Computer Software
Japan
Overview
(millions of U.S. $) 2004 2005(estimated) 2006(estimated)
Total Market Size 132,065 137,880 146,880
Total Local Production 128,258 132,050 140,390
Total Exports 292 800 980
Total Imports 3,326 4,500 4,950
Imports from the U.S. 3,003 3,310 3,540
(Note: The above statistics are unofficial CS estimates.)
Japan’s software business has been growing steadily as Japan’s investment in IT has shifted from hardware and network infrastructure to software and services. By industry sector, manufacturing, finance, information services, and government procurement are currently the major buying segments. In fact, these four segments together currently account for over 60% of total market revenue.
Given Japan's increased focus on the protection of personal information — a "privacy" law was established in 2005 — Japanese businesses are increasingly interested in IT security.
Best Prospects/Services
Information security software, embedded software for consumer electronics and other software products that utilize improved hardware and network infrastructure.
Opportunities
For U.S. exporters, the Japanese software market is attractive in terms of the size and demand for quality software imports. This trend should continue as the Japanese software industry historically struggles with increasing development costs and a lack of skilled engineers. There are three key elements to launching software products into the Japanese market: (1) localization — localization includes Japanese translation, testing, and customization. Software suppliers are required to provide not only translations but to consider Japanese business customs and culture to meet local client needs; (2) support capability — Japanese language support is mandatory; and (3) product quality — quality control is one of the most important considerations for Japanese users.
Event: WPC Expo 2007
Date: October 2007
Venue: Tokyo Big Sight
Organizer: Nikkei Business Publication, Inc.
Web: expo.nikkeibp.co.jp/wpc/english/index.html
Resources
Computer Software Association of Japan (CSAJ)
www.csaj.jp/english/index_e.html
Japan Information Technology Services Association (JISA)
www.jisa.or.jp/english/index.html
CS Japan Contact: Mr. Toshihiro Matsuda (Tokyo) Toshihiro.Matsuda@ mail.doc.gov