Japan Data Center Market Size, Share & Trends Analysis Report By IT Infrastructure (Server, Storage, Network), By Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, Rack PDUOther Electrical Infrastructure), By Mechanical Infrastructure (Cooling Systems, Rack, Other Mechanical Infrastructure), By Type of Service (Managed Hosting Services, Colocation Services), By End-User (BFSI, Telecom and IT, Government, Healthcare, Other End Users),Global Economy Insights, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2023 - 2031

Region: Global | Format: Word, PPT, Excel | Report Status: Published

Market Overview:

The Japan Data Center Market size was USD 9.0 Billion in 2022.Covid-19's impacts have been unprecedented and staggering on a global scale, with the pandemic leading to positive demand shocks for the smart biopsy devices market across all domains and regions. Between 2023 and 2031, the market is projected to grow at a CAGR of 11.0% from USD 8.40 Billion in 2021 to USD 22.5 Billion in 2031. The sudden rise in CAGR is attributed to this market growth returning to the pre-pandemic level once the pandemic is over.

Japan is one of the largest data center markets in the Asia-Pacific region, with a strong demand for data center services driven by the country's advanced economy and thriving digital ecosystem. Here are some key insights into the Japan data center market the growth of the Japan data center market is primarily driven by increasing investments in cloud-based services, the adoption of IoT and AI technologies, and the emergence of 5G networks. The Japan data center market is segmented into colocation, managed hosting, cloud hosting, and other services. Colocation is the most popular service type, accounting for the largest share of the market. Some of the major players in the Japan data center market include NTT Communications, Equinix, KDDI, SoftBank Group Corp., and Internet Initiative Japan Inc.

The Tokyo metropolitan area is the largest data center market in Japan, accounting for over 70% of the country's data center capacity. Other major data center markets in Japan include Osaka, Nagoya, and Fukuoka. The Japanese government has implemented several initiatives to support the growth of the data center industry, including tax incentives and deregulation policies. The Japan data center market faces challenges such as power shortages, high energy costs, and a shortage of skilled professionals.

Scope of Japan Data Center Market Report:

A recent market research report added to repository of Intellectual Market Insights Research is an in-depth analysis of Global Japan Data Center Market. On the basis of historic growth analysis and current scenario of Japan Data Center market place, the report intends to offer actionable insights on global market growth projections. Authenticated data presented in report is based on findings of extensive primary and secondary research. Insights drawn from data serve as excellent tools that facilitate deeper understanding of multiple aspects of global Japan Data Center market. This further helps users with their developmental strategy.

This report examines all the key factors influencing growth of global Japan Data Center market, including demand-supply scenario, pricing structure, profit margins, production and value chain analysis. Regional assessment of global Japan Data Center market unlocks a plethora of untapped opportunities in regional and domestic market places. Detailed company profiling enables users to evaluate company shares analysis, emerging product lines, pricing strategies, innovation possibilities and much more.

The report covers the all the aspects of industry with dedicated study of key players that includes market leaders, followers and new entrants by region. PORTER, SVOR, PESTEL analysis with the potential impact of micro-economic factors by region on the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give clear futuristic view of the industry to the decision makers.

Japan Data Center Market Market Drivers:

Growing Demand for Cloud Computing services is growing factors:

Cloud computing has become an essential component for businesses to store, manage, and process their data. The growing demand for cloud computing services is driving the growth of the Japan data center market. Cloud computing offers various benefits such as scalability, cost-effectiveness, flexibility, and security, which are driving businesses to move their data to the cloud. As businesses in Japan increasingly adopt cloud-based services, the demand for data center services is growing. Data centers provide the infrastructure necessary to support cloud computing services, including high-speed internet connectivity, storage, and processing capabilities.

Growing Demand for High-Speed Services of the data center market:

The growing demand for high-speed services such as streaming video, gaming, and e-commerce is driving the growth of the Japan data center market. These services require high-speed internet connectivity, low latency, and high bandwidth, which are provided by data centers. The proliferation of smartphones, tablets, and other mobile devices has led to an increase in mobile data traffic. Moreover, the emergence of 5G networks is expected to fuel the demand for high-speed services as it provides faster speeds, lower latency, and higher bandwidth than previous generations of mobile networks.

Japan Data Center Market Trends:

Growing Demand for Cloud Computing is Driving the Market Growth:

Cloud computing has become a crucial element of digital transformation initiatives for businesses in Japan, driving the demand for data center services. With the rise of big data analytics, artificial intelligence, and machine learning, companies require high-performance computing infrastructure to process and store vast amounts of data. This trend has led to an increase in demand for cloud-based services, which require reliable and secure data centers.

BFSI is Expected to Hold Significant Market Share:

The BFSI sector in Japan is witnessing a surge in demand for data center services, driven by the need for secure data storage and processing. The BFSI sector requires high levels of security and compliance with regulations, making it essential for them to partner with data center providers that offer robust security measures and reliable connectivity.

