Medium-term outlook for Japanese industry


Mizuho Industry Research
December 2, 2021

See full report (PDF)


Mizuho Industry Research, Japan has compiled a report providing a five-year outlook on the Japanese economy – the supply and demand trends up to 2025 in each industry, and their implications for Japanese companies.

Industries covered:

  • Petroleum
  • Steel
  • Chemicals
  • Automotive
  • Machinery & Robotics
  • Electronics
  • Heavy Machinery
  • Logistics
  • Electric Power & Gas
  • Retail
  • Processed Food
  • Mobility, Tourism & Hospitality

 

Key Highlights:

Demand will bounce back in many sectors with the global economic recovery. IT services will grow at a particularly fast clip on rising demand related to digitalization. Exports will increase across many sectors as global demand bounces back, with sectors like machine tools, robotics and processed food set to grow firmly.

The competitiveness of Japanese industry might ‘remain unchanged’ or ‘fall’ over the next five years. Many sectors will see modest growth or stagnation in terms of demand, and no change or a decline in terms of global presence.

The changing business environment is pushing Japanese firms to rethink their business strategy. The business environment is changing rapidly as a result of the spread of COVID-19, digital transformation, the focus on economic security in the face of geopolitical tensions, and growing moves toward carbon neutrality. Japanese firms should adopt long-term perspectives in rethinking (1) business portfolios, (2) capital investment strategy, and (3) risk management – including diversification of profit sources and supply chains. .

 

 
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