Digitization of every type of “object” and Murata’s expanding business opportunities
The appearance of electronics symbolizing the times – radios, color televisions, cameras, computers, mobile phones, and smartphones – has improved people’s quality of life. The history of Murata has been with rooted in such progress in society. By supporting achievement of product functions to be required in each age, Murata has contributed to society and continued to be needed by society. Now, in this age, every type of “object” in our surroundings is being digitized and Murata is required to create new value by making use of its innovation.
Regarding smartphones which have driven the recent electronic parts market and rapid growth of Murata, volume growth has been moderate, but the number of functions increases, the number of electronic parts used per unit has drastically increased. Also, thanks to
increasing speed and functions of communication due to movements such as the introduction of 5G, this is an area where growth is expected as a pillar of our business in the future.
The automobile industry is also seeing changes which Murata must not overlook. In Europe, China, India and other countries, entire nations are moving to shift theindustry from gasoline and diesel vehicles to electric vehicles (EVs). Due to an accelerated shift to EVs, some estimates suggest that in 2040, EVs will account for more than 50% of global new car sales. Furthermore, in parallel with the shift to EVs, development of autonomous vehicles is accelerating. Automation to maintain lanes and distance between cars on expressways as well as to follow the vehicle ahead during congestion has started to come into wide use as a part of advanced driver-assistance systems (ADAS). Consequently, the number of sensors to be used for safe travel is increasing. In addition, high-speed wireless communication (V2X) associated with an increase of data traffic between cars and the outside world will be a requirement, alongside computer processing systems for large amounts of data inside a car in real-time. In terms of demand for parts over the medium term, it is said that with shifts to EVs and autonomous cars, the number of electronic parts used per vehicle will significantly increase compared to vehicles with internal-combustion engines.
In addition to further digitization of smartphones and cars, development of an IoT society is a trend to be noted. Against a background of an expanding IoT society where every type of object is connected via networks, an increasing number of devices will be connected to
networks. Moreover, considering the expanding demand for base stations and servers which process and store data collected from those devices and high-speed computers which are used for new value creation using AI, demand for electronic parts used for these items will also grow by an order of magnitude faster than before, creating new demand for a significant amount of electronic parts.