Growth was recorded for only 6 out of 22 categories, including key telephones, office-use multi-functioning facsimiles and optic access equipment. Negative growth was reported for 16 categories, including digital transmission equipment, central office switching systems, mobile terminals (for public network use), public-use PHS and base stations had negative growth.

For full year 2015, the total value of demand for telecommunication equipment is forecast at JPY 3.219 trillion, down 5.2 year-on-year. The PBX and fixed communication equipment segments are expected to show growth while weak demand is seen for base stations, central office switching systems, mobile terminals (for public network use), digital transmission equipment and public-use PHS.

The Japanese telecommunication equipment market underwent gradual recovery with the reconstruction efforts following the Great East Japan Earthquake and Tsunami as well as growth in exports due to the weaker yen in 2014. However, aggressive competition by foreign vendors in the domestic market, which pushed prices down and a lull following the round of capital investments by telecommunication carriers resulted in a slight negative growth.

From full year 2016 through full year 2017, investments towards LTE-readiness in mobile terminals and base stations, which make up two-thirds of the telecommunication equipment market, will have tapered off and rely mostly on replacement demand, leading to a negative growth forecast through 2017.

Demand will move towards positive growth from full year 2018 onwards, boosted by demand for devices taking advantage of 5th generation mobile communication system (5G) technology and services, demand for digital transmission equipment to deal with the surge in data traffic from 5G/IoT and big data as well as demand for fixed telecommunication equipment to be put in place as part of satellite launch plans.

For full year 2020, the total market value is forecast at JPY 3.267 trillion, down 3.8 percent from 2014.

telecompaper.com