Japan Industry 4.0 Market Overview

Modern manufacturing processes and marketing strategies that will revolutionize national economies are being developed as a result of the Industry 4.0 and its emerging technologies, including the Internet of Things, artificial intelligence, robotics, and 3D printing. As a result, irrespective of its financial situation, Japan is aimed at facilitating to foster the growth of Industry 4.0.

Around 20% of Japan's nominal Gross Domestic Product is attributable to the manufacturing sector (GDP). In accordance with the International Monetary Fund (IMF), the implementation of the Integrated Manufacturing Tax has helped the nation's manufacturing industry greatly. In Japan, Industry 4.0 has resulted in the development of cutting-edge technologies such as cooperative and Industrial robotics. Enterprises are able to enhance their productivity and minimize errors by incorporating them into various processes. The market for robotic systems is anticipated to increase as occupational safety guidelines fasten and manufacturing capacity improves.

The technology system that drives Industry 4.0 is artificial intelligence (AI) its influence is already being felt in housing, enterprises, and democratic structures. As machine learning (ML) rapid developments increase the potential and scale of AI's implementation throughout all parts of everyday existence, while the technology itself can grow and evolve independently, the collaborative joint effort is considered necessary to maximize responsibility, integrity, confidentiality, and objectivity in order to increase transparency.

Industry 4.0 is currently having a significant impact on Japan's trade, economic expansion, and scientific advancement as a result of rapid technological progress and automation. In recent years, cross-border e-commerce has garnered billions of dollars in economic growth, and this figure is expected to rise. This has allowed digital technology to be used for commodities, including improving productivity and accountability in globalization.

Report Coverage

This research report categorizes Japan Industry 4.0 Market based on various segments and regions, forecasts revenue growth, and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing Japan's Industry 4.0 Market. Recent market developments and competitive strategies such as market expansion, product launch, and development, partnership, merger, and acquisition have all been included to depict the market's competitive landscape. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Industry 4.0 Market.

Driving Factors

Japan has led the way mostly in the development of an automated manufacturing economy. Through its manufacturing powerhouse, the country is now capable of offering a variety of factory automation products to other nations. It also provides other countries with industrial control systems and factory robotic systems. The growing number of robots, as well as the increasing prevalence of AI-enabled robots, has resulted in the development of technological developments that can assist businesses in improving their efficiency and reducing anomalies. These innovations have also led to the increasing number of workers and the safety of their workplaces.

Japan is a major player in the production of factory automation systems and robots. Five of the world's top ten companies are Japanese. The nation's continued rise as a leader in the robotics industry is largely due to its technological prowess. Japanese firms are expected to maintain their market share due to strong demand for their products. Mitsubishi's investment of more than JPY 30 billion to boost the manufacturing capacity of its factory automation system products in order to meet rising demand also contributes to this trend. In addition, the company intends to build a new plant near its current facility in Aichi Prefecture and rebuild an existing plant in Nagoya to increase manufacturing capability.

With the advent of Industry 4.0, technological developments such as robotic process automation and AI-enabled robots have emerged. By incorporating them into various processes, companies have been able to improve their efficiency and reduce errors. The growing numbers of workplace safety requirements, as well as improved manufacturing capabilities, are anticipated to increase demand for robotic systems. The country's growing digitization initiatives, as well as the emergence of Industry 4.0, are expected to provide promising opportunities for the market. Despite the various factors affecting the country's economy, it has managed to grow at a steady rate.

Restraining Factors

Security and confidentiality concerns related to cutting-edge technology implementation are anticipated to stymie the market during the forecast period. Since they are prone to data breaches, Industry 4.0 systems lack the ability to avert hackers from gaining access to the company's data and gathering all pertinent information. As a consequence, there is an urgent need to raise awareness about such vulnerabilities and grasp the significance of enhancing security in the entire organizational network infrastructure.

Market Segment                  

• In 2022, the IIoT segment is witnessing the highest growth rate over the forecast period. 

Based on technology, the Japan Industry 4.0 Market is segmented into Industrial Robotics, IIoT, AI & ML in manufacturing, HMI, block-chain, product lifecycle management, extended reality, digital twin, 3D printing, enterprise resource planning, and others. The IIoT segment is expected to witness the highest growth rate over the forecast period. Industrial IoT combines breakthroughs from two transformative revolutionaries. Several industrial equipment manufacturers have adopted IoT technology due to its potential benefits. By connecting industrial equipment via wireless connectivity and collecting sensor data from the same, manufacturers can evaluate the current state of machines, optimize their performance, and anticipate possible breakdowns while planning maintenance programmes.

• In 2022, the manufacturing segment is dominating the market with the largest market share of 65% over the forecast period.

According to end-use industry, Japan Industry 4.0 Market is divided into manufacturing, automotive, oil & gas, energy & utilities, electronics & consumer goods, food & beverage, aerospace & defense, and other end-users. The automotive segment dominates the market with a 65% market share over the forecast period. The deployment of Industry 4.0 and the introduction of 5G wireless connectivity are driving the demand for industrial automation across all industries. Digital twins, augmented reality (AR), digitalization, and industrial IoT are expected to be significant indicators of the global industry 4.0 market in industrial automation.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved in Japan's Industry 4.0 Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Omron Corporation
• Fanuc Corporation
• Mitsubishi Electric
• Yokogawa Electric Corporation
• Yaskawa Electric Corporation
• Toshiba Corporation
• Meidensha Corporation
• TAIYO NIPPON SANSO CO., LTD.
• Hitachi Ltd.
• Tekran Instruments Corporation
• Flottweg SE
• Fuji Electric Co Ltd.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In February 2022, Mitsubishi Electric Corporation was awarded by SAP Japan in the category Japan Industry 4.0 as part of the SAP Japan Customer Award 2021 program for demonstrating outstanding leadership in digital transformation. Mitsubishi Electric and SAP Japan recently launched the IT/OT showcase at Industry 4.0 as one of their recent activities. HUB TOKYO now shows how collaboration between robots and humans can create new opportunities in IT-OT vertical integration.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Spherical Insights has segmented Japan Industry 4.0 Market based on the below-mentioned segments:

Japan Industry 4.0 Market, By Technology

• IIoT
• HMI
• Blockchain
• 3D Printing
• Digital Twin
• Extended Reality
• Industrial Robotics
• AI & ML in Manufacturing
• Enterprise Resource Planning
• Product Lifecycle Management
• Other Technologies

Japan Industry 4.0 Market, By End-User Industry

• Manufacturing
• Automotive
• Oil & Gas
• Energy & Utilities
• Food & Beverage
• Aerospace & Defense
• Electronics & Consumer Goods
• Other End-Users