Japan 5G Network Infrastructure Market - Forecasts From 2025 To 2030

Description

The Japan 5G Network Infrastructure Market is expected to grow at a CAGR of 9.40%, reaching USD 5.81403 billion in 2030 from USD 3.7107 billion in 2025.

Japan 5G Network Infrastructure Market Key Highlights

• The implementation of the 'Local 5G' regulatory framework by the Ministry of Internal Affairs and Communications (MIC) is the primary structural catalyst, enabling non-telecom entities like manufacturers and local governments to acquire dedicated spectrum and directly commission their own private 5G networks, fundamentally changing the traditional service provider-centric demand model.
• The need for millimeter-wave (mmWave) band infrastructure is accelerating, propelled by the need for ultra-high-capacity, low-latency applications within densely concentrated environments, particularly in urban centers and for private industrial use cases, driving investment in small cell and advanced Massive MIMO hardware.
• Open Radio Access Network (Open RAN) architecture is a core strategic priority for Japanese operators and vendors, actively fostering a competitive and multi-vendor supply chain environment that decreases dependence on legacy integrated network solutions and lowers the barrier to entry for domestic technology firms.
• The manufacturing and industrial automation sector represents the most significant immediate-term growth catalyst for private 5G infrastructure, driven by the imperative to implement Industry 4.0 technologies, including automated guided vehicles (AGVs) and real-time quality control systems, which require Ultra-Reliable Low-Latency Communication (URLLC).

The Japanese 5G Network Infrastructure market is undergoing a structural transformation, shifting from an exclusive public carrier domain to an ecosystem increasingly defined by enterprise-driven private network deployments. This evolution is necessitated by a technologically advanced consumer base that demands faster, high-capacity mobile broadband and an industrial sector aggressively pursuing digital transformation through Industry 4.0 paradigms. The unique regulatory environment, specifically the provision for "Local 5G," acts as a key market differentiator, empowering vertical enterprises to bypass conventional telecom service layers to secure bespoke connectivity solutions. The national deployment strategy is further characterized by a dual focus: expanding wide-area Non-Standalone (NSA) coverage using sub-6 GHz spectrum for general consumer connectivity and strategically implementing high-frequency mmWave solutions, often in a Standalone (SA) architecture, to address specific high-data-rate, mission-critical industrial requirements.

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Japan 5G Network Infrastructure Market Analysis

Growth Drivers

The foundational driver for infrastructure demand is the government’s comprehensive push for digital societal transformation and national competitiveness. The Ministry of Internal Affairs and Communications (MIC) mandated substantial 5G population coverage targets, compelling telecom operators to accelerate the deployment of Radio Access Network (RAN) components, particularly small cells for dense urban environments and mid-band macro cells for broad coverage. Furthermore, the regulatory support for Local 5G, which allocates spectrum (e.g., in the 4.6-4.9 GHz and 28 GHz bands) directly to non-mobile operators, immediately creates a new, distinct demand stream for private 5G Core and RAN hardware, shifting infrastructure expenditure from four major carriers to a much broader base of industrial end-users seeking network slicing and ultra-low latency for proprietary applications.

Challenges and Opportunities

The primary challenge is the steep capital expenditure (CapEx) associated with dense network construction, particularly the rollout of mmWave and the necessary fiber backhaul. This high cost of network densification, compounded by Japan's unique geographical and building-density challenges, creates an immediate constraint on deployment speed, thereby modulating the pace of demand for new base stations. The paramount opportunity lies in the global movement toward Open RAN technology. Open RAN promotes multi-vendor interoperability and a shift from proprietary hardware to commoditized, COTS (Commercial Off-The-Shelf) hardware integrated with software-defined functions. This significantly lowers long-term operational costs (OpEx) for carriers like Rakuten Mobile and presents a multi-billion dollar export opportunity for domestic vendors like NEC and Fujitsu, creating specific, sustained demand for virtualized RAN (vRAN) software and related edge infrastructure.

