In Japan, robots are no longer a symbol of the distant future but have become an urgent solution to the present.
Faced with the rapid aging population and declining labor force, businesses in this country are accelerating the deployment of physical artificial intelligence (physical AI) in factories, warehouses and essential infrastructure.
According to the Japanese Ministry of Economy, Trade and Industry, the country aims to account for 30% of the global market share in physical AI by 2040.
The foundation for this ambition comes from the existing position when Japanese companies once accounted for about 70% of the global industrial robot market in 2022.
However, the biggest driving force is not technological competition, but the demographic crisis.
Japan's population has been declining continuously for 14 years, while the proportion of people of working age is only 59.6% and is expected to continue to decline sharply in the next two decades.
Experts believe that the goal of applying robots in Japan has changed significantly. If previously it was to improve efficiency, now it is to maintain operation.
Robots are being used to ensure the factory operates continuously, warehouses are not interrupted and essential services are not disrupted.
Currently, labor shortages are the main factor driving Japanese businesses to apply AI.
Many companies such as Mujin are developing software to help robots automatically perform logistics tasks, while automatic lift systems, infrastructure testing robots or data center operations are gradually becoming popular.
Japan is famous for its hardware strengths such as sensors, powertrains and high-precision control systems. This is an important "physical touch point" to help AI interact with the real world.
However, while Japan is strong in components, the US and China are advancing faster in comprehensive integrated systems, combining software, hardware and data.
This poses the challenge that Japan needs to accelerate deeper AI integration into hardware to maintain a competitive advantage.
Experts also warn that robot development is not just software but requires in-depth understanding of physical properties, with high costs and high risks if the system malfunctions.
Japan is pouring about 6.3 billion USD to promote AI and robots, supporting businesses to deploy on a large scale.
In industry, tens of thousands of robots are installed each year, especially in the automotive industry.
In the field of logistics, automated warehouses and unmanned vehicles are becoming popular. Checking robots are also being applied in infrastructure management.
Corporations like SoftBank have combined visual language models with real-time control systems, helping robots understand the environment and perform complex tasks.
Japan's difference lies in its ecosystem development model. Instead of fierce competition, large corporations such as Toyota, Mitsubishi Electric or Honda cooperate with startups to take advantage of each other's strengths.
Large enterprises provide scale and reliability, while startups lead software and system innovation. Companies like Mujin or Terra Drone are developing platforms to help robots operate flexibly across many systems and industries.
According to investors, long-term value will belong to units capable of deploying, integrating and continuously improving the system in the actual environment.
