Japan Process Automation Market Report and Forecast 2024-2032

Japan Process Automation Market Size

The process automation market in Japan reached approximately USD 4.0 billion in 2023. The market is projected to grow at a CAGR of 7.3% between 2024 and 2032, reaching a value of USD 7.6 billion by 2032.

Japan Process Automation Market Outlook

• Digital human-machine interface is increasingly being used by Japanese car manufacturers, allowing users to control radio stations, making use of the monochromatic touchscreen display, which can contribute to the Japan process automation market value.

• By 2025, Japan aims to attain 81% automation in manufacturing, making use of artificial intelligence technology.

• It is estimated that the labour force in Japan will decline by 12% from 2022 to 2040, necessitating process automation in factories.

Japan Process Automation Market Growth

Japan is a global leader in automation and robotics. Japan has the presence of the highest density of robots per manufacturing employee across the globe, with more than 300,000 industrial robots in operation. The ageing population of Japan is a key factor contributing to the growth of the Japan process automation market. Japan has one of the highest life expectancies and is witnessing a decline in the birth rate. This is resulting in labour shortages and higher costs, making it necessary for Japanese companies to automate their operations.

Japan Process Automation Market Trends

The use of distributed control systems, among other system types, which help facility operators monitor and control their operations is a crucial trend in Japan process automation market. Due to its ability to perform on a closed-loop system, it is being widely used for controlling multiple processes at a single facility and also can enhance the visibility of operations in a facility. Japan is witnessing an increased requirement for distributed control systems. The expansion of the energy sector in Japan is further contributing to its increased demand.

Recent Developments

As per the Japan process automation dynamics and trends, Intel announced on May 2024 that it is establishing a partnership with 14 Japanese companies for the development of technology that can automate the back-end chipmaking process such as packaging.

Industry Outlook

According to the Japan process automation industry analysis, the country has around 300,000 industrial robots in operation in 2023, which are deployed in the end-use sectors such as automotive, electronics, and healthcare, among others. The automation and robotics sector is also expected to be fuelled by the Society 5.0 initiative in the country, which relies on the integration of digital technology and human capabilities.

As per the industry reports from 2022, 45% of all industrial robots worldwide were produced by companies in Japan. The shift towards automation is prevalent in sectors such as logistics, food, and pharmaceuticals, among others, for packaging and transport purposes. Japan had around 631 robots working for every 10,000 humans in the manufacturing sector as of 2021, and this number has only gone up since then, contributing to the growth of the process automation industry.

The introduction of artificial intelligence (AI) in factories in Japan has lowered the manpower by about 30%. The government of Japan is investing in programmes and initiatives such as the Society 5.0 initiative that aims to develop a society that integrates digital technology and human capabilities, boosting the process automation industry revenue. The initiative encompasses investments in artificial intelligence, big data, and the Internet of Things.

Technological Advancements and Government Policies Drive the Success of the Japan Market

• Technological advancements and adoption of cutting-edge automation solutions.

• Industrial efficiency and productivity in manufacturing and other industries.

• Favorable government policies and initiatives promoting automation and Industry 4.0 aids Japan process automation demand growth.

• High standards for quality and precision in manufacturing processes.

Challenges Impacting the Japan Market Include High Capital Investment, Technological Integration, and Skilled Personnel Requirements

• Significant capital investment is required for advanced automation systems.

• Challenges in integrating new automation technologies with existing legacy systems.

• Technical complexities and the need for skilled personnel for successful implementation.

• Economic volatility affecting investment in automation technologies can negatively impact Japan process automation demand forecast.

• Vulnerability to cyber threats and data breaches. 

• Regulatory and compliance issues.

Key Trends Shaping the Japan Market Focus on AI, IoT, and Cloud-Based Solutions

• Adoption of AI and machine learning to enhance automation capabilities and decision-making.

• Expansion of cloud-based automation for scalability and flexibility.

• Growing use of collaborative robots (Cobots) can boost Japan process automation demand.

• Increased use of IoT devices and connectivity for real-time monitoring and data analysis.

Key Players in the Japan Market and Their Strategic Initiatives

The key players in the Japan process automation market include Mitsubishi Electric Corporation, Omron Corporation, Yokogawa Electric Corporation, Fanuc Corporation, and Hitachi Ltd.

Mitsubishi Electric Corporation

• Global Expansion and Localization: Aims for global expansion through new manufacturing facilities and R&D centers in key regions and customising the products to meet the local preferences and regulatory requirements.

• Advanced Manufacturing Techniques: Leveraging advanced manufacturing techniques such as precision engineering and automation to improve production efficiency and reduce costs can increase Japan process automation market revenue.

Omron Corporation

• Innovative Product Development: Invests heavily in R&D to develop advanced automation solutions incorporating AI, IoT, and machine learning, continually improving existing products.

• Collaborative Robots (Cobots): Developing collaborative robots that can work alongside human workers to improve productivity and safety can aid demand of Japan process automation market.

Fanuc Corporation

• Global Expansion and Localization: Global expansion by establishing new manufacturing sectors in emerging regions and customising their products according to local regulations. 

• Customer-Centric Approach: Providing extensive customer support and training to ensure effective use of their automation solutions can contribute to process automation share in Japan.

Hitachi Ltd.

• Integration of AI and IoT: Focus on the integration of AI and IoT technologies into automation solutions for establishing smart industrial processes.

• Sustainable Manufacturing: Focus on developing sustainable manufacturing solutions that reduce energy consumption and improve efficiency can aid Japan process automation industry expansion.

Yokogawa Electric Corporation

• Focus on Digital Transformation: Yokogawa is driving digital transformation in process automation through its OpreX suite, which integrates control, information, and operation technologies.

• Strategic Partnerships and Collaborations: Expands market presence through strategic partnerships and collaborations, enhancing product offerings and entering new market segments.

Japan Process Automation Industry Segmentations

Japan Process Automation Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by System Type

• Supervisory Control and Data Acquisition (SCADA)

• Programmable Logic Controller (PLC)

• Distributed Control System (DCS)

• Machine Execution System (MES)

• Valves and Actuators

• Electric Motors

• Human Machine Interface (HMI)

• Process Safety Systems

• Sensors and Transmitters

• Others

Market Breakup by Communication Protocol

• Wired Protocol

• Wireless Protocol

Market Breakup by Application

• Oil and Gas

• Chemicals and Mining

• Consumer Goods

• Pharma and Biotech

• Water and Wastewater

• Automotive

• Power

• Others

Japan Process Automation Market Share

Based on application, the automotive sector contributes to a significant share of the market. The growth of the Japanese automotive sector is driven by rising technological innovations, growing demand for hybrid and electric vehicles, and the dominance of key players like Toyota, Nissan, and Honda.

Competitive Landscape

The report provides a detailed analysis of the following key players in the Japan process automation industry covering their competitive landscape and latest developments like mergers and acquisitions, investments, and product launches.

• Mitsubishi Electric Corp

• Yaskawa Electric Corp

• Yokogawa Electric Corp

• Eaton Corporation Plc

• Siemens AG

• Schneider Electric SE

• ABB Ltd.

• Delta Electronics, Inc

• Fuji Electric Co. Ltd

• Emerson Electric Co

• Honeywell International Inc.

• Others

The market participants offer process automation, helping customers remain competitive, improving their ROI and run safe and productive operations.

Key Highlights of the Report

Japan Process Automation Market Report Snapshots

Japan Process Automation Market Size

Japan Process Automation Market Growth

Japan Process Automation Market Trends

Japan Process Automation Market Share

Japan Process Automation Companies