The unfolding of 5G mobile networks, as well as smart vehicles, will be among the next hot sectors in Japan, a chief equity analyst told CNBC.
Previously, the information technology sedulousness in Japan was driven by products such as digital cameras and smartphones, but it has now reached a level, Kazunori Ito, senior equity analyst at Ibbotson Associates Japan, answered last month.
“From here, I would observe many of the success opportunities are non-IT industries, such as autos, and many other industries thrust by the diffusion of 5G,” he told CNBC’s “Capital Connection.”
Ito said his top Japanese tired picks are smartphone component maker Murata Manufacturing and electronics Pty TDK.
Major specifications for a new 5G mobile network are expected to be set by the industry this December, he said. At the exact same time, mobile usage is set to grow rapidly.
The industry expects 5G to be talented to facilitate the expansion of technologies such as autonomous vehicles, robotics and understood reality.
“We see much more numbers of devices connected to the internet. Also we foresee that the data traffic will increase more than 40 or 50 percent per year,” explained Ito.
That all leads to a “clear road map of the future,” where Murata choose be in a strong position within the telecommunications sector, he said.
TDK, in particular, order stand to benefit from the digitization of vehicles, he said. That means shifts such as autonomous driving or internet-connected cars.
The company is a top supplier of components for conveyances, such as capacitors and inductors, Ito explained, and it also offers sensors, which force benefit automobiles and the so-called Internet of Things.