Japan Country Profile

Japan can be a difficult country to gain a foothold in but once accepted, businesses usually thrive. Here are some key features foreign businesses will want to know as well as a SWOT Analysis of Japan. To better understand if you’re ready to enter the market, click here to take our Readiness Check.

• Japan is the fourth largest economy, its corporations operating, manufacturing and trading in all world markets.
• To sustain global trading volumes and ownership in critical value chains, Japanese companies are actively looking for new business partners for technology, manufacturing/subcontracting, sales, R&D and M&A.
• The following Japanese industries, trends, and structural challenges offer versatile opportunities for overseas companies to do business in Japan:
  • Semiconductors: Significant public and private investment to boost domestic chip production; strong demand for equipment and technology.
  • Manufacturing & Machinery: To sustain high industrial output and competitiveness, focus on process improvement and digitalisation.
  • Digital Transformation (DX): Heavy investments into AI, IoT, cloud and automation to address labour shortages and accelerate innovation across manufacturing, logistics, finance and mobility.
  • Green Energy & Clean Technologies (GX): Japan is taking GX transformation seriously not only to decarbonise the economy, but also to create new globally competitive Green & Cleantech products and solutions: Japan is mobilising USD 1 trillion in GX transformation: Decarbonisation, energy saving, smart grids, clean mobility, carbon capture, biobased materials, biorefining, and recycling (now 20% of plastics and textiles 1%).
  • Aging Underground Pipes & Sewer systems are in urgent repair, e.g. supply of sewer pipes does not meet the urgent demand.
  • Aging Roads, Bridges and Tunnels are decaying and need solid and sustainable repair solutions.
  • Digital Health & Preventive Healthcare: Aging population and advanced healthcare create opportunities for elderly care, healthtech and pharma innovations. Self-care solutions market is also constantly growing.
  • Financing sector & Fintech: Japan’s financial sector ranks among the world’s largest, offering strong potential for fintech solutions.
  • Brand collaboration: Beyond Uniqlo and Muji, Japanese brands seek global partnerships for expansion.
  • Tourism: YoY growing inbound tourism and underserved luxury/upper-class hotel sector offers chances for developers and investors, and hospitality sector innovators.