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Japan IT Services Forecast by Vertical Segment, 2021-2025

Japan IT Services Forecast by Vertical Segment, 2021-2025

  • April 2021
  • 28 pages
  • ID: 3786721
  • Format: PDF
  • IDC

Summary

Table of Contents

This IDC study covers the overview and trends of the Japan IT services market and, in addition to the analysis on user companies by 18 industry segments (subcategories), the study also summarizes IT services spending by six main industry segments and three mid-category service segments. The study forecasts the market size and growth rate from 2020 to 2024 for each market segment. It also adds IDC recommendations to service vendors. In 2020, the Japan IT services market shrunk 2.8% from that in the previous year because of postponed or frozen new projects, and delays in work-in-progress development projects caused by the COVID-19 pandemic, in addition to the reactionary shrinking in special demand, such as system refurbishment following the end of Windows 7 support and the consumption tax hike that drove growth in the previous year. In 2021, the market will return to positive growth with a V-shaped recovery centered on the project-oriented market, and demand for refurbishment and renewal of legacy systems. Moreover, full-scale DX investment by companies will support market growth after 2021. "For IT SPs, 2020 is a year when the response speed to the changes brought about by the COVID-19 pandemic was questioned. IT SPs should make companywide efforts to improve speed in all aspects from management to the field," says Akihiro Kimura, research manager, IT Services, IDC Japan.

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