The Communications and Information network Association of Japan (CIAJ) announces the release of “The Study on Global Telecommunications Equipment Trends (unofficial translation: available in Japanese only).”
This Study continues to look at global business activities by Japanese manufacturers to capture changes in production and shipment figures. It focuses on the four categories of mobile phones, digital transmission equipment, base stations for mobile networks and backhaul equipment to reveal their unique production and shipping landscape.
1. Outline
Global demand for telecommunication equipment continues to grow, although at a slower pace. On the other hand, domestic production and shipment by Japanese manufacturers have continued to decline over the years, but their production and shipments overseas has increased and together with the weaker yen, they almost made up for the domestic losses, ringing in at a combined year-over-year (YoY) growth rate of -0.6% from 2014. When focusing only on overseas activities, overseas production by Japanese brands grew +6.3% YoY in 2015 and exports from overseas sites grew by 3.4%.
[Diagram 1: Value of Shipments by Japanese/foreign brands in the Global Telecom Market]
Comparisons of 2015 figures for Japanese brands in the global market reveals the following:
- Of the total production figure for Japanese brands (2.692 trillion yen), approximately 70% is the value of products produced abroad, and an increasing amount of about 40% of the former figure is the value of products manufactured abroad and exported to overseas markets (including the country of origin), or Out-Out. This leads to the conclusion that domestic production and shipment data alone are not accurate reflections of the actual state.
- The share of foreign brands in the Japanese market (2.726 trillion yen) has grown to approximately 50%. This means that looking only at domestic production and shipment figures was capturing only about half of the actual Japanese market.
[Diagram 2: 2015 Manufactured Goods and Flow of Shipments for the Telecom Equipment Market]
In-In: Domestic production shipped domestically
In-Out: Domestic production exported overseas
Out-In: Overseas production imported into Japan
Out-Out: Overseas production shipped overseas without going through Japan
2. Changes in the flow of production and shipments by Japanese brands in the telecom equipment market
The insights gained from domestic production and shipment statistics for Japanese manufacturers reveals a 43% decline in the “In-In” category from 2012 to 2015. Looking at just these numbers imposes an impression that Japanese brand presence in the domestic market has drastically dwindled. However, the growth in overseas production (3) reveals that the actual overall decline (overseas production (3) + domestic production (4)) is about 8%. Furthermore, the continuous growth of overseas shipments by Japanese brands (In-Out + Out-Out) indicates that their presence in the global market (by value) has not shrunk.
The growth in overseas shipments by Japanese brands (In-Out + Out-Out) is approximately matched by the growth in domestic shipments of foreign brands, meaning that in the Japanese market, where there is little change in total value, the share by foreign brands has increased.
3. Other
This study looked not only at the entire telecommunication equipment market but also at mobile phones, digital transmission equipment, base stations for mobile networks and backhaul equipment to reveal their unique production and shipping trends and gain a better understanding of Japanese brands in the domestic and global markets. CIAJ will continue to study global market trends with the grasp of the global picture becoming increasingly important.
Please e-mail to CIAJ(e-mail: ciaj-report[at]ciaj.or.jp) to purchase a copy of the Study on Global Telecom Equipment Market Trends (6,000 yen + tax for CIAJ members, 19,000 yen + tax for non-CIAJ members).
For details, contact
Market Research
CIAJ
tel: 81-3-5403-9356 fax: 81-3-5403-9360
For more general inquiries, contact
Corporate Communications
CIAJ
tel: 81-3-5403-9351 fax: 81-3-5403-9360
