Since its founding in Osaka in 1933, OMRON Corporation has grown into a global player operating in 130 countries around the world with its innovative “Sensing & Control” technology at the core. The company has released a succession of innovative products that contribute to solving social issues, such as the world’s first fully automatic traffic light and the world’s first cash machine, which was the forerunner of the ATM. Since establishing a production subsidiary in Germany in 1973, OMRON has steadily expanded its activities in the European market and is strengthening its presence in the heart of the manufacturing industry with the new Automation Center in Stuttgart as a strategic base. J-BIG spoke to Tsutomu Igaki, Senior General Manager of the Global Corporate Communications & Engagement HQ and Sustainability Executive, and Kozo Kando, Senior General Manager of the Industrial Automation Company’s Global Industry Sales Division, at OMRON’s Kyoto headquarters about the company’s history, the current business structure and about business strategies for the European and German market.
J-BIG: Mr. Igaki, please tell us briefly about your career path and current position at OMRON?
Tsutomu Igaki: I have been with OMRON since 2013. Prior to joining OMRON, there were several stations on my career path: after graduating from university, I joined the car manufacturer Mazda, then worked for Accenture, a consulting firm, and Clareof, a PR consulting firm, before joining Coca-Cola, where I worked at the Japanese subsidiary for about 10 years and was in charge of corporate communications. So, OMRON is my fifth company. Currently, I am in charge of public relations, corporate communications, external relations, brand strategy and company-wide sustainability initiatives.
J-BIG: When and under what circumstances was OMRON founded?
Tsutomu Igaki: OMRON was founded in 1933 by Kazuma Tateishi in the east of Osaka, at that time under the name “Tateishi Electric.” He had originally worked for the Hyogo prefectural government, but decided to start his own business because he wanted to benefit society with his own technological innovations. His first business was the development of a timer for X-ray photography, which was extremely accurate for the time. The timer was then adopted by a major company, leading to the company’s first success.
Tateishi had studied electrical engineering at Kumamoto University’s Faculty of Engineering and was well versed in electrical relay control technology. This technical base became the foundation for OMRON’s business expansion later on. The company first focused on timers for medical equipment and then expanded its business to include electrical control devices such as relays and switches.In 1938, just five years after its founding, the company opened a branch office in Tokyo, and early on set its sights not only on the Kansai region but also on nationwide expansion.
To avoid air raids during the Pacific War, the company’s factory was moved to Omuro, in the northwest of Kyoto, and OMRON has had its headquarters in Kyoto ever since. Omuro was once the center of the film industry, also known as the “Hollywood of Japan”. There were many film studios in Omuro and Uzumasa, and the first factory that Tateishi built was on the huge site of a former film studio. It is said that he had a strong love for film and that he had dreamed of working in Kyoto since his university days. It could be said that this passion for film had influenced his path of moving to Osaka after working in Hyogo Prefecture, and then establishing his own company in Kyoto.
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After the war, with the spread of electrical appliances, the company also began to handle household electrical appliances such as heating devices and hair irons. At that time, Japan was in the early stages of economic growth, and there was a growing expectation for greater efficiency and automation in the manufacturing industry. In response to this trend, OMRON strengthened its automation technology and was able to expand its business. The company initially focused on the domestic market, but eventually began to look overseas, using its technological capabilities as the focal point.
In 1990, the company name was changed from “Tateishi Electric” to “OMRON”, derived from “Omuro”, where the headquarters was located.
J-BIG: What did the traditional business of the company look like?
Tsutomu Igaki: In the early days of OMRON, then known as Tateishi Electric, the company was mainly involved in the manufacturing of electrical control devices such as relays and switches. In particular, the development of timers for X-ray and industrial applications using its electrical connection technology became the company’s strength. In addition, in response to the growing demand for household electrical appliances during the post-war reconstruction period, the company also began to manufacture products such as desk-top electric lighters and hair irons.
At that time, Japan was in the early stages of economic growth, and there was a growing expectation for greater efficiency and automation in the manufacturing industry. In response to this trend, OMRON strengthened its automation technology and was able to expand its business. The company initially focused on the domestic market, but eventually began to look overseas, using its technological capabilities as the focal point.
