It's very much dying, just as it is here and in Europe. Panasonic and Toshiba appear to be the only real manufacturers still making fluorescents, and they are the only makes available in stores. All new LED products are made in China, and imported into Japan.

I spoke to some locals about it, and they described, with great pain, the slow demise of HID, incandescent, and fluorescent, and how that forced many Japanese lighting plants to scale down or completely close.

Basically, the decline in lighting is a global problem, not one that is U.S. or Europe-specific.

Shame to see that happen to the domestic Japanese lamp manufacturers. Panasonic and Toshiba are both pretty big conglomerates in Japan so I could see them running lamp plants in Japan for a bit longer than smaller manufacturers.

The same thing happened with Canadian production of incandescent, fluorescent, and HID lamps but due to the proximity the US, production first consolidated to larger plants in the US/Mexico and then away from North America entirely. I believe the last Canadian lamp plant was probably Sylvania's Drummondville, QC plant which lasted until 2018.

There are some Canadian produced LED luminaires such as NXTs, but very few and I'd imagine the LED arrays and drivers are all imported. It is possible to build and assemble the PCBs for the LED arrays and drivers locally but again costs have driven many to import those assemblies. 

@joseph_125 - The same can be said for American LED luminaires. There are numerous luminaire manufacturers, big and small, that build their luminaires in the USA. But like you said, I'm guessing that most of them source their LED modules from elsewhere. However, there's one company that I know of, Linmore LED Labs out of California, that does build their fixtures, modules, and drivers in-house.