Growth Strategy
New Products
A Structure of Continuous Additive Growth from New Products
Products are the main driver of KEYENCE's growth. Every year, we launch around 10 new product series globally, and products within two years of their release consistently account for 10-20% of our sales. New products solve problems that existing products cannot, creating new demand. They contribute to performance improvements not merely by replacing existing products, but by providing "additive" growth. KEYENCE achieves stable growth by maintaining this over the long-term.
International Business
Markets with Potential for Structural Growth
In the overseas markets where KEYENCE is accelerating its business development, long-term structural growth is expected. The overseas sales ratio has expanded from just under 30% fifteen years ago to approximately 65% in the recent fiscal year 2024. During this period, sales have grown about 7.7 times, with overseas growth driving the overall expansion. Viewed by region, growth continues in all areas—the Americas, Asia, and Europe—and we anticipate further growth in each region moving forward.
Japan / Overseas
By Overseas Region
Global Market Size
The table below illustrates the market potential in each region based on its market size. It compares the manufacturing value-added of each region against Japan's (set as 1) and our sales in each region against our sales in Japan (set as 1).
Expansion of Business Areas
Expanding into Adjacent Fields from a Shop-Floor Perspective
Starting with FA (Factory Automation) products, we have expanded our business areas from the core of manufacturing to peripheral fields such as R&D, quality assurance, logistics, and retail. As a result, while sales in the FA domain have grown approximately 2.6 times compared to a decade ago, our business areas outside of FA have expanded by about 3.5 times. Furthermore, in recent years, we have also entered digital fields such as e-commerce platforms, 3D CAD, data analysis platforms, and RPA, creating new growth opportunities while also leveraging M&A.
Medium- to Long-Term Growth Potential
Further Expanding Markets and Productivity
An overseas sales ratio of 65% is still low considering the scale of the global manufacturing industry. According to World Bank estimates, the value-added generated by manufacturing industries worldwide is over 90% overseas, even when limited to the countries where we operate. We believe there is still significant room for growth. At the same time, productivity per person overseas remains at about 50% of Japan's level, which also indicates substantial growth potential from this perspective.
Furthermore, we are not limited to our existing businesses. We will actively consider entering new business areas while leveraging M&A, and aggressively pursue growth opportunities.
