Japan Remains a Stable Market for German Companies Even in Geopolitically Unstable Times
The 11th 'German Business in Japan 2026' survey by AHK Japan and KPMG Germany reveals that 91% of German companies in Japan were profitable in 2025. Despite geopolitical tensions, Japan is increasingly viewed as a safe haven and a key hub for innovation and sustainability.
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- 📰 Published: April 27, 2026 at 16:00
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The German Chamber of Commerce and Industry in Japan (AHK Japan), together with KPMG Germany, conducted the 11th 'German Business in Japan 2026' survey from late January to mid-February 2026.
Key Findings:
- Profitability: 91% of German companies in Japan were profitable in 2025, up significantly from 82% in the previous year.
- Outlook: 68% expect sales growth in 2026, and 72% in 2027.
- Future Leader: 65% expect Japan to become a global technical leader in innovation and sustainability.
- Geopolitical Impact: 70% are affected by rising energy costs and 60% by supply chain disruptions due to the situation in Iran.
In an international landscape where trade conflicts and geopolitical tensions are becoming more pronounced, Japan is increasingly becoming a safe haven for many German companies. This is demonstrated by the latest survey.
Investment plans remain overall stable, but there is a notable shift. While the percentage of companies planning investments up to 5 million euros decreased to 68% (from 79%), those planning larger investments between 5 million and 50 million euros significantly increased from 14% to 26%.
'Amid intensifying international conflicts and trade frictions, robust markets are gaining importance. Japan attracts German companies as a country offering economic stability, reliable business relationships, and highly skilled professionals,' says Andreas Glunz, Managing Partner of International Business at KPMG Germany.
Japan's Economic Security Policy as a Model for Germany
Many German companies are paying attention to Japan's economic security policies. 59% of companies view sustainable diversification of supply chains as the most important aspect of Japan's efforts to strengthen economic resilience. Furthermore, 42% believe there are lessons to be learned from Japan's risk management and disaster prevention, and 40% think Germany can learn from Japan's experience in building recycling capacities for critical raw materials like rare earths.
Japan as a Key 'Tech and Innovation' Hub in the Era of Transformation
For German companies, Japan remains an attractive sales market, with 85% citing it as the most important reason for being based there. Simultaneously, Japan's importance as a technical benchmark is increasing. 65% of surveyed companies expect Japan to play a leading role in technology and innovation. 37% of German companies cite the digitalization of industry and services as the most important positive factor for domestic investment.
Many German companies actively use Japan as a benchmark market for innovation. 65% conduct trend research in Japan, and 63% monitor Japanese competitors to capture technical and industrial trends early, a 6 percentage point increase from last year.
'The Japanese market is a leading indicator that anticipates future technological developments. Trends that take root in Japan often influence international industries and establish themselves in the global market,' says Marcus Schürmann, Delegate of German Industry and Commerce in Japan and CEO of AHK Japan.
Key Findings:
- Profitability: 91% of German companies in Japan were profitable in 2025, up significantly from 82% in the previous year.
- Outlook: 68% expect sales growth in 2026, and 72% in 2027.
- Future Leader: 65% expect Japan to become a global technical leader in innovation and sustainability.
- Geopolitical Impact: 70% are affected by rising energy costs and 60% by supply chain disruptions due to the situation in Iran.
In an international landscape where trade conflicts and geopolitical tensions are becoming more pronounced, Japan is increasingly becoming a safe haven for many German companies. This is demonstrated by the latest survey.
Investment plans remain overall stable, but there is a notable shift. While the percentage of companies planning investments up to 5 million euros decreased to 68% (from 79%), those planning larger investments between 5 million and 50 million euros significantly increased from 14% to 26%.
'Amid intensifying international conflicts and trade frictions, robust markets are gaining importance. Japan attracts German companies as a country offering economic stability, reliable business relationships, and highly skilled professionals,' says Andreas Glunz, Managing Partner of International Business at KPMG Germany.
Japan's Economic Security Policy as a Model for Germany
Many German companies are paying attention to Japan's economic security policies. 59% of companies view sustainable diversification of supply chains as the most important aspect of Japan's efforts to strengthen economic resilience. Furthermore, 42% believe there are lessons to be learned from Japan's risk management and disaster prevention, and 40% think Germany can learn from Japan's experience in building recycling capacities for critical raw materials like rare earths.
Japan as a Key 'Tech and Innovation' Hub in the Era of Transformation
For German companies, Japan remains an attractive sales market, with 85% citing it as the most important reason for being based there. Simultaneously, Japan's importance as a technical benchmark is increasing. 65% of surveyed companies expect Japan to play a leading role in technology and innovation. 37% of German companies cite the digitalization of industry and services as the most important positive factor for domestic investment.
Many German companies actively use Japan as a benchmark market for innovation. 65% conduct trend research in Japan, and 63% monitor Japanese competitors to capture technical and industrial trends early, a 6 percentage point increase from last year.
'The Japanese market is a leading indicator that anticipates future technological developments. Trends that take root in Japan often influence international industries and establish themselves in the global market,' says Marcus Schürmann, Delegate of German Industry and Commerce in Japan and CEO of AHK Japan.