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Analyse the Future Trends in the Political and Policy Environments of Japan Along With Their Impact on the Automation and Electronics Industry
Dublin, Ireland | Posted on February 20th, 2007
The automation and electronics industry is one of the leading manufacturing sectors in all industrialized and industrializing countries of the world. Due to its pervasive applicability, the industry is strongly linked to macroeconomic conditions and is also considered a leading indicator of the health of an economy. Growth in the automation and electronics industry affects other end-user industries such as consumer electronics and computers. Due to its strong influence on the economy and other industries, trends in this space are conscientiously tracked. Over the years, the production base of semiconductors has shifted from the developed countries in North America and Europe to the emerging markets of Asia Pacific and Latin America. Low labour costs and unsaturated markets combined with steady economic recovery have made the Asia Pacific region attractive to semiconductors manufacturers. With some of the world fastest growing economies such as China and India belonging to this region, Asia Pacific is expected to exhibit accelerated growth in demand for electronic components and applications.
After a decade of underinvestment during which Asia chip industry moved toward Taiwan and China, the Japanese electronics and semiconductors industry is all set to dominate the world market once again. Although the global market has evinced great interest in products that Japan excels in producing, domestic manufacturers must be wary of the aggressive expansion plans of Chinese and Taiwanese companies. These strategies to extend their reach could also lead to a glut and the Japanese electronics and semiconductors industry has to prepare for that eventuality as well. The market for industrial automation has almost reached saturation in developed countries, including Japan. However, demand still exists in the form of replaceable investments.
The Japanese Government has been favouring policies that attract foreign investors and promote private investment. It is also concentrating on the liquidity trap and the Valley of death phenomenon. The Valley of death is a common term used to refer to Japan lack of success in commercializing its technologies, which has dented the country chances in the global market. As a result, there have been reforms in the country macroeconomic policies, tax structure, and banking sector. The industrial policy in Japan aims at channelling resources to specific industries to ensure that participants in these spaces have a global competitive advantage. The Ministry of Economy, Trade and Industry (METI) has identified biotechnology and nanotechnology as key leading technology areas. Nanotechnology is a much-watched emerging field, as it is expected to be the driver of the 21st century industrial revolution. According to the Manufacturing Industries Bureau under METI, nanotechnology is likely to help companies create next-generation flat screen display and fuel cells using carbon nanotubes as well as develop diamond semiconductors. Fuel cells, home information appliances, and robots are also expected to play a central role in the future economy of Japan, according to METI.
Frost & Sullivan automation and electronics industry Country Industry Forecast service provides vital inputs for evaluating the attractiveness of a country and its automation and electronics industry. Besides enabling decision makers to assess the impact of non-market forces, it also helps in identifying new market opportunities. This service provides a strong base for preparing contingency plans. In addition, investors can assess industry-specific risk factors as well as conduct a more in-depth micro research.
Benefits of this Service
Identify New Market Opportunities
The future trends in the political and policy environments of Japan have been analyzed in this study along with their impact on the automation and electronics industry. This analysis provides immense information to industry participants on market opportunities in specific segments of the industry in Japan.
Understand Future Industry Trends
The research service gives an insight into the Japanese industry, discusses its dependence on the prevailing political and policy scenarios, as well as forecasts the future political and policy environments in the country. This can enable industry participants to gauge the future direction of the market and devise appropriate market strategies to improve market share.
Devise Country Entry Strategies
The research service provides valuable information and analysis of the strengths and weaknesses of the political and policy environment of Japan that are relevant to the automation and electronics Industry. This is particularly useful in devising country-specific strategies for industry participants.
Understand Policy and Regulatory Environment
A detailed analysis of the policy and regulatory framework of the automation and electronics industry is provided in the research service, which can help industry participants by providing insights into the regulatory environment, as it exists and the future direction of the same.
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