Shift in the Industry’s Competitive Dynamics Driven by the Evolution and Widespread Adoption of Autonomous Driving Technology

「In the real economy, massive construction investment related to AI, the Fourth Industrial Revolution, is accelerating, while」

「Meanwhile, as the social implementation and massive investment in AI technology, the Fourth Industrial Revolution, accelerated and global infrastructure investment increased, the real economy entered a bottoming phase, and the construction machinery market also began to bottom out.」

「Changes in social structures accompanying the rapid adoption of generative AI technology」

「Meanwhile, the outlook for the global economy remains uncertain amid rapidly expanding global inflation and monetary tightening, the fragmentation of the international community into blocs accompanying dramatic changes in the security environment, and social changes driven by innovation in ICT and AI technologies.」

「During the first six months of the fiscal year under review (1 April 2021 to 30 September 2021), economic recovery in the With-COVID era advanced rapidly amid turbulent global conditions, as society underwent major changes triggered by COVID-19 and global warming. Digital transformation (DX) became fully established, global decarbonization policies (CN) accelerated along with energy and material price increases, supply chains were disrupted as economic activity resumed, and geopolitical tensions centered on the U.S.-China Cold War structure intensified further.」

「Economic recovery in the era of living with COVID-19 began amid dramatic changes in the global environment, including the widespread adoption of digital technologies and the full-scale rollout of digital transformation (DX), the acceleration of global decarbonisation policies and the dawn of the era of green growth, further intensification of geopolitical tensions centred on the US-China Cold War structure, and supply chain disruptions and soaring component prices.」

「Behavioral patterns under the new normal based on living with COVID-19 became established, while the social implementation of digital technologies aimed at balancing infection prevention measures with the resumption of economic activity advanced at an accelerating pace.」

「Beginning with the outbreak of the COVID-19 issue, geopolitical tensions centered on the U.S.-China Cold War structure intensified further, while the pace of industrial-structure changes driven by the technology revolution accelerated sharply.」

「During the third quarter consolidated cumulative period from 1 April 2019 to 31 December 2019, the business environment surrounding the group changed significantly, with domestic economies in Japan and North America remaining firm while global trade stagnated amid US-China trade friction, industrial structural change driven by the technology revolution accelerated rapidly, and social demand increased in response to increasingly severe natural disasters.」

「During the first quarter of the fiscal year under review, the business environment surrounding the Group evolved amid major changes in global political, economic and technological conditions. The economies of Japan and the United States and other developed countries remained solid, while a slowdown in Asian and emerging-market economies became increasingly evident, geopolitical tensions centered on the U.S.-China Cold War structure intensified, and industrial structures changed rapidly as a result of the technology revolution.」

「During the first nine months of the fiscal year under review (1 April 2018 to 31 December 2018), the global economy, which had been expanding since the Lehman shock, reached a peak, while the Group continued to operate in a rapidly changing environment amid structural shifts in the global economy, politics and technology, including heightened geopolitical tensions centered on the U.S.-China new Cold War structure and changes in industrial structures accompanying the technology revolution.」

「Meanwhile, the business environment is entering a period of upheaval, with increasingly fluid global geopolitical conditions and dramatic changes in the basis of industry competition driven by next-generation technologies.」

「However, the company cannot afford to be unprepared for changes in the global macro environment, including rising geopolitical risks that could redraw the global balance of power, the wave of anti-globalisation and the rise of protectionism, and a shift in the basis of industry competition accompanying the rapid evolution and adoption of autonomous driving technology.」