Japan Sensor Market Size

Japan Sensor Market Analysis

The Japanese sensor market is valued at USD 9.6 billion in the current year. It is expected to register a CAGR of 7.95% during the forecast period to reach USD 14.8 billion. The adoption of sensors has continuously increased due to technological developments in automotive, healthcare, industrial, and other sectors.

• The future switch of the Japanese smart city market to energy-efficient and conservation-related solutions in Japan may directly influence the demand for sensors from early adoption to mass adoption. The rising demand for home automation is driving the development of advanced sensors to reduce cost and power consumption.
• The demand for fitness and health monitoring devices is rising due to their frequent integration into everyday lives. The demand for smartwatches, activity trackers, and other personal digital health devices is growing. New sensors, such as Barometric pressure sensors, are being developed by companies that are ideal for applications such as embedding in watches, fitness bands, earphones, or smartphones to support fitness parameters, enable higher accuracy of physical activity, and allow enhanced analysis of activity being done.
• The government is taking several initiatives to support the adoption of robots in Japan, further propelling the demand for sensors. For instance, the "New Robot Strategy" was introduced in Japan to make the country the world's number one robot innovation hub, with more than USD 930.5 million in financial support provided by the Japanese government in 2022. Thus, with the rising production and deployment of robotics in the manufacturing sector, the sensor market is expected to observe rampant growth because robots require a wide range of sensors to operate effectively, and as the complexity and sophistication of robots increase, so does the need for more advanced and specialized sensors.
• Although integrating sensors increases the industrial automation level, it incurs an additional cost, limiting the use in cost-sensitive applications. In addition, the high development costs involved in the R&D activities to manufacture new products are a critical challenge, mainly for the cash-deficient small and medium-sized sensor manufacturers.
• Due to the COVID-19 outbreak, authorities worldwide imposed stringent prohibitions on travel and trade. The outbreak also impacted Japan's economy and many industries due to transit bans, mass lockdowns, and corporate shutdowns. The enforcement of the shutdown led to a decreased output of goods, commodities, and services. Thus, it resulted in a demand slowdown. Due to the interim closure, Automotive, manufacturing, semiconductor and electronics, mining, oil and gas, aviation, and other businesses witnessed a drop-in activity.