Japan’s telecommunication industry is expected to reach USD 117.5 billion in 2025 from USD 116.8 billion in 2024. Forecasts estimate that the telecom market in Japan will exceed USD 160 billion by 2030, growing at a compound annual growth rate (CAGR) near 6.6 percent. This growth is largely driven by the rapid rollout of 5G networks, increasing demand for mobile data services, expanding IoT adoption, and a strong push for enterprise digital transformation.
5G in Japan
Forecasts suggest that 5G in Japan will account for more than 70 percent of mobile subscriptions by around 2026. 5G infrastructure in Japan is estimated at USD 4.3 billion in 2024, and expected to rise to about USD 55.3 billion by 2033 (CAGR ~32.9 percent).
The local 5G solutions market (private 5G networks for factories, hospitals, municipalities, logistics) is forecast to reach ~USD 400-500 million by fiscal 2030. FWA using 5G is expected to grow at ~42.2 percent CAGR from 2025 to 2030 in Japan, reaching USD 12 billion by 2030.
5G devices market in Japan produced about USD 12.4 billion in revenues in 2024 and is projected to reach about USD 77.9 billion by 2030 (CAGR ~37.3 percent), according to Grand View Research
The Japanese government has set targets for near-full population coverage of 5G by the end of fiscal year 2030. The shift towards 5G Standalone (SA) architecture (versus 5G non-standalone) is gaining momentum, which is important for advanced use-cases such as network slicing and enterprise IoT.
Main operators
Japanese telecom market is dominated by four major players—NTT Docomo, KDDI (au), SoftBank, and Rakuten Mobile.
NTT Docomo
NTT Docomo leads with a market share of roughly 40.6 percent and more than 91 million subscribers in 2025, maintaining similar figures to 2024. As a pioneer in standalone 5G deployment utilizing Qualcomm’s 5G NR Dual Connectivity, Docomo boasts nationwide coverage exceeding 99 percent, supporting multi-gigabit speeds. Its average revenue per user (ARPU) is estimated between USD 35 and 39 monthly, the highest among Japanese operators, reflecting its premium services, AI-enabled enterprise solutions, and customer loyalty programs. Despite regulations capping fees, DOCOMO retains a high level of customer satisfaction through superior network quality and service.
KDDI
KDDI holds approximately 30.6 percent of the market with an estimated 60 million subscribers. Offering bundled services combining mobile, broadband, and digital lifestyle products, KDDI focuses heavily on private 5G network deployment and Industrial IoT solutions, aligned with Japan’s national digital transformation strategies. Its ARPU ranges between USD 30 and 34 monthly, supported by its wide-reaching enterprise and consumer offerings, alongside strong customer retention tactics.
SoftBank
SoftBank commands 40 to 45 million subscribers, with an ARPU estimated between USD 28 and 32 monthly. Recognized for its pioneering work in 5G Multi-access Edge Computing (MEC), SoftBank provides ultra-low latency services for critical industries like autonomous vehicles and healthcare. Its competitive pricing, extensive cloud and AI portfolio, and robust digital customer engagement tools position it well among business and consumer segments.
Rakuten Mobile
Rakuten Mobile, Japan’s newest full MNO entrant since 2020, has grown its subscriber base from approximately 7.5 million in 2023 to roughly 9 million in 2025. Utilizing a cloud-native and virtualized network infrastructure, Rakuten offers disruptive low-cost urban-focused 5G services. Its ARPU is significantly lower at USD 15 to 18 monthly due to its aggressive pricing strategy and ongoing infrastructure rollout. Despite coverage limitations outside major cities, it enhances customer experience with multilingual support and digital-first service platforms.
Mobile data services constitute around 39 percent of total telecom revenue in 2025, rising slightly from 2024 levels, driven by increased consumer demand for streaming, e-commerce, social media, and extensive enterprise IoT adoption. Private 5G and Industry 4.0 initiatives remain critical revenue growth drivers, supported by government investments in smart city infrastructure and digital economy initiatives.
Customer complaints
Customer complaints in Japan’s telecom sector have declined in 2025 due to upgraded networks and digital customer care enhancements. NTT Docomo experiences fewer complaints owing to superior coverage and speed but occasionally faces pricing-related feedback. KDDI leads in reliability and low latency, reflected in minimal complaints, especially in video streaming and gaming services. SoftBank has improved 5G availability and complaint resolution, enhancing user satisfaction, while Rakuten continues addressing network maturity concerns and benefits from effective multilingual support, especially for foreign residents. Telecom operators also contribute significantly during disasters, strengthening trust through reliable communications.
Regulatory oversight by Japan’s Ministry of Internal Affairs and Communications maintains affordable pricing through fee caps and mandates on low-cost plans. This ensures widespread service accessibility but constrains average revenue per user growth, prompting operators to innovate service bundles and focus on technological leadership to sustain margins.
Looking ahead, Japan’s telecom market is positioned for continuous innovation and expansion through 2030, driven by next-generation 5G and emerging 6G technologies, advanced IoT ecosystems, and artificial intelligence integration in network operations and customer engagement.
Fasna Shabeer
