English 
The latest research issued by Switzerland-based industrial technology leader ABB is titled the Asia Pacific Energy Transition Readiness Index 2025 and shows that Japanese firms are rapidly deploying automation, electrification and AI-driven digital solutions to accelerate the shift toward a low-carbon energy future.
The survey finds that 70% of Japanese energy-industry leaders think the energy transition in Japan is moving at an adequate speed. Meanwhile, 57% of organizations plan to invest over 10% of their next five years’ CAPEX in the transition. Also, 61% view AI and automation as key enablers of this shift.
Key findings and what they mean
The research breaks down some of the technology-and-investment dynamics driving Japan’s energy sector:
Priorities among Japanese respondents for investment focus include digitalisation at 37 %, automation at 34 % and electrification at 29 %.
こちらもお読みください： ノキア、日本のネットワーク近代化に向けてソフトバンクと提携
The uptake of renewables is noteworthy: 70% of organisations identify solar as their key generation source, and over the next five years, solar (~57%), wind (~48%), and hydropower (~43%) are set to be the growth drivers.
Other emerging energy carriers, such as green hydrogen, are also gaining ground: 36% of Japanese organizations claim to currently adopt or be interested in hydrogen for hard-to-abate sectors.
Collaboration is key: 66% of the respondents see government incentives as major enablers; 60% believe cross-regional grid collaboration, while 29% highlight public–private partnerships, as being essential to progress.
What this means for Japan’s tech industry
Though the report focuses on energy transition readiness, the implications for Japan’s wider technology industry are significant.
AI, Automation & “Digital Twin” Demand Soar
With 61 % of Japanese organizations viewing AI/automation as key, there’s a clear signal: technology firms in Japan that can offer AI-based analytics, predictive-maintenance platforms, digital-twin modeling, and smart-grid control systems will see strong demand. Japan’s deep legacy in industrial equipment is now being augmented by software and data capabilities.
Hardware + Software Business Models Becoming Essential
Japanese technology has for a long time been strong in hardware, from sensors and power-electronics to control systems. This research makes a key point: Japanese tech companies must shift from selling parts to providing system solutions. They can improve their services by using software, cloud or edge platforms, and analytics together. This helps them gain from investments in automation, electrification, and digital transformation.
Opportunities for Smart Infrastructure & IoT
Japanese tech firms are set to lead in growing markets like IoT, edge computing, and smart-grid equipment. They focus on sensors, connectivity, software, devices, and system integration. They succeed by investing in electrification and digitalization.
Export & Global Growth Potential
With Japanese organizations showing readiness and investment appetite, Japanese tech companies are well placed to leverage this momentum and develop solutions for global markets. The domestic focus on AI and automation in the energy transition strengthens Japan’s global competitiveness in these fields.
Effects on businesses operating in this ecosystem
ABB’s findings matter a lot for Japan’s tech and energy sectors.
Energy equipment makers must create inverters, power electronics, grid controls, and electrification hardware. They should include advanced AI diagnostics, remote monitoring, and efficiency optimization. This is essential to stay competitive.
Digitalization gives software vendors and systems integrators big opportunities. They can provide valuable software platforms, system integration services, and energy management solutions. This helps Japanese tech firms broaden their offerings.
Japan is moving to solar, wind, and hydrogen power. Companies that offer generation, storage, hydrogen electrolysis, and grid integration will grow quickly. This shift will push Japanese tech firms in these areas to adjust their investments and business models.
Japanese start-ups can thrive in energy analytics, smart infrastructure, and grid services. Their funding interest and focus on AI and automation create new opportunities. This boosts innovation and teamwork with established companies.
Strategic challenges and what to watch
Businesses and tech firms should focus on three key factors for success:
To justify high CAPEX investments, they need to ensure strong execution and cost management. Also, they must provide value proofs to guarantee a profitable return.
In Japan, it’s important to upskill engineers and software specialists. The industry is moving toward AI, automation, and digital services.
To add new digital and automation layers, businesses need to plan well. They need to fix the old infrastructure in Japan’s industrial areas and grids.
結論
ABB’s research shows an important trend: Japanese companies are becoming more confident in the energy transition. AI, automation, and electrification are key drivers of this change. This change isn’t just for the energy sector. It signals a major shift in Japan’s tech industry. The country is entering a new era of software-enabled hardware. Devices and machinery will be smartly connected. Also, advanced systems will be created to boost performance. This shift is creating competitive service business models. Companies can now offer unique value to customers around the world.
Japan’s tech firms, device makers, software vendors, integrators, and start-ups must adapt. To stay relevant, they need to align with this change. Japan’s tech future is closely tied to digital and sustainable energy changes. Companies that don’t adapt risk falling behind. In contrast, those that transform can benefit from a profitable market opportunity.
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