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CIAJ Announces Telecommunication Equipment Production and Trade Figures For the First Half of FY2015 (April – September) – Despite shrinking domestic production, imports & exports continue 20%+ growth –

2016-01-20

The Communications and Information network Association of Japan (CIAJ: a general incorporated association) announces the telecommunication equipment production and trade figures for April through September, 2015 as follows.
The Japanese economy showed signs of gradual recovery in FY2015 with the central government announcing a +1% real GDP (annual) for July – September (2nd update), and capital investments in the private sector also revised upwards. The domestic telecommunication equipment market continued to shift manufacturing overseas, with growth in both exports and imports remaining high. Furthermore, shrinking demand for central switching systems as networks shift to IP and the end in the cycle of investments towards LTE led to a significant drop in domestic production.
The total value of production in the first half of FY2015 was 336.8 billion yen (-13.2% year-over-year growth). The total figure for exports was 279.6 billion yen (+26.2% year-over-year growth) while imports was 1.321 trillion yen (+23.2% year-over-year growth).

I. Production Trends (from METI’s “Indices of Industrial Production”)

(1) Actual figures for first half of FY2015
The total value of domestic production in the first half of FY2015 was 336.8 billion yen (-13.2% year-over-year growth), recording the sixth consecutive half year negative growth.

(2) Figures by equipment categories

  1. Wireline terminal equipment: 31.2 billion yen (-7.8% year-over-year growth) of which:
    Telephone sets accounted for 1.8 billion yen (-2.2% year-over-year growth), telephone application equipment was 28.6 billion yen (-8.4% year-over-year growth) and facsimile equipment was 800 million yen (+1.6% year-over-year growth). Of telephone application equipment, key telephones accounted for 12.3 billion yen (-10.9% year-over-year growth) and intercoms 16.3 billion yen (-6.5% year-over-year growth).
  2. Mobile terminal equipment: 109.7 billion yen (-1.4% year-over-year growth) of which:
    Mobile phones accounted for 86.9 billion yen (+2.3% year-over-year growth) and public-use PHS terminals was 1.6 billion yen (-65.4% year-over-year growth). Demand for mobile phones was supported by the 2-year contract renewal from 2013 and public-use PHS migration to ultra low-end smartphones, pushing figures slightly higher.
  3. Wireline network equipment: 87.9 billion yen (-24.5% year-over-year growth) of which:
    Switching systems accounted for 24.9 billion yen (-40.6% year-over-year growth) and transmission equipment was 63.0 billion yen (-15.4% year-over-year growth). The shift to IP networks resulted in a large drop in demand for central as well as all switching systems. The conclusion of the latest round of investment in digital transmission equipment pushed down the numbers for all transmission equipment.
  4. Wireless network equipment: 77.1 billion yen (-16.7% year-over-year growth) of which:
    Fixed telecommunication equipment accounted for 23.4 billion yen (-16.0% year-over-year growth) and base stations: 53.7 billion yen (-17.0% year-over-year growth). Despite growth in satellite fixed communication equipment, the end of the investment cycle for terrestrial fixed communication equipment and base stations pushed the overall figure significantly lower.
  5. Network access equipment (routers, LAN switches, etc.): 17.0 billion yen (-22.4% year-over-year growth)
  6. Wireline parts: 13.9 billion yen (+16.9% year-over-year growth)

II. Exports (from Ministry of Finance’s “Trade Statistics”)

(1) Actual figures for first half of FY2015

The total figure for exports in the first half of FY2015 was 279.6 billion yen (+26.2% year-over-year growth).
The data communication equipment figure reflects investments to accommodate the surge in data traffic over communication networks. The positive growth reflects the continuing trend of exporting parts to China and importing mobile phones.

(2) Figures by equipment categories

  1. Telephone sets and terminal equipment: 2.7 billion yen (-20.0% year-over-year growth) of which:
    Mobile phones accounted for 1.3 billion yen (-23.4% year-over-year growth), facsimiles was 0.2 billion yen (+10.1% year-over-year growth), cordless handsets for landline phones was 0.2 billion yen (+40.0% year-over-year growth) and other was 1.0 billion yen (-23.7% year-over-year growth).
  2. Network equipment: 90.3 billion yen (+5.4% year-over-year growth) of which:
    Base stations accounted for 5.4 billion yen (-63.4% year-over-year growth), data communication equipment was 82.3 billion yen (+20.0% year-over-year growth) and other network equipment was 2.6 billion yen (+9.8% year-over-year growth).
  3. Parts: 186.6 billion yen (+40.7% year-over-year growth).
    (Cumulative total of wireline and wireless parts: The Ministry of Finance ceased to differentiate the two categories from 2007)

(3) Figures by region
By region, Asia was 211.9 billion yen (+43.3% year-over-year growth), of which China was 145.9 billion yen (+68.6% year-over-year growth). Of the parts total of 186.6 billion yen, exports to China accounted for 134.2 billion yen, or 71.9% of the total figure.
North America was 37.3 billion yen (+0.8% year-over-year growth), of which the U.S. accounted for 36.7 billion yen (+1.3% year-over-year growth). Europe was 19.0 billion yen (+7.1% year-over-year growth) of which the EU was 16.1 billion yen (+10.3% year-over-year growth).

III. Imports (from Ministry of Finance’s “Trade Statistics”)

(1) Actual figures for first half of FY2015

The total figure for imports in the first half of FY2015 was 1.321 trillion yen (+23.2% year-over-year growth). Overall, there was a spike in mobile phones and data communication equipment, including routers and switches.

(2) Figures by equipment categories

  1. Telephone sets and terminal equipment: 842.9 billion yen (+35.1% year-over-year growth) of which:
    Mobile phones accounted for 833.6 billion yen (+35.7% year-over-year growth), facsimiles was 1.8 billion yen (-15.5% year-over-year growth), cordless handsets for landline phones was 2.9 billion yen (-18.6% year-over-year growth) and other was 4.6 billion yen (+18.8% year-over-year growth).
  2. Network equipment: 320.8 billion yen (+6.9% year-over-year growth) of which:
    Base stations accounted for 6.4 billion yen (-81.8% year-over-year growth), data communication equipment was 302.1 billion yen (+19.1% year-over-year growth) and other network equipment was 12.3 billion yen (+8.4% year-over-year growth).
  3. Parts: 157.2 billion yen (+6.0% year-over-year growth).
    (Cumulative total of wireline and wireless parts: The Ministry of Finance ceased to differentiate the two categories from 2007)

(3) Figures by region
By region, Asia was 1.240 trillion yen (+24.2% year-over-year growth), of which China was 1.045 trillion yen (+30.0% year-over-year growth). Of the 833.6 billion yen total for mobile phone imports, imports from China accounted for 753.4 billion yen, or 90.4% of the total figure.
Imports from North America was 41.0 billion yen (+7.0% year-over-year growth), of which the U.S. accounted for 39.1 billion yen. Europe was 18.2 billion yen (-8.0% year-over-year growth) of which the EU was 17.8 billion yen.

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