The Internet of Things (IoT), which at the most basic level refers to physical objects that use sensors, software, and network connectivity to process data and exchange information with other objects and systems, is an integral part of Japan’s ambition to achieve a society in which the cyberspace and the physical space are connected to each other in a highly integrated manner. This vision of a “Society 5.0,” which was put forward by the 5th Science and Technology Basic Plan of the Council for Science, Technology and Innovation (CSTI) in 2016, seeks to utilize technology to combine sound economic development with solving various social issues, such as coping with rural depopulation and demographic aging. Next to IoT, technologies such as
are supposed to improve people’s quality of life by offering customized services.
The Japanese IoT market
Based on user expenditure, the
domestic IoT market was estimated to be worth around 6.8 trillion Japanese yen in 2022 and forecast to grow to almost 9.2 trillion yen by 2027. IoT devices have been used in various industries for a wide variety of tasks, such as agricultural field monitoring, smart warehouse management, and in-hospital clinical care. A survey among manufacturing companies showed that almost one-fifth of the responding companies had already
introduced IoT in the pursuit of creating a smart factory. In the case of smart factories, IoT devices can help to visualize production equipment, detect signs of malfunction, and reduce the burden of on-site staff, which also helps companies to deal with labor shortages. The
value of the factory digitalization market is expected to grow steadily in the coming years, with cyber-physical systems (CPS) and digital twins increasingly attracting attention due to the availability of data accumulated via IoT and cloud services.
IoT home appliances
Consumers likewise profit in various ways from IoT devices and appliances. According to survey data, the
most commonly owned IoT home appliances are air conditioners, speakers, refrigerators, washing machines, and lighting devices. These appliances offer certain helpful functions, such as automatic adjustments of temperatures or water levels based on information gained via sensors. Many can also be controlled remotely. Although network-connected appliances have been available since the early 2000s, they initially did not gain a lot of traction with consumers due to a perceived lack of advantages. A bigger change in this regard was brought about by the success of smart speakers in the latter half of the 2010s. The
share of people who use smart speakers has increased in recent years, with people using them to listen to weather forecasts, music, and the news, to look up information, or to control other devices and appliances, such as TVs, thermostats, and lighting equipment.
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