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    Japan Smart Infrastructure Market

    ID: MRFR/ICT/61477-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    Japan Smart Infrastructure Market Research Report By Technology (Internet of Things, Artificial Intelligence, Big Data Analytics, Cloud Computing, Blockchain), By Application (Smart Transportation, Smart Energy, Smart Buildings, Smart Water Management, Smart Grid), By End Use (Commercial, Residential, Industrial, Government) and By Infrastructure Type (Telecommunication Infrastructure, Road Infrastructure, Energy Infrastructure, Water Infrastructure)-Forecast to 2035

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    Table of Contents

    Japan Smart Infrastructure Market Summary

    The Japan Smart Infrastructure market is projected to grow from 3.81 USD Billion in 2024 to 5.42 USD Billion by 2035.

    Key Market Trends & Highlights

    Japan Smart Infrastructure Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 3.26% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 5.42 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 3.81 USD Billion, reflecting a solid foundation for future expansion.
    • Growing adoption of smart technologies due to increasing urbanization is a major market driver.

    Market Size & Forecast

    2024 Market Size 3.81 (USD Billion)
    2035 Market Size 5.42 (USD Billion)
    CAGR (2025-2035) 3.26%

    Major Players

    Oracle, Schneider Electric, Honeywell, Johnson Controls, NTT Data, Toshiba, NEC, Panasonic, Siemens, Cisco Systems, Hitachi, Fujitsu, IBM, Mitsubishi Electric

    Japan Smart Infrastructure Market Trends

    The Japan Smart Infrastructure Market is growing quickly because the country is working to modernize and make urban development more environmentally friendly. The government's dedication to Smart City projects, which are meant to make cities more efficient and lower their carbon footprints, is a major factor in the market.

    As private enterprises and digital startups work with public institutions to create new infrastructure solutions that use IoT, AI, and big data, it becomes clearer that there are more opportunities in the market. Japan's population is getting older, and its workforce is getting smaller; thus, automating and improving infrastructure services can help people and businesses in the country.

    Because of the focus on preventing and recovering from disasters, smart technologies are being looked into for things like managing water and transportation infrastructure. Overall, the coming together of these developments makes Japan a leader in using smart infrastructure solutions to make the future cleaner and more sustainable. This will improve the quality of life for its population while also tackling important environmental issues.

    Japan Smart Infrastructure Market Drivers

    Market Segment Insights

    Japan Smart Infrastructure Market Segment Insights

    Japan Smart Infrastructure Market Segment Insights

    Smart Infrastructure Market Technology Insights

    Smart Infrastructure Market Technology Insights

    The Japan Smart Infrastructure Market is witnessing considerable advancements in the Technology segment, significantly influencing the nation's economic landscape. This market is characterized by a blend of innovative technologies that are reshaping urban environments and infrastructure systems.

    Central to this growth is the Internet of Things (IoT), a pivotal force that enables seamless connectivity across various devices, fostering enhanced operational efficiency and real-time data exchange. Similarly, Artificial Intelligence (AI) is playing a crucial role by automating complex processes and providing intelligent insights, facilitating informed decision-making in sectors such as transportation, energy management, and healthcare.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Big Data Analytics is another significant component, as it empowers businesses to derive actionable insights from vast datasets, leading to improved resource allocation and service delivery. Cloud Computing complements these technologies by providing scalable solutions that enhance flexibility and reduce costs, thus supporting the growing demand for storage and processing capabilities.

    Blockchain technology is also gaining traction in Japan’s Smart Infrastructure Market, primarily due to its potential to enhance security and transparency in transactions across various sectors, including supply chain management and public services. The convergence of these technologies is further energizing the Japan Smart Infrastructure Market, creating an ecosystem ripe for innovation.

