Mon Feb 17 11:10:00 UTC 2025: ## Japan’s IT Sector Poised for Continued Growth in 2025, Despite Global Uncertainty

**Tokyo, Japan** – Major Japanese IT service providers are predicting continued growth in domestic IT demand for 2025, despite global uncertainties. Fujitsu, NEC, and NTT Data, three of the country’s largest IT firms, reported strong third-quarter (October-December 2024) results, indicating a robust market.

Fujitsu saw a 109% year-on-year increase in domestic IT service orders during Q3, with growth across all sectors including enterprise, finance, public/healthcare, and mission-critical systems. The company attributed this success to strong demand for DX (digital transformation), SX (sustainability transformation), and core system modernization projects. Fujitsu anticipates this growth trend will continue into 2025.

NEC also reported positive results, with a 9% year-on-year increase in overall domestic IT service orders for Q3. While the enterprise sector experienced a decline due to high comparative figures from the previous year, NEC highlighted a robust order pipeline and strong growth in the public sector, particularly driven by municipal standardization projects. They are confident this positive trend will persist.

NTT Data Group reported a more modest 2% year-on-year increase in Q3 domestic orders (7% increase over nine months), with growth in finance offsetting declines in the public sector. Despite this, the company expressed confidence in continued strong IT demand in 2025, noting the increasing importance of AI agent adoption by businesses, particularly focusing on cost-effective solutions.

While all three companies remain optimistic about 2025, the report acknowledges the impact of global geopolitical factors as a potential risk. The overall consensus, however, points to a continued expansion of Japan’s IT market driven by DX initiatives and the growing adoption of AI technologies.

Read More