[Overview]
In the telecom market during the first half of FY2024, unit prices of equipment rose and the demand for high-speed, large-capacity data traffic for telework and video distribution services increased due to the weaker yen and the soaring prices of parts and materials. Meanwhile, domestic production declined significantly due to continued weak capital expenditures by carriers as well as strong imports. Exports of certain items decreased mainly due to reduced investment by overseas carriers. However, the value of the domestic market increased for the second consecutive half-year period, reflecting a significant rise in imports of smartphones from overseas manufacturers.
(1) Domestic Market Trends
The value of the domestic market (value of domestic production – value of exports + value of imports; excluding parts) amounted to 1,759.8 billion yen, a year-on-year increase of 18.7%. Domestic production of almost all types of equipment decreased. However, the value of the domestic market increased due to a rise in imports of smartphones and data telecom equipment.
(2) Domestic Production Trends
Domestic production totaled 149.9 billion yen, a year-on-year decrease of 15.6%. Investment in communications infrastructure saw sluggish growth. Production of terminal equipment and network equipment declined significantly. Consequently, domestic production decreased for the third consecutive half-year period.
(3) Export Trends
Actual orders received and shipped were 155.6 billion yen, a year-on-year decrease of 4.6%. Exports fell due to a reduction in exports of base stations, primarily caused by reduced investments by overseas carriers and a slowdown in the European economy that persisted from the previous fiscal year.
(4) Import Trends
Total imports amounted to 1,773.8 billion yen, a year-on-year increase of 18.5%. Imports rose for the second consecutive half-year period, reflecting strong domestic demand for smartphones and the release of new products by major overseas manufacturers towards the end of September.
[Orders Received and Shipped by Japan-based CIAJ Member Companies]
Orders received and shipped came to 532.9 billion yen, a year-on-year decrease of 7.3%. Of which the total value of domestic shipments totaled 402.7 billion yen, a decrease of 10.9% over the same quarter of the previous year and exports were 130.2 billion yen, an increase of 6.0% over the same quarter of the previous year.
Domestic shipments decreased year on year due to a fall in shipments of mobile terminals and wireless network equipment despite an increase in wired network equipment. Exports saw a significant year-on-year increase, particularly in wireline network equipment, including digital transmission equipment.
