Fiber is playing a major role in driving Japan’s broadband market, with its share of total fixed broadband lines reaching approximately 87 percent in 2024 and projected to remain dominant through 2029, GlobalData said.
“The growth in fiber lines in Japan will be supported by rising demand for high-speed broadband connectivity and government’s efforts to increase the availability and promote the adoption of FTTH/B services,” Neha Mishra, Telecom Analyst at GlobalData, said.
Japan had approximately 46.7 million fixed-line broadband subscriptions at the end of 2024. Fiber-to-the-home (FTTH) is dominating the broadband market in Japan.
The fixed broadband service revenue in Japan is expected to grow at a CAGR of 1.6 percent, primarily due to the continuous expansion of fiber-to-the-home/building (FTTH/B) subscriptions. The increasing demand for high-speed internet connectivity, essential for digital transformation across sectors, is a key factor propelling fiber adoption in Japan, GlobalData said.
Additionally, the Japanese government’s proactive initiatives to enhance fiber-optic infrastructure have been instrumental in accelerating this growth. In 2023, the government set a target to achieve 99.9 percent fiber-optic network coverage for households by the end of 2027, aiming to eliminate regional disparities in broadband access and ensure a highly connected digital ecosystem.
The shift towards fiber is further reinforced by declining cable internet and xDSL subscriptions, which are contributing to the tempered overall growth of fixed broadband revenue in Japan. However, the steady expansion of FTTH/B networks is mitigating this impact and sustaining revenue streams.
Telecom operators are also capitalizing on this transition by focusing on fiber-driven service offerings in Japan.
NTT Docomo is expected to maintain its leadership in both fixed voice and fixed broadband segments through 2029, leveraging its extensive FTTH/B infrastructure. The company’s ability to offer a wide range of tariff plans catering to different customer segments, from entry-level users to high-end consumers, ensures its continued dominance in the market.
While fixed communication services revenue in Japan is projected to grow marginally from $25.4 billion in 2024 to $26.6 billion in 2029 at a sluggish CAGR of 0.9 percent, the fixed voice service revenue will decline at a CAGR of 0.5 percent due to the steady reduction in circuit-switched subscriptions and slow VoIP growth.
Despite these challenges, the robust expansion of fiber-based broadband services will be the primary driver of revenue growth in the fixed communications market. The push towards fiber-optic connectivity not only enhances broadband speeds in Japan and reliability but also supports the increasing demand for data-intensive applications, smart home solutions, and enterprise digital services, making it the backbone of Japan’s broadband evolution.
Baburajan Kizhakedath
