The Japanese smart cities market was valued at $63.15bn in 2024, according to latest data. Research and consulting firm Astute Analytica projects it will reach $216.99bn by 2033, representing a compound annual growth rate of 14.7 per cent during the forecast period 2025-2033.
The report sets out how Japan’s smart cities market is progressing at a notably fast pace, revealing a host of innovative projects, sizeable public spending, and a government-led vision that extends well beyond conventional urban development.
Top smart cities in Japan
Tokyo, Kobe, Fukuoka, and Sapporo have emerged as some of the top smart cities, with Tokyo alone allocating 350 billion yen in 2023 for artificial intelligence (AI) traffic management to reduce congestion at over 2,000 intersections.
Nationally, the Japanese government has provided 1.2 trillion yen in total funds for over 12 large-scale pilot projects, focusing on Internet of Things- (IoT) enabled water systems, autonomous public transport, and data-driven security applications. In line with these initiatives, the Ministry of Internal Affairs and Communications is coordinating 18 newly formed committees to refine the technical standards for universal 5G coverage by the end of 2023, reflecting a concerted push toward broader interconnectivity across urban regions.
Osaka is pioneering next-generation transportation by deploying 750 autonomous e-shuttles on busy routes, while Sapporo leads in cold-climate innovation by testing more than 400 sensor-equipped lampposts for real-time snowfall monitoring. Fukuoka is installing 9,000 high-resolution surveillance cameras integrated with advanced facial recognition software, aiming to ensure public safety while experimenting with AI analytics for crowd control.
Read more: smartcitiesworld.net
