The World of Robotics in Japan

Melody Fang
Everiii & Partners Consulting
6 min readAug 4, 2022

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Industrial Robotics

There is no doubt that Japan is the sphere head in the field of industrial robotics as it is the number one exporter of robots in terms of shipments and number of operating units. The country also remains the testing ground for new applications of robotics. Companies such as Kawasaki, FANUC, OTC Daihen, Epson, Denso, and Mitsubishi are driving the development of industrial robotics in the country. Furthermore, Japan is one of the world’s leading hubs for startups and the tech ecosystem. Thus investments have been flowing into the country seamlessly.

  1. Demand in Industries

Robotics plays a pivotal role in a variety of Japanese manufacturing processes and sectors of services. Due to the escalating demand from the automobile and electronics industries, Japan’s industrial robotics market has become an imperative. According to the Japan Robot Association (JARA), automobile and electric machinery industries occupied 37% and 29% of overall shipment volume in 2020 respectively. However, shipments drastically dropped by 20% after several economic drawbacks, which will later be examined in the market trend sector.

2. Industrial Application

Industrial robotics is fundamentally used for manufacturing processes; they typically have high durability, speed, and precision. Based on the graph provided by JARA, it is shown that material handling robotics — which is capable of transporting cargo in a factory — account for the majority of shipment volume by 23%. Assembly robots follow them at 19%, and welding robots at 17%. In terms of shipment volume, the graph indicates that material handling, assembly, and welding are the primary application of industrial robotics in Japan. While the implementation of robotics can significantly enhance industrial quality, efficiency, and completing hazardous tasks outside of human ability, it can often lead to a high capital cost.

3. Market Trend

As demonstrated by JARA’s line graph, the industry has been reliant on exports ever since the early 2000s. Export shipment value began to ascend as the demand from the automobile and electronics industries began to rise; at the same time, the depreciation of the Japanese currency also impacted the growing export value. Nevertheless, it was followed by a sharp decline when the most unfortunate happened — the global financial crisis in 2008. It severely impacted the value of both domestic and international shipments, hurting the economy. Eventually, on account of the increase in labor cost and quality requirements in China’s market, along with the rising demand in the automobile sector and other manufacturers, Japan’s shipment value started to recover rapidly. By 2018, its shipment value peaked due to large sums of capital investments, the growing need for factory automation, as well as labor-saving reasons. In recent years, however, economic obstacles including the COVID-19 pandemic and the China-United States trade war occurred, causing an economic stagnation as industries reduced their investment in the market. Even so, evidence reveals that orders boosted by an estimated 5% in 2020, regarding both shipment volume and value. This points to the fact that the market situation is likely to heal in no time.

4. A Primary Export Destination: China

While overseas shipments comprise approximately 70% of overall shipment value in 2020, most of them are concentrated in Asia — primarily China. With Asia covering 60–70% of Japan’s export value, China alone has taken up over 40% of it. Consequently, Japan’s market can be greatly influenced by China’s economic status, such as the aforementioned US-China trade friction.

As exhibited in the column chart, the values are significantly higher in Asia compared to that in North America and Europe throughout the years. The replacement of manual labor and investment funds from the automobile and semiconductor industries are attributed to the soaring shipments to Asian markets.

Social Robotics Case Study: Pepper

Not only has robotics become major assistance in the manufacturing processes, but some are literally installed with a mind of their own — they are social robots. A social robot (SR) is capable of performing tasks on a different level than an industrial robot; its fundamental purpose is to socialize with humans. Unlike industrial robots, social robots are programmed with these complex social behaviors that are imitations to that of humans and are generally more affordable in comparison. A Japanese company, Softbank Robotics, built a social robot that has been a huge success in engaging with humans and can interpret human emotions — Pepper.

  1. Performance in Health Care System

Initially, hospitals were actually the first to equip SRs with the intent to improve the lack of interactive opportunities for patients. In Pepper’s case, the robot was placed in hospitals to help patients keep in touch with families and friends, lessening the negative consequences of long-term social isolation.

It has been proven that global pandemics, such as SARS and Ebola, would lead to an increase in the implementation of robotics. This as well applies to the recent COVID-19 pandemic, inducing a rapid expansion of social and industrial robotics that are way more advanced than previous ones. Even after the pandemic, it is predicted that SR adoption will proceed to rise because they can continue to substitute low-skilled occupations at a lower expense.

As we all know, Japan is known for its large aging population, thereby making elderly care services a priority for offering support and financial aid as much as possible. Since 2018, Pepper robots have joined up to 500 elderly care centers, taking on social responsibilities like playing games and exercising with elders.

2. Abilities & Inabilities

As much as Pepper robots are participating in the personal care system, there is still a degree of existential limitations. The given table presents Pepper’s potential capability, regarding both physical and social tasks. The analysis brings us to a conclusion that Pepper is unable to carry out physical activities as well as social ones. As a result, Pepper can only cover as much as 45% of monthly labor hours, limiting mostly to social skills.

3. Softbank Robotics’ Future Goal: Romeo

Although Pepper is not yet qualified to entirely replace a full-time employee due to its physical inabilities, we can expect an improved version of Pepper in the near future — one that can satisfy both physical and social demands simultaneously. In fact, Softbank Robotics is currently building a new project named Romeo, made specifically to work in the elderly care industry. What makes Romeo a more profitable model than Pepper is its acquisition of physical skills, which includes movements like holding objects, catching, and walking up the stairs.

4. Current Users of Pepper (categorized by industry)

Source: Compiled by Uzabase

5. Recent Market Status

Despite being useful in several industries, data has shown a low acceptance rate from numerous users owing to the deficiency of human interactions that it can perform, the availability of other competitors, and the high pricing when compared with other SRs. Last year, the slow adoption of Pepper caused Softbank Robotics to halt its production, considering that the company only sold 27,000 robots after its launch in 2014.

References

SPEEDA-Industrial Robots — Overview -. (2022). Ub-Speeda.com. https://www.ub-speeda.com/industry/industryinformation/iid/UBI130110120/region/AsiaOceania/country/JPN?9

SPEEDA-Social Robots — Report -. (2022). Ub-Speeda.com. https://www.ub-speeda.com/trends/89/overview?11

WebAdmin. (2021, April). Japan’s robots are conquering the world. International Finance; International Finance. https://internationalfinance.com/japans-robots-are-conquering-the-world/

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