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    Japan Virtual Engineering Market

    ID: MRFR/ICT/63485-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    Japan Virtual Engineering Market Research Report By Software Type (Computer-Aided Designing (CAD), Computer-Aided Manufacturing (CAM), Computer-Aided Engineering (CAE), Architecture, Engineering and Construction (AEC), Electronic Design Automation (EDA)Others), By Deployment Type (On-premises, Cloud), By Organization Size (SME’s, Large Enterprises), By Application (Automation Design, Plant Design, Product Design, 3D MODELLING, Others) and By Industry Vertical (Commercial Industry Vertical, Defense Industry Vertical)- Forecast to 2035

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    Table of Contents

    Japan Virtual Engineering Market Summary

    Key Market Trends & Highlights

    Japan Virtual Engineering Market Trends

    The Japan Virtual Engineering Market is undergoing substantial growth, which is being driven by the rapid adoption of advanced technologies and the demand for efficient engineering solutions. The significant emphasis on innovation and digital transformation in a variety of sectors, including automotive, manufacturing, and construction, is one of the primary market drivers. The integration of virtual engineering tools is becoming increasingly essential for maintaining a competitive advantage and enhancing productivity, as Japan is home to numerous high-tech manufacturers and prominent automotive companies. 

    The virtual engineering landscape is also being influenced by the Internet of Things and the rise of smart factories, which is encouraging firms to employ integrated systems that optimize operational efficiency. The virtual engineering sector is poised to significantly influence the future of engineering practices in the region as Japan continues to fortify its position in the global market through innovation.

    Japan Virtual Engineering Market Drivers

    Market Segment Insights

    Japan Virtual Engineering Market Segment Insights

    Virtual Engineering Market Software Type Insights

    The Software Type segment within the Japan Virtual Engineering Market is a dynamic and rapidly evolving area, reflecting the increasing need for sophisticated engineering solutions in various industries such as automotive, manufacturing, and construction. As Japan continues to innovate and embraces advanced technologies, software solutions like Computer-Aided Designing (CAD), Computer-Aided Manufacturing (CAM), and Computer-Aided Engineering (CAE) are gaining traction due to their ability to improve design accuracy, enhance productivity, and facilitate collaboration among teams. These tools are pivotal in reducing development times and costs, while also ensuring high-quality outputscritical factors that enable Japanese firms to maintain their competitive edge.

    In addition, the Architecture, Engineering and Construction (AEC) sector is particularly significant in Japan's context, as it navigates a transitioning landscape influenced by urbanization and a growing demand for infrastructure development. Virtual engineering software enhances project visualization and helps streamline workflows, thereby mitigating delays. The Electronic Design Automation (EDA) segment holds substantial value as well, supporting sectors like electronics and semiconductor manufacturing, which are crucial to Japan's economy. 

    This software facilitates the design and layout of electronic systems, ensuring performance efficiency and reliability, which are vital in today's technology-driven market. With the ongoing digital transformation across industries, the Japan Virtual Engineering Market is projected to continue expanding, driven by the increasing adoption of these software types, revealing substantial opportunities for growth in the years to come. As such, the interplay between these software applications showcases their fundamental role in supporting Japan's industrial advancements and the overall market growth trajectory.

    Japan Virtual Engineering Market Segment

    Virtual Engineering Market Deployment Type Insights

    The Deployment Type segment of the Japan Virtual Engineering Market presents a diverse landscape featuring On-premises and Cloud solutions, both playing critical roles in the industry. On-premises solutions, often favored by organizations requiring high control over their infrastructure, have been significant in sectors such as manufacturing and automotive, typical of Japan’s industrial strength. These companies depend on reliable virtual engineering tools to enhance productivity and ensure precision in their development processes. In contrast, Cloud-based solutions have become increasingly popular among start-ups and smaller enterprises, offering flexibility and scalability without heavy upfront investment.

    The rise of remote work and the need for real-time collaboration have further bolstered Cloud adoption, allowing businesses to efficiently manage workloads and innovate swiftly. As the market evolves, balancing these deployment types will be essential, as each addresses unique business needs and operational challenges, showcasing the dynamic nature of the Japan Virtual Engineering Market landscape. With a focus on advancing technologies, Japanese companies are poised to leverage both deployment modalities to optimize their engineering processes and maintain a competitive edge in the global market.

