Japan Edtech Market

Japan Edtech Market:

The Japan Edtech market size is projected to exhibit a growth rate (CAGR) of 20.90% during 2024-2032. The rising need for personalizing the learning experience in both corporate and educational settings is propelling the market across the country.

Japan Edtech Market Analysis:

• Major Market Drivers: The growing focus of key industry players on transforming traditional educational models, thereby making learning more efficient, inclusive, and tailored to individual needs, is propelling the market. Besides this, the expanding corporate sector is also acting as another significant growth-inducing factor.
• Key Market Trends: The increasing number of virtual classrooms, owing to the inflating popularity of AI-based learning platforms, is one of the emerging trends stimulating the market. Additionally, the escalating demand for online training programs that offer flexibility is further stimulating the market.
• Challenges and Opportunities: One of the main challenges hindering the market is the resistance to change from traditional teaching methods. However, government initiatives, teacher training programs, and the integration of advanced technologies into the national curriculum will continue to fuel the market in the coming years.

Japan Edtech Market Trends:

Need for English Proficiency

A survey, which measures the proficiency in English of individuals in 113 non-English speaking countries and regions, conducted by the Swiss international education company, EF Education First, in December 2023 revealed that Japan was ranked eighty-seventh overall and fifteenth among the 23 Asian countries and regions, equating to low proficiency in the language. Additionally, the article published by Nikkei Asia in August 2023 also stated that students in Japan often struggle to express themselves in the English language. The National Assessment of Academic Ability was administered to approximately about 1.9 million students across 28,000 private and public schools in Japan, out of which roughly 12.4% answered correctly in the English-speaking section. Consequently, there is an escalating demand for online platforms and applications that offer English language learning, which represents one of the Japan edtech market's recent opportunities. For example, in September 2023, ELSA, one of the premier companies leveraging machine learning and speech recognition technology to teach English, raised a US$23 Million Series C funding joined by UniPresident and Asia Growth Investment Fund, which is a joint business of Aozora Bank and Development Bank of Japan (DBJ), to launch of ELSA AI Tutor that makes English language accuracy and fluency more accessible to individuals across the country.

Demand for E-Learning

The increasing number of virtual classrooms, online courses, and e-learning resources available to students is bolstering the market. For example, in November 2022, Konica Minolta, Inc. launched a learning e-portal service for several purposes, including assessing the English-speaking skills of junior high school students. Moreover, in May 2023, Konica Minolta, Inc. (Konica Minolta) and Konica Minolta Japan, Inc. announced that the companies introduced tomoLinks, an online solution for educational institutions and companies across Japan. Besides this, as per the report published by the Mainichi in October 2023, approximately 2,760 students at elementary and junior high schools in the Southwestern city of Japan were not attending classes in the 2022 academic year. As a result, schools in Japan installed telepresence robots for students who want to stay home. Additionally, advancements in technologies like virtual reality (VR), AI, and augmented reality (AR), are improving the capabilities of edtech tools, which is propelling the Japan edtech market demand. For instance, in April 2024, OpenAI announced its plans to open an office in Tokyo and release a version of GP-4 optimized to process Japanese-language text. In line with this, these technologies are making learning experiences more interactive and immersive, thereby catalyzing the market across the country. For example, in January 2024, AOMINEXT, one of the VR and metaverse developers in Japan, revealed their plans to build a metaverse system for a fully virtual high school in Japan. Students can attend school remotely by utilizing custom 3D avatars and graduate with regular high school diplomas. 

Various Government Initiatives

The rising emphasis of regulatory authorities to integrate advanced technologies in the education industry is fueling the market across the country. In Japan, public responsibility for managing the education system is split between prefectural, central, and municipal governments. The national Ministry of Education, Culture, Sports, Science and Technology (MEXT) promotes and regulates the use of digital technologies in education, sets the national curriculum, and funds local governments. Besides this, the expanding country's digital infrastructure is also elevating the Japan's edtech market revenue. Two major national initiatives have provided incentives for the digitalization of its education system. The Global and Innovation Gateway for All (GIGA) school digital learning program provides all students in compulsory education (primary and lower secondary) with a digital device, including a tablet or laptop, on a five-year lease. Moreover, the MEXT's computer-based testing system (MEXCBT) also offers incentives to all municipalities to comply with certain interoperability standards. Apart from this, government bodies are introducing educational technology, which is acting as another significant growth-inducing factor. For example, in September 2021, the Japanese government launched a digital agency to develop online public service delivery and integrate IT systems across departments and agencies. Additionally, in February 2024, the Education, Culture, Sports, Science, and Technology Ministry in Japan planned to utilize the metaverse in a program to make it easier for exceptional foreign students to stay in the country.

Japan Edtech Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on sector, type, deployment mode, and end user.

Breakup by Sector:

• Preschool
• K-12
• Higher Education
• Others
   

The report has provided a detailed breakup and analysis of the market based on the sector. This includes preschool, K-12, higher education, and others. 