    The government initiatives promoting smart cities and sustainable urban development are amplifying these trends, offering opportunities for further investment in smart infrastructure projects. However, the rapid evolution of technology and the complex integration that comes with it present challenges for stakeholders, necessitating a strong focus on cybersecurity and data governance to protect sensitive information. The growth trajectory of the Technology segment in the Japan Smart Infrastructure Market is influenced by these dynamics, presenting both opportunities for advancement and challenges to navigate in this transformative era.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Smart Infrastructure Market Application Insights

    Smart Infrastructure Market Application Insights

    The Japan Smart Infrastructure Market, particularly within the Application segment, is rapidly evolving as an essential area of growth that encompasses various key sectors. Smart Transportation is crucial in addressing urban mobility challenges, enhancing public transport systems, and reducing traffic congestion through advanced technologies. Meanwhile, Smart Energy plays a pivotal role in optimizing energy consumption and integrating renewable energy sources, contributing significantly to Japan's sustainability goals.

    Similarly, Smart Buildings are enhancing energy efficiency and occupant comfort, incorporating intelligent systems for better management of resources.Furthermore, Smart Water Management ensures efficient water supply and waste management, which is of utmost importance given Japan's occasional water scarcity issues.

    The Smart Grid remains a cornerstone in modernizing the electrical infrastructure, facilitating better energy distribution and enhancing grid reliability. As urbanization continues to rise in Japan, the emphasis on these applications reflects the nation's commitment to innovative solutions that foster sustainability and efficiency across infrastructure systems, thereby driving overall market growth and development in the Japan Smart Infrastructure Market.

    Smart Infrastructure Market End Use Insights

    Smart Infrastructure Market End Use Insights

    The Japan Smart Infrastructure Market, focusing on the End Use segment, showcases a diverse landscape characterized by its various applications such as Commercial, Residential, Industrial, and Government. Commercial infrastructure often leads in prioritizing smart technologies to enhance efficiency and reduce energy consumption, driven by increasing urbanization and the need for sustainable practices.

    The Residential sector emphasizes the adoption of smart home technologies, making daily living more efficient and secure, reflecting Japan's focus on innovation.In the Industrial domain, the integration of smart infrastructure aids in optimizing processes and reducing operational costs, addressing challenges like labor shortages and supply chain disruptions. The Government segment plays a crucial role in pushing forward smart city initiatives, providing essential funding and regulatory frameworks that encourage technology adoption.

    This proactive approach reflects Japan's commitment to improving quality of life and fostering economic growth through advanced infrastructure solutions. Overall, the sector demonstrates a significant potential for growth, driven by emerging technologies and a shift towards sustainable development practices, contributing to the betterment of urban living in Japan.

    Smart Infrastructure Market Infrastructure Type Insights

    Smart Infrastructure Market Infrastructure Type Insights

    The Japan Smart Infrastructure Market showcases a diverse range of Infrastructure Types that play a crucial role in the country's economic development and urbanization efforts. Telecommunication Infrastructure is vital for enabling advancements in connectivity and digital services, supporting Japan's push towards a hyper-connected society. Road Infrastructure significantly enhances transportation efficiency, supporting trade and mobility while addressing the growing demand for smart transportation solutions.

    Energy Infrastructure is increasingly important as Japan aims to improve energy security and sustainability, focusing on integrating renewable energy sources into the grid.Water Infrastructure is critical for ensuring access to clean water and effective wastewater management, aligning with Japan's environmental and public health objectives.

    These Infrastructure Types not only support the country's existing frameworks but also drive innovation and resilience in the face of natural disasters, reflecting the ongoing trends of modernization and technological integration within the Japan Smart Infrastructure Market. The market growth is propelled by initiatives from government policies and investments aimed at revitalizing aging infrastructure, ensuring safe and efficient services across all sectors.

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    Regional Insights

    Key Players and Competitive Insights

    The Japan Smart Infrastructure Market is characterized by its sophisticated technological landscape and innovative approaches to enhancing urban environments and industrial efficiency. As a country known for its rapid adoption of advanced technologies and smart solutions, Japan presents a unique platform for companies specializing in smart infrastructure. In this market, businesses are heavily investing in IoT, AI, and cloud-based solutions to optimize energy usage, enhance connectivity, and improve overall operational efficiencies.

