December 24, 2015 Announcement of International ICT Competitiveness Index 2015

The Ministry of Internal Affairs and Communications (MIC) started making an international ICT competitiveness index annually in 2008 to strengthen the international competitiveness of Japan’s ICT industry. MIC has prepared the eighth international ICT competitiveness index and decided to release the same.

1.Configuration of international ICT competitiveness index

The international ICT competitiveness index of 2015 utilizes actual values for 2014 obtained from various research companies (or actual values for 2013 in cases where those for 2011 were difficult to obtain) to clarify the international competitiveness of Japan’s ICT industry by showing numerical values of Japanese companies’ market shares: (1) Japanese companies’ competitiveness in the global market (corporate competitiveness) for each product and service item from the following viewpoints and (2) the export value share of Japan for each product item from the perspective of the country's competitiveness in corporate location (export competitiveness). [For reference] Market share: The global market sales share accounted for by Japanese companies is calculated according to services, terminals/machines, and devices (37 items across eight fields) (including sales of Japanese companies outside Japan). Export value share: The global export value share accounted for by Japan is calculated according to terminals/machines and devices (20 items across 7 fields) (including exports from Japan by multinational companies). (Service-related items are not included as this Index focuses on traded goods.)

2.Outline of results

• 1.
  Overall change (market share and export value share) (from the 2008 Version to the 2015 Version) According to the index, the global market scale of 2015 was 2 trillion 128.9 billion dollars in terms of money (a 10.6% increase compared with 2011) while Japanese companies’ market share decreased to 10.9% (down 2.9 points compared with 2011). During the five years from 2011, only the North American market share increased (a 4.1-point increase compared with 2011). The total exports of the entire world was the 1 trillion 369.2 billion dollars (a 20.0% increase compared with 2011) while Japan’s export value share decreased to 3.0% (down 2.3 points compared with 2011). On the other hand, the export value share of the Asia-Pacific has been showing an increasing tendency and it has achieved a share of 75.7% (a 4.4-point increase compared with 2011).
• 2.

  Corporate competitiveness (market share) In all the 37 items as subject indicators, the Japanese corporate competitiveness of six items was strong (with a share of 25% or more) and the Japanese corporate competitiveness of 13 items was weak (with a share of 5% or less). Among the 37 items, nine items showed a share increase and 27 items showed a share decrease compared with 2011.

  Examples of items with strong Japanese corporate competitiveness (a share of 25% or more)

  • Japanese companies’ market share of DVD/Blu-ray recorders has been increasing (80.3% in 2011 and 96.5% in 2015), but the global market scale is shrinking (70.0% compared with 2011).
  • Japanese companies’ market share of copiers is high (73.9% in 2011 and 74.6% in 2015) while the global market scale is showing an increasing tendency. Optoelectronic components^*1 (43.4% in 2011 to 32.5% in 2015), discrete semiconductors^*2 (36.4% in 2011 29.9% in 2015), and mobile phone liquid crystal device (35.7% in 2011 to 29.7% in 2015) have been increasing in global market scale, but Japanese companies’ shares in these markets are declining.

  • *1
    Optoelectronic: Optical elements, such as LEDs and solar modules.
  • *2
    Discrete semiconductors: Single functional semiconductors, such as transistors and capacitors.

  Examples of items with weak Japanese corporate competitiveness (a share of 5% or less)

  • Japanese companies’ market shares of plasma devices (47.6% in 2011 to 1.2% in 2015) and plasma TVs (47.6% in 2011 to 1.5% in 2015), in particular, and both markets have been shrinking globally.
• 3.

  Export competitiveness (export value shares) In all the 20 items as subject indicators, Japan’s export value shares of two items increased and that of 15 items decreased in comparison with 2011.

  Examples of items with increased Japanese export shares

  • PC displays (2.6% in 2011 to 3.3% in 2015) and mobile infrastructure (2.3% in 2011 to 2.4% in 2015) increased, but the total exports of the world are on the downward trend.

  Examples of items with decreased Japanese export shares

  • Main items include digital cameras (27.2% in 2011 to 16.0% in 2015) and device for broadcasting equipment (20.4% in 2011 to 6.2% in 2015).