The Linux Foundation | 29 October 2024
Discover how open source software (OSS) is revolutionizing industries in Japan with the 2024 Japan Spotlight Insights Report. This comprehensive analysis reveals how Japanese companies are using OSS to drive innovation, cut costs, and enhance competitiveness in sectors like automotive, healthcare, and manufacturing. Based on the 2024 World of Open Source Survey, the report explores the role of OSS in addressing critical national priorities such as cybersecurity and technological resilience.
Key sectors like automotive, healthcare, financial services, and manufacturing are recognizing OSS's strategic value. It encourages collaboration, reduces the dependency on proprietary solutions, and helps companies stay competitive in global markets. 76% of survey respondents reported an increase in the business value from OSS usage, compared to 61% in the previous year’s survey. Similarly, the survey shows 65% of organizations noted an increase in the overall benefit they derive from OSS contributions compared to 55% the previous year.
Japanese organizations are increasingly adopting formal processes to improve OSS security. For example, 35% have implemented review processes to evaluate OSS components, ensuring compliance with strict security and functionality standards. Additionally, 30% have developed internal manuals and checklists to guide OSS usage. These practices are part of a broader industry focus on security, highlighted at the Open Source Security Summit Japan, with the collective goal of building a resilient software ecosystem to counter growing cyber threats.
The report also explores the role of individual OSS contributors in Japan who are driven by personal growth but face barriers such as limited time and difficulty navigating project guidelines. Consequently, employer and government funding is becoming essential to sustaining the OSS ecosystem in Japan and globally.
In Japan, open source contributors are primarily driven by the desire to learn, address unmet technology needs, and participate in projects that interest them personally. However, they face notable challenges, such as limited time due to personal commitments and difficulty navigating project guidelines. The predominance of English in open source projects also creates language barriers, limiting Japanese contributors' participation in global collaborations.
To sustain their work, Japanese contributors rely on a mix of self-funding and organizational support. Revenue from project-related services like managed services, paid support, and add-ons allows them to monetize their contributions. Employer funding is another significant source, especially from industries like telecommunications and automotive, where open source plays a crucial role. Government grants are also vital, particularly in sectors such as cybersecurity, the Internet of Things (IoT), and digital transformation, where open source technology is critical. Additionally, non-profit organizations and foundations provide important financial backing. These funding sources help ensure that Japan’s open source contributors can continue their work, despite the challenges they face, and play a key role in driving innovation and technological advancement in the country.
Despite Japan's progress, there are areas where it lags behind global counterparts. For instance, 20% of Japanese organizations offer secure software development training compared to 24% globally. Moreover, while 82% of Japanese companies have adopted OSS, only 70% recognize its value, compared to 93% globally. This indicates a need for increased awareness and advocacy around the strategic benefits of OSS in Japan, particularly given its proven advantages in innovation, flexibility, and cost efficiency.
Globally, 94% of companies acknowledge the strategic importance of OSS, a figure significantly higher than in Japan. Although key Japanese industries like automotive, manufacturing, and telecommunications rely heavily on OSS for interoperability and innovation, the country still trails in fully appreciating its strategic value. This suggests that Japan must better align its perception of OSS with global best practices to maximize its potential.
The report provides critical insights into OSS trends in Japan, highlighting areas of progress and ongoing challenges. It encourages organizations to align with global best practices to fully benefit from open source technologies. We invite you to discover the full report!