    The competition in this sector is intense, with various players consistently working on enhancing their product offerings while adapting to the specific needs of the Japanese market. Companies are also collaborating with governmental bodies and local entities to ensure alignment with national goals related to sustainability and smart city initiatives. This environment fosters a culture of innovation and pushes companies to stay at the forefront of technological advancements.

    Oracle has established a strong foothold in the Japan Smart Infrastructure Market by leveraging its extensive expertise in cloud computing, data analytics, and IoT solutions. Oracle's solutions are specifically designed to meet the unique demands of the Japanese market, particularly in the areas of urban management and energy efficiency. The company's strengths lie in its comprehensive suite of software solutions that enable real-time data processing and analytics, allowing organizations to make informed decisions and streamline operations.

    Additionally, Oracle’s strong partnership ecosystem in Japan helps facilitate collaborations that enhance the functionality and integration of its systems within existing infrastructure. The combination of these factors positions Oracle as a key player in driving forward-thinking solutions within Japan’s smart infrastructure landscape.Schneider Electric, a global leader in energy management and automation, has a significant presence in the Japan Smart Infrastructure Market.

    The company offers a wide range of products and services that include connected technologies for monitoring and managing energy consumption as well as automation solutions for various industries. Schneider Electric excels in providing comprehensive end-to-end solutions that support businesses in optimizing their energy efficiency and operational performance. The company has made strategic moves in the Japan market through mergers and acquisitions to strengthen its market position and integrate cutting-edge technologies.

    Schneider Electric’s key offerings focus on sustainable energy solutions, smart building technologies, and efficient industrial processes, making it a go-to choice for organizations aiming to embrace smart infrastructure. Its commitment to innovation and sustainability is well-aligned with Japan’s national initiatives, further solidifying its competitive advantage in this dynamic market.

    Key Companies in the Japan Smart Infrastructure Market market include

    Industry Developments

    In recent months, the Japan Smart Infrastructure Market has seen significant developments and growth, particularly driven by companies like Schneider Electric and Siemens, which are leading advancements in energy management and automation solutions. With the Japanese government pushing for sustainability and smart city initiatives, there has been an increasing demand for digital infrastructure solutions that enhance operational efficiency and reduce carbon footprints.

    In September 2023, Toshiba announced the establishment of a new Smart Infrastructure division focused on integrating AI technologies to optimize urban management systems. Moreover, in August 2023, Fujitsu expanded its collaboration with Cisco Systems to strengthen real-time data analytics for smart buildings, further demonstrating the drive towards digital transformation.

    The merger landscape has also been active; Schneider Electric completed its acquisition of a software startup in July 2023 aimed at enhancing its digital offerings within Japan. Companies like Honeywell and Johnson Controls are experiencing growth with new IoT deployments in the manufacturing sector. This heightened activity illustrates the urgency and commitment within Japan to embrace smart infrastructure solutions in a rapidly evolving environment.

    Market Segmentation

    Smart Infrastructure Market End Use Outlook

    • Telecommunication Infrastructure
    • Road Infrastructure
    • Energy Infrastructure
    • Water Infrastructure

    Smart Infrastructure Market Technology Outlook

    • Smart Transportation
    • Smart Energy
    • Smart Buildings
    • Smart Water Management
    • Smart Grid

    Smart Infrastructure Market Application Outlook

    • Commercial
    • Residential
    • Industrial
    • Government

    Smart Infrastructure Market Infrastructure Type Outlook

    • Telecommunication Infrastructure
    • Road Infrastructure
    • Energy Infrastructure
    • Water Infrastructure