Japan Data Center Market Restraining Factors:

While the Japan data center market is growing, there are several factors that may restrain its growth in the coming years. Some of the key restraining factors include:

High land and power costs: The cost of land and electricity is high in Japan, which makes it difficult for data center providers to offer services at competitive prices. This can be a significant barrier to entry for new players and can limit the growth potential of existing providers.

Limited space availability: Japan is a densely populated country, which means that there is limited space available for building data centers. This can make it challenging for providers to expand their operations or for new players to enter the market.

Natural disasters: Japan is prone to natural disasters such as earthquakes and typhoons, which can disrupt data center operations and cause significant damage to infrastructure. This can lead to downtime, data loss, and increased costs for providers.

Report Coverage:

The report will cover the qualitative and quantitative data on the Japan data center market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

Study Period

2020-31

Base Year

2022

Estimated Forecast Year

2023-31

Growth Rate

CAGR of 11.0% from 2023 to 2031

Segmentation

By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Type of Service, By End-User

Unit

USD Billion

By IT Infrastructure

  • Server
  • Storage
  • Network

By Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches and Switchgears
  • Rack PDUOther Electrical Infrastructure

By Mechanical Infrastructure

  • Cooling Systems
  • Rack
  • Other Mechanical Infrastructure

By Type of Service

  • Managed Hosting Services
  • Colocation Services

By End-User

  • BFSI
  • Telecom and IT
  • Government
  • Healthcare
  • Other End Users

Key Players Strategies in the Market:

The Japan data center market is highly competitive, with several key players competing for market share. Here are some of the key strategies that these players are using to stay ahead in the market:

Expansion and Acquisition: Many data center providers in Japan are pursuing expansion and acquisition strategies to increase their market share and expand their service offerings. For example, some providers are building new data centers in strategic locations, while others are acquiring smaller providers to gain access to new customers and technologies.

Differentiation: To stand out in a crowded market, many data center providers in Japan are differentiating their service offerings with unique features and capabilities. For example, some providers are offering highly secure and compliant infrastructure for customers in regulated industries, while others are providing advanced networking and connectivity solutions for customers with high-bandwidth needs.

Innovation: Many data center providers in Japan are investing in innovation to stay ahead of the curve in a rapidly evolving market. This includes developing new technologies and services to improve efficiency, reliability, and scalability, as well as partnering with technology companies to bring new solutions to market.

Partnership and Collaboration: To meet the diverse needs of their customers, many data center providers in Japan are partnering and collaborating with other companies in the ecosystem, such as cloud service providers, network providers, and systems integrators. This allows them to offer more comprehensive solutions to their customers and expand their service offerings.

List of Companies Profiled:

  • Digital Realty Trust Inc.
  • Equinix, Inc.
  • Telehouse (KDDI Corporation)
  • Oracle Corporation
  • Arteria Networks Corporation
  • Arup
  • AECOM
  • Daiwa House Industry
  • Fuji Furukawa Engineering & Construction
  • Hibiya Engineering
  • ISG
  • NTT Corporation
  • STACK Infrastructure
  • Oaktree Capital Management, L.P.

Key Industry Developments:

  • September 2022 - NTT Corporation announced investing approximately YEN 40 billion through NTT Global Data Centers Corporation and Opened another window to build a new "Keihanna Data Center" in Kyoto Prefecture. NTT Communications Corporation opens other window plans to start providing services in the second half of the fiscal year 2025.
  • January 2022 - STACK Infrastructure and Oaktree Capital Management, L.P. ("Oaktree") announced a partnership to build a 36MW data center complex in Inzai, Japan. The project started in the second quarter of 2022, with capacity projected to be delivered in the fourth quarter of 2023. STACK's Inzai campus will consist of two buildings with a combined critical capacity of 36MW. It will be located in an area of Tokyo that has witnessed considerable hyperscale data center construction. Each building will have 18MW of power and independent access points to allow various users while keeping security and services separate. The new facility will provide scalability and redundancy by linking to regional substations powered by Tokyo Electric Power Company.

Japan Data Center Market Segmentation Analysis:

By IT infrastructure

Servers: This segment includes physical servers used for processing and storing data. Data center providers offer a variety of server configurations and specifications to meet the needs of different customers. For example, some customers may require high-performance servers for running resource-intensive applications, while others may need servers with large storage capacity for data-intensive workloads.

Storage: This segment includes data storage equipment such as disk arrays, tape libraries, and solid-state drives (SSDs). Data center providers offer various storage options to customers, including direct-attached storage (DAS), network-attached storage (NAS), and storage area network (SAN) solutions. Each of these options has different performance, capacity, and scalability characteristics, making it important for providers to offer a variety of choices to meet customer needs.

