Space Industry Business Opportunities in Japan · J-BILAT: public. MINERVA Research Fellowship. 3...

J-BILAT: publicMINERVA Research Fellowship © 2017.03 EU-Japan Centre for Industrial Cooperation1

Space Industry Business Opportunities in JapanAnalysis of the Market Potential for EU SMEs Involved in the Earth-Observation

Products & Services

March 14, 2017

Ryuichi Dunphy

Independent Consultant for EU-JP Collaboration in Space

Japan Space Systems

E-mail:[email protected]

Presenter

Presentation Notes

STI = Science, Technology and Innovation


■Agenda

1. Research Background

2. Japanese Space Overview

3. Japanese EO Market Analysis

4. Japanese EO Industry Status

5. Industry Needs Analysis

6. Conclusions & Recommendations


1. Research Background

■MINERVA Research Fellowship→ 6-month market and policy analysis research

Topic: Earth-observation (EO) products & services

1. Analyse the market potential for EO downstream in Japan

2. Identify & develop EU-JP partnership opportunities

3. Produce recommendations with action items for Europe

• Review of Japanese policy reports, papers & presentations• Interviewed over 40 public, academic and private entities in 7

industry areas• Full report available on EU-JP Centre website



■Japan’s Space Budget• 2016 budget = 342.1 Bn yen (approx. € 3 Bn)• Cumulative total of several ministries



■Japan’s Space Budget

• Top 5 in the world



■Space agencies in Japan → 2 govt. organisations

1) Japanese Space Exploration Agency (JAXA)• Under the Min. of Sci. & Tech (MEXT) • Focus on Scientific R&D• 2016 budget = €1.2 Bn (1/5 of ESA)

2) Japan Space Systems (JSS)• Under the Cabinet Office & the Min. of

Economy, Trade & Industry (METI)• More industry-focused• 2016 budget = €13 Mn



■JAXA – 130 space missions since 1970’s→ space science & exploration, communication, navigation, EO, launchers, re-entry systems



■JSS – 13 EO and tech demo systems since 1980’s→ smallsat, EO sensors, EO data applications


3. Japanese EO Market Size

■Japanese space industry market size analysis• 2013 study by the Society of Japanese Aerospace

Companies (SJAC) • JP space industry revenue = €50 Bn in 2013

Category Sales Volume (Bn EUR)

Space Industry (Launchers, Satellites, Grd. Facilities)

2.6

Space Services Industry (Communication, Broadcasting, GNSS, EO)

6.8

Space Service Equipment Industry(BS TV, BS Tuner, Car-Navigation, GPS device)

15.3

Space Service User Sector (Utilisation of space services)

25.6

Total 50.3



■Out of €6.8 Bn for space services…• EO is < 10%, approx. €0.7 Bn

• €0.5 Bn for the Japanese military

• €0.2 Bn for public & private revenues

• No official data, only estimates by industry experts



■ 2016 “EO ✕ IT” Market Size Analysis• Conducted by MM Research Inst., contracted by JSS• 2016 market size of “EO ✕ IT” = €2.8 Bn



■Main industry players

• 2 industry groups for EO→ BizEarth and Japan Space Systems (JSS)

Surveying Companies IT Companies Special Govt. Corporations

• Aero Asahi Corp.• Air Asia Survey• Kokusai Kogyo• Naka-Nihon Air Survey• PASCO

• Fujitsu• Hitachi Corp.• NTT Data• NEC• Mitsubishi Space

Software

• Remote-Sensing Technology Centre ofJapan (RESTEC)

• Space Engineering Development (SED)



■Capabilities

• The EO industry in Japan → technically mature, highly capable

• Competent in main areas of remote-sensing Agriculture Forestry Fishery SAR interferometry & Urban Infra. Management Disaster Management Land Categorisation & Management



■Key strengths

1) Extensive legacy in L-band SAR (complement C-and X-band SAR?)

2) Strong expertise in agriculture and disaster management

3) Possession of GOSAT – world’s first satellite dedicated to monitoring greenhouse gas



■Main Challenges

1) Government remains the primary user (>80%)• Most of the revenue from govt. projects

2) Needs of the private sector not well-understood• Little incentive to explore private sector needs

3) Satellite applications not well endorsed/recognised• Regional authorities and non-space industries

are too fragmented• No network to share information



■Promising Developments

Industrialisation of EO Data Service

• EO companies looking to private sectors to expand revenue base

• Looking to expand overseas – greater interest in international collaboration

• Japanese govt. ministries showing interests in international cooperationo Enactment of Remote-Sensing Act to provide

clear legislative framework



■Online platform “Space Business Court”

• Free service developed by Japan Space Systems

• Foster entrepreneurial environment for EO downstream

• Inter-industry networking, space and non-space

• Provision of open-source EO data

• Register and upload profile of your organisation



■Online platform “Space Business Court”


5. Industry Needs Analysis

■Interviewed potential user industries → needs & concerns with respect to EO data

41 companies and research institutes involved with...o Agricultureo Forestryo Fisheryo Sea Ice Monitoringo Urban Infrastructure Mgt.o Disaster Mgt.o Maritime Mgt.o Renewable Energy


Area Key needs

Agriculture Need to provide consultancy, not just analysis, 5-10m resolution might be sufficient, but ideally higherNeed concrete cost-benefit analysis

Forestry ~1m resolution needed, but opportunities for pest control and operational optimisation

Fishery ~50m resolution is sufficient, need for coastal fishing ground prediction

Sea Ice Reliable, long term forecast is needed, depends on economic viability

InfrastructureMonitoring

Japan’s infrastructure >50 yrs old by 2030, huge potential

Dis. Mgt. Increase temporal resolution. Collaborate satellite operation

Maritime Surveillance

Japan has the 6th largest maritime territory, so huge potentialNeed temporal resolution of 2-3 hrs. Combine SAR?

Renewable Energy

Wind and hydro energy still in its early phaseFor solar power, need resolution of 1-5 m?


■Promising Areas for Collaboration

• Maritime surveillance• Urban infrastructure monitoring• Agriculture• Climate change & Sustainable development

• Need higher temporal resolution, combine different satellite datao Combine EU’s C-band with Japan’s L-band SAR?o Collaborative operation of Sentinels and Japan’s EO

satellites?



■To foster EU-Japan partnership in EO applications…

**Establish a win-win situation that increases the ’pie’! **



• Japanese EO industry is changing → 2016-17 is a pivotal timeo Open data policy, growing interests in the the private sector

• Japanese companies are interested in engaging with Europeo H2020, expansions overseas

• Needs in the private sector still not addressedo Suitable form of partnershipso Strong business case, cost-benefit analysis

• Formalise the relationship with Japan to bring them to the table and seek long-term, consistent commitment



■Possible Approach• Japanese companies are interested in joint R&D

• First step → Joint R&D of EO service w/ business focus

• H2020, bilateral agreements

• Initiate a dialogue with:o National Space Policy Secretariat o Min. of Foreign Affairs – EU-JP Space Dialogue

in 2017 o Min. of Economy, Trade & Industry (METI)



■Things to consider

• Need cooperative arrangements that opens up new markets for both European and Japanese companies

• Language barrier, time difference, difference in business culture

• Difference in the socioeconomic situation of potential users


Thank you for your attention!

Space Industry Business Opportunities in Japan · J-BILAT: public. MINERVA Research Fellowship. 3...

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