    Virtual Engineering Market Organization Size Insights

    The Japan Virtual Engineering Market is significantly influenced by the organization size segment, which comprises Small and Medium Enterprises (SMEs) and Large Enterprises. SMEs are increasingly adopting virtual engineering solutions to enhance their operational efficiency and innovate product development processes. This trend is driven by the necessity to remain competitive in a rapidly evolving market and leverage advanced technologies. The growing recognition among SMEs of the cost-effectiveness and flexibility offered by virtual engineering tools has led to a considerable uptick in their usage.

    On the other hand, Large Enterprises, with their substantial resources, dominate the market by incorporating integrated virtual engineering practices across various departments, including Research and Development, which underpins their innovation strategies. The vital role of organizational size in the Japan Virtual Engineering Market can be observed as both segments cater to the diverse needs of industries like automotive, aerospace, and manufacturing, each requiring tailored virtual engineering solutions. Overall, the dual presence of SMEs and Large Enterprises not only drives market growth through diverse strategies but also contributes to the advancement of virtual engineering technologies as they adapt to local and global market demands.

    Virtual Engineering Market Application Insights

    The Japan Virtual Engineering Market focuses significantly on the Application segment, where several areas like Automation Design, Plant Design, Product Design, and 3D MODELLING play a crucial role in driving innovation and efficiency. With a growing emphasis on automation across various industries, Automation Design has emerged as a key area, allowing organizations to streamline processes and reduce operational costs. Plant Design is also vital, particularly in manufacturing and infrastructure development, as it helps optimize layouts and resource allocation, thereby enhancing productivity.Product Design is essential since it enables companies to innovate and respond swiftly to market demands, using tools to simulate and visualize products before actual production. 

    Additionally, 3D MODELLING offers substantial benefits, as it enables precise visual representation and testing of designs, reducing errors and improving collaboration among teams. As Japan navigates a competitive technological landscape, these areas demonstrate the market's commitment to adopting advanced virtual engineering practices, ensuring the country maintains its innovative edge while addressing challenges efficiently.The Japan Virtual Engineering Market is thus positioned to seize opportunities through these applications, contributing significantly to various industries and enhancing overall market growth.

    Virtual Engineering Market Industry Vertical Insights

    The Japan Virtual Engineering Market, which showcases a robust growth trajectory, is segmented predominantly into the Commercial Industry Vertical and the Defense Industry Vertical. The Commercial Industry Vertical plays a critical role in enhancing productivity and optimizing operational efficiency across various sectors such as manufacturing, automotive, and construction. As Japan is known for its advanced technological capabilities, this vertical leverages cutting-edge virtual engineering tools to streamline processes, reduce costs, and foster innovation. This makes it a significant contributor to the overall market growth, aligning with Japan's goals for industrial modernization and digital transformation.

    On the other hand, the Defense Industry Vertical is vital for national security and strategic defense initiatives. It incorporates virtual engineering principles to elevate simulation training, mission planning, and system integration. In light of regional security challenges and the necessity for advanced defense systems, this vertical is paramount in advancing Japan's defense capabilities. As both segments continue to evolve, they capitalize on the trends of automation and digitalization, indicating a positive outlook for the Japan Virtual Engineering Market. The ongoing emphasis on research and development in these sectors is likely to yield further opportunities for growth and innovation.

    Regional Insights

    Key Players and Competitive Insights

    The Japan Virtual Engineering Market is characterized by its rapid evolution, driven by advancements in technology and increasing demands for efficient product development cycles. As industries in Japan adopt digital transformation, virtual engineering emerges as a critical component in designing, testing, and simulating products before their physical production. This market experiences fierce competition among various players who offer innovative solutions and technologies to cater to the unique needs of Japanese manufacturers. The competitive landscape includes not only established firms but also emerging startups that bring fresh perspectives and agile methodologies to the market. 

    Companies are focusing on strengthening their offerings through strategic partnerships, collaborations, and investments in research and development, aiming to capture larger market shares in this increasingly vital sector.PTC has established a strong foothold in the Japan Virtual Engineering Market, harnessing its position as a leader in product development software. The company is well-regarded for its innovative solutions that enhance the product lifecycle management process, providing tools that streamline the design, simulation, and testing phases for various sectors including automotive, aerospace, and consumer goods. 

