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Space Industry Business Opportunities in Japan

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Space Industry Business Opportunities in Japan EU-Japan Centre for Industrial Cooperation Space Industry Business Opportunities in Japan: Analysis on the Market Potential for EU SMEs Involved in the Earth-Observation Products & Services Tokyo, October 2016 Ryuichi Dunphy 1 Disclaimer The information contained in this publication reflects the views of the author and not necessarily the views of the EU-Japan Centre for Industrial Cooperation, the views of the EU Commission or Japan authorities. The author believes that this paper is reliable and reasonably clear. While utmost care was taken to check and translate all information used in this study, the author and the EU-Japan Centre may not be held responsible for any errors that might appear. This report does not constitute legal advice in terms of business development cases. The author can be reached at [email protected]. About the Author Ryuichi Dunphy is an Aerospace Engineer with a Master Degree in Aerospace Engineering from Delft University of Technology in the Netherlands, and a Dual Bachelor Degree in Space Engineering and Physics from the University of Queensland in Australia. During his academic tenure, he worked as a project manager for feasibility studies with NASA Langley Research Centre on manned exploration mission of Mars, and also with the Brazilian Institute of Space Studies (INPE) on the microsatellite-based internet and remote-sensing system for the Amazon region. Prior to his graduate studies at TU Delft, he worked as a mechanical engineer in Australia, and after graduating, he worked as a satellite data processing support engineer at Portuguese Institute of Ocean & Atmospheric Studies (IPMA) in Lisbon. Ryuichi is part Japanese, and is fluent in Japanese language. He has worked in Japan and has a deep understanding of the Japanese business culture and practices, as well as understanding of Asia after studying and working in Singapore and China. The 6-month MINERVA research fellow enabled him to develop a profound understanding of the market landscape of the Japanese space industry, and build an extensive network with the key players in both private and public sector. 2 Acknowledgements First and foremost, I would like to express my sincerest gratitude to the EU-Japan Centre for Industrial Cooperation and Mr. Silviu Jora for accepting me for the MINERVA Research Fellowship program. The research topic was truly fascinating, and it enabled me to not only build valuable network with the key players in the Japanese space industry, but also greatly deepen my understanding of the Japanese space program. I would like to thank Mr. Fabrizio Mura for his continuous support throughout my placement. I truly appreciate how he was always available for consultation, and his insight and ideas greatlJPYhanced the content of my research. I would also like to thank Ms. Yoko Kadoya for her support and guidance with my project. Her ideas and advice were simply impeccable, and they greatly assisted me in networking with various stakeholders in the Japanese space industry. Working with Fabrizio and Yoko has been the highlight of my experience at the centre where I learnt immensely about EU-Japan relationship. Last but not least, I would like to thank my fellow MINERVA researchers, Manuel, Guillaume and Ines, and also all the staff at the EU-Japan Centre for making my 6 months most memorable. I look forward to working with you again in the future. Oct 2017 Ryuichi Dunphy 3 1 Table of Contents Table of Figures ................................................................................................................................... 8 List of Abbreviations ......................................................................................................................... 12 Introduction........................................................................................................................................ 14 Executive Summary .......................................................................................................................... 15 1 Japanese Space Scene ................................................................................................................. 19 1.1 Overview ................................................................................................................................... 19 1.2 Japanese Space Agency ........................................................................................................... 20 1.3 History ....................................................................................................................................... 23 1.4 Key Government Bodies .......................................................................................................... 24 1.5 Main Aerospace Companies..................................................................................................... 26 2 Japanese Space Policy ................................................................................................................. 30 2.1 Background ............................................................................................................................... 30 2.2 Basic Space Law ....................................................................................................................... 32 2.3 Basic Plan of Space Policy ....................................................................................................... 34 2.4 Government Budget ................................................................................................................. 37 2.5 Key Space Projects ................................................................................................................... 39 2.6 Recent Policy Developments .................................................................................................... 42 2.6.1 Space Activities Act .......................................................................................................... 42 2.6.2 Remote-Sensing Act .......................................................................................................... 43 2.7 Commercialisation & Promotion of Space .............................................................................. 43 2.7.1 Establishment of New Enterprise Promotion Department ........................................... 43 2.7.2 Development of New Business Solution using Satellite Data ....................................... 45 4 2.7.3 Space Exploration Innovation Hub ................................................................................. 45 3 Japanese Earth-Observation Industry ...................................................................................... 47 3.1 Japan’s Earth-Observation Program ...................................................................................... 47 3.1.1 Main Issues........................................................................................................................ 49 3.1.2 Current Missions ............................................................................................................... 50 3.1.3 Future Missions ................................................................................................................ 53 3.1.4 Past Missions ..................................................................................................................... 56 3.2 Value-Chain Analysis .............................................................................................................. 60 3.2.1 Industry Groups ................................................................................................................ 64 3.3 Recent Developments ............................................................................................................... 67 3.3.1 New EO Satellite Developers ........................................................................................... 67 3.3.2 Commercial EO Satellite Operation ................................................................................ 68 3.3.3 Growing Interests in Overseas Expansion & Collaboration .......................................... 69 3.4 EO Data Provision .................................................................................................................... 70 3.4.1 Open Free Data ................................................................................................................. 71 3.4.2 Commercial Data .............................................................................................................. 73 3.4.3 Compatibility with the EU’s Data Policy ........................................................................ 74 3.5 International Cooperation ....................................................................................................... 75 3.5.1 Government Funding Programs ...................................................................................... 75 3.5.2 Inter-Governmental Initiatives ....................................................................................... 77 3.5.3 Inter-Agency Agreements ................................................................................................. 79 3.6 SWOT Analysis ......................................................................................................................... 80 3.6.1 Strengths ........................................................................................................................... 80 3.6.2 Weaknesses ......................................................................................................................
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