Japan, as the world's third largest economy, has very developed commerce, and there is still a lot of room for improvement in the penetration rate of LED displays in various application scenarios. Based on this, Chinese LED display companies generally regard the Japanese market as one of their core overseas markets.

The first is the digital upgrade of advertising, corporate commerce and other scenarios. Ye Dunchao, deputy general manager of Lianjian Optoelectronics Overseas Sales Center, said that there are many advertising screens in Japan, but it is estimated that 80%-90% are traditional signs rather than digital advertising. There is huge potential for upgrading and replacement in the future. At the same time, Japan is also home to the headquarters of many large companies, and there is also a very large market space for corporate exhibition halls and conference applications.

Second, the digital transformation (DX) and green transformation (GX) led by the Japanese government will bring more application scenarios. Compared with its level of economic development, Japan's e-government and enterprise digital development are relatively lagging behind. In many fields, traditional methods such as paper media and telephone faxes are still used, exacerbating labor shortages and limiting the improvement of labor productivity. Therefore, the Japanese government supports and advocates digital transformation and green transformation. In the future, LED display and AIoT applications will be indispensable in many scenarios such as urban management, Industry 4.0, energy conservation and environmental protection.

Third, Japan has a developed cultural and entertainment industry, and there are many application scenarios for LED technology. Japan has many performance venues, such as theaters, stadiums, etc., providing huge demand for stage LED screen rental and fixed installation. At the same time, Japan has many art galleries, museums, theme parks and leisure and entertainment centers, providing growth points for LED amusement systems and digital entertainment experiences. For example, TeamLab, which uses advanced technological means such as projection technology, sound and light technology, and digital interactive technology to create digital media art, is a Japanese company that uses LED lighting and display technology extensively in its works. In addition, Japanese animation, film and television and other film and television production industries are developed, and related fields have high demand for solutions such as LED display and XR virtual shooting. Alto Electronics is interested in this field and is actively developing the Japanese XR market in cooperation with overseas film and television equipment manufacturers.

Fourth, there are many sports events and exhibitions in Japan, which provide a lot of opportunities for LED display companies. Japan ranks among the top in the world in the number of major sports events and international exhibitions held every year. Osaka will also host the World Expo in 2025, which is believed to boost LED display demand to a certain extent.