Japan Smartphone Market by Technology, Price Range and Distribution Channel - Forecast and Analysis 2024-2028

Japan Smartphone Market Forecast 2024-2028

The Japan Smartphone Market size is projected to increase by USD 2.79 billion, at a CAGR of 3.85% between 2023 and 2028. The market's growth rate is influenced by various factors, including continuous expansion in network infrastructure, the increasing prevalence of mobile gaming practices, and intense competition among vendors driving constant innovation in smartphone camera technology. The expansion of network infrastructure enables seamless connectivity, facilitating the widespread adoption of mobile gaming. Additionally, intense rivalry among vendors compels continuous advancements in smartphone camera technology, enhancing user experience and driving consumer demand. These factors collectively shape the market landscape, highlighting the importance of technological innovation and infrastructure development in sustaining market growth in the mobile gaming and smartphone sectors.

Moreover, the market growth and forecasting report includes key players' detailed analysis and information of about 20 market companies, including Acer Inc., Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., BBK Electronics Corp. Ltd., BlackBerry Ltd., Fujitsu Ltd., Hitachi Ltd., Hon Hai Precision Industry Co. Ltd., HTC Corp., Huawei Technologies Co. Ltd., KYOCERA Corp., Lenovo Group Ltd., Nokia Corp., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Sony Group Corp., TCL Electronics Holdings Ltd., Xiaomi Communications Co. Ltd., and ZTE Corp.. Additionally, Acer Inc., through its subsidiary Google, presents an array of smartphones, including models like Pixel 6, Pixel 6a, Pixel 7, Pixel 8, and several others.

What will be the Size of the Market During the Forecast Period?

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Market Overview

The market is thriving with innovations like 5G network technology, offering faster connectivity for mobile payments, mobile shopping, and mobile banking. Contactless payment systems enhance convenience, while high-quality cameras and AI-powered assistants improve user experience. The mobile wallet feature facilitates seamless transactions, driving smartphone retail growth. With the advent of 5G network services by major carriers like Rakuten Mobile, consumers can enjoy live-streaming and other data-intensive activities on their mobile phones. These devices serve as multifunctional tools for voice calls, text messaging, internet browsing, and more, utilizing cellular networks and Wi-Fi with mobile payment integration. Market Growth Analysis Driver

Key Market Driver

Constant expansion in network infrastructure is notably driving market growth. The smartphone market in Japan is experiencing a robust growth trajectory, with constant expansion in network infrastructure. This phenomenon is mainly due to the growing need for high-speed connection and smooth communication, as well as the constant development and advancement of smartphone technology. One of the reasons for this steady growth in network infrastructure is Japan's dedication to staying up-to-date with technological developments. Japan has continuously invested in modernizing its telecommunications infrastructure to meet the demands of the smartphone industry. 

In addition, NTT Docomo is one of the leading telecommunications companies in Japan, along with KDDI corporation and SoftBank are working hard to expand and modernize their networks to meet the growing demands of smartphone users in the country. For example, NTT lead the 5G roll-out in Japan, demonstrating its dedication to providing innovative connectivity solutions. 5G is not only good for consumers, but it is also opening up new possibilities for companies and industries that rely on mobile connectivity. These factors will drive the market during the forecast period.

Market Growth Trends

Rising interest in foldable smartphones is an emerging trend shaping market growth. In recent years, Japan has witnessed a notable surge in the popularity of foldable phones. Foldable action is a combination of innovation, consumer demand, and the space-saving capabilities of foldable phones. One of the main reasons for the growing popularity of foldable phones is the need for small yet flexible devices in Japanese city life. Due to the limited space, people are attracted to a foldable phone that can easily switch between a regular smartphone and a tablet with a larger screen. A foldable phone offers a dual purpose: communication on the move and multimedia consumption in the home.

Additionally, Samsung Electronics Co. Ltd. Is one of the key leading vendors that offer foldable phones in the market. Samsung Electronics Co. Ltd. Offers the Galaxy Z foldable device. For instance, Xiiaomi Communications Co. Ltd. Launched the Xiaomi MI Mix Fold mobile in March 2021. The smartphone came with an 8.01-inch touchscreen primary display and a 6.50-inch secondary touch display. Such factors will thereby enhance market growth during the forecast period.

Market Restrain

Rising demand for substitutes such as smart watch calling and messaging applications is a significant challenge hindering market growth. As technology continues to advance, consumers are increasingly exploring alternative devices that offer similar functionalities to traditional smartphones such as smart watch calling devices and messaging applications. This shift in consumer behavior poses a threat to the dominance of smartphones in the smartphone market in Japan. Smartwatches have become popular in Japan due to their ease of use and portability. Smartwatches allow users to make calls and send text messages seamlessly.