J-BIG: Were there any particular factors that contributed to the company’s early growth?
Tsutomu Igaki: The 1950s was a major turning point for OMRON’s growth. Our founder, Kazuo Tateishi, called this period the “second founding” of the company. Tateishi was greatly influenced by his encounter with two key people in 1952. One was Dr. Yoichi Ueno, a pioneer in the area of productivity improvement also known as the “Father of Efficiency”, who introduced Tateishi to the possibilities of factory automation. Tateishi sensed the great potential and realised the importance of automation technology for the Japanese industry. The other encounter was with Dr. Katsuzo Nishi, a physician who advocated Western medicine. From him he learned about a new academic discipline called “cybernetics”, the fusion of control engineering and communications technology. This concept involved applying the mechanisms of the human nervous system and brain to the control of machines. This led to a revolution in OMRON’s technological development. After being exposed to these two concepts, Tateishi declared 1955 to be the “first year of automation” and decided to make “factory automation”, which was a major issue at the time due to the need to increase production efficiency, the focus of the company’s business.
In 1960, he made a large-scale investment, four times the amount of the company’s capital, to establish the Central R&D Laboratory. Despite being 60 years old, Tateishi continued to have a strong desire for innovation. His philosophy was “to develop the technology needed ahead of the times, rather than waiting for the world to change”. After having formulated the company mission in 1959 to increase the sense of unity among employees, the next step was to develop the foundation for research and development. The R&D Laboratory was established in Kyoto and became the center for the development of innovative products that contribute to society, using core technologies such as “Sensing & Control”.
In 1970, at the International Future Research Conference held in conjunction with the Osaka World Expo, Tateishi announced his original method of predicting the future, called the “SINIC Theory”. The basic idea behind the theory is that society evolves as the three areas of science, technology and society interact and influence each other. Science provides the seeds for technology, and technology enables changes in society; at the same time, society generates needs for technology, and technology stimulates scientific endeavour. The driving force behind the evolution of these elements is said to be the human desire to “live in a better society and lead a better life”. The SINIC theory expresses human development as a three-dimensional model that spirals upwards and predicts the future of modern society beyond the year 2030. Through this theory, Tateishi expressed his vision that a stage called “natural society” will eventually be reached, and human society will transform into a more advanced form after going through a full cycle. The theory served as a guide for the company’s technological progress, through which the development of various world-first and Japan-origin products was achieved.
J-BIG: Which specific products have supported OMRON’s growth later?
Tsutomu Igaki: In 1964, the “Fully Automated Traffic Signal” was developed, which was the world’s first system that automatically detected the volume of traffic and switched the signal at the optimum time. It was first introduced in Kyoto and became the forerunner of the technology now used all over the world.
In 1971, OMRON developed the world’s first “online cash machine”, the forerunner of today’s ATM. By creating a system that allowed people to access their bank accounts and withdraw cash remotely, this product revolutionised the financial industry.
The development of the unmanned station system and automatic ticket gates is another example of our technological innovations. Although these systems are now commonplace, at the time they made a significant contribution to the efficiency of the rail industry by automating the ticket checking process that had previously been carried out manually by people.
The concept that has supported these successes is our core technology “Sensing & Control + Think”. It integrates the technologies of collecting information with sensors (Sensing), analysing the collected data by adding human intelligence to machines (Think), and controlling it appropriately (Control). In traffic lights, for example, the flow of vehicles is detected and the signal is switched at the optimum time. In ATMs, the user’s input is processed as data and cash is dispensed accordingly. This technology provides the basis for OMRON’s various products.
In this way, since the 1950s, our company has evolved from a simple electronic parts manufacturer to a system development company that makes full use of automation and control technologies. These technologies have been applied to a wide range of fields, including factory automation, healthcare, transportation infrastructure and financial systems, and have become the foundation for OMRON’s growth.J-BIG: Welche spezifischen Produkte haben später das Wachstum von OMRON unterstützt?
