Japan Route Optimization Software Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Product (Software, Services), By Application (Food Delivery, Ride Hailing Services, E-Commerce, Others) - Forecasts From 2022 To 2027

  • Published : Jun 2022
  • Report Code : KSI061614749
  • Pages : 117

The Japan route optimization software market is evaluated at US$68.822 million for the year 2020.

The route optimization software is a kind of software used to find the quickest and most cost-friendly route among several available routes. The optimized route is concluded based upon metrics like the number of stop locations and time taken for each delivery spot between the start and end of the route. The route optimization software market for Japan is projected to grow on a substantial scale because of the rapid advancements in the Japanese automotive industry to develop autonomous vehicles.  The projected rise of mobility-as-a-service (Maas) in Japan is further anticipated to increase the overall market share of the route optimization software market. Also, with new innovations, and government-funded advanced technological research and development activities, the anticipated market growth of the route optimization software market is projected to grow exponentially during the forecast period. However, the ageing population leading to a decline in working-age numbers and the projected sudden demand-supply gap for advanced digital skills of the future are major detriments in hindering the overall growth of the route optimization software market in Japan.

The COVID-19 impact on the Japanese route optimization software market was on a negative scale owing to the worldwide lockdown and travel restrictions which directly impacted the logistics and automotive sectors. As per the November 2020 Impact of COVID-19 on Supply Chains Report by the Japan External Trade Organization (JETRO), the overseas regions for Japanese companies are mainly China, South Korea, India, and ASEAN, and have expanded by 49.4% in the combined regions. With the global supply chain disruption in the countries having Japan as a foreign affiliate, the overall manufacturing, as well as logistic segments, were negatively impacted, thereby declining the growth of the route optimization market for Japan.

Automotive digitalization, infrastructure innovations, and advanced technology research and development

As per the Automotive-2030 Japan Report by IBM, autonomous or artificial intelligence (AI), driven car sales in Japan are expected to reach 4 million in 2040, which will contribute 33% of the total vehicle sales. Further, the report stated that 90% of the innovations, regarding vehicles will be software-related. Additionally, the report stated that automotive executives are expecting to spend 276 billion yen by 2030 on reskilling employees. Moreover, the report mentioned that 85% of the automotive executives believed digital platform leverage would lead to greater innovations while 86% said digital platforms enabled greater personalization for consumers. The rapid future transition of the automotive industry to autonomous vehicles is highly anticipated to drive the market growth of the route optimization market in Japan. Also, new developments like infrastructural innovations are further projected to fuel the market growth of the route optimization market. For example, as per the April 2021 new release by Dynamic Map Platform, next-generation high precision 3D  map data, or HD Maps, will be introduced for the first time in Japan, in the fiscal year 2023. The Next-Generation HD maps will expand their coverage from expressways to surface roads, increasing the coverage from 31,777 km in 2020 to approximately 130,000 km in 2024, as mentioned in the company’s news release. The advanced infrastructural innovations in Japan are prominent factors in propelling the overall market growth of the Japanese route optimization software market. Moreover, as per the October 2021 article by Nippon, Japan has planned to establish a USD 880 million (100 billion yen) fund for enhancing the research and development of advanced technologies. With extensive research and development of advanced technologies, the anticipated growth of route optimization software in Japan is projected to rise exponentially. Autonomous cars, infrastructural technological developments, and research and development in advanced technologies are anticipated to drive the future market growth of the route optimization software market in Japan during the forecast period.

An ageing population, future digital skills shortage

As per the April 2021 release by the World Economic Forum, 1/3rd of the Japanese population will be aged 65 or older. Also, as per the 2021 abstract from the Organisation for Economic Co-operation and Development (OECD) library, Japan possesses the highest age-dependency ratio among the OECD countries, and the ratio has increased from 20% in 1990 to 53% in 2020, which is projected to reach as high as 81% by the year 2050. Also, the same source stated that the reducing working-age population might lead to a substantial shortage of labour with the required digital skills. Additionally, skill imbalances have marked their emergence, leading to a hiring mismatch in Japan. The ageing population is projected to lead to a working-age shrinkage, eventually restraining the market growth of the route optimization software market in Japan during the forecast period.

Segmentation

  • By Product
    • Software
    • Services
  • By Application
    • Food Delivery
    • Ride-Hailing Services
    • E-commerce
    • Others

1. Introduction
1.1. Market Definition
1.2. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Japan Route Optimization Software Market Analysis, by Product
5.1. Introduction
5.2. Software
5.3. Services

6. Japan Route Optimization Software Market Analysis, by Application
6.1. Introduction
6.2. Food Delivery
6.3. Ride-Hailing Services
6.4. E-commerce
6.5. Others

7. Competitive Environment and Analysis
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix

8. Company Profiles 
8.1. Trimble Inc
8.2. Omnitracs
8.3. Microlise Telematics Pvt Ltd
8.4. Llamasoft Inc
8.5. Esri
8.6. Route4Me Inc.

Trimble Inc.

Omnitracs

Microlise Telematics Pvt Ltd

Llamasoft Inc.

Esri

Route4Me Inc.