Japan's Robot Market Rebounds! Orders Expected to Grow 4.8% in 2025
Japan Robot Association Forecasts 4.8% Growth in Industrial Robot Orders for 2025, Reaching
(H2) The Japan Robot Association has projected that the total annual order value for industrial robots (including non-member companies) will reach 870 billion yen in 2025, marking a 4.8% increase from the 2024 estimate.
This growth is driven by expectations of economic expansion in the United States, as well as a recovery in the semiconductor and electronics industries fueled by investments in artificial intelligence (AI). Additionally, increasing labor shortages in major economies are expected to spur sustained demand for automation, leading to a gradual recovery in investments.
Yasuhiko Hashimoto, chairman of the Japan Robot Association and president of Kawasaki Heavy Industries, acknowledged uncertainties arising from U.S. trade policies under the next Trump administration and renewed trade tensions between the United States and China. However, he remains optimistic, predicting increased orders due to strong investment in automation. The association also forecasts a 6.1% rise in production value, reaching 830 billion yen.
For 2024, orders are expected to decline by 1.6% compared to 2023, settling at 830 billion yen. Initially, the association had projected orders to reach 900 billion yen, but weaker-than-expected demand, particularly from China, along with geopolitical uncertainties such as Russia’s invasion of Ukraine and postponed investments ahead of the U.S. presidential election, have led to a downward revision. Production for 2024 is also expected to decrease by 12.3% to 782 billion yen.
The annual order value for industrial robots surpassed 1 trillion yen in both 2021 and 2022 but has remained stagnant since 2023. Continued delays in investments, particularly due to the slowdown in the Chinese economy and reduced spending on electric vehicle (EV) manufacturing, have impacted market growth. Despite current challenges, long-term growth prospects remain strong, driven by increasing automation needs amid ongoing labor shortages.
