Market Trends of japan engineering plastics Industry
Government policies to support domestic electrical and electronics production
- The Japanese electronics industry excels in the production of components and devices, creating key technologies, such as all-solid batteries and medical cameras. The government's efforts toward decarbonization and the industry's proficiency in this field will enable further innovations by developing functions geared toward factory automation and telework-led workstyle reforms.
- The country faced chip shortages caused by the trade war between the United States and China, and the increased demand that followed the move to remote working that affected the production of electronics in the country in 2019. Consecutively, due to COVID-19 pandemic-related disruptions in 2020, the number of businesses in the Japanese electronic parts, devices, and electronic circuits manufacturing industry hit a decade low of approximately 3.79 thousand establishments, a decrease from around 3.86 thousand in the previous year. The country produced consumer electronic equipment of JPY 42,908 million, by value, and industrial electronic equipment of JPY 25,5676 million, by value, in 2020.
- Japan registered an increase of 19.2% in electrical and electronics production revenue from 2020 to 2021. The total production value of the electronics industry in Japan reached close to JPY 11 trillion in 2021. The industry encompasses consumer electronic equipment, industrial electronic equipment, and electronic components and devices. Consumer electronics account for a third of Japan’s economic output.
- The US President and Japanese Prime Minister pledged to bolster semiconductor manufacturing capacity, and the country is also investing in the innovation sector, which may boost the electronic industry in the country during the forecast period.
Understand The Key Trends Shaping This Market
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increased defense spending to boost aerospace component production
- Increasing investments in public and private infrastructure and commercial projects to drive growth
- Japan to remain as net importer due to strong demand from end users
- Japan's Plastic Garbage Reduction Law and the Containers and Packaging Recycling Law (CPRL) to promote PA recycling
- Japan had a recycling rate of 86% in 2020 with total PET waste accounting for 580 kilotons
- Increasing use of public transport to restrict automotive production growth
- Evolving lifestyle to increase plastic packaging applications
- Resin prices to remain under the influence of crude oil prices in the international market
- The demand for PC resin is expected to reach 0.45 million tons by 2029, producing more recycled polycarbonate in the upcoming years
- Japan generated over 2.5 million tons of WEEE in 2019 which could be an opportunity for manufacturers to produce R-ABS
