VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
PRICE: 0 CENTS
Monday, December 29, 2025
YASKAWA Electric Corporation
6506 · Tokyo Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
Request update
Spot something outdated? Send a quick note and source so we can refresh this profile.
Overview
YASKAWA Electric is a Japan-based factory automation company with four reported segments: Motion Control, Robotics, System Engineering, and Other/Logistics. Motion Control and Robotics each contribute roughly the mid-40% range of revenue and are anchored by engineered-in components and an installed base supported by maintenance services. The company highlights i3-Mechatronics (data-enabled smart factory solutions) and sustained R&D/capex focused on motion control and robotics as key differentiators. Company estimates indicate ~16% global share in AC servo drives and ~7% in industrial robots (FY2024). Key risks include cyclical capital spending, rapid competitive entry (especially China), and execution risk in project-based systems work.
Primary segment
Motion Control
Market structure
Oligopoly
Market share
16% (reported)
HHI: —
Coverage
4 segments · 7 tags
Updated 2025-12-29
Segments
Motion Control
Factory automation motion control components (AC servo motors/drives & controllers, AC drives/inverters)
Revenue
44.4%
Structure
Oligopoly
Pricing
moderate
Share
16% (reported)
Peers
Robotics
Industrial robots and robot systems (including controllers and application packages)
Revenue
44.2%
Structure
Oligopoly
Pricing
moderate
Share
7% (reported)
Peers
System Engineering
Industrial and social infrastructure systems engineering (industrial automation drives, large plant/infrastructure systems, and related services)
Revenue
7.1%
Structure
Competitive
Pricing
weak
Share
—
Peers
Other / Logistics Services
Logistics services and other ancillary businesses
Revenue
4.3%
Structure
Competitive
Pricing
weak
Share
—
Peers
—
Moat Claims
Motion Control
Factory automation motion control components (AC servo motors/drives & controllers, AC drives/inverters)
FY2024 (year ended 2025-02-28) segment revenue 238,752M JPY and segment operating profit 23,005M JPY; shares derived from segment table in the FY2024 consolidated results release.
Design In Qualification
Demand
Design In Qualification
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
AC servo and drive components are engineered into OEM manufacturing equipment; re-qualification/tuning and line validation increase switching costs for machine builders and end-users.
Erosion risks
- Rise of lower-cost competitors (especially China)
- Open standards and easier commissioning tools reducing switching costs
- Component commoditization / spec convergence
Leading indicators
- Motion Control gross margin trend
- Share of orders in high-spec applications (e.g., semiconductors, batteries)
- Customer wins/losses at major machine builders
Counterarguments
- Large OEMs can dual-source drives/servos across vendors
- Integration effort can be absorbed during major line redesigns
Brand Trust
Demand
Brand Trust
Strength: 4/5 · Durability: durable · Confidence: 3/5 · 1 evidence
Long operating history and quality-first culture support willingness-to-pay for reliability and long-term support in automation components.
Erosion risks
- Perceived quality issues (field failures/recalls)
- Innovation slowdown vs peers
- Brand dilution if forced into price competition
Leading indicators
- Warranty/quality cost trends
- Customer satisfaction / NPS where disclosed
- ASP/mix vs lower-cost competitors
Counterarguments
- In many servo/drive buys, performance parity makes brand less decisive
- Procurement can prioritize cost over brand in downturns
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
i3-Mechatronics positions Yaskawa components within a data loop (edge/cloud analytics, predictive maintenance) that can embed workflows and models over time.
Erosion risks
- Customers standardize on vendor-neutral MES/SCADA/IoT stacks
- Data/AI features copied by competitors
- Cybersecurity incidents reducing trust in connected solutions
Leading indicators
- Attach rate of software/monitoring tools to hardware installs
- Recurring software/services revenue mix (if disclosed)
- Number/scale of i3-Mechatronics projects cited
Counterarguments
- Most factories already run heterogeneous automation stacks; lock-in is limited
- Best-of-breed software vendors can sit above hardware
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength: 3/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Sustained capex and R&D spending supports ongoing product cadence and manufacturing capability in motion control.
Erosion risks
- R&D arms race with larger peers
- Difficulty localizing supply chains amid geopolitics
- Talent constraints in control/AI engineering
Leading indicators
- R&D intensity trend (R&D as % of revenue)
- New product launch cadence (e.g., new servo/drive/controller families)
- Manufacturing yield / productivity metrics (if disclosed)
Counterarguments
- Scale is smaller than the largest multi-industry conglomerates
- Incremental R&D may not translate to differentiated customer value
Robotics
Industrial robots and robot systems (including controllers and application packages)
FY2024 (year ended 2025-02-28) segment revenue 237,413M JPY and segment operating profit 23,751M JPY; shares derived from segment table in the FY2024 consolidated results release.