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 3.68(USD Billion)
    MARKET SIZE 2024 3.81(USD Billion)
    MARKET SIZE 2035 5.42(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 3.256% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Oracle, Schneider Electric, Honeywell, Johnson Controls, NTT Data, Toshiba, SoftBank Group, NEC, Panasonic, Siemens, Cisco Systems, Hitachi, Fujitsu, IBM, Mitsubishi Electric
    SEGMENTS COVERED Technology, Application, End Use, Infrastructure Type
    KEY MARKET OPPORTUNITIES Urban mobility solutions development, Renewable energy integration projects, Smart grid technology advancements, IoT-enabled infrastructure systems, Sustainable construction materials adoption
    KEY MARKET DYNAMICS Technological advancements, Government initiatives, Urbanization trends, Sustainability focus, Increased investment
    COUNTRIES COVERED Japan

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

    Get In Touch
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    FAQs

    What is the projected market size of the Japan Smart Infrastructure Market in 2024?

    The Japan Smart Infrastructure Market is expected to be valued at 3.81 billion USD in 2024.

    What is the estimated market value of the Japan Smart Infrastructure Market by 2035?

    By 2035, the Japan Smart Infrastructure Market is projected to reach a value of 5.42 billion USD.

    What is the expected CAGR for the Japan Smart Infrastructure Market from 2025 to 2035?

    The expected CAGR for the Japan Smart Infrastructure Market from 2025 to 2035 is 3.256%.

    Which technology segment is valued at 1.2 billion USD in 2024 within the Japan Smart Infrastructure Market?

    The Internet of Things technology segment is valued at 1.2 billion USD in 2024.

    How much is the Artificial Intelligence segment expected to be valued at in 2035?

    The Artificial Intelligence segment is expected to be valued at 1.3 billion USD by 2035.

    Who are the major players in the Japan Smart Infrastructure Market?

    Major players in the market include Oracle, Schneider Electric, Honeywell, and other leading firms.

    What is the market size for the Cloud Computing segment in 2024?

    The Cloud Computing segment is expected to be valued at 0.7 billion USD in 2024.

    What are the growth opportunities in the Japan Smart Infrastructure Market?

    There are significant growth opportunities driven by advancements in technologies like IoT and AI.

    What is the projected market size for Big Data Analytics in 2035?

    The Big Data Analytics segment is projected to reach a market size of 1.0 billion USD by 2035.

    How much is the Blockchain segment expected to grow by 2035?

    The Blockchain segment is expected to grow to 0.48 billion USD by 2035.

