Japan Smart Manufacturing Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 18.12% from 2023 to 2033
• The Japan Smart Manufacturing Market Size is Expected to Hold a Significant Share by 2033

The Japan Smart Manufacturing Market Size is Anticipated to Hold a Significant Share by 2033, growing at a CAGR of 18.12% from 2023 to 2033.

Market Overview

Smart manufacturing (SM) is a technology-driven methodology that employs machinery with Internet connectivity to oversee the manufacturing process. The purpose of SM is to find ways to automate processes and leverage data analytics to enhance industrial efficiency. One particular use of the Industrial Internet of Things (IIoT) is smart manufacturing. Sensors are embedded in manufacturing equipment as part of deployments to gather information on the performance and operational status of the machines. Previously, such data was usually stored in local databases on specific devices and was only utilized to determine the reason behind equipment malfunctions after they occurred. Additionally, cloud computing technology allows manufacturers to store and process large volumes of data due to smart manufacturing. The previously mentioned statistics might be utilized for additional manufacturing purposes either within a factory or throughout the whole supply chain.

Report Coverage

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

Driving Factors

Energy savings from smart manufacturing are substantial since it optimizes the production process. Energy use is a significant expense for a factory, and smart manufacturing helps to minimize overhead and maintain a strong balance sheet. Additionally, the severe labor shortages in Japan may contribute to the country's emphasis on modern industrial technologies including automation, smart manufacturing, robots, Industry 4.0, and associated solutions. The entire labor force in Japan is predicted to decline by 40% by 2065. Smart manufacturing technology can help address the issues of a labor shortage and assist the government in reaching its carbon neutrality goals by increasing productivity, consuming less energy, and resulting in fewer product failures. Furthermore, there has been a steady increase in capital expenditures for the modernization of production facilities, including the integration of innovative manufacturing technology.

Restraining Factors

A lack of standardization and interoperability are the main obstacles preventing smart manufacturing from being widely used.

Market Segmentation

The Japan smart manufacturing market share is classified into component and industry vertical.

• The hardware segment is expected to hold a significant market share through the forecast period.

The Japan smart manufacturing market is segmented by component into hardware, software, and services. Among these, the hardware segment is expected to hold a significant market share through the forecast period. The hardware component of the smart manufacturing industry covers an extensive variety of instruments and technology. These can be used in production processes in conjunction with computers and robots, 3D printing machines, controls, and sensors.

• The automotive segment is expected to dominate the Japan smart manufacturing market during the forecast period.       

Based on the industry vertical, the Japan smart manufacturing market is divided into food & beverage, automotive, aerospace & defense, consumer electronics, healthcare, and others. Among these, the automotive segment is expected to dominate the Japan smart manufacturing market during the forecast period. The demanding requirements for accuracy, productivity, and cutting-edge technology in the automotive industry are satisfied by smart manufacturing solutions.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan smart manufacturing 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

• Fanuc Corporation
• Yaskawa Electric Corporation
• Kawasaki Heavy Industries
• Daifuku Co., Ltd.
• SMC Corporation
• Others

Key Target Audience

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

Recent Developments

• In March 2022, Mitsubishi Electric Corporation declared that, as of April 2025, it has established a new production site in Owariasahi City, Aichi Prefecture, Japan, on 42,000 square meters of land. The location will be used to manufacture factory automation (FA) control system goods.

Market Segment

This study forecasts revenue at Japan, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Japan Smart Manufacturing Market based on the below-mentioned segments:

Japan Smart Manufacturing Market, By Component

• Hardware
• Software
• Services

Japan Smart Manufacturing Market, By Industry Vertical

• Food & Beverage
• Automotive
• Aerospace & Defense
• Consumer Electronics
• Healthcare
• Others