www.EUbusinessinJapan.eu Artificial Intelligence in Japan (R&D, Market and Industry Analysis) August - 2016 Maths Lundin Sven Eriksson EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - Head office in Japan EU-JAPAN CENTRE FOR INDUSTRIAL COOPERATION - OFFICE in the EU Shirokane-Takanawa Station bldg 4F Rue Marie de Bourgogne, 52/2 1-27-6 Shirokane, Minato-ku, Tokyo 108-0072, JAPAN B-1000 Brussels, BELGIUM Tel: +81 3 6408 0281 - Fax: +81 3 6408 0283 - [email protected] Tel : +32 2 282 0040 –Fax : +32 2 282 0045 - [email protected] http://www.eu-japan.eu / http://www.EUbusinessinJapan.eu / http://www.een-japan.eu www.EUbusinessinJapan.eu Table of Contents 1 Executive Summary................................................................................................................................................. 4 2 Scope of the Report ................................................................................................................................................ 6 2.1 Definition of Artificial Intelligence ................................................................................................................... 6 2.2 List of Abbreviations ........................................................................................................................................ 6 3 Global Overview ..................................................................................................................................................... 7 3.1 Global Market Size ........................................................................................................................................... 7 3.2 Global Market Trends, Drivers and Challenges ................................................................................................ 8 3.3 Global Players .................................................................................................................................................. 9 4 Japan AI Industry .................................................................................................................................................. 11 4.1 Current Status ................................................................................................................................................ 11 4.2 Key Industry Drivers ....................................................................................................................................... 12 4.3 Current Trends ............................................................................................................................................... 12 4.4 Challenges ..................................................................................................................................................... 13 4.5 Insufficient Regulatory Framework................................................................................................................ 13 5 Domestic AI Market .............................................................................................................................................. 15 5.1 Market Potential ............................................................................................................................................ 15 5.2 Customers ...................................................................................................................................................... 16 6 AI Applications ...................................................................................................................................................... 17 6.1 Application Areas ........................................................................................................................................... 17 7 R&D ....................................................................................................................................................................... 18 7.1 Research at Universities ................................................................................................................................ 18 7.2 Research at Public Research Institutes .......................................................................................................... 18 7.3 Collaboration between Companies and Universities/Research Institutes ..................................................... 19 7.4 Corporate Research ....................................................................................................................................... 19 8 Competitive Landscape: Japanese Players ............................................................................................................ 20 8.1 NEC ................................................................................................................................................................ 20 8.2 Fujitsu ............................................................................................................................................................ 20 8.3 Toshiba .......................................................................................................................................................... 20 8.4 Hitachi............................................................................................................................................................ 21 8.5 Mitsubishi Electric ......................................................................................................................................... 21 8.6 Sharp ............................................................................................................................................................. 21 8.7 Sony ............................................................................................................................................................... 22 EU-Japan Centre for Industrial Cooperation 2 www.EUbusinessinJapan.eu 8.8 NTT Group ..................................................................................................................................................... 22 8.9 SoftBank ........................................................................................................................................................ 23 8.10 Toyota ............................................................................................................................................................ 23 8.11 Fanuc ............................................................................................................................................................. 24 8.12 Preferred Networks ....................................................................................................................................... 24 8.13 Ubic................................................................................................................................................................ 24 8.14 Canon............................................................................................................................................................. 25 9 Foreign Players in the Japanese Market ............................................................................................................... 26 9.1 Zen Robotics .................................................................................................................................................. 26 9.2 IBM ................................................................................................................................................................ 26 9.3 YouAppi ......................................................................................................................................................... 26 10 SWOT Analysis ...................................................................................................................................................... 27 11 Associations, Organisations and Forums Related to AI ......................................................................................... 28 12 Trade Fairs ............................................................................................................................................................ 29 13 Challenges and Opportunities for European Companies ...................................................................................... 30 13.1 Key Success Factors ....................................................................................................................................... 30 13.2 Challenges for European Companies ............................................................................................................. 30 13.3 Potential Business Opportunities for European Companies .......................................................................... 31 14 Summary & Recommendations ............................................................................................................................ 33 15 References ............................................................................................................................................................ 34 EU-Japan Centre for Industrial Cooperation 3 www.EUbusinessinJapan.eu 1 Executive Summary Artificial intelligence (AI) was one of the strongest fields of development in 2015 and this trend will likely continue in 2016. AI is a technology that utilises machine intelligence and human-thinking ability to process various data