Japan is implementing transformative mobility solutions to address the challenges posed by an aging society and shrinking rural populations. With over 20% of residents living more than 500 meters from a train station and over 300 meters from a bus stop, access to reliable transportation has become a growing concern, particularly for elderly citizens who represent nearly 30% of the population.
Transportation deserts—areas where public transit options are scarce or nonexistent—are increasingly common in remote regions. In some locations, taxi services have ceased operations entirely, limiting access to healthcare, groceries, and social services for non-drivers. This issue is compounded by workforce shortages in the transport sector; a national survey revealed that 55% of operators struggle to maintain existing routes, rising to 70% among bus companies. More than 90% of bus operators and about 60% of rail providers reported staff declines since 2019, prompting urgent calls for systemic reform.
In response, government and private sector actors are collaborating to modernize regional mobility. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) launched the Transportation Desert Resolution Headquarters in July 2024 to identify underserved areas and develop tailored solutions. In 2025, MLIT introduced Local Mobility DX: MaaS 2.0, a digital transformation initiative aimed at standardizing data systems, service delivery, and management practices across regional transport networks. Fifteen pilot projects are underway to test new models.
One project, developed with Future Architect, focuses on harmonizing IT systems and operational procedures across bus operators. By establishing national standards, the initiative seeks to lower costs, improve data sharing, and enhance efficiency—moving from isolated systems to a unified infrastructure that supports innovation and collaboration.
Another collaboration with Fujitsu involves creating a digital simulation platform for regional transit planning. This tool allows planners to model various scenarios—such as changes in fleet size, routes, or operating hours—and assess their impact on both user experience and financial sustainability. Visualized results help build consensus among local authorities, operators, and communities, enabling evidence-based decisions for customized mobility solutions.
Private-sector innovation is also advancing. In September 2025, Toyota opened Woven City, a 708,000-square-meter experimental urban environment built on a former factory site. Designed as a living lab, it hosts around 360 residents who interact with emerging technologies in real time. The city tests advanced mobility concepts, including smart infrastructure that adjusts pedestrian signals based on vehicle movement, and underground robotic systems for autonomous delivery and waste collection.
These efforts reflect a broader shift toward resilient, inclusive transportation systems. Rather than focusing solely on cost reduction, Japan’s approach prioritizes adaptability, accessibility, and long-term sustainability. By integrating digital tools and reimagining service models, the country aims to ensure essential mobility remains available even as demographic and economic conditions evolve.
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Japan is redesigning mobility for its changing society
Urban Transformation n nHow Japan is redesigning mobility for its changing society n nNov 18, 2025 n nEnsuring the continuity of essential public services like transportation has become a more pressing issue in Japan. Image: Unsplash/Michael Pfister n nNaoko Tochibayashi n nCommunications Lead, Japan , World Economic Forum n nThis article is part of: Centre for Urban Transformation n nEnsuring the continuity of essential public services like transportation has become an increasingly pressing issue in Japan. n nOver 20% of the population lives more than 500 meters from a train station and more than 300 meters from a bus stop. n nBoth government and industry stakeholders in Japan are working to redesign transportation services, while leveraging digital technologies. n nAs populations age and shrink, ensuring the continuity of essential public services has become an increasingly pressing issue. In Japan, where depopulation in rural areas and population ageing continue to accelerate, labour shortages have become a critical challenge for maintaining regional transportation services. n nOne example is the emergence of “transportation deserts,” where residents lack access to public transportation within a reasonable distance from their homes. According to a survey, 20.7% of the population lives more than 500 meters from a train station and more than 300 meters from a bus stop. In some rural areas, taxi operators have withdrawn entirely, limiting mobility for the elderly, who make up nearly 30% of the population, as well as for those who do not own a car. This has further constrained access to essential goods, services and opportunities. n nTransportation operators themselves also face multiple, intersecting pressures, including workforce shortages and deteriorating financial conditions. A nationwide survey of bus, rail, and passenger ship operators found that 55% reported difficulty sustaining their current routes, rising to nearly 70% among bus operators. More than 90% of bus operators and roughly 60% of rail operators reported declines in number of staff since 2019, and 40% expressed strong concern about the need for systemic reforms. n nIn response, both government and industry stakeholders in Japan are working to redesign transportation services, and leveraging digital technologies to improve efficiency and sustainability. n nGovernment-led initiatives n nIn July 2024, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) launched the Transportation Desert Resolution Headquarters to address areas where services including taxis and rideshare options are unavailable within 30 minutes of request. Working in collaboration with local governments and operators, the initiative aims to assess regional needs and identify effective measures tailored to each community. n nDiscover n nHow is the World Economic Forum promoting sustainable and inclusive mobility systems? n nThe World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive. n nThrough the Clean Skies for Tomorrow Coalition, more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030. n nIn collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide. n nThe Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight. n nThe Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials. n nThe Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies. n nIn collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide. n nThe Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit. n nThe Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap. n nThe Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition. n nThe Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems. n nContact us for more information on how to get involved. n nIn 2025, MLIT also launched the Local Mobility DX: MaaS 2.0 initiative. The project promotes digital transformation across four dimensions: service delivery, data integration, management frameworks and business process standardization in the effort to redesign regional mobility systems and resolve transportation disparities. 15 pilot projects have been selected for implementation in 2025. n
One of these projects involves a partnership with Future Architect, a firm specialized in business and IT design. The initiative focuses on standardizing business processes in the bus sector. Currently, variations in operational procedures, IT systems, and data formats among bus companies make cross-operator collaboration difficult. By establishing national standards, the project aims to reduce system deployment and replacement costs, improve data interoperability, and enhance operational efficiency. This transition from individually optimized systems to shared foundation is expected not only to improve user convenience, but also enable new service innovation and strengthen the broader transportation ecosystem. n
Another initiative is underway in partnership with Fujitsu, which is developing an integrated simulation system for regional transportation management. Introducing new mobility models can be challenging due to uncertainty regarding cost-effectiveness and operational impact; by applying digital rehearsal technologies, the system enables repeated simulations under varying conditions including fleet size, routes and service hours, and evaluates them from both user experience and financial perspectives. These visualized outcomes support evidence-based planning and help build consensus among local governments, operators and residents, facilitating the design of sustainable transportation models tailored to regional needs. n
Toyota’s experimental mobility city highlights industry-driven innovation n
Private-sector initiatives are also advancing. In September 2025, Toyota Motor Corporation opened “Woven City,” an experimental urban testbed built on a former factory site spanning approximately 708,000 square meters. Designed as a “living laboratory,” the city will eventually accommodate approximately 360 residents who will live, work and interact with new technologies as they are developed and implemented. n
The city enables real-world testing of mobility innovations that are challenging to deploy on public roads – such as connected infrastructure where pedestrian signals automatically adjust based on vehicle proximity. In addition, an underground loop pathway allows experimentation with autonomous delivery and waste collection robots, supporting the development of logistics and mobility services integrated into everyday life. n
Transportation system innovation for a resilient and inclusive society n
Public transportation systems, including buses, railways and taxis, are essential to daily life. Amid ongoing demographic shifts and operational constraints, efforts to optimize routes, workflows and service models are progressing across Japan. These initiatives are not solely focused on improving efficiency or reducing costs, but also aim to design flexible mobility systems that respond to local needs and sustain reliable access to essential services. n
By leveraging data and digital innovation, Japan’s efforts to build transportation systems that are resilient, inclusive and capable of sustainably supporting future populations continue apace. n
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