Introducing an Asia DX Company that Uses Digital Technology to Solve Social Issues in AsiaJapan's top runner in the drone market, ACSL, accelerates business growth in India
Made-in-India drones are just one of the success stories for Asia DX Project. Launched by Japan’s Ministry of Economy, Trade and Industry (METI) in 2019. this Project is designed to promote Asia Digital Transformation (DX), leveraging digital technology to forge partnerships between Japanese startups and their counterparts in other Asian markets, spurring the creation of new industries that address societal needs.
ACSL, which in 2018 became the first drone manufacturer to be publicly listed in Japan, develops, manufactures, and sells advanced domestically made industrial drones featuring its proprietary autonomous technology that enables their devices to think and made decisions about their actions using AI. ACSL’s drones have a wide range of application including logistics, infrastructure inspections and disaster relief.
Now Japan’s top runner in the drone market is actively growing a base in another Asian country – India. But why?
Using the government's Made-In-India as a tailwind, the social implementation of drones progresses in the growing Indian market
India’s drone market, a growth market for Asia, was estimated at $890 million in 2021. Starting in 2022, this could expand even more due to the government’s Made-In-India policy, which requires that drones sold in India must be produced there. Until 2022, Chinese drones accounted for 60% of the Indian market, but they and others are now banned due to the stop of import of finished drones from overseas, marking a sea change in the Indian drone market.
Ahead of this, ACSL founded the joint venture ACSL India Private Limited in 2021 to fully establish itself in the Indian market. It will transfer drone technology and expertise to local companies, also verifying business development using the Indian government's digital platform. There’ll be supply chain management benefits too: ACSL will have clear visibility of the entire drone manufacturing process in both Japan and India, from the design stage to sales in order to address risks such as stagnation in global logistics due to factors such as the spread of COVID-19.
Left: Prime Minister Modi visits the ACSL India Exhibition booth
Right: ACSL India's booth at the India Exhibition
Hop, step, jump to the US market aiming to be a globally sustainable manufacturer
As the work of drones expands in society, they will take over various tasks done now by humans, raising societal productivity as a whole. With the goal of becoming a sustainable global manufacturer, ACSL hopes to tap into this demand by entering the US drone market, valued at $11 billion. Demand is palpable as multiple local companies abroad have inquired with ACSL. In the future, further market and technology expansion is expected, including entry into overseas markets, commercialization of new drone types for custom application, and exploration of technology deployment possibilities in other fields.
METI is also providing its full support for Japanese companies solving social issues through digital transformation in Asia (ADX)
Like in the case of ACSL, large companies and startups from Japan are pioneering new applications of digital technology across Asia to create new industries and solve social issues. METI supports these efforts to promote Asian digital transformation (DX) by matching local companies, providing financial support, and more. For details, please refer to METI's Asia DX Project page .