    1. EXECUTIVE
    2. SUMMARY
    3. Market Overview
    4. Key Findings
    5. Market Segmentation
    6. Competitive Landscape
    7. Challenges and Opportunities
    8. Future Outlook
    9. MARKET INTRODUCTION
    10. Definition
    11. Scope of the study
    12. Research Objective
    13. Assumption
    14. Limitations
    15. RESEARCH
    16. METHODOLOGY
    17. Overview
    18. Data
    19. Mining
    20. Secondary Research
    21. Primary
    22. Research
    23. Primary Interviews and Information Gathering
    24. Process
    25. Breakdown of Primary Respondents
    26. Forecasting
    27. Model
    28. Market Size Estimation
    29. Bottom-Up
    30. Approach
    31. Top-Down Approach
    32. Data
    33. Triangulation
    34. Validation
    35. MARKET
    36. DYNAMICS
    37. Overview
    38. Drivers
    39. Restraints
    40. Opportunities
    41. MARKET FACTOR ANALYSIS
    42. Value chain Analysis
    43. Porter's
    44. Five Forces Analysis
    45. Bargaining Power of Suppliers
    46. Bargaining
    47. Power of Buyers
    48. Threat of New Entrants
    49. Threat
    50. of Substitutes
    51. Intensity of Rivalry
    52. COVID-19
    53. Impact Analysis
    54. Market Impact Analysis
    55. Regional
    56. Impact
    57. Opportunity and Threat Analysis
    58. Japan
    59. Smart Infrastructure Market, BY Technology (USD Billion)
    60. Internet
    61. of Things
    62. Artificial Intelligence
    63. Big
    64. Data Analytics
    65. Cloud Computing
    66. Blockchain
    67. Japan
    68. Smart Infrastructure Market, BY Application (USD Billion)
    69. Smart
    70. Transportation
    71. Smart Energy
    72. Smart
    73. Buildings
    74. Smart Water Management
    75. Smart
    76. Grid
    77. Japan Smart Infrastructure
    78. Market, BY End Use (USD Billion)
    79. Commercial
    80. Residential
    81. Industrial
    82. Government
    83. Japan
    84. Smart Infrastructure Market, BY Infrastructure Type (USD Billion)
    85. Telecommunication
    86. Infrastructure
    87. Road Infrastructure
    88. Energy
    89. Infrastructure
    90. Water Infrastructure
    91. Competitive Landscape
    92. Overview
    93. Competitive
    94. Analysis
    95. Market share Analysis
    96. Major
    97. Growth Strategy in the Smart Infrastructure Market
    98. Competitive
    99. Benchmarking
    100. Leading Players in Terms of Number of Developments
    101. in the Smart Infrastructure Market
    102. Key developments and
    103. growth strategies
    104. New Product Launch/Service Deployment
    105. Merger
    106. & Acquisitions
    107. Joint Ventures
    108. Major
    109. Players Financial Matrix
    110. Sales and Operating Income
    111. Major
    112. Players R&D Expenditure. 2023
    113. Company
    114. Profiles
    115. Oracle
    116. Financial
    117. Overview
    118. Products Offered
    119. Key
    120. Developments
    121. SWOT Analysis
    122. Key
    123. Strategies
    124. Schneider Electric
    125. Financial
    126. Overview
    127. Products Offered
    128. Key
    129. Developments
    130. SWOT Analysis
    131. Key
    132. Strategies
    133. Honeywell
    134. Financial
    135. Overview
    136. Products Offered
    137. Key
    138. Developments
    139. SWOT Analysis
    140. Key
    141. Strategies
    142. Johnson Controls
    143. Financial
    144. Overview
    145. Products Offered
    146. Key
    147. Developments
    148. SWOT Analysis
    149. Key
    150. Strategies
    151. NTT Data
    152. Financial
    153. Overview
    154. Products Offered
    155. Key
    156. Developments
    157. SWOT Analysis
    158. Key
    159. Strategies
    160. Toshiba
    161. Financial
    162. Overview
    163. Products Offered
    164. Key
    165. Developments
    166. SWOT Analysis
    167. Key
    168. Strategies
    169. SoftBank Group
    170. Financial
    171. Overview
    172. Products Offered
    173. Key
    174. Developments
    175. SWOT Analysis
    176. Key
    177. Strategies
    178. NEC
    179. Financial
    180. Overview
    181. Products Offered
    182. Key
    183. Developments
    184. SWOT Analysis
    185. Key
    186. Strategies
    187. Panasonic
    188. Financial
    189. Overview