Raw Material and Pricing Analysis

As the Japanese 5G Network Infrastructure Market is defined by the physical deployment of hardware (RAN, Core, and Transport equipment), raw material supply chain dynamics directly influence CapEx budgets. Key hardware components, including base station semiconductor chipsets, specialized radio frequency (RF) filters, and high-performance passive components, rely heavily on global supply chains, primarily concentrated in Asia-Pacific. Pricing is directly influenced by the cost of rare earth elements used in high-power amplifiers and specialized silicon for baseband processing. Geopolitical constraints and capacity limitations in fabrication foundries create price volatility, which, in turn, impacts the procurement costs for domestic infrastructure vendors. The industry trend toward Open RAN helps mitigate this by decentralizing hardware design and utilizing more common, commercially available components, thereby reducing the unit cost and long-term price risk of proprietary hardware.

Supply Chain Analysis

The global 5G supply chain for the Japanese market exhibits a bifurcated dependency. For legacy and high-end core network equipment, dependence remains on major international providers. However, the Japanese government's explicit focus on fostering domestic suppliers and promoting Open RAN has cultivated a robust domestic ecosystem for the RAN and edge components, with companies like NEC and Fujitsu playing critical roles. Key global production hubs for networking chipsets (Taiwan and the USA) and optical/packet transport hardware (China and South Korea) represent critical logistical dependencies. Furthermore, the reliance on high-speed fiber-optic cable deployment for backhaul introduces a logistics complexity tied to specialized laying equipment and skilled domestic labor, which constrains the rapid scaling of dense urban networks.

Government Regulations

In-Depth Segment Analysis

By Deployment Type: Private 5G Networks

The Private 5G Networks segment is characterized by accelerated enterprise-driven demand, directly fueled by the critical need for deterministic network performance. This segment's primary growth driver is the Industry 4.0 imperative within the Japanese manufacturing, logistics, and port operations sectors. Manufacturing floors require Ultra-Reliable Low-Latency Communication (URLLC) to synchronize automated guided vehicles (AGVs), control robotics with sub-millisecond precision, and deploy real-time video analytics for quality control. Public carrier networks cannot guarantee this deterministic latency and network slicing required for mission-critical applications. Consequently, enterprises are opting for Private 5G, utilizing the MIC's Local 5G licenses to deploy dedicated, isolated infrastructure. This direct control over the network stack—from RAN to Core—drives specific demand for Edge Infrastructure (MEC) and localized 5G Core software to process sensitive data on-site, providing the network slicing capability essential for bespoke industrial applications and enhancing data sovereignty and security protocols.

By End-User: Manufacturing and Industrial Automation

The Manufacturing and Industrial Automation sector's demand for 5G infrastructure is uniquely tied to operational efficiency and competitive necessity. Japan's high-value, precision-focused manufacturing base mandates a shift from traditional wired infrastructure on the factory floor to a flexible, high-capacity wireless platform. This necessitates an investment in private 5G infrastructure, as verified by numerous operational trials across major Japanese industrial firms. The requirement is specifically concentrated in the Edge Infrastructure and 5G Core Network components. Real-time machine-to-machine (M2M) communication, enabled by the 5G Core's URLLC features, is non-negotiable for closed-loop control systems and robotic collaboration. This end-user segment drives volume demand for industrial-grade small cells, compact, virtualized core network software for on-premise deployment, and specialized network management and orchestration platforms to manage dynamic factory layouts and a massive number of connected IoT sensors.

Competitive Environment and Analysis

The Japanese 5G network infrastructure market is a dynamic mix of powerful domestic incumbents and aggressive international vendors, with competition pivoting on Open RAN compatibility and private network solutioning. The domestic landscape is dominated by a government and operator preference for Open RAN, creating a distinct competitive advantage for Japanese vendors who have successfully positioned themselves as global leaders in this space.

NEC Corporation

NEC's strategic positioning is centered on becoming a global leader in Open RAN components and System Integration for both public and private networks. Their key product offering is the 5G Radio Unit (RU), which is O-RAN compliant, allowing operators to mix and match with core and software components from other vendors. NEC also provides a comprehensive suite of 5G Core Network software that supports a cloud-native, containerized architecture. The company has secured high-profile contracts, notably with Rakuten Mobile in Japan, for end-to-end Open RAN deployment, cementing its role as a primary system integrator and vendor in the nation's most technologically disruptive network.

Fujitsu Limited

Fujitsu's strategy is to leverage its heritage in networking and computing to deliver integrated, multi-vendor 5G solutions, focusing heavily on sustainability and AI-driven network management. Their core offerings include O-RAN compliant Radio Units (RUs), virtualized baseband units (CU/DU), and a proprietary Service Management and Orchestration (SMO) platform. Fujitsu actively markets its energy-efficient RUs and AI-powered network optimization tools, which automatically adjust power consumption based on traffic load. This positioning appeals directly to operators and enterprises with stringent Environmental, Social, and Governance (ESG) targets and a high operational expenditure focus.

