Japan Generative AI Market Size To Reach $8.09 Billion By 2030

Japan Generative AI Market Growth & Trends

The Japan generative AI market size is anticipated to reach USD 8.09 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 37.5% from 2024 to 2030. The increased demand for personalized and creative content across various industries is expected to drive the market growth. It enables the generation of content according to individual needs and preferences in sectors such as advertising, e-commerce, and entertainment, where it is used to create immersive and engaging consumer experiences.

The COVID-19 pandemic had a positive impact on the generative AI market in Japan. The pandemic emphasized the importance of data-driven decision-making in navigating complex and rapidly changing environments. The capabilities of generative AI enable businesses to analyze large datasets and generate insights, allowing them to adapt to evolving market conditions. From predicting consumer behavior to optimizing supply chains and resource allocation, generative AI empowers organizations to make informed decisions in real-time, driving adoption and thus driving the growth of the generative AI market.

The trends in the Japan market for generative AI include using statistics, probability, and AI to create computer-based representations of targeted variables based on observations, datasets, and previous inputs. In addition, generative AI tools are expected to grow significantly due to advancements in deep learning technologies. The advancements in deep learning technologies are expected to enhance models' capabilities, allowing them to undertake complex tasks such as language translation, image recognition, and content generation with remarkable efficiency and precision. The ability of generative AI to perform such intricate tasks is expected to drive the growth of the generative AI market in the country.

Moreover, generative AI has the potential to become a new stream of revenue for software companies. Recognizing the transformative capabilities of generative AI across various industries, many established companies are actively investing in or acquiring generative AI startups to gain a competitive edge in the market. By integrating generative AI technologies into their existing product offerings or developing new solutions powered by generative AI, these companies aim to enhance their value propositions, differentiate themselves from competitors, and capture new market opportunities.

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Japan Generative AI Market Report Highlights

• Based on component, the software segment accounted for the highest revenue share of 65.0% in 2023 and is expected to retain its position over the forecast period. The escalating demand for automation and the increasing investments in artificial intelligence are expected to drive the segment's growth.

• Based on technology, the transformers segment dominated the market in 2023 and is expected to grow at a significant CAGR over the forecast period. It can be attributed to its remarkable performance in handling sequential data and capturing complex patterns, making them well-suited for various generative tasks such as natural language processing, image generation, and music composition.

• In terms of end-use, the media & entertainment segment accounted for the maximum revenue share in 2023. The increasing demand for engaging and personal content experience is driving the growth of generative AI in the country.

• Based on application, the NLP segment dominated the market in 2023 and is expected to maintain its dominance throughout the forecast period. This can be attributed to the increased need for enterprise solutions to streamline business operations for better customer experience.

• In terms of model, the large language models segment accounted for the highest revenue share in 2023. It can be attributed to the increasing demand for virtual assistants, chatbots, content generation, and translation services.

• In November 2023, Nippon Telegraph and Telephone Corp., a Japanese telecom company, launched a business-use generative AI platform, tsuzumi, to keep pace with foreign competitors in the rapidly expanding market. The AI model can read documents containing diagrams and charts. With the launch, the company aims to clock a revenue of USD 670 million in its AI platform by 2027.

Japan Generative AI Market Segmentation

Grand View Research has segmented the Japan generative AI market based on component, technology, model, application, and end-use:

Japan Generative AI Component Outlook (Revenue, USD Million, 2017 - 2030)

• Software

• Service

Japan Generative AI Technology Outlook (Revenue, USD Million, 2017 - 2030)

• Generative Adversarial Networks (GANs)

• Transformers

• Variational Auto-Encoders

• Diffusion Networks

Japan Generative AI Model Outlook (Revenue, USD Million, 2017 - 2030)

• Large Language Models  

• Image & Video Generative Models

• Multi-Modal Generative Models

• Others

Japan Generative AI Application Outlook (Revenue, USD Million, 2017 - 2030)

• Computer Vision

• NLP

• Robotics and Automation

• Content Generation

• Chatbots and Intelligent Virtual Assistants

• Predictive Analytics

• Others

Japan Generative AI End-use Outlook (Revenue, USD Million, 2017 - 2030)

• Media & Entertainment

• BFSI

• IT & Telecommunication

• Healthcare

• Automotive & Transportation

• Gaming

• Others

List of Key Players in the Japan Generative AI Market

• Preferred Networks

• Abeja

• Cinnamon

• Ubie

• Ascent Robotics

• LeapMind

• Stockmark

• Studio Ousia

• Heroz

• Autify