Growing Business Sectors in Japan
A new year means new opportunities in the market. The economy of Japan has a lot of sectors that are expanding rapidly and there are opportunities everywhere. As we welcome the new year, let's take a look at the hottest industries in Japan for 2021.
Wind farms like this one have become a common sight in Japan.
Casinos and GamingJapan has historically always been against gambling, but a wave of positive legislation is underway. Currently, it looks as though resorts will be the first to benefit as they combine casinos with hotels to create the initial "integrated resorts." This could very well be the beginning of a new trend in Japan and it is certainly worthwhile to stay informed and see where this first step towards legal gambling could lead.
Presumably, online casinos and sportsbooks will begin to take off here as well. Newer platforms normally offer promotions like no-deposit casino offers to help bring in patrons, so there will likely be offers that are catered to the Japanese market. This is a promising new industry that could be very beneficial for the country as it would return not only domestic revenue, but business from tourists as well.
When it comes to electronics manufacturing, Japan has built its reputation over decades. In fact, they are often the first place people think of for televisions, video game systems, appliances and more. In recent years, robotics has also become a massive industry in the country.
The robotics industry can be divided into a few different categories and they all have a massive presence here. First there are industrial robotics used in manufacturing or welding, and then there are service robotics used in transport, medical and other sectors. When it comes to industrial robotics, Japan is leading the world with over 50% of all global units originating here. Demand for industrial and service robotics is expected to explode over the next decade, with an added 15% more units being manufactured here within the next 5 years alone.
Agriculture in Japan has long been an exhausting effort as the available terrain here is limited. This has led to numerous innovations over the years, like terrace systems. Now, smart agriculture is poised to be the next evolution in farming. Instead of relying on humans and human-operated machines, smart agriculture will depend on robotics, artificial intelligence, and IOT (internet of things) devices. This presents immense opportunity for both the companies that are switching over to this method of farming and the companies that develop the necessary tools and machines.
Renewable energy may be a global focus going into the future, but many efforts are starting right here in Japan. Since the 1950s, Japan's self sufficiency when it comes to their energy needs has fallen dramatically. Constant earthquakes are also responsible for shutting down numerous power stations around the country. Therefore, the next goal is to seek renewable energy resources like hydraulic, wind, biomass and more. This is a growing industry that provides opportunities for both young professionals and large corporations.
With a strong track record in tech, VR and AR are a good fit for Japanese companies.
Japan is the leader in emerging VR and AR technology with Tokyo-based company Sony being the biggest developer. This is expected to be a massive industry for Japan as we expand from just entertainment use cases to advertising, medical, education and more. The opportunities that VR technology presents are vast and innumerable.
While there are many older companies that are jumping on the trend, like Capcom, Sega, and Bandai Namco, there are also a tremendous amount of startup companies emerging as well. Globally, the entire VR market is expected to reach the unparalleled heights of $1.2 trillion by 2030. This is an exciting field to be immersed in for sure.
The ecommerce industry has been growing rapidly over the past decade and had its biggest year ever in 2020. Globally, the outlook is promising and Japan is taking advantage. Japanese ecommerce businesses posted over $163 billion in sales in 2018, with the most sales coming from apparel, electronics, and services. By 2026 this industry is expected to reach over $300 billion in Japan alone. What's interesting is that there are just as many individual entrepreneurs jumping on this trend as legacy retailers.