Japan is getting ready to make driver monitoring systems a safety feature in new cars. This move is creating a new chance for the countrys automotive technology industry. According to a planned change by the Ministry of Land, Infrastructure, Transport and Tourism new car models sold in Japan will need to have systems that can spot driver distraction and tiredness starting in September 2031. Older car models will have to meet this rule from 2033.
This choice is happening because Japan is dealing with a rising number of traffic accidents connected to using mobile phones while driving. The National Police Agency says that deaths and serious injuries from using phones while driving reached 148 cases in 2025. This is a continuing increase since 2020. The death rate for car accidents that involved using a phone between 2021 and 2025 was 3.4 times higher than for accidents that did not involve using a mobile phone.
The new rule could have effects that go beyond road safety. It is expected to speed up the demand for cameras, sensors, software that is built into cars, artificial intelligence and security for vehicles, in Japan.
Driver monitoring systems, also called DMS rely on cameras and sensors inside the car to check how focused the driver is and what their condition might be.
According to Japans rules the system will sound an alarm if a driver keeps looking at their hands for more than three and a half seconds while driving at fifty kilometres per hour or faster. When the speed is between twenty and fifty kilometres per hour the limit rises to six seconds. For speeds from seventy to one hundred and thirty kilometres per hour the system watches the driver’s eyelids, eye movement and how the steering wheel is turning to spot signs of drowsiness.
This approach makes the driver monitoring system more advanced, than a simple warning device. The device must read the driver’s actions instantly. Tell whether a distraction could be dangerous or merely normal driving.
A New Growth Market for Japan’s Automotive Technology Sector
Japan is already home to major automakers and electronics companies with experience in vehicle sensors, cameras and embedded systems. Toyota, Subaru and Mazda have already introduced driver monitoring technology in some vehicles.
Making DMS mandatory across new vehicles could dramatically expand the addressable market.
Automakers will need reliable hardware, but they will also need software capable of interpreting facial movement, gaze direction and signs of fatigue. This could increase business opportunities for companies specializing in computer vision, edge AI, image processing and sensor fusion.
For Japanese technology suppliers, the opportunity is particularly attractive because DMS can become part of a wider advanced driver-assistance system rather than remaining an isolated safety feature.
AI Moves Closer to the Driver
The DMS mandate shows a change in car technology: cars are getting better at understanding not just their surroundings but also the person driving them.
Old car safety systems look at conditions. Cameras and radar can spot people, other cars and road lines. Driver monitoring adds another layer by looking at the human inside the car.
This opens chances for AI powered safety systems.
A future car could mix driver attention data with navigation, speed, road conditions and other sensor data to decide when extra help is needed. The technology could also become crucial as cars go to automation levels, where systems must know if a driver is paying attention and able to take over when needed.
Businesses Could See New Demand for AI and Semiconductor Components
The rule change could help Japanese tech businesses.
Camera makers, chip suppliers, sensor developers and embedded software firms could see demand as car makers install DMS in more of their cars.
AI firms may also find chances to build driver‑state recognition models. The challenge will be making systems that work in lighting settings with different drivers and car interiors while keeping false alarms low.
For car suppliers this could push investment in edge AI. Processing driver monitoring data, inside the car can lower. Cut the need to send sensitive camera data to outside servers.
That makes edge computing and car cybersecurity important parts of the DMS system.
As in-cabin monitoring grows it brings up a problem: privacy.
A DMS might look at private things like a persons face, gaze, behavior and physical condition. Because of this automakers and technology suppliers must think hard about how they collect, use, save and protect this data.
I think companies that build systems to do analysis inside the car and keep as little data as possible will have a real edge.
Cybersecurity will also matter more than ever. Since cars are becoming software-driven platforms with sensors and connected systems keeping in-vehicle data safe, from hackers will become a main goal.
Japan Aligns With Global Automotive Safety Standards
Japan’s planned regulation follows international developments. The U.N. World Forum for Harmonization of Vehicle Regulations adopted additional rules related to driver drowsiness and distraction earlier this year. The European Union has already introduced requirements for driver drowsiness and attention monitoring in new vehicles, with advanced distraction warning systems also becoming mandatory for new vehicles sold in the bloc.
For Japanese automakers, alignment with international standards could make it easier to develop vehicles for multiple markets using similar safety technologies.
That could benefit suppliers as well. A DMS component developed for Japanese vehicles may potentially be adapted for export markets with comparable requirements, increasing the commercial opportunity for domestic technology companies.
DMS Could Strengthen Japan’s Position in Software-Defined Vehicles
The most important long-term impact may be the growing role of software in vehicle safety.
Japan’s automotive industry has historically been recognized for manufacturing quality, mechanical engineering and production efficiency. As vehicles become increasingly software-defined, success will also depend on AI, sensors, computing platforms and continuous software development.
Driver monitoring is part of that transition.
By making DMS mandatory, Japan is effectively creating a large domestic testing and deployment environment for automotive AI. Suppliers will have an incentive to improve algorithms, reduce hardware costs and develop more sophisticated systems.
For businesses operating in Japan’s technology sector, that could create opportunities well beyond the initial safety mandate.
A Major Opportunity for Japan’s Automotive Tech Ecosystem
Japan’s 2031 driver-monitoring requirement is ultimately about more than preventing distracted and drowsy driving. It represents another step toward vehicles that continuously interpret both their environment and the driver’s condition.
こちらもお読みください: 現代自動車のAIによる変革は、日本のテクノロジー産業にとって新たな時代の幕開けを告げるものです
The regulation could accelerate demand for AI, computer vision, sensors, semiconductors, edge computing and automotive cybersecurity while giving Japanese suppliers an opportunity to develop technologies that can be exported globally.
The biggest challenge will be balancing safety with cost, reliability and privacy. If Japanese automakers and technology companies can achieve that balance, driver monitoring could become another area where Japan combines its traditional automotive manufacturing strength with its growing capabilities in AI and software.
As the 2031 deadline approaches, businesses across Japan’s automotive technology supply chain will have an increasingly clear incentive to invest in the systems that will define the next generation of safer, more intelligent vehicles.


