Unlock stock picks and a broker-level newsfeed that powers Wall Street.
Upgrade Now
Insider Monkey
Top 20 Companies in Japan by Market Cap
Ramish Cheema
9 min read

In This Article:

In this piece, we will take a look at the top 20 companies in Japan by market capitalization. For more companies, take a look at Top 5 Companies in Japan by Market Cap.

Despite ranking 56th in the world in terms of area, Japan is the world's third largest economy. Its gross domestic product (GDP) is a whopping $4.3 trillion as of 2022, and in terms of population, Japan is the 11th most populous region in the world, which also makes it one of the most densely populated regions in the world.

The country is also a global power in modern day politics and has played an important role in history. Japan was one of the aggressors in the second world war, and its partnership with the Axis powers led by Nazi Germany led to the country facing devastating consequences as the war ended and the Allies won. However, within a couple of decades, after Japan surrendered and the war ended, the country rose to become the second largest economy in the world, second only to the U.S.

Japan's economic recovery began in stages, with the government first incentivizing the production of raw materials, then heavily encouraging industrialization, removing anti monopoly laws to protect domestic firms from foreign companies, and finally choosing to double the national income. However, this obsession with growth, which propelled Japan to the economic heights that it still occupies today, also led to a significant collapse in the 1990s. An excessively lax monetary policy and a stronger yen combined with global oil price shocks of the late 1900s also led to the infamous Japanese asset bubble burst, which led to a drop in real estate prices that continued until 2017.

However, modern day Japan is still an economic power. The Bank of Japan, which is Japan's central bank, has the second largest foreign exchange dollar reserves in the world, which sit at $1.2 trillion as of March 2023. At the same time, data from the International Monetary Fund (IMF) shows that as of 2022 end, the Japanese Yen was the world's third largest reserve currency, coming in second only to the U.S. Dollar and the Euro. Additionally, the Japanese Yen is part of a basket of six currencies that are used to determine the value of the IMF's special drawing rights (SDRs). These rights are the monetary equivalent of a points system that the IMF allocates to nations that are facing foreign exchange problems and need the fund's help to bolster their reserves to prevent economic pain.

Japan was also the world's fifth largest exporter in 2022, with traditional sectors such as automotive, iron, and steel, along with newer ones such as semiconductors, dominating the fray. It is also one of the most technologically advanced countries in the world, with a well developed space program. Japan is also the world leader in industrial robotics, keeping in tune with its rapid technological advancement that has enabled to it stand shoulder to shoulder with advanced Western economies. According to data from the Japan Robot Association, orders for industrial robots hit a whopping $7.35 billion in 2022, growing by 1.6% annually even at a time when the global economy was reeling from the energy shock ushered in by the Russian invasion of Ukraine. This set a new record, with a growth in car production and labor shortages stimulating the market. At the same time, robot production grew by 5.6%, and stood at 879 billion yen in 2022. Yet, fears of a global economic slowdown finally did hurt the industry as orders dropped by 4.3% and production dropped by 4% in the fourth quarter of 2022 year over year.

Terms and Privacy Policy
Your Privacy Choices
Utah Privacy Notice
More Info

Recommended Stories