Japan market brief · Updated 3 November 2026

Why Japan? Why Now?

The opportunity is digital transformation (DX): Japanese companies replacing old systems and buying modern technology to do it.

Japanese companies are spending heavily to replace old systems, and cloud, AI and security are each growing faster than IT services as a whole. This brief brings together the figures, most of them published only in Japanese, for technology leaders building a Japan business case and choosing the GM or go-to-market leader to run it.

  • Data and analytics
  • AI
  • Cybersecurity
  • Technology consulting

IT services market

¥7.57T

in 2025, up 7.3% in a year, and forecast to reach ¥10.25 trillion by 2030.IDC Japan, March 2026

Business software market

¥3.0T

in FY2025, forecast to reach ¥4.48 trillion in FY2030, with SaaS and PaaS more than 80% of it.Fuji Chimera Research Institute, October 2026

AI budget requests for FY2027

¥2.94T

against ¥502.7 billion in FY2026, almost six times as much.Cabinet Office, FY2027 requests

Public cloud services market

¥4.49T

in 2025, up 20.3%, and forecast to reach ¥10.1 trillion in 2030.IDC Japan, March 2026

What changed since July

Six developments from July to September 2026

These are the changes from July to September 2026 that matter most if you sell technology or consulting services in Japan, or hire the people who do.

July 2026

Generative AI use more than doubled in a year

The government’s (Jōhō Tsūshin Hakusho, White Paper on Information and Communications) found 58.8% of people in Japan had used generative AI, up from 26.7% in the previous edition. 86.4% of companies now use it in at least one business process.

Source: 総務省 令和8年版 情報通信白書, overview (Japanese)

16 July 2026

A national AI computing base with 27,500 GPUs

NVIDIA, the Japanese government and industry started a national AI infrastructure project. Noetra, a company whose 44 investors include SoftBank, Sony, NEC and Honda, will run an AI factory with more than 27,500 NVIDIA Rubin GPUs.

Source: NVIDIA release on PR TIMES; IT Leaders (Japanese)

6 August 2026

More than 90% of financial institutions use generative AI

A Bank of Japan survey of 150 banks and other financial institutions found more than nine in ten using or trialling generative AI. The increase over the year was most noticeable at second-tier regional banks.

Source: 日本銀行 金融システムレポート別冊 (Japanese)

August 2026

AI budget requests rise almost sixfold

Ministries asked for ¥2.94 trillion for AI-related spending in FY2027, against ¥502.7 billion in the FY2026 budget. The requests follow the second (Jinkō Chinō Kihon Keikaku, AI Basic Plan), approved by the Cabinet on 14 July. Requests are usually trimmed before the budget is set in December.

Sources: 内閣府 令和9年度AI関連予算要求; 人工知能基本計画 (Japanese)

10 September 2026

Ransomware reports reach a half-year record

Police received 123 ransomware reports in the first half of 2026, the most for any half-year since the series began in 2020. 79 came from small and mid-sized companies. The main obligations of Japan’s new active cyber defence law started on 1 October.

Source: 警察庁 figures reported by @IT; Trend Micro on the law (Japanese)

14 September 2026

Generative AI reaches core banking

Sony Bank and Fujitsu are using generative AI to build Sony Bank’s core banking system. They report 40% less development work and a development period 30% shorter.

Source: EnterpriseZine (Japanese)

Companies using generative AI in at least one business process

Japan against the US, Germany and China. (Jōhō Tsūshin Hakusho) 2026, survey January to February 2026

Japan2026 edition
86.4%
Japan2025 edition
55.2%
United States
90.9%
Germany
91.6%
China
98.1%

Source: 総務省 令和8年版 情報通信白書, overview. Japan’s 2025 figure is from the 令和7年版 white paper.

Show the figures as a table
CountryShare of companies
Japan, 2026 edition86.4%
Japan, 2025 edition55.2%
United States90.9%
Germany91.6%
China98.1%

Segments

Where the demand is, and the leaders we’ve placed

Each card covers one segment: the size of the market, who is buying, and the hires we’ve made in it. Use the link on a card to send it to a colleague.

Segment 01

Enterprise AI and work AI

Link to this card →
Market size

¥6.89T

IDC Japan expects AI spending in Japan to grow from ¥2.37 trillion in 2025 to ¥6.89 trillion in 2029, when AI will be about 20% of all IT spending.

IDC Japan, March 2026 (Japanese)
Adoption

33.9%

of Japanese companies have deployed generative AI for language tasks, and 85.1% of those with revenue above ¥1 trillion have. IPA found AI in use at nearly 80% of companies with more than 1,000 staff.