    PTC's strengths lie in its robust technology portfolio, which includes offerings such as CAD solutions and the Internet of Things integration, making it a preferred choice for manufacturers looking to innovate and reduce time-to-market. Moreover, PTC's emphasis on local support and customer engagement ensures it meets the specific requirements of Japanese clients, further solidifying its market presence.Hexagon, another significant player in the Japan Virtual Engineering Market, specializes in providing integrated software and hardware solutions aimed at improving manufacturing productivity and quality. The company's key products comprise advanced measurement technology and design software, which are crucial in automating workflows in several industries. 

    Hexagon's strengths are amplified by its extensive global network, allowing for localized services and expertise in the Japanese market. The company has engaged in various strategic acquisitions, which have bolstered its technological capabilities and expanded its service offerings. By continuously innovating and aligning itself with the needs of local businesses, Hexagon remains competitive in the dynamic Japanese landscape, facilitating digital transformation and enhanced operational efficiency for its clients.

    Industry Developments

    In June 2025, a report identified that by the conclusion of 2023, more than 1,200 Japanese enterprises had integrated AR into their manufacturing workflows. These enterprises were employing technologies such as AR-assisted assembly lines, which were deployed by companies such as Toyota and Hitachi to enhance productivity and reduce error rates.

    AR was implemented by healthcare institutions, including Osaka University Hospital, to facilitate pre-surgical planning and minimally invasive procedures, resulting in substantial decreases in operating time and complication rates.

    Additionally, Autodesk expanded its Autodesk Construction Cloud into Japan in early 2024, introducing cloud-based tools such as Autodesk Build and Autodesk Takeoff. These tools facilitated collaboration and workflow management for construction firms in the country.

    Market Segmentation

    Virtual Engineering Market Application Outlook

    • Automation Design
    • Plant Design
    • Product Design
    • 3D MODELLING
    • Others

    Virtual Engineering Market Software Type Outlook

    • Computer-Aided Designing (CAD)
    • Computer-Aided Manufacturing (CAM)
    • Computer-Aided Engineering (CAE)
    • Architecture, Engineering and Construction (AEC)
    • Electronic Design Automation (EDA)Others

    Virtual Engineering Market Deployment Type Outlook

    • On-premises
    • Cloud

    Virtual Engineering Market Industry Vertical Outlook

    • Commercial Industry Vertical
    • Defense Industry Vertical

    Virtual Engineering Market Organization Size Outlook

    • SME’s
    • Large Enterprises

    Report Scope

     

    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 25.66(USD Million)
    MARKET SIZE 2024 30.0(USD Million)
    MARKET SIZE 2035 150.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 15.756% (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 Million
    KEY COMPANIES PROFILED PTC, Hexagon, Ansys, Siemens, Bentley Systems, Autodesk, Oracle, NEC, Mitsubishi Electric, SAP, Hitachi, Dassault Systemes, IBM, Altair, Fujitsu
    SEGMENTS COVERED Software Type, Deployment Type, Organization Size, Application, Industry Vertical
    KEY MARKET OPPORTUNITIES Increased investment in R&D, Growing demand for remote collaboration, Adoption of AI technologies, Expansion of smart manufacturing solutions, Rising need for sustainable engineering practices
    KEY MARKET DYNAMICS growing demand for digital transformation, increasing investment in R&D, focus on cost reduction strategies, rising need for collaboration tools, advancements in simulation technology
    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.

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    FAQs

    What is the expected market size of the Japan Virtual Engineering Market in 2024?

    The Japan Virtual Engineering Market is expected to be valued at 30.0 million USD in 2024.

    What will be the projected market size in 2035?

    By 2035, the Japan Virtual Engineering Market is projected to reach 150.0 million USD.

    What is the expected compound annual growth rate (CAGR) for the Japan Virtual Engineering Market from 2025 to 2035?

    The expected CAGR for the Japan Virtual Engineering Market from 2025 to 2035 is 15.756%.

    Which segment of virtual engineering is expected to show significant growth?

    Computer-Aided Designing (CAD) is projected to grow from 10.0 million USD in 2024 to 50.0 million USD in 2035.

    Who are the key players in the Japan Virtual Engineering Market?

    Major players in the market include PTC, Hexagon, Ansys, Siemens, and Autodesk among others.

    What market value does Computer-Aided Manufacturing (CAM) hold in 2024?

    Computer-Aided Manufacturing (CAM) is valued at 7.5 million USD in 2024.

    What is the expected market value for Computer-Aided Engineering (CAE) in 2035?

