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Construction & Building Technologies Japan Market Study Construction & Building Technologies Japan Market Study JULY 2018 © Copyright EU Gateway | Business Avenues The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the European Union. Neither the European Union institutions and bodies nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein. The contents of this publication are the sole responsibility of EU Gateway | Business Avenues and can in no way be taken to reflect the views of the European Union. The purpose of this report is to give European companies selected for participation in the EU Gateway | Business Avenues Programme an introductory understanding of the target markets countries and support them in defining their strategy towards those markets. For more information, visit www.eu-gateway.eu. Photo by Benson Kua, distributed under CC licence BY-SA 2.0. EU Gateway to Japan Central Management Unit Japan Market Study July 2018 Submitted to the European Commission on 25 July 2018 Construction & Building Technologies – Japan Market Study - Page 3 of 108 Table of Contents TABLE OF FIGURES .................................................................................................................................................. 5 LIST OF ABBREVIATIONS ........................................................................................................................................ 7 1. EXECUTIVE SUMMARY ....................................................................................................................................... 10 2. WHAT ARE THE CHARACTERISTICS OF JAPAN ............................................................................................ 19 2.1. POLITICAL OVERVIEW ........................................................................................................................... 19 2.2. ECONOMIC OVERVIEW .......................................................................................................................... 21 2.3. TRADE OVERVIEW BETWEEN EU AND JAPAN ......................................................................................... 23 2.3.1. EU and Japan Business in Figures ............................................................................................... 23 2.3.2. EU-Japan Economic Partnership Agreement (EPA) ..................................................................... 25 3. MARKET OVERVIEW AND BUSINESS OPPORTUNITIES ................................................................................ 27 3.1. JAPANESE CONSTRUCTION & BUILDING TECHNOLOGIES MARKET .......................................................... 27 3.1.1. Brief Historic Overview .................................................................................................................. 27 3.1.2. Market Overview ............................................................................................................................ 29 3.1.3. Market Challenges ......................................................................................................................... 40 3.1.4. Market Trends ................................................................................................................................ 45 3.1.5. Market Players: Construction Companies ..................................................................................... 53 3.2. SMART GRIDS ...................................................................................................................................... 64 3.2.1. Market Overview ............................................................................................................................ 64 3.2.2. EU Entry Opportunities .................................................................................................................. 69 3.3. SMART AND GREEN BUILDINGS ............................................................................................................. 72 3.3.1. Market Overview ............................................................................................................................ 72 3.3.2. EU Entry Opportunities .................................................................................................................. 80 3.4. MACHINERY SECTOR ............................................................................................................................ 83 3.4.1. Market Overview ............................................................................................................................ 83 3.4.2. EU Entry Opportunities .................................................................................................................. 87 3.5. BUILDING MATERIALS AND INSTALLATIONS ........................................................................................... 90 3.5.1. Market Overview ............................................................................................................................ 90 3.5.2. EU Entry Opportunities .................................................................................................................. 93 4. CONSTRUCTION AND BUILDING TECHNOLOGY REGULATIONS ................................................................ 97 4.1. BUILDING STANDARD LAW .................................................................................................................... 97 4.2. BUILDING ENERGY CONSERVATION ACT ............................................................................................... 98 4.3. JAPAN INDUSTRIAL STANDARD (JIS) AND JAPAN AGRICULTURAL STANDARD (JAS) ............................ 100 Construction & Building Technologies - Japan Market Study - Page 4 of 108 5. ANNEXES ........................................................................................................................................................... 102 5.1. BIBLIOGRAPHY ................................................................................................................................... 102 5.2. CONSTRUCTION AND BUILDING TECHNOLOGY INDUSTRY ASSOCIATIONS .............................................. 105 5.3. TRADE FAIRS ..................................................................................................................................... 106 Table of Figures Figure 1: Building and Construction Technology Market Overview per Sector .......................... 12 Figure 2: Key Building and Construction Regulations ................................................................ 17 Figure 3: Japan Factsheet ......................................................................................................... 19 Figure 4: Three Arrow Policy of Abenomics ............................................................................... 22 Figure 5: EU-Japan Trade Figures for Goods 2015-2017 .......................................................... 24 Figure 6: EU-Japan Trade Figures for Services 2014-2016 ....................................................... 24 Figure 7: Facts and Figures Economic Partnership Agreement (EPA) ...................................... 25 Figure 8: EU Japan Summit: EPA Agreement ........................................................................... 26 Figure 9: Comparison Global Construction Market .................................................................... 28 Figure 10: Construction Investment Value per Geographic Area ............................................... 30 Figure 11: Overview Breakdown Construction Investments ....................................................... 31 Figure 12: Construction Breakdown per Type FY2016 .............................................................. 32 Figure 13: Evolution Total Annual Value of Public Infrastructure Works .................................... 32 Figure 14: Future Maglev Tracks ............................................................................................... 33 Figure 15: Design Image Haneda Zone 1 by Kajima Corporation .............................................. 35 Figure 16: King SkyFront by Daiwa House and Connection Bridge by Cabinet Office ............... 36 Figure 17: Shibuya Station Redevelopment Project ................................................................... 37 Figure 18: Toranomon Hills Multi-Use Complex with New Hibiya Subway Station .................... 38 Figure 19: Aerial view of the new Toyosu Fish Market ............................................................... 39 Figure 20: New National Stadium in Tokyo by Architect Kengo Kuma ....................................... 40 Figure 21: Age Demographics Workforce in the Construction Industry ...................................... 41 Figure 22: Annual Working Hours in the Construction Industry vs Average All Industries ......... 42 Figure 23: Evolution Overseas Construction Projects in Value .................................................. 44 Figure 24: After-care and Maintenance Market is Strong ........................................................... 48 Figure 25: Voluntary Action Plan of the Construction Industry: 6th Policy 2016-2020 ............... 49 Figure 26: Japan wants robots to help build its skyscrapers ...................................................... 51 Figure 27: Daiwa House unveils construction robot ................................................................... 52 Figure 28: Top 10 Japanese General
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