Autonomous driving car to create new growth opportunities in Japan towards 2025

The autonomous driving (AD) market in Japan experienced strong growth in 2016 with the first AD-Level 2 commercialised vehicle in the passenger car market. The Japanese automotive market is now declining in terms of new vehicle sales due to depopulation, demotorisation, as well as an aging society, especially in urban areas. As an alternative business strategy, many Japanese OEMs are trying to find new revenue streams with disruptive technologies and connected services. AD is one of the high potential technologies that could bring business innovation beyond automotive industries.

Frost & Sullivan’s new analysis, “Strategic Analysis of Automated Car Market in Japan, 2016,” finds that the unit shipment of automated vehicles at AD-level 2 in Japan is likely to grow up to 540,000 at a compound annual growth rate of 51.6% by 2025.

This research assesses the Japanese automated car market dynamics and related government policy, regulations, as well as the roadmap toward 2025. It also provides an overview of major OEM roadmaps for automated car development as well as potential emerging market participants and new growth opportunities.

Program updating of JNCAP (Japan New Car Assessment Program) and the revision of related laws will lead to the penetration of automated cars in Japan in the short term.

“The current assessment of automated energy brake for vulnerable road users for JNCAP only covers daytime. However, in 2018, the coverage of the assessment is expected to be expanded from daytime to nighttime to be in line with the change in EuroNCAP. This change in JNCAP will lead many vehicles by Japanese OEMs to shift from ADAS systems to AD systems during the next decade,” said Sarasa Hayashi, Frost & Sullivan Mobility research analyst.

In addition, the 2020 Tokyo Olympics and Paralympics will be the trigger to grow the penetration of automated cars in Japan. The Japanese government recognises the Tokyo Olympics as the catalyst to boost AD systems beyond level 2 in Japan. Japanese OEMs have showcased AD technologies frequently, which increases consumers’ awareness for automated driving systems.

“New market participants, including AI or big data analytics companies, will take more important roles in the future development of automated vehicles,” said Sarasa Hayashi. “DeNA and SB Drive are key companies to watch as they disrupt the current ecosystem in the automotive industry in Japan through joint venture business and collaborative research related to automated driving technology.”

However, a lot of challenges, such as the lack of infrastructure for supporting AD, regulations for high AD-level cars, and standardisation for AD capabilities and HMI systems, need to be addressed to grow an automated car market in Japan.

“Automakers should partner with non-automotive industry participants beyond the conventional component suppliers in their group companies to commercialise advanced automated driving technologies,” said Sarasa Hayashi. “More crossed alliance across automotive OEMs, component suppliers, and tech companies will be a key for success in automated driving development.”

Strategic Analysis of Automated Car Market in Japan, 2016 is part of Frost & Sullivan’s Future of Mobility Growth Partnership Service program.

To view a sample of this research, please click here.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow

FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, iot home automation is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more
RECENT ARTICLES

AND Technology Research and University of Essex join forces to develop self-powering, battery-less IoT device powered by AI

Posted on: September 24, 2021

Purpose-led technology company, AND Technology Research, is announcing a new partnership with computer scientists from the University of Essex to explore new ways of reducing the amount of power a device needs, while at the same time using energy harvesting techniques to produce truly self-powering devices.

Read more

How can IoT optimise the bearing supply chain?

Posted on: September 24, 2021

In 2020, stock management issues were estimated to cost UK manufacturers 66 billion GBP  because of disruption caused by the pandemic. Consequently, the quest to improve efficiency, cut waste and enhance supply chain operations is one that suppliers know all too well. Here Chris Johnson, managing director at miniature bearings specialist SMB Bearings, explains how the Internet of Things

Read more