JUAS 企業IT動向調査2026; IPA DX動向2026
Who is buying
  • Kansai Electric Power uses Glean as part of its DX plan.
  • Chuden CTI, Chubu Electric’s IT company, uses it to connect information held in separate teams.
  • Ashisuto, Glean’s first partner in Japan, reported 97% of its roughly 1,300 staff as active users in 2024.
Ashisuto Glean customer cases; Ashisuto release, October 2024 (Japanese)

Country Manager placement: Glean. Glean made Japan its first international market and passed US$300 million in annual recurring revenue in May 2026. Its Japan Country Manager, announced in June 2026, previously ran GitLab’s Japan business and was VP and Japan Country Manager at Looker. Arvind Jain interview, 2024; appointment release; Glean, May 2026

Our placement · Country Manager

Segment 02

Data, analytics and cloud

Link to this card →
Who is growing

100%+

Databricks grew more than 100% year on year in Japan in the February to April 2026 quarter, moved to a larger office in the Shin-Marunouchi Building and plans to train 50,000 people in Japan over five years.

Databricks, May 2026 (Japanese)
Market size

¥10.1T

IDC Japan expects public cloud services to grow from ¥4.49 trillion in 2025 to ¥10.1 trillion in 2030. About 80% of large and mid-sized companies still run legacy systems.

IDC Japan, March 2026; IDC via IT Leaders, February 2026

Go-to-market hires: Databricks and Fivetran.
Past placements: Celonis and SUSE.
Now closing: two Country Manager searches, one for a data platform in its Japan launch phase and one to lead an enterprise software business into cloud and secure AI.

Our placements

Segment 03

AI data centres, compute and networks

Link to this card →
Named commitments

US$30B

Blackstone plans to put US$30 billion into Japanese AI data centres over three to five years (June 2026). Microsoft is investing US$10 billion over 2026 to 2029, AWS ¥2.26 trillion by 2027 and Oracle more than US$8 billion over ten years.

Nikkei Asia; Microsoft; AWS; Oracle

Now closing: a Commercial Sales Director and Vice President search, to win AI factory and data centre business in Japan. We don’t name clients while a search is running.

Current search

Segment 04

Cybersecurity

Link to this card →
Market size

¥586B

security software market in 2024, up 14.6% in a year, and forecast to reach ¥1.03 trillion by 2029.

IDC Japan, May 2025
Talent

42%

of Japanese security professionals say their organisation can’t get the people it needs, against 29% worldwide.

ISC2 workforce study, December 2025
Why boards are acting

Asahi Group expected 2025 revenue about ¥60 billion below plan after an attack in September 2025, and Askul reported a ¥22.1 billion net loss for the year to May 2026 after one in October 2025. The active cyber defence law’s main obligations started on 1 October 2026, and supply chain security ratings (★3 and ★4) are due in the second half of FY2026.

Our Japan cybersecurity brief covers each major breach of the past year, what it cost, and the new rules.

Asahi Group; ScanNetSecurity; Nikkei on Askul; Trend Micro; IPA SCS

Country Manager placements: Recorded Future, Fastly, Chainalysis and Zenity.
Past placement: Splunk.
Now closing: a Country Manager succession search for a cybersecurity company moving to its next stage of growth.
We’ve also written up how Wiz and Zscaler entered Japan.

Our placements

Segment 05

Technology consulting

Link to this card →
Market size

¥1.41T

IDC Japan expects the business consulting market to grow from about ¥882 billion in 2025 to about ¥1.41 trillion in 2030, with enterprise AI work as the main driver.

IDC Japan, June 2026 (Japanese)
Who is hiring

97,000

people work in Japan at the 33 consulting firms Diamond tracks (June 2026), and headcount is still growing at double-digit rates. Accenture Japan is close to 30,000. Strategy firms have flattened while technology and delivery firms keep hiring.

ダイヤモンド・オンライン, July 2026

Working alongside Founding Partner Murray Clarke, Hiroshi Torobu runs our consulting searches, including Partner appointments at a Big 4 firm in Japan. We don’t name consulting clients, because at Partner grade naming the firm identifies the person.

Book a call with Hiroshi

Market briefs

Japan market briefs by segment

Each brief covers one segment in more depth: demand in Japan, who sells there now, companies preparing to enter and what it means for your first Japan hire.

We publish this research for companies planning to launch or grow in Japan. It is the groundwork we do before every Country Manager search, and every figure links to its source, most of them published only in Japanese.

Ransomware: Japan's #1 organisational threat. IPA's 2026 ranking puts damage from ransomware attacks first, ahead of supply chain attacks in second place and AI-related cyber risk in third. We placed the Japan Country Manager for a data protection vendor whose backup, immutable storage and recovery solutions help organisations protect their data against ransomware and recover after an attack. IPA, 29 January 2026.

Investors behind companies we have worked with

Under each firm is the client it backs. These firms are not our clients and have not endorsed us.

