Japan Industrial IoT Market Overview, 2029

Japan's IIoT USD, characterized by a very good technological infrastructure, strong manufacturing base, and robust emphasis on innovation, gives it great potential. The IIoT technologies are massively adopted by Japanese industries in the race to achieve operational excellence, improve productivity, and reduce operational costs. The Japanese government is conducive to the diffusion of IIoT through initiatives such as the "Society 5.0" concept, which is intended to merge digital technologies into a number of areas in society, thereby including the industry. Policies and incentives encourage research and development in AI, robotics, and IoT, stimulating a favourable environment for technological innovation. IIoT is driven by major Japanese conglomerates and technology companies. Mitsubishi Electric, Hitachi, Toshiba, and Panasonic have been at the front end of developing IIoT solutions that best place them to meet specific needs from the manufacturing, transport, and infrastructure sectors. Japan has a collaborative ecosystem within industry associations, research institutes, and academia working in tandem towards the growth and development of IIoT technologies. Industry players and technology providers team up for innovation and high-end solution development. Japan is one of the leaders in the usage of robotics and automation in manufacturing. As the country’s key manufacturing sector players seek to maintain their competitive edge along with a focus on sustainability, they are integrating a wide range of ICT solutions across their value chain. Few years ago, there were only about ten space startups in Japan. Today there are more than 50, spearheading the growth of Japan's space industry. Masashi Sato, co-founder and COO of SPACETIDE, a general incorporated association that supports the development of the space business industry, says that the Japanese space industry is characterised by the presence of many unique startups that create value by combining space and other industries.

According to the research report "Japan Industrial IOT Market Overview, 2029," published by Bonafide Research, the Japan Industrial IOT market is anticipated to add to more than USD 12 Billion by 2024–29. Japanese industries are forerunners in adopting Industry IIoT for advanced manufacturing processes. This would be in terms of using robotics, AI, and IoT-enabled sensors to drive précised manufacturing, just-in-time production, and efficient resource utilization. In Japan, the concept of smart factories is rapidly growing whereby IIoT enables interlinked production systems. Smart factories optimize your workflows while keeping equipment performance under real-time vigil to aid adaptive manufacturing strategies. Digital twin is separable virtual replicate of physical assets or processes, and it allows Japanese industries to improve predictive maintenance operations. In this regard, Japanese industries deployed IIoT technologies in order to attain the minimum level of energy consumption for industries and manufacturing processes. Smart grids, efficient energy systems, and real-time monitoring are few of the impacts on reduced carbon footprints and increased energy efficiency. IIoT assumes a great deal of importance in environmental monitoring and compliance in Japan. Both sensors and IoT devices would be used in frameworks that would ensure the quality of air, harnessing water resources, and controlling industrial emissions to manage the environment in a very proactive way while adhering to all the rigid regulatory requirements.
IIoT in Japan cuts across various industries, thereby enhancing cross-industry applications and collaborations. IIoT gives industries like logistics, transportation, and retail supply chain visibility, traceability, and optimization through real-time data analytics and IoT-enabled tracking systems that enable inventory management, lead time reduction, and improvement in operational efficiency. IIoT is bringing a sea change in healthcare delivery through telemedicine, remote patient monitoring, and IoT-enabled medical devices in Japan. It has improved patient outcomes, optimized hospital workflows, and increased accessibility to healthcare.

IIoT hardware solutions account for the lion's share in Japan's IIoT market, spanning key building blocks that cater to connectivity and data acquisition and automation in industries. Sensors and actuators form a critical component in spends or collection of real-time data in the course of any industrial process. These devices facilitate predictive maintenance, enhance operational efficiency, and support smart manufacturing initiatives across various industries. ita Embedded systems—direct integration of computing capabilities in the machinery—are, for example, edge computing, which can make decision-making faster with less latency. Gateways and routers ensure perfect connectivity between the local network and the central system. They are responsible for data transmission and security in distributed IIoT environments. Mitsubishi Electric and Hitachi hold a leadership position in terms of supply, providing advanced hardware solutions that meet Japanese industrial automation requirements, ensuring reliability, performance, and integration capability. The Japanese IIoT market holds more significance for software solutions, which enable data analytics, AI, and automation capabilities. Data analytics software processes huge reams of sensor data for actionable insights to execute predictive maintenance, quality control, and process optimization. AI algorithms improve anomaly detection, fault prediction, and optimization in manufacturing and logistics. IoT platforms integrate device connectivity, data management, and application development tools in one framework that can be used to develop scalable and secure IIoT deployments. Edge computing software enables real-time data processing at the network edge, improving responsiveness and efficiency in industrial operations. Toshiba and Fujitsu are among the charge-leading companies developing AI-driven analytics and full-scale IoT platforms in efforts to further easy IIoT implementations and support Japan's agenda of digital transformation. IIoT platforms in Japan are comprehensive frameworks that orchestrate hardware and software for seamless connectivity, data management, and application development in industrial environments. On the platform, device connectivity, communication protocols, and data analytics are managed to show a view of insights in real-time empowering informed decision-making. They provide tools for application development, which can be used later to customize the IIoT solution according to different needs within the industry. Security features preserve the integrity of data, allowing for the retention of other regulative compliances safeguarding sensitive industrial information. Noting that Japanese leadership in IIoT platforms is represented by Hitachi's Lumada platform and Mitsubishi Electric's e-F@ctory—by using hardware and software together with analytics—brings smart manufacturing, developing urban infrastructure, and more areas closer.

