On June 24, the government selected physical AI as one of the key products and technologies in its “Strategic 17 Areas” for which it will prioritize domestic investment. The projected amount of public and private investment by fiscal year 2040 is 10.5 trillion yen. Including related areas such as semiconductors and vertical AI, the projected amount rises to 101.6 trillion yen.
Physical AI is an AI that integrates information from images, audio, video, and various sensors to understand the real world and generate actions. Because it can perform physical tasks, it is expected to be implemented in all kinds of machines that operate in the real world. Furthermore, 3D digital data that records real space and VR-related equipment are sometimes used for data learning of this AI.
This roadmap was formulated with a focus on AI robots, which have a large market outlook for implementation. The government predicts that the AI robot market will expand rapidly from around 2030, growing to approximately 60 trillion yen by 2040. Currently, Japan holds about 70% of the global market share in the industrial robot market and is competitive in key components such as motors and reducers. On the other hand, its market share in the service robot market remains at just over 10%. The government aims to leverage these strengths to become a third major force alongside the US and China by 2040, aiming to capture a market share of over 30% and a 20 trillion yen market.
Projected investment amounts for related fields were also presented individually. For semiconductors that support the implementation of physical AI, and which form the core of so-called physical intelligent systems, 68.0 trillion yen is projected by fiscal year 2040. The aim is to capture the increased demand not only for advanced semiconductors but also for analog legacy semiconductors such as sensors and microcontrollers. 23.1 trillion yen is projected for domain-specific vertical AI. Vertical AI refers to systems for specific domains that combine data, AI models, and applications. The combined scale of 101.6 trillion yen across these three fields suggests a structure that encourages investment starting with physical AI and extending to semiconductors and related AI fields.
This article is an English translation of an original Japanese article, translated by the Mogura VR editorial team.