Andreessen Horowitz logo
Andreessen Horowitz
Databricks, Fivetran, dbt Labs
Sequoia Capital logo
Sequoia Capital
Glean, dbt Labs
GV logo
GV
mabl, dbt Labs
Benchmark logo
Benchmark
Chainalysis
Accel logo
Accel
Chainalysis
Kleiner Perkins logo
Kleiner Perkins
Glean
Lightspeed logo
Lightspeed
Glean
General Catalyst logo
General Catalyst
Glean
Coatue logo
Coatue
Chainalysis
Paradigm logo
Paradigm
Chainalysis
Altimeter logo
Altimeter
Glean, dbt Labs
Norwest logo
Norwest
Zenity
SoftBank Vision Fund logo
SoftBank Vision Fund
Zenity
Intel Capital logo
Intel Capital
Zenity
Geodesic Capital logo
Geodesic Capital
Glean
Insight Partners logo
Insight Partners
Veeam, Recorded Future
EQT logo
EQT
SUSE
Vista Equity Partners logo
Vista Equity Partners
mabl

Case studies

How four technology companies succeeded in Japan

We research how global technology companies build their business in Japan and publish what we find. Each of these four put an experienced leader in charge of Japan early.

Anaplan

Business planning software

Its first Japan employee still runs the business ten years on

Jun Nakata, who had run SAP’s analytics business in Japan, joined in February 2016 as Anaplan Japan’s only employee, with no customers and no partners. He now leads a team of more than 100.

Databricks

Data and AI

Hired a builder to open Japan and a scaler to grow it

Databricks opened its Japan business in 2020 under a first Country Manager. In 2023 Toshifumi Sasa, who had run Salesforce’s digital marketing business in Japan, took over to scale it. Its Japan business more than doubled year on year in the February to April 2026 quarter.

When a category still needs explaining in Japan, we recommend putting the plan and the leader in place first.

Read all our case studies

Choosing your leader

Your first Japan leader: a builder or a scaler

Customers and partners judge how committed you are to Japan partly by who you hire to lead it. In many markets the safe first hire is a hands-on seller. In Japan it often works better to hire someone who has already built a business at the next stage, earlier than your size would normally justify.

65 new heads of Japan were announced at global technology companies between July 2025 and September 2026, including at Anthropic, Glean, Notion and Cognition. Six of the 65 were women. Each appointment and its source is in our Japan Head Appointments Register, and the analysis is in Women in Leadership in Japan 2026.

What matters0-1: builder and hands-on seller1-10: scaler with a track record
Best fitProves the first use case, prospects directly, and works well while the company is still learning the market.Shows where the business is going, gets meetings with senior buyers faster, and makes partners treat you as a long-term platform.
PartnersUseful while partner work is still tactical.Stronger when SIs, distributors and alliances need to see a long-term plan behind the hire.
What customers hear“We’re testing the market.”“We plan to build a real business here.”
RiskCan create activity but struggle to earn the executive credibility that larger Japanese deals need.Costs more, and can underperform if the role still needs early-stage, hands-on work.
When to chooseThe category is already understood and you mainly need outbound effort and local execution.The category needs explaining, partners need confidence, and one strong hire can speed up trust.

From our searches, a leader who has already scaled a Japan business can save 18 to 24 months of market education when the product still needs explaining and partners still need convincing. This is our estimate from past searches rather than a published figure.

Readiness check

A six-point check before you hire a Japan leader

Tick each statement that’s true for your company today. A funded plan counts most and access to the major partners second.

For your business case

Seven numbers for your Japan business case

If you’re taking a Japan investment or a Japan hire to your CEO or CFO, these are the figures we’d use, each with its source. Some also appear above; this list puts them in one place to copy.

On currency. Some CFOs see the weak yen as a risk to reported revenue. The cost of building a team comes first and is paid in yen now. The translation effect only matters once Japan is profitable, and by then yen costs offset yen revenue.

  1. Japan’s IT services market grew 7.3% to ¥7.57 trillion in 2025 and is forecast to reach ¥10.25 trillion by 2030. IDC says the growth comes mainly from modernising existing systems and building data and AI infrastructure.IDC Japan, March 2026

  2. Japan’s market for 52 categories of business software was ¥3.0 trillion in FY2025 and is forecast to reach ¥4.48 trillion in FY2030. SaaS and PaaS are expected to be more than 80% of it.Fuji Chimera Research Institute, October 2026

  3. Japan’s public cloud services market grew 20.3% to ¥4.49 trillion in 2025 and is forecast to reach ¥10.1 trillion in 2030, about 2.2 times the 2025 size.IDC Japan, March 2026

  4. AI spending in Japan is forecast to grow from ¥2.37 trillion in 2025 to ¥6.89 trillion in 2029, when it will be about 20% of all IT spending.IDC Japan, March 2026

  5. Japan’s security software market grew 14.6% to ¥586 billion in 2024 and is forecast to reach ¥1.03 trillion by 2029.IDC Japan, May 2025

  6. Ministries have asked for ¥2.94 trillion for AI in FY2027, almost six times the FY2026 budget of ¥502.7 billion.Cabinet Office, FY2027 requests

  7. At ¥158 to the dollar, the same yen salary costs about 32% less in dollars than at the 2020 average rate of ¥107.US Federal Reserve; 77 Bank, 30 October 2026