J-BIG: When did OMRON begin its global expansion?
Tsutomu Igaki: OMRON’s first foray into overseas markets was in 1963, when it established a base in New York. Until then, the company had focused on the Japanese domestic market but recognised the potential of overseas markets and began to develop a global presence. The catalyst for this development was the online cash machine: OMRON saw its opportunity to enter into overseas markets when this technology was first delivered to a company in the United States. The establishment of the New York office was an important step in ensuring the success of our global expansion project. Subsequently, OMRON also strengthened its R&D base in the US market by establishing a research and development facility in California, which gave the company a foothold for full-scale global expansion. Based on our success in the US we aimed to achieve further growth.
The company also quickly turned its attention to the Chinese market when diplomatic relations between Japan and China were normalised after the war, becoming one of the fastest Japanese companies to enter the Chinese market. Our founder, Tateishi, declared that he would “create a second Tateishi Electric in China” and had already begun planning in 1970 to make the Chinese market a pillar of growth, using the success in Japan as a model.
Our first foothold in the European market was the establishment of a factory in Germany in 1973. From this German base, we began to expand our business in the European market. Today, OMRON is operating in 130 countries around the world.
J-BIG: Mr. Kando, could you introduce yourself and also tell us about your career at OMRON?
Kozo Kando: I joined OMRON in 1997 and was initially involved in sales for the Industrial Automation business. In 2009, when I was 36 years old, I made a career change from sales and moved to the Product Business Headquarters, where I was in charge of product planning. Since Europe is a trendsetter in terms of technology, I spent about two years in Barcelona from 2013 to 2014 working on product planning. I returned to Japan in 2015 and worked as the General Manager of the Product Business Division for about five years. In 2021, during the coronavirus pandemic, I was transferred to the Amsterdam headquarters as the head of the European Business Planning Office, but returned to Japan after a year for a special project. I am currently Senior General Manager of the Industrial Automation Company’s Global Industry Sales Division and leader of the European Growth Strategy Project, where I am using my previous experience in Europe to help formulate a medium-term growth strategy.
J-BIG: What percentage of the Group’s total business does the Industrial Automation Business (IAB) represent?
Kozo Kando: Within OMRON’s overall business structure, the Industrial Automation Business (IAB) accounts for approximately 40-50% of the company’s total sales. Although the Healthcare Business may be more familiar to the general public as a B2C business, the IAB is actually the area that forms the foundation of OMRON’s business. Although the sales ratio fluctuates slightly from year to year, the proportion of the sales has remained largely unchanged over the years and IAB is positioned as one of the company’s main business areas.
J-BIG: How did you expand to the German market?
Kozo Kando: OMRON’s expansion into the European market began in 1965 with a partnership with the Italian distributor Carlo Gavazzi. Initially, we focused on selling electrical and electronic components and industrial automation equipment in Italy, and from there developed a foothold for expansion throughout Europe. Following the success in the Italian market, OMRON established a production subsidiary in Germany in 1973 and began to develop its business in full swing. In 1974 OMRON also formed a joint venture with Carlo Gavazzi. In 1978, we acquired the shares of this company and laid the groundwork for starting direct sales.
In the 1980s, OMRON established a sales subsidiary in Düsseldorf, marking its full-scale entry into the German market. Later, with the expansion of the European business, we established our European headquarters in Amsterdam. In the 1990s, OMRON established sales bases in Germany and other major European countries. Today we have offices in 22 European countries and 15 sales bases.
J-BIG: What are OMRON’s main business areas in Germany?
Kozo Kando: Our main business in the German market is Industrial Automation (IA), where we use FA (Factory Automation) technology to provide productivity improvement and quality control solutions for the manufacturing industry.
OMRON also operates ATC (Automation Centers) and POC (Proof of Concept) labs throughout Europe, for which a new base has also been established in Germany. ATCs are facilities where customers can experience OMRON’s technologies and applications first-hand, while POC labs are designated for the conduction of technical verification to solve customer problems.