The industrial Internet of Things market is still well established and growing rapidly in Japan. The main driving force behind this growth comes from manufacturing. The industry sector, specifically the automotive and electronics industries, has been at the forefront of adoption in this IoT space. Japan envisions this "Society 5.0" to be not just smart but super-smart, seamlessly integrating IoT, AI, and robotics. This would translate into highly automated smart factories, predictive maintenance systems, and data-driven quality control processes in manufacturing. Japan increasingly uses IoT solutions in healthcare, with the challenges of an aging population at the forefront. In this line, deployment for remote patient monitoring systems, wearable health devices, and IoT-enabled care robots seeks to help elderly care and lessen pressures from healthcare facilities. Moreover, IoT is used to enhance hospital efficiency, especially in asset tracking and inventory management. Japan's energy sector—with traditional and renewable sources—is implementing the IoT for grid optimization and improved energy efficiency. Smart grid technologiess are being put in place for better management of power distribution and integration of renewable resources. In the wake of the Fukushima disaster, increased focus falls on using the IoT for safety monitoring in nuclear facilities and expansion of renewable energy capacity. Japan is already known for the efficiency in its transportation, and the IoT is taking this to a whole new level. Some of the initiatives that would be coming up in smart transportation include connected vehicles, intelligent traffic management systems, and IoT-enabled maintenance for the country's sprawling rail network. All these technologies work together to offer greater safety, less congestion, and a far better traveling experience. Other important sectors where remarkable IoT adoption is underway include retail, agriculture, and construction industries. It finds an application in inventory management in the retail sector, customer behavior analysis, and creation of seamless omnichannel experiences. It is being used in approaches to precision farming, wherein IoT sensors are used in crop monitoring and also in automated farm equipment.

Wireless connectivity technologies dominate the Japanese Industrial IIoT market due to their special capabilities in terms of flexibility and scalability for industrial applications. Wi-Fi has become a standard for the LANs in industries; high-speed data transmission is needed for real-time monitoring and control of production processes. Bluetooth technology practically runs short-range applications in Japan, from asset tracking systems to the flawless integration of industrial automation solutions. Low-power Zigbee, along with robust mesh networking, is the right fit in terms of use cases for smart metering and building automation within Japanese cities. On the other hand, cellular technologies—like 4G LTE and the emerging 5G—make area-wide coverage possible in remotely monitoring and managing industrial assets even in the most hostile environments in the world. These wireless technologies help Japanese industries attain operational efficiency, optimize resource usage, and maintain competitive lead in the global marketplace. While wireless technologies are holding sway, the industrial IoT landscape in Japan is slowly witnessing the emergence of wired connectivity solutions—out of necessity within industrial operations for reliability, security, and deterministic performance. In Japan, Ethernet plays the unequivocal role of being the standard for Wired LAN connectivity solutions in manufacturing environments, providing robust and high-speed data transmission capabilities supporting the real-time control and monitoring of production lines. Industrial protocols, such as Modbus and Profibus, are keystones that support perfect communication between the industrial device and control systems for interoperation in order to make factory automation and process control applications reliable. Increased wired connectivity underlines Japan's commitment to data integrity, latency reduction, and protection of the industrial operation from cyber threats.



Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Industrial IoT market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Offering
• Hardware
• Software
• Platforms

By Vertical
• Manufacturing
• Healthcare
• Energy
• Oil & Gas
• Transportation
• Others (Retail, Metals & Mining and Agriculture)

By Connectivity Technology
• Wireless
• Wired

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Industrial IoT industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.