Japanese industry and media are framing 2026 as “the first year of Physical AI,” with autonomous robots increasingly able to handle perception, judgment and motion generation in one integrated stack, according to coverage from Nikkei and Diamond Online. Diamond Online cites expectations for a roughly ¥19 trillion market.
Nikkei reports that industrial robot orders are forecast to reach ¥1.03 trillion in 2026, surpassing ¥1 trillion for the first time in four years, with rising interest in “Physical AI” cited as a potential upside factor.
Japan’s METI has convened an “AI Robotics” study group to shape policy, and the theme aligns with the central government’s nearly ¥400 billion Physical AI budget allocation.
For overseas investors, the trend highlights how Japan is trying to convert its established strength in industrial robotics into a defensible position in the emerging AI-robotics wave.