Market Size of Japan Factory Automation and Industrial Controls Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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.
Japan Factory Automation & Industrial Controls Industry Segmentation
The study characterizes the market based on the type of products, such as SCADA, DCS, PLC and robotics, among others, and by End-user industries that include Oil & Gas, Chemical & Petrochemical, Power and Food and Beverage, among others. The scope of the study is currently focused on Japan.
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| By End-user Industry | |
| Oil and Gas | |
| Chemical and Petrochemical | |
| Power and Utilities | |
| Food and Beverage | |
| Automotive and Transportation | |
| Other End-user Industries |
Japan Factory Automation and Industrial Controls Market Size Summary
The Japanese factory automation and industrial controls market is poised for significant growth, driven by the increasing demand from the manufacturing sector, particularly in digital domains such as semiconductors, electronic components, and decarbonization-related industries like lithium-ion batteries. The adoption of automation technologies has been propelled by their ability to enhance production efficiency through improved monitoring, waste reduction, and accelerated production speeds. The integration of Industrial 4.0 and the Industrial Internet of Things (IIoT) has been central to these advancements, facilitating the development of smart factories where machinery and devices are interconnected via the internet. This shift towards automation is further supported by the need for agile and innovative production methods that complement human labor, reduce industrial accidents, and enhance operational efficiency.
Japan's role as a pioneer in industrial automation is underscored by its robust robotic sector and advanced automation technologies, making it a leading global player in this field. The market is characterized by a moderate level of consolidation, with several firms holding small market shares but collectively driving innovation and growth. The COVID-19 pandemic has accelerated the shift towards automation, as manufacturers sought to address challenges such as workforce reductions and the need for remote monitoring. The market is also witnessing increased interest in Distributed Control Systems (DCS) and other advanced automation solutions, which offer benefits like enhanced process control and reduced operational complexity. As Japan continues to expand its manufacturing capabilities and embrace new technologies, the factory automation and industrial controls market is expected to experience sustained growth, supported by strategic initiatives from key industry players.
Japan Factory Automation and Industrial Controls Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Value Chain Analysis
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Consumers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitutes
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1.3.5 Intensity of Competitive Rivalry
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1.4 Assessment of Impact of Covid-19 on the Industry
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Industrial Control Systems
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2.1.1.1 Distributed Control System (DCS)
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2.1.1.2 Programable Logic Controller (PLC)
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2.1.1.3 Supervisory Control and Data Acquisition (SCADA)
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2.1.1.4 Product Lifecycle Management (PLM)
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2.1.1.5 Manufacturing Execution System (MES)
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2.1.1.6 Human Machine Interface (HMI)
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2.1.1.7 Other Industrial Control Systems
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2.1.2 Field Devices
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2.1.2.1 Machine Vision
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2.1.2.2 Industrial Robotics
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2.1.2.3 Sensors and Transmitters
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2.1.2.4 Motors and Drives
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2.1.2.5 Safety Systems
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2.1.2.6 Other Field Devices
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2.2 By End-user Industry
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2.2.1 Oil and Gas
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2.2.2 Chemical and Petrochemical
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2.2.3 Power and Utilities
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2.2.4 Food and Beverage
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2.2.5 Automotive and Transportation
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2.2.6 Other End-user Industries
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Japan Factory Automation and Industrial Controls Market Size FAQs
What is the current Japan Factory Automation and Industrial Controls Market size?
The Japan Factory Automation and Industrial Controls Market is projected to register a CAGR of 11% during the forecast period (2024-2029)
Who are the key players in Japan Factory Automation and Industrial Controls Market?
Rockwell Automation, ABB Ltd, Emerson Electric, Honeywell Intenational Inc and Schneider Electric are the major companies operating in the Japan Factory Automation and Industrial Controls Market.
