Japan Autonomous Driving
U.S. auto tech companies may find market entry opportunities in the development of autonomous driving in Japan.
Japan is home to the world’s highest proportion of older people. According to the Ministry of Internal Affairs and Communication (MIC), people aged 65 and older account for 29.1% of the country’s population. Japan’s aging population, in particular the decline in the working-age segment and depopulation of rural areas, is affecting all of society. This demographic shift is having a major impact on transportation methods in everyday life, such as local rail lines closing for lack of ridership. Buses are becoming the primary mode for mass transport in suburban and rural areas that lack rail access. However, Japan is facing a serious bus driver shortage. The Nihon Bus Association predicts a shortage of 36,000 bus drivers in 2030. This shortage is forcing bus companies to reduce services not only in rural areas, but also in cities. Today, providing equitable transportation access is an urgent matter for Japanese society. New technologies, such as autonomous driving, hold great promise to help solve the transportation challenges.
The Government of Japan has clarified several levels of autonomous driving: Level 1, the lowest, includes driver assistance functions such as automatic braking; Level 5, the highest, refers to fully independent automated driving. Autonomous driving technology continues to evolve at a rapid pace, and vehicles equipped with Level 2 autonomous driving technologies that enable hands-free driving are being introduced to the market. Japan has traffic rules set forth under the Road Traffic Act which drivers, cyclists, and pedestrians must follow while on the road. In April 2023, the revised Road Traffic Act came into effect, allowing Level 4 autonomous driving, which allows autonomous self-driving under certain conditions, on public roads. This revision primarily envisages Level 4 autonomous driving for buses that run unmanned on specific routes in sparsely populated areas, yet, in the future, it will be extended to private vehicles and trucks on expressways.
The Japanese government has been collaborating with the private sector to conduct autonomous driving demonstrations on public roads. In 2021, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) jointly launched the “Project on Research, Development, Demonstration and Deployment (RDD&D) of Automated Driving toward Level 4 and its Enhanced Mobility Services”, known as “RoAD to the L4” to develop advanced mobility services. Under the RoAD to the L4 project, several initiatives are being planned and executed in different locations. For example, the first lanes dedicated for autonomous vehicles in Japan are being set up on a public road in Hitachi City, Ibaraki Prefecture through collaboration with local stakeholders such as Hitachi City, Michinori Holdings, Inc. and Ibaraki Kotsu Co., Ltd. The government plans to expand these autonomous driving lanes to fifty different locations by 2025 with the aim to help solve the shortage of bus drivers.
An aging and depopulating Japan needs autonomous driving technology and advanced mobility services. U.S. auto tech companies may find opportunities to enter the market. For more information, please contact the U.S. Commercial Service at Office.Tokyo@trade.gov.