Recent Market Developments

October 2025: Proof-of-Concept Achieved for Satellite-5G Networks

Japan Radio Co., Ltd., SKY Perfect JSAT Corporation, and the National Institute of Information and Communications Technology (NICT) successfully demonstrated a proof-of-concept for Satellite-5G Networks utilizing adaptive routing and Quality of Service management. This development represents a significant advance in extending 5G coverage to areas underserved by terrestrial networks. The trial validated the performance of dynamic path switching and application-based backhaul allocation over a GEO satellite link, specifically targeting improved reliability and flexibility for disaster response and rural connectivity use cases, creating a new, verifiable demand pathway for integrated Non-Terrestrial Network (NTN) components.

September 2025: Rakuten Mobile Deploys Nokia's Remote Power-Saving Solution

Rakuten Mobile announced the deployment of a Nokia-supplied remote power-saving solution for optical transmission across its commercial 4G and 5G networks in Japan. This capacity addition is aimed at significantly reducing the energy consumption and operating costs of the backhaul and transport network infrastructure. The deployment reflects a strategic investment in OpEx reduction through advanced network management software and orchestration, directly impacting the demand specification for energy-efficient transport components in future infrastructure tenders.

Japan 5G Network Infrastructure Market Segmentation

• BY COMPONENT
  • RAN
  • 5G Core Network
  • Transport or Backhaul Network
  • Edge Infrastructure
  • Network Management and Orchestration
  • Others
• BY SPECTRUM BAND
  • Low-band (<1 GHz)
  • Mid-band (1-6 GHz)
  • High-band/ mmWave (>24 GHz)
• BY DEPLOYMENT TYPE
  • Public Carrier Networks
  • Private 5G Networks
  • Shared Infrastructure
  • Hybrid
• BY DEPLOYMENT MODE
  • Standalone
  • Non-Standalone
• BY END-USER
  • Telecom Operators
  • Manufacturing and Industrial Automation
  • Transportation & Logistics
  • Energy and Utilities
  • Healthcare
  • Education
  • Retail and Hospitality
  • Public Sector
  • Other Enterprises

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. JAPAN 5G NETWORK INFRASTRUCTURE MARKET BY COMPONENT

5.1. Introduction

5.2. RAN

5.3. 5G Core Network

5.4. Transport or Backhaul Network

5.5. Edge Infrastructure

5.6. Network Management and Orchestration

5.7. Others

6. JAPAN 5G NETWORK INFRASTRUCTURE MARKET BY SPECTRUM BAND

6.1. Introduction

6.2. Low-band (<1 GHz)

6.3. Mid-band (1-6 GHz)

6.4. High-band/ mmWave (>24 GHz)

7. JAPAN 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT TYPE

7.1. Introduction

7.2. Public Carrier Networks

7.3. Private 5G Networks

7.4. Shared Infrastructure

7.5. Hybrid

8. JAPAN 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT MODE

8.1. Introduction

8.2. Standalone

8.3. Non-Standalone

9. JAPAN 5G NETWORK INFRASTRUCTURE MARKET BY END-USER

9.1. Introduction

9.2. Telecom Operators

9.3. Manufacturing and Industrial Automation

9.4. Transportation & Logistics

9.5. Energy and Utilities

9.6. Healthcare

9.7. Education

9.8. Retail and Hospitality

9.9. Public Sector

9.10. Other Enterprises

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. NEC Corporation

11.2. Fujitsu Limited

11.3. Ericsson

11.4. Nokia Japan Co., Ltd.

11.5. Samsung Electronics Japan Co., Ltd.

11.6. Rakuten Symphony

11.7. Qualcomm Technologies

11.8. Hitachi, Ltd.

11.9. Toshiba Corporation

11.10. Sumitomo Electric Industries, Ltd.

12. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

NEC Corporation

Fujitsu Limited

Ericsson 

Nokia Japan Co., Ltd.

Samsung Electronics Japan Co., Ltd.

Rakuten Symphony

Qualcomm Technologies

Hitachi, Ltd.

Toshiba Corporation

Sumitomo Electric Industries, Ltd.

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