Why Japan is becoming an increasingly important location for German companies

The survey results show a further improvement: 91 per cent of the companies surveyed made a profit in 2025, compared with 82 per cent the previous year. The outlook is also largely positive: 68 per cent of companies expect turnover to rise in 2026, and as many as 72 per cent anticipate turnover growth in 2027. 

Overall, investment plans remain stable, though their structure is shifting. Whilst the proportion of companies planning to invest up to five million euros over the next three years is falling slightly, the proportion of larger investments is rising significantly. The proportion of companies planning investments of between 5 and 50 million euros has risen by 12 percentage points compared with the previous year, to 26 per cent. This trend suggests that German companies continue to regard Japan as a strategically important location and are increasingly focusing on medium- and long-term commitments.

Japan appeals to German companies primarily due to its economic stability, reliable business relationships and well-trained skilled workforce. In times of international conflict and growing uncertainty, robust markets with predictable operating conditions are becoming increasingly important. Japan is also regarded as a key hub for technology and innovation. 65 per cent of respondents expect Japan to be among the world’s leading countries in technology, innovation and sustainability in the future. Investment decisions are increasingly influenced by technological factors: 37 per cent cite the digitalisation of industry and services as the most important positive driver. Furthermore, Japan remains an attractive sales market for German companies: for 85 per cent of companies, sales potential is the most important reason for their presence in the country.

Many German companies specifically use Japan as a benchmark and observation market for technological developments. 65 per cent carry out systematic trend scouting on the ground, whilst 63 per cent monitor Japanese competitors in order to identify industrial and technological changes at an early stage – an increase of six percentage points compared with the previous year. Particular focus is placed on investment in artificial intelligence, semiconductor technology, automation and robotics.

Despite the generally positive business performance, German companies are also facing risks. 83 per cent cite currency, fiscal and financial risks as their greatest challenge – an increase of six percentage points compared with the previous year. This is due in particular to the sustained and very significant depreciation of the yen over the past five years, which has made purchases of energy, raw materials and intermediate goods from other countries considerably more expensive. However, the shortage of skilled workers also remains a key structural challenge. 81 per cent of companies report difficulties in recruiting qualified staff. The main reasons for this are demographic trends, low levels of immigration and increasing competition for international talent.

The impact of the war in Iran is having a noticeable effect on the day-to-day operations of German companies in Japan as well. A follow-up survey conducted at the end of March 2026 shows that a large proportion of companies anticipate rising inflation risks, higher energy costs and increasing geopolitical uncertainties. Rising prices for oil, gas and electricity, as well as disruptions to global supply chains, are having a particularly severe impact. Around a quarter of companies expect declines in sales and order intake, whilst 38 per cent are already reporting falling profits, as cost increases cannot be passed on in full.