    The market for Computer-Aided Engineering (CAE) is expected to reach 30.0 million USD in 2035.

    What are the anticipated challenges in the Japan Virtual Engineering Market?

    Key challenges may include rapid technological changes and the need for skilled professionals in the market.

    How has the market for Architecture, Engineering and Construction (AEC) changed from 2024 to 2035?

    The AEC segment is expected to grow from 4.5 million USD in 2024 to 22.5 million USD in 2035.

    What is the projected value for Electronic Design Automation (EDA) in 2024?

    The Electronic Design Automation (EDA) segment is valued at 2.0 million USD in 2024.

    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. Virtual Engineering Market, BY Software Type (USD Million)
    60. Computer-Aided
    61. Designing (CAD)
    62. Computer-Aided Manufacturing (CAM)
    63. Computer-Aided
    64. Engineering (CAE)
    65. Architecture, Engineering and Construction
    66. (AEC)
    67. Electronic Design Automation (EDA)Others
    68. Japan
    69. Virtual Engineering Market, BY Deployment Type (USD Million)
    70. On-premises
    71. Cloud
    72. Japan
    73. Virtual Engineering Market, BY Organization Size (USD Million)
    74. SME’s
    75. Large
    76. Enterprises
    77. Japan Virtual Engineering
    78. Market, BY Application (USD Million)
    79. Automation
    80. Design
    81. Plant Design
    82. Product
    83. Design
    84. D MODELLING
    85. Others
    86. Japan
    87. Virtual Engineering Market, BY Industry Vertical (USD Million)
    88. Commercial
    89. Industry Vertical
    90. Defense Industry Vertical
    91. Competitive Landscape
    92. Overview
    93. Competitive
    94. Analysis
    95. Market share Analysis
    96. Major
    97. Growth Strategy in the Virtual Engineering Market
    98. Competitive
    99. Benchmarking
    100. Leading Players in Terms of Number of Developments
    101. in the Virtual Engineering 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. PTC
    116. Financial
    117. Overview
    118. Products Offered
    119. Key
    120. Developments
    121. SWOT Analysis
    122. Key
    123. Strategies
    124. Hexagon
    125. Financial
    126. Overview
    127. Products Offered
    128. Key
    129. Developments
    130. SWOT Analysis
    131. Key
    132. Strategies
    133. Ansys
    134. Financial
    135. Overview
    136. Products Offered
    137. Key
    138. Developments
    139. SWOT Analysis
    140. Key
    141. Strategies
    142. Siemens
    143. Financial
    144. Overview
    145. Products Offered
    146. Key
    147. Developments
    148. SWOT Analysis
    149. Key
    150. Strategies
    151. Bentley Systems
    152. Financial
    153. Overview
    154. Products Offered
    155. Key
    156. Developments
    157. SWOT Analysis
    158. Key
    159. Strategies
    160. Autodesk
    161. Financial
    162. Overview
    163. Products Offered
    164. Key
    165. Developments
    166. SWOT Analysis
    167. Key
    168. Strategies
    169. Oracle
    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. Mitsubishi Electric
    188. Financial
    189. Overview
    190. Products Offered
    191. Key
    192. Developments
    193. SWOT Analysis
    194. Key
    195. Strategies
    196. SAP
    197. Financial
    198. Overview
    199. Products Offered
    200. Key
    201. Developments
    202. SWOT Analysis
    203. Key
    204. Strategies
    205. Hitachi
    206. Financial
    207. Overview
    208. Products Offered
    209. Key
    210. Developments
    211. SWOT Analysis
    212. Key
    213. Strategies
    214. Dassault Systemes
    215. Financial
    216. Overview
    217. Products Offered
    218. Key
    219. Developments
    220. SWOT Analysis
    221. Key
    222. Strategies
    223. IBM
    224. Financial
    225. Overview
    226. Products Offered
