IoT – the Internet of Things, refers to the various physical devices which now connect to the internet, enabling them to collect and share data.
With a 54% share of the overall market, Japanese companies hold a significant share in the sensor sector which is projected to grow with the spread of IoT. Some well-known IoTs include FitBits, drones, and voice-activated virtual assistant AI such as Alexa and Google Home.
Japanese companies claim 69% of the market for image sensors and other luminosity sensors, 67% for temperature sensors, 34% for inertial sensors (such as acceleration sensors, position sensors, and flow meters), and 30% for pressure sensors and barometric pressure sensors.
A common feature of many forecasts is the outlook that the sensor market will grow at an exceedingly rapid pace. JEITA reports that the global sensor market of 53.2 billion units in 2014 will expand at an annual average rate of 10% and become a market of 152.2 billion units in 2025, 2.9 times its former size. In value terms, annual growth will average 11%, and the market will increase 3.2 times to ¥9 trillion in 2025.
Japanese companies have many strengths in such areas as wearable terminals, wireless modules, and other IoT-related products and in artificial intelligence and robots that are essential for realizing CPS.
One example of an IoT product is Panasonic’s make-up sheet which used a noncontact skin sensor and special printing technology. This make-up sheet has the ability to reproduce an individual’s skin tone and therefore conceal blemishes. The company also created a communication device that used the human body to authenticate and communicate information, such as exchanging business cards with a handshake or unlocking doors without a key.
If Japanese companies harness their technology properly, other sectors will also gain business opportunities and increase the growth potential of Japan’s electronics industry. A key issue now is to take advantage of growth sectors rather than depending solely on sectors. If you are a part of this industry, Bubu & Friends can guide your growth to success. For a free online consultation, contact us here.