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TECH SUPPLIER Apr 2019 - Market Forecast - Doc # JPE44069419

Japan IT Services Forecast by Vertical Segment, 2019−2023

By: Akihiro KimuraResearch Manager, IT Services, IDC Japan

Abstract

This IDC study presents the situation and trends in the Japan IT services market. In addition to the IT services spending analysis according to user companies' 18 industry segments (subsegments), this study also presents the spending analysis according to three service segments and six key industry segments. Moreover, the study also provides forecasts for market size and growth from 2019 to 2023 for each market segment. IDC also provides recommendations for service vendors. The Japan IT services market registered a YoY growth from 1.6% to 2.1% in 2018 owing to steady expansion of IT investment in manufacturing, government/utility, and distribution sectors. Although growth will be low from 2019, the demand for renewal of mission-critical systems and cloud triggered by DX and digitalization will support market growth. "It is important to continuously practice DX and take advantage of the experienced gained from there. As partners promoting DX in companies, IT service providers should take the lead in their own DX initiatives," says Akihiro Kimura, research manager, IDC Japan.


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