Japan Smart Transportation Market Expected to Reach USD 14.7 Billion by 2033 - IMARC Group

January 20, 2025 | Technology & Media

Japan Smart Transportation Market Statistics, Outlook and Regional Analysis 2025-2033

The Japan smart transportation market size was valued at USD 6.9 Billion in 2024, and it is expected to reach USD 14.7 Billion by 2033, exhibiting a growth rate (CAGR) of 8.7% from 2025 to 2033.

Japan Smart Transportation Market

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The aging population across the country is bolstering the requirement for smart transportation systems. For instance, according to the United Nations Population Fund (UNFPA), in 2024, the population in Japan surpassed 120 million, with approximately 30% of people aged 65 and above. This demographic shift is encouraging the launch of transportation networks for the elderly. Automated service kiosks and vehicles equipped with accessibility features such as lower steps and better handrail placement are among the innovations. Furthermore, these technologies are being combined with user-friendly apps that offer real-time support and navigation suited to people with mobility issues.

Additionally, there is a strong need to lower greenhouse gas emissions in the transportation industry as a result of people's growing awareness towards climate change and its effects. To accomplish this goal, the governing body and other local organizations of the country are utilizing smart transportation technologies. By increasing the effectiveness of vehicle flows and encouraging the use of environmentally friendly forms of transportation, such as electric buses and bicycles, smart transportation systems help achieve this objective. These technologies provide more intelligent decision-making, which reduces emissions and traffic congestion by incorporating real-time data analytics. Adoption of these technologies aids in energy optimization and pollution reduction, two major issues in crowded urban settings. In July 2024, Hyundai introduced a medium-sized electric bus, in Japan. The bus has a 145 kWh battery with a range of up to 330 km and bidirectional charging capabilities. Hyundai planned to replace all buses and cabs on Yakushima Island with this zero-emission bus. Besides this, Japan is establishing itself as a pioneer in autonomous mobility, with major automotive manufacturers and technology companies spending extensively on AV development. Autonomous vehicles provide solutions to labor shortages. Furthermore, the governing body plays an important role by enacting rules and financing to promote AV innovation in public transit systems.

Japan Smart Transportation Market Statistics, By Region

The market research 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. Partnerships between automakers and infrastructure suppliers help accelerate the adoption of smart transportation solutions.

Kanto Region Smart Transportation Market Trends:

The growing shift towards autonomous public transport in the Kanto region is accelerating the growth of the market. Trials of driverless buses, such as the ones in Chiba Prefecture's Makuhari area, aim to address urban congestion and labor shortages. Apart from this, the Tokyo Metropolitan Government has also partnered with tech firms to integrate AI-driven systems into subway operations, thereby enhancing safety.

Kansai/Kinki Region Smart Transportation Market Trends:

The growing demand for mobility-as-a-service platforms across the Kansai region is acting as one of the major growth-inducing factors. Moreover, Kansai MaaS projects combine rail, bus, and car-sharing services into unified apps like "My Route," which offers real-time updates. Besides this, Kyoto also integrates smart ticketing to enhance tourism across the region.

Central/Chubu Region Smart Transportation Market Trends:

The rising adoption of hydrogen fuel vehicles across the Chubu region is supporting the market growth. Additionally, Toyota actively develops hydrogen infrastructure, such as refueling stations. Also, the 2025 World Expo in Osaka is driving hydrogen-powered buses and trucks for eco-friendly transport across Chubu, further stimulating market growth.

Kyushu-Okinawa Region Smart Transportation Market Trends:

The Kyushu-Okinawa region is experiencing a rapid adoption of electric vehicles. Cities like Fukuoka deploy EV-sharing systems supported by solar charging stations. In addition to this, Okinawa is introducing AI-enhanced e-bikes for sustainable travel. These initiatives align with the region’s focus on green and inclusive transportation solutions.

Tohoku Region Smart Transportation Market Trends:

Sendai has developed AI-integrated transport systems to ensure efficiency during emergencies, which is further driving the growth of the Tohoku region. Moreover, autonomous vehicles like the "Robot Shuttle" in Miyagi Prefecture support evacuation scenarios. The escalating investment towards the development of seismic-resistant infrastructure across the region is proliferating market growth.

Chugoku Region Smart Transportation Market Trends:

The surging penetration of connected car technologies across the Chugoku region is accelerating the market. Mazda, headquartered in Hiroshima, leads in vehicle-to-vehicle (V2V) solutions, enhancing road safety. Besides this, various prefectures like Shimane have adopted app-based ride-sharing services to serve aging populations, which is further expanding the adoption of smart transportation.

Hokkaido Region Smart Transportation Market Trends:

The people in Hokkaido are adopting advanced AI-based navigation systems like the Easy Ride program in Asahikawa, designed to ensure safety on icy roads. The growing tourism with destinations like Niseko has led to investments in intelligent bus routes and app-based services to enhance traveler convenience, especially during snow.

Shikoku Region Smart Transportation Market Trends:

Shikoku innovates in smart maritime transport for its island connectivity. Tokushima introduces AI-guided ferries, while Matsuyama adopts electric buses for eco-friendly urban transit. By focusing on smarter inter-island mobility and sustainable travel, Shikoku strengthens its tourism and commerce sectors.

Top Companies Leading in the Japan Smart Transportation Industry

Major market competitors are focusing on upgrading technological features. They are investing resources in research to improve autonomous car technologies, intelligent infrastructure, and electric mobility solutions. In November 2024, Japan Airlines (JAL) formed an alliance with Lime to provide eco-friendly travel options through electric micromobility, including e-scooters, for last-mile transportation in Japan. This agreement allowed JAL mileage users to earn miles when they used Lime's services and helped Lime expand its port network. The service first launched in Okinawa and planned to expand to other cities, providing smooth and ecologically friendly transportation for locals and visitors alike.

Japan Smart Transportation Market Segmentation Coverage

On the basis of the solution and services, the market has been bifurcated into solution (hybrid ticketing management system, parking management and guidance system, integrated supervision system, traffic management system, and others) and services (business services, professional services, and cloud services). The former segment plays a crucial role in smart transportation owing to its ability to reduce congestion and improve user experience. Moreover, the latter provides technical support, which assists in decision-making.
Based on the transportation mode, the market has been bifurcated into roadways, railways, airways, and maritime. The rising integration of connected vehicles is elevating the roadways segment. Moreover, railways are adopting advanced technologies to improve safety. Apart from this, airways are focusing on using optimal security technologies. Furthermore, the elevating trading activities are bolstering the maritime segment.
On the basis of the application, the market has been bifurcated into mobility as a service, public transport, transit hubs, connected cars, video management, and others. Mobility as a service combines different means of transport. Moreover, the public transportation sector depends on smart transportation technologies to improve sustainability. Others comprise advanced transportation solutions that provide convenience to users.

Report Features	Details
Market Size in 2024	USD 6.9 Billion
Market Forecast in 2033	USD 14.7 Billion
Market Growth Rate 2025-2033	8.7%
Units	Billion USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Solution and Services Transportation Mode Application Region
Solution and Services Covered	Solution: Hybrid Ticketing Management System, Parking Management and Guidance System, Integrated Supervision System, Traffic Management System, Others Services: Business Services, Professional Services, Cloud Services
Transportation Modes Covered	Roadways, Railways, Airways, Maritime
Applications Covered	Mobility As a Service, Public Transport, Transit Hubs, Connected Cars, Video Management, Others
Regions Covered	Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, Shikoku Region
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

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Japan Smart Transportation Market Expected to Reach USD 14.7 Billion by 2033 - IMARC Group

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