FY2024 – FY2029 Mid-Term Demand Forecast for Telecommunication Equipment (December, 2024)
The Japanese economy in FY2023 showed signs of recovery from three years of the COVID-19 pandemic (hereafter referred to as COVID-19). In the telecommunications market, the widespread use of cloud services and web conferencing led to the upgrading of large-capacity/high-speed communication networks, expansion of or construction of new data centers translating into demand for Internet equipment. However, the weaker yen and rising parts and component costs pushed up the price of mobile handsets (with public phone line), and combined with longer replacement cycles or reluctance to purchase new handsets, kept growth figures flat. Weak appetites for capital investment among telecom carriers was evident from infrastructure equipment figures and the re-shaping of voice communications within the backdrop of changes in workstyles, pushed down demand for office-use equipment as well. In total, the total demand for telecommunication equipment for FY2023 was approximately 3.835 trillion yen (-6.8% year-over-year growth from the 4.114 trillion yen in FY2022).
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