Japan Factory Automation and Industrial Controls Market Size

Japan Factory Automation & Industrial Controls Market Analysis

The Japan Factory Automation and Industrial Controls Market are expected to grow at a CAGR of 11% over the forecast period. The demand from the manufacturing industry for Factory Automation products is anticipated to show long-term growth in Japan, especially in digital sectors like semiconductors, electronic components, data centers, and decarbonization-related areas such as lithium-ion batteries.

• Automation of manufacturing processes has presented several benefits like effortless monitoring, waste reduction, and production speed. This technology offers customers improved quality with standardization and reliable products within time and at a cheaper cost.
• Connecting the industrial equipment & machinery and acquiring real-time data have played a critical role in the adoption of PLC systems, SCADA, HMI, and software that offer visualization; thus, enabling decreasing the faults in the product, scheduling maintenance, reducing downtime, and switching from being in the reactive state to predictive and prescriptive stages for decision-making.
• The Industrial 4.0 and the Industrial Internet of Things (IIOT) are at the center of new technological approaches for the development, production, and management of the entire logistics chain, otherwise known as smart factory automation, and are dominating trends in the industrial sector, with machinery and devices being connected via the internet.
• Moreover, massive shifts in manufacturing due to industry 4.0 and the acceptance of IoT require enterprises to adopt agile, smarter, and innovative ways to advance production with technologies that complement and augment human labor with automation and reduce industrial accidents caused by process failure.
• According to Zebra's latest Manufacturing Vision Study, smart asset tracking solutions based on IoT and RFID are envisioned to overtake traditional, spreadsheet-based methods by 2022. A study by Industrial IoT (IIoT) company, Microsoft Corporation, established that 85% of companies have at least one IIoT use case project. This number is foreseen to increase, as 94% of respondents said they would implement IIoT strategies by 2021.
• Further, Japan has been a pioneer in transforming into an automated industrial economy. The Industrial version 4.0 is being adopted at a faster pace. The country has materialized as a manufacturing hub for factory automation products and supplies them to other Asian-Pacific regional markets. Also, the presence of multiple automobile manufacturers, the electronic products manufacturing industry, food processing industry makes Japan an important market.
• The COVID-19 pandemic posed many challenges for the manufacturing industry in Japan. The profound change in consumer behavior because of the COVID-19 pandemic is expected to lead to more automation and virtualization. Smart factories and offices are expected to increase, allowing critical functions that currently need to be overseen in person to be monitored remotely or, at a minimum, by fewer people. Hence, the market is predicted to grow during the forecast period. Following the global economic recession led by COVID-19, the factory automation market in Japan noticed a mixed impact from the supply side and a positive effect from the demand side in 1st half of 2020.
• Smart factory initiatives have helped manufacturers to overcome COVID-19 challenges and address issues such as workforce reductions, drops in sales for some specific products, social distancing, and extreme pressure to cut operational costs since most enterprises operating in the end-user industries (majorly manufacturing, automotive) had shuttered down their production sites due to lockdown restrictions.