Moreover, consumers are increasingly looking for multifunctional devices, and smartwatches are becoming an attractive option as they combine communication features with fitness and health monitoring. The dual functionality of smartwatches makes them an ideal choice for users who want to simplify their devices and cut down on their reliance on traditional smartphones. These factors will hinder the market during the forecast period.

Market Segmentation

In the market, competition among three major mobile carriers intensifies with the emergence of a fourth proper mobile carrier. The advent of 5G services revolutionizes communication, transforming smartphones into versatile devices. Serving as both a cellular phone and a handheld computer, smartphones enable seamless access to email and other digital services. Enhanced touchscreens provide intuitive navigation, offering users a dynamic experience

By Technology

The market share by the iOS segment will be significant during the forecast period. In the dynamic landscape of the smartphone market in Japan, the iPhone operating system (iOS) stands out as a distinctive segment characterized by its unique technology and consumer preferences. IOS and Apple Inc. exclusive operating system for iPhones, is one of the most popular smartphone operating systems in Japan due to its combination of cutting-edge technology, user-friendliness, and Apple iconic brand value.

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The iOS segment was the largest and was valued at USD 8.22 billion in 2018. In addition, the Japan smartphone market emphasizes the importance of iOS when it comes to app development and exclusive features. Many developers prefer to develop apps for iOS first because the platform has a better user experience and a more profitable market. This exclusive feature helps iOS to remain at the top of the country and attract consumers who are looking for innovative applications and features. For instance, the launch of the iPhone 15 series in September 2023 had a large number of prebookings in Japan. The new iPhone 15 series came with new features in its IOS such as FaceTime share play, including spatial audio and portrait mode, interactive shared global maps, etc. These factors under the IOS segment will fuel the growth of the market during the forecast period.

Market Segmentation By Price Range

Between USD 150-USD 800?segment will account for the largest share of this segment.?Xiaomi Communications Co. Ltd. and KYOCERA Corp. are the most popular brands in this price range. They offer great value for money and usually come with good cameras, good processing power, and important features for daily life. For instance, Xiaomi Communications Co. Ltd. Launched its Redmi 12 series in June 2023. The price of the model was set at USD 166.87. The Redmi 12 was one of the highest-selling phones in 2023 among the budget smartphones category. Mid-range smartphones range from USD 300 to USD 500 and offer more premium features. Further, the people in Japan who are willing to invest in cutting-edge technology and premium design tend to choose smartphones in this price range. All these above-mentioned factors under this segment will drive the growth of the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Market Customer Landscape

Market Companies 

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Alphabet Inc.  - The company offers smartphone through its subsidiary Google such as Pixel 6, Pixel 6a, Pixel 7, Pixel 8 and many more.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue and provides an analysis of the latest market trends and growth opportunities from 2018 to 2028. 

• Technology Outlook
  • iOS
  • Android
  • Others

• Price Range Outlook
  • Between USD150-USD800
  • Less than USD150
  • Greater than USD800

• Distribution Channel Outlook
  • Offline
  • Online

Market Analyst Overview 

In the dynamic landscape of the Japanese smartphone market, NFC (Near Field Communication) technology plays a pivotal role, enabling secure transactions through popular platforms like PayPay and Line Pay. Key players like Sharp contribute to the market with innovative smartphone offerings, incorporating the Windows operating system. The prevalence of e-commerce has reshaped consumer habits, influencing both OEMs' online stores and retail experiences. As Japan continues to be a tech-savvy market, smartphones have become an integral part of daily life, with StatCounter tracking usage trends. This interconnected ecosystem reflects the blend of advanced technology and convenience, shaping the competitive landscape for smartphone manufacturers and service providers alike.

Further, in the dynamic landscape of the market, OEMs stores and retailers play vital roles in catering to consumers' needs for entertainment devices with large screens, powerful processors, and long battery life. With increasing smartphone penetration rates in households, competition intensifies among foreign phone makers and mobile phone manufacturers striving to innovate features like infrared ports, QR code scanners, and TV tuners. The market thrives on advanced mobile technologies such as NFC, AR, VR, and AI, delivering enhanced entertainment experiences and improved device performance.

Japan Smartphone Market  Scope
Report Coverage	Details
Page number	146
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 3.85%
Market Growth 2024-2028	USD 2.79 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	3.32
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Acer Inc., Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., BBK Electronics Corp. Ltd., BlackBerry Ltd., Fujitsu Ltd., Hitachi Ltd., Hon Hai Precision Industry Co. Ltd., HTC Corp., Huawei Technologies Co. Ltd., KYOCERA Corp., Lenovo Group Ltd., Nokia Corp., Panasonic Holdings Corp., Samsung Electronics Co. Ltd., Sony Group Corp., TCL Electronics Holdings Ltd., Xiaomi Communications Co. Ltd., and ZTE Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the market  between 2024 and 2028
• Precise estimation of size and contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Japan
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

 

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