CONFIDENTIAL
FOR INTERNAL USE WITHIN
CLIENT COMPANY ONLY
TRANSPORTATION AND
AUTOMOTIVE
OPPORTUNITIES IN JAPAN
BUSINESS SWEDEN
November 2015
Tokyo
OVERVIEW - SUMMARY
Infrastructure
- Japan has a well-developed infrastructure network.
- Tokyo aims to be a competitive global city.
Air
- There are 97 airports throughout Japan. Many airports
have been built over the past 50 years since Japan’s
landmass is covered to 75% by mountains.
- Only 8 out of the 97 airports are making a profit.
Automotive
- Still large manufacturing base and consumer market.
- Home market to Toyota, Suzuki, Honda, Nissan, Mazda,
Subaru, Mitsubishi, etc. provide fierce competition.
- The industry employs approx. 9 % of working population.
- Only 5% of vehicles sold are imported and components
procured mainly from domestic subcontractors.
Railway
- Japan is recognized to be world-leading within railway.
BUSINESS SWEDEN
KEY TRENDS
Infrastructure
 Major urban redevelopment projects are ongoing in
several suburbs prior to the 2020 Tokyo Olympics.
Air
 Japan’s airline industry and airports are expected to be
privatized in order to increase industry efficiency.
 Remote air control systems and other advanced
technology could reduce costs for small airports and
facilitate the increasing number of foreign tourists.
Automotive
 Developing the next generation of vehicles such as FCV
and PHV, and increasing traffic safety through ICTimplementation, is leading developments.
Trains / Railway
 The Japanese government has increased ambitions to
export trains and railway technology.
25 NOVEMBER, 2015
2
HIGH INFRASTRUCTURE AND TRANSPORTATION
DEMAND LEADING UP TO 2020 TOKYO OLYMPIC GAMES
 Tokyo aims to be a competitive global city and large
infrastructure transportation investment projects are
ongoing in major suburbs of Tokyo. Tokyo Metropolitan
Government decided upon urban redevelopment of
areas such as Shinjuku, Shibuya, Roppongi,
Shinagawa and Tokyo bay area. In these areas is it
allowed to build high capacity and height because of
deregulated building acts.
 For Swedish companies there are both direct and
indirect infrastructure business opportunities related to
the Olympic games. However, for infrastructure projects
it is necessary for foreign companies to have a local
business partner.
Major projects in central tokyo area
SOURCE: DBJ, TOKYO OLYMPIC PARALYMPIC GAMES INFRASTRUCTURE AND URBAN DEVELOPMENT PLAN
BUSINESS SWEDEN
25 NOVEMBER, 2015
3
TOKYO IS AIMING TO BE A COMPETITIVE GLOBAL CITY
Major Urban Development Project in Tokyo
 Marunouchi
 Marunouchi will certainly grow as Mitsubishi Estate Co., Ltd., owning most of the land in this area, is actively
involved in development projects. Following the approval of “Type 1 City Redevelopment Project at Otemachi 2
Chome” in August 2013, many old buildings and parking lots will be renovated in the area.
 Nihonbashi
 Mitsui Fudosan is redeveloping about 309,100 square meters (3.3 million square feet) of floor space in Nihonbashi
by 2019. It is in talks with the government about the removal of a highway near Tokyo Station ahead of the 2020
Olympic Games. Muromachi Furukawa Mitsui, Muromachi Chibagin Mitsui have opened this year
 Shinjuku
 In response to traffic congestion, an air space over the south exit of the Shinjuku Station is currently being
constructed. A wide variety of buildings and facilities, as well as pedestrian squares, taxi stands, and long-distance
bus stops will be built on the ground
 Shibuya
 In 2013, the Tokyo Metropolitan Government approved three urban projects: the “Station Commercial District
Development Plan,” the “Dogenzaka Redevelopment Plan,” and the “Shibuya Station South District Development
Project.”
 These three projects call for the development of more commercial facilities and offices; increase and improvement of
parking lots, pedestrian decks and limousine bus terminals; and the use of design elements at pedestrian squares
and the lower levels of buildings
SOURCE: BUREAU OF URBAN DEVELOPMENT TOKYO METROPOLITAN GOVERNMENT
BUSINESS SWEDEN
25 NOVEMBER, 2015
4
DIVERSIFICATION PLAN OF TRANSPORT SYSTEM IN
JAPAN
 Based on Ministry of Land, Infrastracture, Transport and Tourism mid term goal, they are aiming to
diversify a transportation system. In Japan, 1747municipalities exist today(equivalent to Swedish
Kommun) and they are responsible for local transportation. Especially rural areas, it is too little demand
to operate a daily bus. On the other hand, a demand transportation system is mutual benefit in terms of
low cost, door to door service and time flexibility. Because of aging society in Japan, numbers of nonstep bus and low-floor electric tramway need to be improved.