In Japan, the edtech market spans various educational stages, from preschool to higher education and beyond. In preschool, technology is being integrated to create interactive and engaging learning experiences for young children, utilizing tools, such as digital storytelling and educational apps. In the K-12 sector, there is a significant focus on incorporating online resources, digital textbooks, and e-learning platforms to enhance traditional classroom teaching. Moreover, schools are increasingly adopting coding and STEAM education to prepare students for the future. Higher education institutions are embracing online courses, virtual classrooms, and digital collaboration tools to provide flexible learning options and support remote education. Additionally, as per the Japan edtech market overview, professional development and lifelong learning are gaining traction, with a growing number of adults seeking to upskill through online courses and training programs.

Breakup by Type:

• Hardware
• Software
• Content
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes hardware, software, and content.

Edtech hardware includes interactive whiteboards, tablets, and virtual reality (VR) headsets. For instance, in January 2024, one of the VR and metaverse developers in Japan, AOMINEXT, announced their collaboration with Yushi International High School to launch a fully virtual high school. This innovative initiative allows students to participate in classes remotely through VR equipment and 3D anime avatars. Software innovations encompass a wide range of educational platforms and applications, like Classi, a cloud-based learning management system that facilitates communication and resource sharing between students and teachers. Content-wise, companies, including Arcterus, are developing personalized learning materials and adaptive learning platforms. These technologies collectively enhance the learning process, which is catalyzing the Japan's edtech market share.

Breakup by Deployment Mode:

• Cloud-based
• On-premises
   

The report has provided a detailed breakup and analysis of the market based on the deployment mode. This includes cloud-based and on-premises.

Cloud-based edtech platforms, such as StudySapuri, offer online courses and resources accessible anytime and anywhere, enabling flexible learning environments and remote education. They are particularly advantageous for providing scalable solutions without the need for significant infrastructure investments. For instance, in April 2024, Oracle Corporation Japan invested over US$8 Billion to address the country's rising need for cloud computing and AI infrastructure. On-premises edtech solutions involve hardware and software installed directly within educational institutions, which is positively influencing the Japan edtech market outlook. They are often preferred for their enhanced security and reliability, ensuring that sensitive educational data is managed within the institution.

Breakup by End User:

• Individual Learners
• Institutes
• Enterprises
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes individual learners, institutes, and enterprises.

For individual learners, the market is characterized by the increasing adoption of online courses, language learning apps, and skill development platforms like Udemy and Duolingo, which cater to personal growth and lifelong learning. Besides this, educational institutes, including schools and universities, are integrating advanced edtech solutions, such as digital classrooms, interactive learning tools, and learning management systems (LMS) like Moodle, to enhance educational delivery and administrative efficiency. According to the Japan edtech market statistics, enterprises are also leveraging edtech for corporate training and professional development, with platforms like Coursera for businesses offering tailored courses to upskill employees and drive organizational growth.

Breakup by Region:

• Kanto Region
• Kansai/Kinki Region
• Central/ Chubu Region
• Kyushu-Okinawa Region
• Tohoku Region
• Chugoku Region
• Hokkaido Region
• Shikoku Region
   

The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.

The rising need for English language proficiency platforms that usually incorporate machine learning (ML) and artificial intelligence (AI) is propelling the market across various regions in Japan. For example, in January 2022, MagniLearn, an AI-based personalized platform, signed a strategic agreement with a large private school network in Japan to teach English in seven schools and four of its locations, namely Hiroshima, Fukuyama, Kurashiki, and Okayama. Moreover, extensive collaborations among key players in the Central region are elevating the Japan edtech market's recent price. For instance, in October 2021, Riiid, a South Korea-headquartered AI-powered edtech company, acquired its Japanese distribution partner Langoo to expand its presence in Japan. Apart from this, the growing corporate sector will continue to bolster the market in the coming years.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major Japan edtech market companies have been provided.

Japan Edtech Market Recent Developments:

• May 2024: Native Camp, Inc., one of the edtech companies, developed a language-learning platform that offers unlimited lessons in Japanese.
• April 2024: OpenAI announced its plans to open an office in Tokyo and release a version of GP-4 optimized to process Japanese-language text.
• January 2024: One of the VR and metaverse developers in Japan, AOMINEXT, collaborated with Yushi International High School to launch a fully virtual high school to provide immersive experiences to students.

Japan Edtech Market Report Scope:

Key Questions Answered in This Report:

• How has the Japan edtech market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the Japan edtech market?
• What is the breakup of the Japan edtech market on the basis of sector?
• What is the breakup of the Japan edtech market on the basis of type?
• What is the breakup of the Japan edtech market on the basis of deployment mode?
• What is the breakup of the Japan edtech market on the basis of end user?
• What are the various stages in the value chain of the Japan edtech market? 
• What are the key driving factors and challenges in the Japan edtech?
• What is the structure of the Japan edtech market and who are the key players?
• What is the degree of competition in the Japan edtech market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Japan edtech market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Japan edtech market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Japan edtech industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.