AV Magazine
Japan is the focus of attention in the broadcast world just now with the Rugby World Cup an appetiser to next summer’s Olympic broadcast feast, but AV is a no less notable affair.
The Toyota Stadium in Toyota City, for example, was given a major upgrade of its sound system in preparation for the Rugby World Cup with a Nexo GEO S12-ST line array sound system and Yamaha electronics. The same stadium was outfitted with Interact Sports’ connected LED pitch lighting in combination with Phillips ArenaVision LEDs. Higashiosaka’s Hanazono Stadium sports new variable line array speakers made by TOA.
“Having such prestigious, highly attended, global events in the country undoubtedly brings with it some significant business opportunities,” says Jenny Li, APAC sales manager at B-Tech International. “With demand for large size TVs and LED displays as a direct result of these events, our business has experienced a healthy spike in sales, and we expect this to continue.”
Datapath’s regional sales director Michael Austin is more cautious. He’s observed a modest bump in public viewing systems for sports venues, and information and advertising signage projects, as well as a number of new and upgraded systems related to security.
“However, Japan already has a solid level of display signage in major economics areas, and Japanese AV projects – particularly for command and control, and security – tend to have comparatively long lead times,” he says. “Consequently, the increased AV business may be proportionally smaller than that seen in other markets hosting the Olympics and similar events, and many of the larger projects have already been awarded.”
Cabletime finds business a little stagnant. “A lot of our customers still use older technology, with a view that if it works well, they don’t see the need to change it,” says Mark Stanborough, sales director EMEA and APAC. “Given how technically-forward the country is this can be surprising, but the interest in changing and upgrading has only happened since we started to offer (anti-piracy protocol) HDCP in our solutions.”
Progressive market
The value of the market is sizable, with some medium to large sized integrators recording annual business of US$20-50 million, whilst one of the leading integrators is seeing annual turnover close to US$200 million, according to a report from B-Tech.
The value of the market is sizable, with some medium to large sized integrators recording annual business of US$20-50 million, whilst one of the leading integrators is seeing annual turnover close to US$200 million, according to a report from B-Tech.
“Compared with the Hi-Fi market, pro-AV is relatively small,” says Li who maintains that thanks to large size LCD/LED TVs and the increasing demand of LED panels, it seems that the business size and the total market size has been sharply increasing. “This might be accelerated more by new communication technology, such as the emergence of 5G,” adds Li.
It’s also worth mentioning a recent report from AVIXA which shows a rise in demand for AV products and services across the Asia-Pacific region. The reports note that, previously, the Americas had consistently represented the largest pro-AV revenue-producing region. The new forecast however shows the APAC region overtaking the Americas by the end of 2019.
The Americas represent U$89 billion in revenue for 2019, compared with U$90.6 billion for APAC. The gap is expected to increase to more than U$15 billion by 2024. This is spurred, in part, by the region’s demand for security, surveillance, and life safety solutions, which in turn fuels growth in the streaming media, storage, and distribution (SMSD) product segments.
Sam Yamashita of Martin Audio Japan thinks the Japanese market is more progressive than many other parts of the world, citing its advanced use of Dante networking.
“Japanese people usually like something new and useful,” he says. “The problem is, as more of these products are released, the budget for the project is falling. Everybody is struggling with this issue. Previously, every pro-AV product was very expensive. Nowadays everything is becoming much more reasonably priced and it means that integrators receive less income.”
Population concern
However, looking down the road a declining population looks set to become a major concern. Japan’s rural population is expected to plunge another 17 per cent in just 12 years, from 2018 through 2030, according to United Nations data. Further out, the decline will steepen, with the population falling by two per cent per year in the 2030s.
However, looking down the road a declining population looks set to become a major concern. Japan’s rural population is expected to plunge another 17 per cent in just 12 years, from 2018 through 2030, according to United Nations data. Further out, the decline will steepen, with the population falling by two per cent per year in the 2030s.
The extent and speed at which this negatively affects the Japanese AV market – especially digital signage – further in the future remains to be seen.
Most AV business will remain concentrated around the major economic and population corridor stretching from Fukuoka in Kyushu in the west, through Osaka and Nagoya, to Tokyo in the east.
