is in a good position to take advantage of prospects for data monetization because of its well-established technological infrastructure and the amount of data that is being created across a variety of sectors. Government programs to stimulate the use of data, together with strict laws governing data privacy, promote responsible data management and raise the value of complying with data. A customer-centric mindset, industry partnerships, and the integration of AI and sophisticated data analytics technology are all factors in Japanese organizations' increased interest in data monetization.
In Japan, e-commerce contributes to data monetization by gathering and using copious amounts of transactional data, market insights, and consumer data. Utilizing this data results in more income and sales through targeted advertising, personalized marketing, and enhanced customer experiences. In addition, e-commerce platforms gain by providing market research insights, streamlining supply chain processes, and partnering with outside service providers to increase revenue and efficiency. As per the International Trade Administration, Japan's e-commerce industry size increased from US$ 1,88,136 million in 2021 to US$ 2,10,246 million in 2022.
Japan's data center growth is anticipated to have a big effect on the country's ability to monetize data. These data centres offer an essential infrastructure that improves the capacity for processing and storing data, lowers latency, and guarantees data security and compliance. Businesses adjust to changing demands for data monetization and promote cooperation across data center ecosystems because of the scalability and flexibility provided by data centers. Their affordable pooled resources and services make it easier for different companies to enter the data monetization market. Additionally, the construction of data centers boosts employment and regional development by promoting industry skills in data-related fields and stimulating creativity in data monetization initiatives.
Further, to meet high demand, NTT intends to increase its capacity in West Japan (North Osaka, Keihanna: 30MW+). With government funding designated for non-metropolitan digital infrastructure development, NTT is building Keihanna DC, with an anticipated 2025 opening.
It is projected that the market share for retail end-users will grow steadily.
The increasing penetration of digitalization among consumer identities and their records coupled with the rising digitalization and analytics demand in the retail sector of the country are projected to drive the market ahead in the coming years.
As per the 2022 "Survey on Research and Development of the Latest Information and Communication Technology and Trends in Digital Utilization in Japan and Abroad" conducted by the Ministry of Internal Affairs and Communications, Japan, in Section 8 Trends in Digital Utilization Release, digitalization has been adopted by various Japanese new as well as existing businesses for different purposes including productivity improvements, data analysis, and product differentiation among others. Japan had a significant penetration rate and was included in top countries adopting the digital strategy including China, USA, and Germany. In addition, as per the same source, the penetration rate of My Number Card, a plastic ID card with an IC chip with a 12-digit unique number assigned to Japanese citizens, rose from 26.3% in March 2021 to 42.4% in March 2022.
Furthermore, as per the data by Tokhimo Inc., an infrastructure company connecting global talent with Japanese companies, a MyNa Points campaign was launched by the Ministry of Internal Affairs and Communications of Japan in 2020. The first campaign offered 5,000 points equivalent to 5000 yen a cashback upon connecting the My Number Card to a cashless payment system. Another campaign was launched in January 2022 which offered an additional 14,500 points.