Can Medical Devices Save Japanese Electronics Industry

Despite whatever reason, it is a fact that Japan-based electronics industry are experiencing plight whether in consumer electronic product or semiconductor sector. Now, Japanese electronics giants are taking active measures to save the declining electronics kingdom.

Generally, there are two directions: accept outside investment such as Sharp; or industry transformation, including focusing on medical devices. Most people even Japan-based electronics manufacturers believe Japan can revive their prosperity with the help of cutting-edge technology advantage.

It is reported that recently Japan’s electronics giants begin targeting at the medical devices. On April 16, Sony and Olympus jointly announced the establishment of Sony Olympus Medical Solutions to develop, design, produce and sell innovative medical products. On the 69th China International Medical Equipment Fair (CMEF) ranging from April 17 to 19, Canon, Panasonic, Fujifilm and other Japanese electronics giant also have introduced innovative medical products.

Undoubtedly, the future of medical equipment is bound to be bright supported by people’s fear of death, the accelerated population aging, and the limitation of existing medical resources. From 2001 to 2009, sales of global medical device market increased from $ 187 billion to $ 355.3 billion with compound annual growth rate of 8.35%. In particularly, Chinese medical devices have seen market size come to 150 billion yuan and CAGR reach 21.3% in last ten years.

So electronics manufacturers should pay attention to this segment. But the traction to medical devices at this moment can really save Japanese electronics industry? Currently, despite the advanced advantage, Japan still loses ground to European and American enterprises. In 2000, Japanese medical companies have been surpassed by the United States-based peers. Now, medical devices manufacturers in China and South Korea are also rising, weighting on the competition. It can be said Japan has been late.

Based on the above data, we can find the future battlefield of medical devices will position at emerging markets, especially populous China and India. One of reason contributing to Japan’s difficulty is its failure in Chinese market. As European and American manufacturers has built strong base in China years ago, what difference will be made for Japan’s being late? Of course, changes will happen, but not large and significant ones.

In addition, Japan’s management culture, one of the outdated methods, seems show no signs of change. This kind of friction is also a hurt to the beleaguered electronics industry in Japan. What’s your opinion? Please leave your comment.