    190. Products Offered
    191. Key
    192. Developments
    193. SWOT Analysis
    194. Key
    195. Strategies
    196. Siemens
    197. Financial
    198. Overview
    199. Products Offered
    200. Key
    201. Developments
    202. SWOT Analysis
    203. Key
    204. Strategies
    205. Cisco Systems
    206. Financial
    207. Overview
    208. Products Offered
    209. Key
    210. Developments
    211. SWOT Analysis
    212. Key
    213. Strategies
    214. Hitachi
    215. Financial
    216. Overview
    217. Products Offered
    218. Key
    219. Developments
    220. SWOT Analysis
    221. Key
    222. Strategies
    223. Fujitsu
    224. Financial
    225. Overview
    226. Products Offered
    227. Key
    228. Developments
    229. SWOT Analysis
    230. Key
    231. Strategies
    232. IBM
    233. Financial
    234. Overview
    235. Products Offered
    236. Key
    237. Developments
    238. SWOT Analysis
    239. Key
    240. Strategies
    241. Mitsubishi Electric
    242. Financial
    243. Overview
    244. Products Offered
    245. Key
    246. Developments
    247. SWOT Analysis
    248. Key
    249. Strategies
    250. References
    251. Related
    252. Reports
    253. LIST
    254. OF ASSUMPTIONS
    255. Japan Smart Infrastructure Market SIZE
    256. ESTIMATES & FORECAST, BY TECHNOLOGY, 2019-2035 (USD Billions)
    257. Japan
    258. Smart Infrastructure Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035
    259. (USD Billions)
    260. Japan Smart Infrastructure Market SIZE
    261. ESTIMATES & FORECAST, BY END USE, 2019-2035 (USD Billions)
    262. Japan
    263. Smart Infrastructure Market SIZE ESTIMATES & FORECAST, BY INFRASTRUCTURE TYPE,
    264. 2035 (USD Billions)
    265. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    266. ACQUISITION/PARTNERSHIP
    267. LIST
    268. Of figures
    269. MARKET SYNOPSIS
    270. JAPAN
    271. SMART INFRASTRUCTURE MARKET ANALYSIS BY TECHNOLOGY
    272. JAPAN
    273. SMART INFRASTRUCTURE MARKET ANALYSIS BY APPLICATION
    274. JAPAN
    275. SMART INFRASTRUCTURE MARKET ANALYSIS BY END USE
    276. JAPAN
    277. SMART INFRASTRUCTURE MARKET ANALYSIS BY INFRASTRUCTURE TYPE
    278. KEY
    279. BUYING CRITERIA OF SMART INFRASTRUCTURE MARKET
    280. RESEARCH
    281. PROCESS OF MRFR
    282. DRO ANALYSIS OF SMART INFRASTRUCTURE
    283. MARKET
    284. DRIVERS IMPACT ANALYSIS: SMART INFRASTRUCTURE
    285. MARKET
    286. RESTRAINTS IMPACT ANALYSIS: SMART INFRASTRUCTURE
    287. MARKET
    288. SUPPLY / VALUE CHAIN: SMART INFRASTRUCTURE MARKET
    289. SMART
    290. INFRASTRUCTURE MARKET, BY TECHNOLOGY, 2025 (% SHARE)
    291. SMART
    292. INFRASTRUCTURE MARKET, BY TECHNOLOGY, 2019 TO 2035 (USD Billions)
    293. SMART
    294. INFRASTRUCTURE MARKET, BY APPLICATION, 2025 (% SHARE)
    295. SMART
    296. INFRASTRUCTURE MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    297. SMART
    298. INFRASTRUCTURE MARKET, BY END USE, 2025 (% SHARE)
    299. SMART
    300. INFRASTRUCTURE MARKET, BY END USE, 2019 TO 2035 (USD Billions)
    301. SMART
    302. INFRASTRUCTURE MARKET, BY INFRASTRUCTURE TYPE, 2025 (% SHARE)
    303. SMART
    304. INFRASTRUCTURE MARKET, BY INFRASTRUCTURE TYPE, 2019 TO 2035 (USD Billions)
    305. BENCHMARKING
    306. OF MAJOR COMPETITORS

    Japan Smart Infrastructure Market Segmentation

    • Smart Infrastructure Market By Technology (USD Billion, 2019-2035)

      • Internet of Things
      • Artificial Intelligence
      • Big Data Analytics
      • Cloud Computing
      • Blockchain

     

    • Smart Infrastructure Market By Application (USD Billion, 2019-2035)

      • Smart Transportation
      • Smart Energy
      • Smart Buildings
      • Smart Water Management
      • Smart Grid

     

    • Smart Infrastructure Market By End Use (USD Billion, 2019-2035)

      • Commercial
      • Residential
      • Industrial
      • Government

     

    • Smart Infrastructure Market By Infrastructure Type (USD Billion, 2019-2035)

      • Telecommunication Infrastructure
      • Road Infrastructure
      • Energy Infrastructure
      • Water Infrastructure

     

     

     

     

     

     

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