2013
2020
Demand transportation system
311 municipalities
700 municipalities
Bicycle sharing system
54 municipalities
100 municipalities
Station platform automated security door
583 stations
1000 stations
Non-step bus
44%
70%
Low-floor electric tramway
25%
35%
Free Wi-Fi spot at major stations
87%
100%
BUSINESS SWEDEN
25 NOVEMBER, 2015
5
JAPAN ENFORCES HANEDA, NARITA AIRPORT TO BE A
COMPETITIVE ASIAN HUB
Haneda & Narita Airport Expansion Plans
 Tokyo Metropolitan area airport slots have increased over last 5 years as
the right graph shows. Based on the Ministry of Land, Infrastructure,
Transport and Tourism’s (MLIT’s) plan, this expansion will continue until
the mid 2020s.
 This increase is necessary to further economic growth. Japan National
Tourism Organization is aiming to increase the number of visitors from
overseas to 30 million per year by 2030 (13.4million visitors in 2014,
estimated 19million visitors in 2015). As a consequence there will be
strong demand especially for aviation, tourism, hospitality business.
Slots
(thousands)
 The Japanese government have, as of 2015, signed the open skies treaty
with 27 countries / regions. The ratio of passengers who fly to such
destinations (open skies countries/ regions) is 94%. (Sweden agreed with
Japan in 2012.)
Narita
1200
1000
460
800
340
600
Open Skies Treaty
 Japan is liberalizing airports and air travel to boost tourism.
Haneda
250
400
270
270
300
220
616
200
303
390
410
447
447
486
0
Year
 This makes it easier for aviation companies to freely launch new flights in
high traffic airports such as e.g. Narita and Kansai airport (excluding
Haneda however).
SOURCE: MINISTRY OF LAND, INFLASTRUCTURE,TRANSPORT AND TOURISM, THE DAILY ENGINEERING & CONSTRUCTION NEWS
BUSINESS SWEDEN
25 NOVEMBER, 2015
6
MOST AIRPORTS SUFFER FROM DEFICIT AND
PRIVATIZATION WILL BE CARRIED OUT FROM 2018
 There are 97 airports throughout Japan. However, only 8 out of
the 97 are making a profit from aviation related business.
 As Japan’s landmass geographically is covered to 75% by
mountains, many airports have been built over the past 50 years.
Airports and aviation business that in recent years are meeting
increased competition from other modes of transportation such as
highways and bullet trains (e.g. Hokuriku Shinkansen opened in
2015 and Hokkaido Shinkansen partially opens in 2016).
Airport locations in Japan
Total 97 airports
 To reduce fixed cost, advanced technology such as remote air
control system and security can contribute to dramatically reduce
costs especially for small airports on remote islands.
 The long term plan of the Japanese government is to privatize 27
government owned airports in 2018 starting with Sendai and the
New Kansai Airport. It is expected that this privatization can lead
to a more profitable airport business operation.
Deficit Airport
Surplus Airport
Unknown
 Other airports which are under consideration
 Shin Chitose, Hakodate, Kushiro, Wakkanai, Kobe, Fukuoka,
Takamatsu, Hiroshima
SOURCE: MINISTRY OF LAND, INFRASTRUCTURE,TRANSPORT AND TOURISM (MLIT)
BUSINESS SWEDEN
25 NOVEMBER, 2015
7
JAPAN IS STILL A LARGE MANUFACTURING BASE AND
CONSUMER MARKET FOR THE AUTOMOTIVE INDUSTRY
JAPAN VEHICLE PRODUCTION & SALES FORECAST
12
Million units
10
THE AUTOMOTIVE INDUSTRY IS STILL A KEY SECTOR
 Domestic vehicle production and sales is forecasted to
remain around 10 and 6 million vehicles respectively
over the coming 5-year period.
 Competition in the Japanese market is fierce and
Japanese consumers buy mainly Japanese cars, only
about 5 % of sold vehicles are imported.
8
 Firms such as Toyota Motor and Honda Motor have
expressed their intentions to ramp up production
overseas, preferring to serve the regional markets from
manufacturing hubs such as Indonesia and Mexico.
6
4
 Relations with Japanese companies in Japan is crucial
when targeting the Asian automotive industry, especially
in ASEAN-countries.
2
0
2013 2014e 2015f 2016f 2017f 2018f 2019f
Production
Sales
 About 9 % of Japan’s working population is, directly or
indirectly, employed in the auto-related industry
according to Japan Automobile Manufacturers’
Association (JAMA).
JAPAN MAINTAIN A LARGE AUTOMOTIVE INDUSTRY DESPITE GLOBAL PRODUCTION NETWORKS
SOURCE: BMI RESEARCH, JAPAN AUTOMOBILE MANUFACTURERS’ ASSOCIATION (JAMA)
BUSINESS SWEDEN
25 NOVEMBER, 2015
8
JAPANESE GOV’T & COMPANIES INVEST HEAVILY IN
FUEL CELLS & EV’S FOR NEXT GENERATION VEHICLES
FOCUS ON ENERGY EFFICIENT VEHICLES
 Plug-in hybrid (PHD) & Fuel-Cell Vehicles (FCV)
TOYOTA MIRAI FUEL-CELL CAR RELEASED IN 2015
 Plug-in hybrids established on market for many years,
but sales remain volatile.
