The time to enter Japan is now
Nationwide Digital Transformation
While being the third largest economy, Japan ranks 29th in digital competitiveness. To close this gap, Japan is going through a nationwide push for digital transformation. Both the public and private sectors are more aggressively adopting new technologies in their businesses.
Changing Awareness
Overall Japan knows that it needs to change and keep up with global technologies. The awareness of SaaS is changing rapidly and more individuals are more welcoming of SaaS solutions.
SaaS Potential
The SaaS market is only expected to grow in Japan. There is potential for the SaaS market to 3.7x in the near future. In the United States, SaaS spending is14.9% of all Enterprise IT spending, while that number sits at 4.7%. The overall SaaS total addressable market is also only expected to grow.
Limited SaaS Offerings
Even with a growing SaaS market, there just aren’t that many SaaS solutions in Japan. In 2018, there were 156 VC investments made in SaaS companies. In the United States, 3489 VC investments in SaaS companies. If you have a locally optimized product, you may be a unique solution.
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