Japan Is Building Its Next Growth Industries
Japan is entering a new phase of industrial investment. On June 3, 2026, Japan’s Ministry of Economy, Trade and Industry (METI) published the Fifth Report of the Committee on New Direction of Economic and Industrial Policies, outlining policy directions toward Japan’s industrial structure in 2040.
Under Japan’s Growth Strategy, 17 strategic fields have been selected as areas where Japan aims to strengthen industrial competitiveness and capture added value from global markets.
More importantly for companies looking at Japan, the government is developing public-private investment roadmaps for key products and technologies within these strategic fields.
Current estimates indicate more than ¥370 trillion in cumulative public-private investment through FY2040 across 62 key products and technologies, after eliminating overlaps between categories. This is not simply a technology policy. It provides a useful map of where Japan intends to build industries, infrastructure, supply chains and new markets over the coming decade.
17 Strategic Fields in Japan’s Growth Strategy
The strategy covers a broad range of industries, including:
AI & Semiconductors / Digital & Cybersecurity / Information & Communications / Quantum Technology / Defense Industry / Aviation & Space / Oceans & Marine Affairs / Shipbuilding / Materials / Synthetic Biology & Biotech / Drug Discovery & Advanced Medicine / Resource & Energy Security and GX / Fusion Energy / Disaster Prevention & National Resilience / Port Logistics / Food Tech / Content Industry
METI explains that these fields were selected in the context of identifying industrial strategies capable of addressing structural challenges while capturing value from global markets.
Where Is Japan Planning to Invest?
The scale varies substantially by technology.
Among the current public-private investment estimates are:
| Key Product / Technology | Estimated Public-Private Investment |
|---|---|
| Semiconductors supporting Physical Intelligent Systems | ¥68.0 trillion |
| Cloud, Data Centers and Storage Batteries | ¥32.7 trillion |
| Vertical AI | ¥23.1 trillion |
| Next-Generation Wireless Networks | ¥20.5 trillion |
| Biopharmaceuticals & Regenerative Medicine | ¥20.8 trillion |
| Physical AI, particularly AI Robots | ¥10.5 trillion |
| Quantum Computing | ¥10.3 trillion |
| Autonomous Driving Technology | ¥8.2 trillion |
These figures are current estimates rather than guaranteed expenditures, and METI states that the roadmaps will continue to be refined.
The figures nevertheless provide overseas companies with an important indication of where significant Japanese public and private investment may be directed.
From Research to Commercial Business
Another important feature of the strategy is that these technologies are not all at the same stage of development.
METI organizes the 62 key products and technologies into three broad stages:
5 are primarily in the research and development stage,
20 are in the demonstration stage, and
37 have reached commercialization or mass-production stages.
This distinction matters for overseas companies.
A technology in the research stage may create opportunities for academic collaboration, joint R&D or technology partnerships.
A technology moving through demonstration may require engineering partners, testing, investment and commercialization support.
Industries already reaching commercialization and mass production may present opportunities involving suppliers, distributors, manufacturing partners, market entry and business development.
What Does This Mean for Overseas Companies?
Japan’s industrial strategy should not be viewed only as a domestic investment program.
METI’s policy framework explicitly discusses strengthening Japan’s ability to capture global markets, while Japan’s 2026 international trade strategy also links the public-private investment roadmaps for the 17 strategic fields with cooperation involving the Global South.
For overseas companies, the practical question therefore becomes:
Where can our company participate?
That may mean finding:
Japanese technology partners, manufacturers and suppliers; research institutions and technical experts; potential distributors or business partners; opportunities for joint projects; or reliable information about a particular Japanese industry before entering the market.
Finding the right counterpart in Japan, however, is often more difficult than identifying the market itself.
Connecting Global Demand with Japan
TORANOMON JAPAN DESK (TJD) supports overseas companies seeking business connections and opportunities in Japan.
Our starting point is simple:
Demand First.
We begin by identifying what you are looking for in Japan.
Depending on the project, this may include identifying potential Japanese companies, technologies, experts or business partners; conducting initial market and partner research; facilitating introductions; and supporting communication and business development in Japan.
The objective is not simply to provide information about Japan.
It is to help convert a specific overseas business requirement into a practical connection with Japan.
Looking for a Partner, Technology or Business Opportunity in Japan?
Japan’s ¥370 trillion investment roadmap shows where major industrial development is expected to take place.
The next question is:
What are you looking for in Japan?
If your company is exploring opportunities in Japan’s strategic growth industries, contact:
TORANOMON JAPAN DESK — TJD CONNECT
FROM JAPAN TO THE WORLD.
FROM THE WORLD TO JAPAN.