 Toyota will share fuel-cell vehicle patents free of
charge in a bid to promote hydrogen-powered vehicle
technology, the rationale being that one car company
alone cannot create a hydrogen society.
SOURCE: TOYOTA
 Nissan is working (together with Daimler and Ford) to
launch an affordable fuel-cell car by 2017.
 Honda, together with GM, plans to launch its first fuelcell sedan by 2016.
 The Japanese government supports the technology in an
attempt to establish itself as a leader in the area.
 Each car will be subsidized by over 2 MJPY by the
Japanese government and large investments will be
done in refueling stations.
SOURCE: MINISTRY OF LAND INFRASTRUCTURE, TRANSPORT AND TOURISM, MLIT (FEB 2015), BMI RESEARCH, TOYOTA
BUSINESS SWEDEN
25 NOVEMBER, 2015
9
VISION ZERO INITIATIVE ENABLE FURTHER TRAFFIC
SAFETY COOPERATION WITH JAPANESE STAKEHOLDERS
ROAD FATALITIES PER MILLION INHABITANTS
140
120
Korea
100
80
OECD median
60
Japan
40
Sweden
20
SAFETY STANDARDS - KEY DRIVER OF INNOVATION
 The Vision Zero approach to road safety has proven
highly effective. Still, more work can be done in Korea,
Japan, and Sweden, to further reduce traffic-related
fatalities. Business Sweden actively pursue cooperation
in this area with foreign stakeholders.
 The Japanese government is promoting an increase of
ICT-application and telematics in cars. Automated
braking, spatial indications and the opportunity to use
other cars information to prevent accidents are
prioritized.
 Widespread introduction of automated braking systems
in trucks is one focus area in the 5 year transport policy
plan published in February 2015 by the Ministry of Land
Infrastructure, Transport and Tourism (MLIT).
0
2009
2010
2011
2012
2013
SOURCE: OECD, MINISTRY OF LAND INFRASTRUCTURE, TRANSPORT AND TOURISM (FEB 2015), VISION
ZERO INITIATIVE WEBSITE
BUSINESS SWEDEN
25 NOVEMBER, 2015
10
JAPAN IS A WORLD-LEADER IN TRAINS & RAILWAYS
GOVERNMENT EFFORTS WILL INCREASE GLOBAL AMBITIONS WITHIN THIS FIELD
KEY TRENDS AND DEVELOPMENTS
 Japan is well-known for their world-leading position
within railway infrastructure.
PLANNED MAGLEV SHINKANSEN TOKYO-OSAKA
 In December 2014 construction work began on a 286 km
maglev line between Tokyo and Nagoya.
 “Shinkansen” – Japan’s high speed trains – celebrated
it’s 50th anniversary in 2014.
 By 2045 maglev trains are expected to cover the 410 km
between Tokyo and Osaka in 1h 7min at a top speed of
500 km/h, cutting the journey time in half.
 In a plan to revive local economies, Japan’s government
will continue to invest heavily in the railway infrastructure
 Japan's government signed a deal in January 2015 to
accelerate the construction of two new high speed lines.
 Construction costs are estimated nearly at $100bn for
the Tokyo-Nagoya line, with a majority of the route
expected to go through expensive mountain tunnels.
 Japan has ambitions to sell its high-speed rail
technology overseas, not least in the US.
SOURCE: JAPAN RAILWAYS EAST AND BMI RESEARCH
BUSINESS SWEDEN
25 NOVEMBER, 2015
11
PEOPLE’S HIGHER SECURITY AWARENESS STIMULATES
MARKET GROWTH IN SECURITY SEGMENT
MARKET OVERVIEW
 Surveillance camera system: surveillance cameras,
video management software, lens for surveillance
camera
SECURITY TOTAL MARKET SIZE 10 MN JPY
 Access control: entry/exit management system,
biometrics(fingerprint authentication, vein authentication,
face authentication)
 Event monitoring system: central monitoring system,
intrusion sensor, school emergency call system
 Home security : Home security unit, home security
service, Remote location check for kids, safety
confirmation system for elderly people,
171
Home
Security
Access
Control
 Disaster, fire prevention service: fire detector, gas
leakage alarm, residential fire alarm, emergency
Surveillance
earthquake corresponding terminal, victims safety
Camera
confirmation service, disaster prevention administrative
radio system, crisis management information data
delivery service
152
156
51
43
47
71
76
92
2013
2014
2017*
SOURCE: FUJI KEIZAI
BUSINESS SWEDEN
25 NOVEMBER, 2015
12
CONTACT US
BUSINESS SWEDEN IN TOKYO
Business Sweden
1-10-3-200 Roppongi, Minato-ku,
Tokyo, 106-0032, Japan
T +81 3 5562 5000
[email protected]
http://www.business-sweden.se/japan/