OMRON currently has three main bases in Germany: the Sales Headquarters in Langenfeld near Düsseldorf, the POC Lab in Dortmund and the ATC, which was newly established in Stuttgart in April 2025. The ATC in Stuttgart is strategically located in an area with a high concentration of manufacturing companies and plays a key role in deepening collaboration with customers. The excellent transport connections are a major advantage: By choosing a location close to the airport rather than in the city center, the facility avoids traffic congestion, enabling smooth access also for visitors from domestic and international locations.
J-BIG: How does the number of employees and the turnover of the German subsidiary compare to the global turnover?
Kozo Kando: OMRON’s European business as a whole employs about 2,300 people. In terms of turnover, sales in Europe amount to approximately 84.2 billion yen, accounting for approximately 21-22 percent of the total revenue. With more than 100 employees in Germany, it is one of the countries that plays a particularly important role in the European market.
Within the European strategy of OMRON, Germany is considered as a market that will support future growth. In particular, we plan to expand our business in the automotive, food and packaging, and medical equipment sectors.
J-BIG: Please tell us more about the role and position of the German subsidiary within OMRON’s strategy.
Kozo Kando: Until now, our European operations have been centered in Southern Europe, mainly in Italy, Spain and Portugal. As Germany is a major market with a large manufacturing base, we will now focus on expanding our business with Germany as a key market. Germany has a strong position as the world’s largest exporter of packaging machinery and as an automotive manufacturing base. We aim to increase our market share in these sectors by strengthening our ties with customers through the new ATC in Stuttgart. Since the German market demands high quality and innovative technologies, we are establishing a system that can respond to rapid technological innovation while making full use of our strength as a Japanese company in quality control.
J-BIG: In your daily operations, how do the Japanese headquarters and the German office work together?
Kozo Kando: OMRON’s German subsidiary and the Japanese headquarters work closely together, especially in the areas of technology development and market strategy formulation. The German office shares information on German industry trends and customer needs with our development team in Japan, and we use this information to develop products and solutions that reflect these trends and needs.
To respond to standardisation trends in the German market, technologies that comply with European standards are being developed in collaboration with the headquarters in Japan. We are also strengthening our cooperation with German partner companies and working with system integrators to make our technologies even more practical.
J-BIG: Your company is highly praised for its quality. What are your thoughts on innovation?
Kozo Kando: OMRON is strongly promoting its high level of quality as a Japanese company in Europe. We are proud that our past achievements have been recognised by our customers as a result of our commitment to quality, enabling us to expand our business. However, the key to future growth lies in how we balance quality with innovation. Particularly in the German market, where there is a high demand for technological innovation, we need to accelerate innovation while maintaining our focus on quality. This is a crucial point for differentiating ourselves from our German competitors and a significant challenge for us.
J-BIG: Please tell us about your company’s future plans and strategies and how these are linked to your business in Germany.
Kozo Kando: OMRON’s European strategy focuses on five key industries: “Environmental Mobility (automotive-related),” “Food and Daily Necessities,” “Healthcare,” “Digital Devices (semiconductors and electronic components),” and “Logistics.”
In the German market, where the automotive and packaging machinery industries are particularly strong, we will continue to expand our market share in these areas. The newly established ATC in Stuttgart will play an important role as a base for this endeavour. Here, we will conduct demonstration experiments of new technologies in collaboration with our customers and develop solutions that can be applied to actual manufacturing processes.
The German market is also the origin of “Industry 4.0” and a place where the latest industrial technologies are born. By being deeply involved in the German market, OMRON aims to grasp the latest technology trends and apply them to its global business development. Industry 4.0 has created a major trend towards digitalisation across the entire industrial sector. We will also actively participate in this trend and contribute to the realisation of the “Monozukuri (Manufacturing) of the Future”.
J-BIG: What is your vision for the European market in the future?
Kozo Kando: We will contribute to industrial development throughout Europe by expanding OMRON’s technologies and innovations with a focus on the German market. By achieving both quality and innovation, we will enhance our competitiveness in the German market and establish our position as a driving force for growth throughout Europe. Through the ATC in particular, we will create new value together with our customers with the aim of realising a sustainable society.