Most AV business will remain concentrated around the major economic and population corridor stretching from Fukuoka in Kyushu in the west, through Osaka and Nagoya, to Tokyo in the east.
“Declining population is a particular problem in the countryside, with greater numbers of young people moving to the cities for university and work,” says Austin. “While store-specific signage in second tier cities will certainly not disappear, the lower number of eyeballs and economic activity in the countryside makes paid public signage a harder sell.”
Austin believes there are cases where the signage system owners struggle to sell their digital ad space in low population density areas.
Systems integrators can also be conservative outside Tokyo. “For these companies, domestic AV brands are the strongest,” says Yamashita. “They will not often use imported progressive products. As everyone knows, there are several domestic manufacturers here which have a good network for the local industry.”
Japan’s culture is both highly traditional or conservative, perhaps reflected in its large ageing and rural demographic, at the same time as being one of the most technologically cutting-edge societies on earth.
Japan’s culture is both highly traditional or conservative, perhaps reflected in its large ageing and rural demographic, at the same time as being one of the most technologically cutting-edge societies on earth.
“The culture of Japan’s pro-AV is very conservative and risk-avoiding,” describes Fumihiro Nagasawa, local GM at Kramer Electronics. “This basic culture probably won’t change any time soon.”
Japanese manufacturing has a reputation for some of the highest standards in the world, a result of patience and extensive practical field-based demonstrations, according to Brian Chow, regional sales manager for Clear-Com.
“The patience and technical rigour of the pro-AV market in Japan is a source of strength to the market overall, but as with many things, those characteristics also provide challenging aspects. The people working in this market are very patient in order to deliver consistent improvements in their projects. As a result of this culture, the Japanese show great confidence in top tier brands with a long history in the field.”
Japan is moving into the IP world but it is not as integrated into pro AV as other markets prompting Tsuyoshi Mitera, marketing manager at disguise to state that in many industry verticals: “The integration and understanding of IT is at a very low level. Clients have no clue either, so the system tends to become very conservative and outdated. We should promote more dialogue around the real integration with audio, video, and lights as well as show the way it can transform people and content.”
In Cabletime’s experience, the Japanese pro-AV market has been cautious. “The biggest issue is standards and licences,” says Stanborough. “Japanese culture means doing things right, and this means that standards have to be adhered to in the solutions that are being sold.”
One area where Japan has led the world is 8K TV. State broadcaster NHK began broadcasting 12 hours a day in the Super HiVision format a year ago using technology including cameras and vision mixers from home grown consumer electronics giants like Sony and Panasonic.
However, according to figures from IHS Markit, barely a fifth of Japanese homes will have a 4K UHD TV by 2020 and only 62,000 homes in Japan (0.1 per cent) will be able to watch the Olympics in 8K (NHK is recording some sports and the Games ceremonies in 8K).
“We are certainly hearing more inquiries about and discussion of 8K capabilities, though at the moment this still seems at the edge,” Datapath’s Austin reports who maintains for now, related verticals are largely just utilising HDMI2.0 for 4K60 signals, with HDCP2.2 support being a ‘must’.
No mass market for 8K
8K TV was pushed and subsidised by the Japanese government when it won the Tokyo Games and was perhaps always intended to be a marketing exercise for the state to show its technical prowess.
8K TV was pushed and subsidised by the Japanese government when it won the Tokyo Games and was perhaps always intended to be a marketing exercise for the state to show its technical prowess.
“It’s also worth noting that 8K TV and 8K tuners are still very expensive,” Li says. “Therefore, 8K is not yet available to the mass market, but many companies are introducing 8K cameras and 8K accessories for professional broadcasting needs. It will take time for 8K to become as popular as HD is today, but there’s no doubting that demand is rising.”
One of the unique aspects of the business in Japan is that many SIs don’t bill for designing systems. “This is where working on a design with manufacturers’ product specialists can be very beneficial,” says Yamashita. “As a result, there are few consultant businesses in Japan. The best thing would be to make designing systems profitable.”
Mitera calls the pro AV market “unprecedentedly busy,” adding that some system integrators are even refusing to take on some of the projects inquired about by customers.
Even following the Olympics, there is the world Expo in Osakgoa, in 2025, to fuel demand.
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