    227. Key
    228. Developments
    229. SWOT Analysis
    230. Key
    231. Strategies
    232. Altair
    233. Financial
    234. Overview
    235. Products Offered
    236. Key
    237. Developments
    238. SWOT Analysis
    239. Key
    240. Strategies
    241. Fujitsu
    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 Virtual Engineering Market SIZE
    256. ESTIMATES & FORECAST, BY SOFTWARE TYPE, 2019-2035 (USD Billions)
    257. Japan
    258. Virtual Engineering Market SIZE ESTIMATES & FORECAST, BY DEPLOYMENT TYPE, 2019-2035
    259. (USD Billions)
    260. Japan Virtual Engineering Market SIZE
    261. ESTIMATES & FORECAST, BY ORGANIZATION SIZE, 2019-2035 (USD Billions)
    262. Japan
    263. Virtual Engineering Market SIZE ESTIMATES & FORECAST, BY APPLICATION, 2019-2035
    264. (USD Billions)
    265. Japan Virtual Engineering Market SIZE
    266. ESTIMATES & FORECAST, BY INDUSTRY VERTICAL, 2019-2035 (USD Billions)
    267. PRODUCT
    268. LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    269. ACQUISITION/PARTNERSHIP
    270. LIST
    271. Of figures
    272. MARKET SYNOPSIS
    273. JAPAN
    274. VIRTUAL ENGINEERING MARKET ANALYSIS BY SOFTWARE TYPE
    275. JAPAN
    276. VIRTUAL ENGINEERING MARKET ANALYSIS BY DEPLOYMENT TYPE
    277. JAPAN
    278. VIRTUAL ENGINEERING MARKET ANALYSIS BY ORGANIZATION SIZE
    279. JAPAN
    280. VIRTUAL ENGINEERING MARKET ANALYSIS BY APPLICATION
    281. JAPAN
    282. VIRTUAL ENGINEERING MARKET ANALYSIS BY INDUSTRY VERTICAL
    283. KEY
    284. BUYING CRITERIA OF VIRTUAL ENGINEERING MARKET
    285. RESEARCH
    286. PROCESS OF MRFR
    287. DRO ANALYSIS OF VIRTUAL ENGINEERING MARKET
    288. DRIVERS
    289. IMPACT ANALYSIS: VIRTUAL ENGINEERING MARKET
    290. RESTRAINTS
    291. IMPACT ANALYSIS: VIRTUAL ENGINEERING MARKET
    292. SUPPLY /
    293. VALUE CHAIN: VIRTUAL ENGINEERING MARKET
    294. VIRTUAL ENGINEERING
    295. MARKET, BY SOFTWARE TYPE, 2025 (% SHARE)
    296. VIRTUAL ENGINEERING
    297. MARKET, BY SOFTWARE TYPE, 2019 TO 2035 (USD Billions)
    298. VIRTUAL
    299. ENGINEERING MARKET, BY DEPLOYMENT TYPE, 2025 (% SHARE)
    300. VIRTUAL
    301. ENGINEERING MARKET, BY DEPLOYMENT TYPE, 2019 TO 2035 (USD Billions)
    302. VIRTUAL
    303. ENGINEERING MARKET, BY ORGANIZATION SIZE, 2025 (% SHARE)
    304. VIRTUAL
    305. ENGINEERING MARKET, BY ORGANIZATION SIZE, 2019 TO 2035 (USD Billions)
    306. VIRTUAL
    307. ENGINEERING MARKET, BY APPLICATION, 2025 (% SHARE)
    308. VIRTUAL
    309. ENGINEERING MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    310. VIRTUAL
    311. ENGINEERING MARKET, BY INDUSTRY VERTICAL, 2025 (% SHARE)
    312. VIRTUAL
    313. ENGINEERING MARKET, BY INDUSTRY VERTICAL, 2019 TO 2035 (USD Billions)
    314. BENCHMARKING
    315. OF MAJOR COMPETITORS

    Japan Virtual Engineering Market Segmentation

     

     

     

    • Virtual Engineering Market By Software Type (USD Million, 2019-2035)

      • Computer-Aided Designing (CAD)
      • Computer-Aided Manufacturing (CAM)
      • Computer-Aided Engineering (CAE)
      • Architecture, Engineering and Construction (AEC)
      • Electronic Design Automation (EDA)Others

     

    • Virtual Engineering Market By Deployment Type (USD Million, 2019-2035)

      • On-premises
      • Cloud

     

    • Virtual Engineering Market By Organization Size (USD Million, 2019-2035)

      • SME’s
      • Large Enterprises

     

    • Virtual Engineering Market By Application (USD Million, 2019-2035)

      • Automation Design
      • Plant Design
      • Product Design
      • 3D MODELLING
      • Others

     

    • Virtual Engineering Market By Industry Vertical (USD Million, 2019-2035)

      • Commercial Industry Vertical
      • Defense Industry Vertical

     

     

     

     

     

     

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