Service Field Network
Supply
Service Field Network
Strength: 4/5 · Durability: medium · Confidence: 3/5 · 1 evidence
After-sales maintenance/service capability supports uptime-critical customers and helps retain and expand the installed base.
Erosion risks
- Independent service organizations (ISOs) expanding capabilities
- Customers standardize on multi-vendor robot fleets
- Lower reliability reducing differentiation
Leading indicators
- Service revenue share / recurring service contracts (if disclosed)
- Spare parts and service margin trends
- Installed base growth vs shipments
Counterarguments
- Robots can be serviced by third-party integrators in many regions
- Large customers maintain internal maintenance teams
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength: 4/5 · Durability: medium · Confidence: 4/5 · 1 evidence
Robotics performance and feature differentiation depend on continuous R&D in controllers, motion algorithms, and new robot families.
Erosion risks
- R&D leapfrogging by larger peers
- Rapid price/performance improvements from Chinese OEMs
- Cyclical capex cuts reducing scale advantages
Leading indicators
- Robot ASP and mix (high-end vs standard)
- New product introductions and controller platform updates
- Win rate in growth verticals (semiconductor/battery)
Counterarguments
- Industrial robot hardware can converge; differentiation shifts to software/integration
- System integrators can neutralize OEM differentiation
Ecosystem Complements
Network
Ecosystem Complements
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Yaskawa positions robots within a broader stack (robots + servos/drives + data/solutions) to deliver integrated automation cells and smart-factory solutions (i3-Mechatronics).
Erosion risks
- Customers prefer best-of-breed multi-vendor cells
- Open software layers reduce benefit of single-vendor stacks
- Regulatory/standard changes in safety and interoperability
Leading indicators
- Cross-sell rate between robots and motion-control products
- Growth in solution/project revenue tied to i3-Mechatronics
- Partner ecosystem growth (system integrators, OEM partners)
Counterarguments
- Integrators can combine robots and drives from different vendors effectively
- Many factories already operate heterogeneous equipment
System Engineering
Industrial and social infrastructure systems engineering (industrial automation drives, large plant/infrastructure systems, and related services)
FY2024 (year ended 2025-02-28) segment revenue 38,352M JPY and segment operating profit 4,605M JPY; shares derived from segment table in the FY2024 consolidated results release.
Turnkey automation project execution know-how
Demand
Turnkey automation project execution know-how
Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence
Engineering, commissioning, and life-cycle support for large, customized industrial/infrastructure projects where domain expertise, installed base familiarity, and execution quality drive supplier selection.
Project-based systems work rewards accumulated know-how and reliability, but margins are sensitive to project mix, procurement, and execution risk.
Erosion risks
- Project delays/cost overruns
- Competitive tendering pressures margins
- Customer insourcing or switching during major refurbishments
Leading indicators
- Order backlog and project pipeline quality
- Gross margin volatility by segment
- Large project win/loss announcements
Counterarguments
- Many projects are bid competitively; moats can be weak
- Execution risk can outweigh any incumbency advantage
Other / Logistics Services
Logistics services and other ancillary businesses
FY2024 (year ended 2025-02-28) Other segment revenue 23,164M JPY and segment operating profit 1,591M JPY; shares derived from segment table in the FY2024 consolidated results release.
Operational Excellence
Supply
Operational Excellence
Strength: 2/5 · Durability: fragile · Confidence: 2/5 · 1 evidence
Ancillary businesses are typically scale/efficiency-driven with limited structural moat; focus is execution and cost control.
Erosion risks
- Price competition
- Input cost inflation (labor, fuel)
- Insourcing by customers
Leading indicators
- Segment operating margin trend
- Cost per shipment / productivity metrics (if disclosed)
Counterarguments
- Logistics/services are widely available and commoditized
- Competitive differentiation is often minimal
Evidence
AC servo motor, controllers and AC drives.
Motion Control segment description shows the core components that are typically designed-in to production equipment.
earned the trust of many customers
Company explicitly links its track record and customer trust to strength in solution-based sales and partnerships.
data enables continuous improvement
Report describes using production-field data for continuous improvement, an anchor for workflow/data-driven stickiness.
focused on our core business areas: motion control and robotics
Company states R&D focus on motion control and robotics, indicating ongoing investment to sustain know-how.
AC servo drive 16%
Market share figure is explicitly presented as a company estimate.
Showing 5 of 11 sources.
Risks & Indicators
Erosion risks
- Rise of lower-cost competitors (especially China)
- Open standards and easier commissioning tools reducing switching costs
- Component commoditization / spec convergence
- Perceived quality issues (field failures/recalls)
- Innovation slowdown vs peers
- Brand dilution if forced into price competition
Leading indicators
- Motion Control gross margin trend
- Share of orders in high-spec applications (e.g., semiconductors, batteries)
- Customer wins/losses at major machine builders
- Warranty/quality cost trends
- Customer satisfaction / NPS where disclosed
- ASP/mix vs lower-cost competitors
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.