Japan Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 06-Nov-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : IC2438
Japan Data Center Market Overview
The Japan Data Center Market size was valued at USD 4.45 billion in 2023, and is predicted to reach USD 11.21 billion by 2030, at a CAGR of 14.1% from 2024 to 2030.
The data center market, also known as the network infrastructure market, encompasses the entire lifecycle of specialized infrastructure dedicated to hosting computing systems, including planning, construction, operation, and maintenance. It comprises a variety of components such as servers, storage systems, and networking gear, offering services such as cloud computing and connectivity solutions. Currently, the industry is experiencing widespread adoption of cloud services, alongside the emergence of edge computing to reduce latency.
Key trends include a focus on sustainability, heightened concerns about cybersecurity, the integration of hybrid and multi-cloud approaches, and the influence of 5G networks. These trends highlight the industry's response to the growing demand for scalable, efficient, and secure data processing and storage solutions in the era of digital transformation. According to the United States International Trade Commission, the data processing and storage market is projected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.
Surge in Cloud Adoption Accelerates the Market Growth
The ongoing growth of Japan's cloud market acts as a pivotal driver for the rapidly expanding data center sector. Recent data from the MM Research Institute reveals that Japan's domestic cloud market achieved a remarkable milestone, reaching USD 32.53 billion in 2021, representing a significant 22.3% surge from the previous year's USD 26.18 billion.
This robust upward trend positions Japan for an imminent surge in demand for data infrastructure, particularly in the bustling metropolis of Tokyo, where the number of facilities is expected to double over the next three to five years. Such ambitious expansion initiatives are poised to firmly establish Tokyo as Asia's second-largest data infrastructure hub, closely following behind Beijing. This growth not only underscores Japan's position as a key player in the global data economy but also highlights the region's increasing reliance on digital infrastructure to support its evolving technological landscape.
Government Subsidies Propels the Growth of the Japan Data Center Market
The Japanese government is actively driving the expansion of the data center market by offering substantial subsidies aimed at establishing new facilities while placing a strong emphasis on achieving zero carbon emissions to meet environmental sustainability goals.
A notable instance of this support is the allocation of USD 440 million specifically for the construction of new data infrastructure and the diversification of submarine cable landing bases. These investments are not only geared towards meeting the growing demand for digital infrastructure but also towards addressing urban-rural disparities and enhancing disaster resilience across the nation.
Through initiatives such as the "Digital Rural" and "Digital Garden" projects, the focus is on developing rural data infrastructure and fiber optic cables to deliver high-speed digital services, thus bolstering regional connectivity and fostering economic prosperity in underdeveloped areas. This comprehensive approach underscores the government's commitment to promoting sustainable growth in the data infrastructure sector while ensuring equitable access to digital resources for all citizens.
High Initial Investment Hinders the Japan Data Center Market Growth
The data center industry confronts significant hurdles, primarily stemming from the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure necessitates substantial upfront financial commitments, posing barriers for smaller enterprises and startups aiming to enter the market. Moreover, ongoing compliance with environmental standards mandates continuous investment in energy-efficient technologies hinders the overall Japan data center market growth.
Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion
The integration of edge computing operations offer promising prospects for the Japan data center market expansion. By minimizing latency and enabling real-time processing, edge computing empowers applications such as the Internet of Things (IoT) and Augmented Reality (AR), reducing the load on centralized cloud data center while providing scalability and flexibility.
This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, creating diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada signify the increasing interest in edge computing solutions, indicating a concerted effort to tackle connectivity challenges and bridge the digital divide.
Competitive Landscape
The key market players operating in the Japan data center industry include China Telecom, Equinix, Digital Realty, Zenlayer, Amazon Web Services (AWS), 365 Data Centers, MOD Mission Critical (MOD), IBM Cloud, INAP, Hivelocity and others.
Japan Data Center Market Key Segments
By Type
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Colocation
-
Hyperscale
-
Edge
-
Others
By Deployment Model
-
On-Premises
-
Cloud
-
Hybrid
By Enterprise Size
-
Large Enterprise
-
Small and Medium Size Enterprise
By End User
-
BFSI
-
IT and Telecom
-
Government
-
Energy and Utilities
-
Other End Users
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 4.45 Billion |
|
Revenue Forecast in 2030 |
USD 11.21 Billion |
|
Growth Rate |
CAGR of 14.1% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
KEY PLAYERS
-
China Telecom
-
Equinix
-
Digital Realty
-
Zenlayer
-
Amazon Web Services (AWS)
-
365 Data Centers
-
MOD Mission Critical (MOD)
-
IBM Cloud
-
INAP
-
Hivelocity
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