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Study on Global Telecom Equipment Market Trends Released – Insights into global business activities by Japanese brands –

2016-04-20

The Communications and Information network Association of Japan (CIAJ) announces the release of “The Study on Global Telecommunications Equipment Trends (unofficial translation).”
This Study seeks to gain a better understanding of global business activities by Japanese manufacturers, which was difficult when referring only to domestic production and shipment figures. It looks at actual figures from 2012 through 2014 for the entire telecommunication equipment market as well as a more closer look at 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 has been growing over the past several years, but domestic production and shipment by Japanese manufacturers have continued to decline.
Underlying reasons are (1) shift to overseas production among Japanese companies and (2) expanding presence of foreign brands in the Japanese market, but past studies only looked at domestic production and shipment figures without accessing statistics reflecting global sales and overseas production. The result of analyzing data related to (1) and (2) revealed the following:

  • Two-thirds of production among Japanese brands are now conducted overseas, with a third of the yen amount of overseas production being shipped to overseas markets.
  • Foreign brands now have a 44% share of the Japanese market. This means that past studies looking only at domestic production and shipment figures was capturing only about half of the actual Japanese market.

[2014 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 decline in the “In-In” category from 1.158 trillion yen in 2012 to 715.4 billion yen in 2014 (-38%), as seen in diagram 1. Looking at just these numbers imposes an impression that Japanese brand presence in the domestic market has drastically declined.
On the other hand, according to this current study, “Out-Out” data and the yen value of overseas production reveals that the presence of Japanese brands globally has not fallen as significantly as it has in the domestic market, as can be seen in diagram 2. Production by Japanese brands fell overall from 2.917 trillion yen in 2012 to 2.710 trillion yen in 2014 (-7%), which is very different from the decline shown by the “In-In” figures.

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. CIAJ will continue to study global market trends with the grasp of the global picture expected to become increasingly important.

Please contact CIAJ (e-mail: ciaj-report@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). This study is available in Japanese only.

For details, contact

Products & Technologies Development
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