Japan’s Yano Economic Research Institute conducted a market trend survey for Japanese residential equipment manufacturers and related organizations from May to July 2022, and announced the results on September 12, 2022.
The survey results show that the market size in 2022 will increase by 2.8% from the previous year to 1.8551 trillion yen.
In 2021, the market size of Japan’s main residential equipment (the total value of plumbing equipment, plumbing equipment, and energy manufacturing equipment) will increase by 2.9% over the previous year, reaching 1.8038 trillion. In addition, the plumbing equipment and energy manufacturing equipment markets are expected to grow compared to 2020, mainly due to a rebound in the sharp drop in demand caused by the outbreak of the pandemic in 2020 and a recovery in the new home market.
In 2022, the market situation becomes complicated. In the home furnishing market, Japan’s renovation demand has been strong to a certain extent as people spend more time at home and start to re-examine their home environment as the pandemic changes lifestyles and working styles. At the same time, however, demand for travel and leisure is gradually recovering, which may in turn weaken demand for renovations.
In addition, due to the rise in global raw material prices, manufacturers cannot absorb the high costs through their own efforts, and have announced price increases one after another. When prices are passed on to consumer prices, it is expected to dampen demand.
On the other hand, it is unclear when the disruption to the global supply chain will end due to restrictions on economic activities caused by the COVID-19 crisis and the world situation, and many facilities, such as parts and components, are facing supply constraints due to shortages.
In conclusion, the market size of major residential equipment in Japan in 2022 is expected to be 1.8551 trillion yen, a year-on-year increase of 2.8%.
A recovery to 2019 levels is expected, but is expected to slow due to reduced demand for new construction. In the short term, the market size of Japan’s major residential equipment is expected to reach 1.866 trillion yen in 2024, an increase of 3.4% compared to 2021.
Among major residential equipment, the plumbing-related equipment market is expected to grow by 8.1% in 2024 compared to 2021, and the energy-related equipment market is expected to grow steadily by 6.2%.
In the plumbing-related equipment market, special factors such as the shortage of water heater parts in 2021, which will lead to a significant drop in shipments, are the benchmarks for comparison.
In addition, according to data from Japan’s Natural Resources and Energy Agency, in the next few years, Japan is expected to have about 300,000 households in FIT contracts (Feed-in-Tariff, or FiT) for renewable energy, which is widely used worldwide. recognized as one of the most effective renewable energy incentives.) due, especially for home energy storage systems. At the same time, due to low-carbon demand and frequent extreme weather in Japan, the demand for households to improve the reliability of electricity consumption has further pushed up the demand for home storage installations.
Bathvo’s heated towel rails are also very popular in Japan, and they are also better at saving resources, and their market share is gradually increasing.