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Frost & Sullivan: Technological Advancement And Increasing Investment In End-user Industries Boosts Automation Market In Japan

SINGAPORE, March 25, 2013 /PRNewswire/ -- Along with the economy, the automation and controls market in Japan is steadily recovering after the massive setbacks caused by the Great East Japan Earthquake in 2011. Strong support from the government in terms of investment in the ever-growing electronics and semiconductors, metals and mining, pharmaceuticals, and automotive industries as well as the continuing demand for Japanese products from other Asian countries is fuelling the use of automation products.

New analysis from Frost & Sullivan (, Analysis of the Automation and Controls Market and Growth Opportunity in Japan , finds that the market earned revenues of over $2911.1 million in 2011 and estimates to reach $4800.2 million in 2017. The study covers the following product segments: programmable logic controllers (PLC), distributed control systems (DCS), supervisory control and data acquisition (SCADA), human machine interface (HMI), and manufacturing execution systems (MES).

"Rising energy costs are pushing end users to invest in automation, which optimizes asset utilization and reduces total production costs," observed Frost & Sullivan Research Analyst Vandhana Venkatesan. "Control systems can carry out condition monitoring, collaborative manufacturing, and real-time optimization, reducing time-to-market while maintaining standards."

The need for compliance with safety, regulatory, and quality standards is another key driver in the market. The Japan Industrial Standards (JIS) encompass both the ISO and IEC standards and mandate certain safety-integrated controls for efficient production. As manufacturing companies look to deploy state-of the-art automation and control systems, vendors will be challenged to cater to their technology, service, support and training demands.

Price competition is expected to be fierce in the high-demand PLC and DCS segments. The blurring difference between DCS and advanced PLC functionality will also force the latter to focus on multi-domain functionality and increased programming flexibility to sustain market share.

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