Network: This segment includes networking equipment such as switches, routers, and firewalls. Data center providers offer connectivity solutions to customers, including internet connectivity, private network connectivity, and interconnection services. These solutions can be customized to meet the specific needs of customers, such as high-bandwidth connections for data-intensive applications or secure connections for sensitive data.

By Electrical Infrastructure

Uninterruptible Power Supply (UPS) Systems: UPS systems provide backup power to data center equipment in the event of a power outage or other electrical disturbance. They can be classified into several types, such as offline, line-interactive, and online, depending on their configuration and capabilities.

Generators: Generators are used to provide emergency power to data center equipment in the event of a prolonged power outage. They can be powered by diesel, natural gas, or other fuels and can vary in size and capacity.

Transfer Switches and Switchgears: Transfer switches and switchgears are used to transfer power from the primary power source to the backup power source in the event of a power outage. They can be manual or automatic and are critical to maintaining uninterrupted power supply to data center equipment.

Rack Power Distribution Units (PDUs): Rack PDUs are used to distribute power to individual servers and network equipment within a data center. They can vary in capacity and features, such as remote monitoring and management capabilities.

Other Electrical Infrastructure: This segment includes other electrical components that are critical to data center operations, such as power distribution panels, transformers, and cabling.

By Mechanical Infrastructure

Cooling Systems: Cooling systems are used to remove heat generated by data center equipment and maintain the appropriate temperature and humidity levels. They can be classified into several types, such as air-based cooling systems (such as computer room air conditioning units) or liquid-based cooling systems (such as chilled water systems).

Racks: Racks are used to house servers, storage, and networking equipment within a data center. They can vary in size, capacity, and features, such as cable management and ventilation.

Other Mechanical Infrastructure: This segment includes other mechanical components that are critical to data center operations, such as raised floors, fire suppression systems, and physical security measures.

By Type of Service

Managed Hosting Services: Managed hosting services involve the data center provider managing the hardware and software infrastructure for the customer. This includes hardware procurement and maintenance, software installation and updates, and monitoring and management of the infrastructure. The customer typically has control over the applications and data running on the infrastructure.

Colocation Services: Colocation services involve the customer owning and managing their own hardware and software infrastructure, but housing it in a data center facility provided by the data center provider. The data center provider typically provides power, cooling, and physical security services, as well as network connectivity to the internet and other networks.

By End-User

BFSI: The banking, financial services, and insurance (BFSI) industry is a major user of data center services in Japan. This industry requires high levels of security, reliability, and compliance with regulations, as well as advanced networking and data management capabilities.

Telecom and IT: The telecom and IT industry is another major user of data center services in Japan. This industry requires high-speed connectivity, low-latency network infrastructure, and high-density computing and storage capabilities.

Government: The government sector in Japan also relies on data center services for a variety of applications, including national security, disaster recovery, and citizen services. This sector requires high levels of security and compliance with regulations, as well as reliable and scalable infrastructure.

Healthcare: The healthcare industry is increasingly relying on data center services for electronic medical records, medical imaging, and telemedicine applications. This industry requires high levels of security and compliance with regulations, as well as advanced data analytics and management capabilities.

Other End Users: This segment includes other industries that use data center services, such as retail, manufacturing, and education. These industries may have unique requirements for their data center operations, such as high availability, scalability, or cost efficiency.

Global Japan Data Center Market Regional Analysis:

North America accounted for the highest xx% market share in terms of revenue in the Japan Data Center market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Japan Data Center. The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Japan Data Center companies in economies such as Japan and China.

The objective of the report is to present comprehensive analysis of Global Japan Data Center Market including all the stakeholders of the industry. The past and current status of the industry with forecasted market size and trends are presented in the report with the analysis of complicated data in simple language.

Japan Data Center Market Report is also available for below Regions and Country Please Ask for that

North America

  • U.S
  • Canada

Europe

  • Switzerland
  • Belgium
  • Germany
  • France
  • U.K
  • Italy
  • Spain
  • Sweden
  • Netherland
  • Turkey
  • Rest of Europe

Asia-Pacific

  • India
  • Australia
  • Philippines
  • Singapore
  • South Korea
  • Japan
  • China
  • Malaysia
  • Thailand
  • Indonesia
  • Rest Of APAC

Latin America

  • Mexico
  • Argentina
  • Peru
  • Colombia
  • Brazil
  • Rest of South America

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest Of MEA

Points Covered in the Report:

The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.

The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.

The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.

Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.

The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions:

  • How much the global Japan Data Center Market valued?
  • Which region has the largest share in 2021 for the global Japan Data Center Market?
  • What are the driving factors for the market?
  • Which is the leading segment in the global market?
  • What are the major players in the market?

Research Scope of Japan Data Center Market:

  • Historic year: 2018- 2021
  • Base year: 2022
  • Forecast: 2023 to 2031
  • Representation of Market revenue in USD Million

Japan Data Center Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends:

Frequently Asked Questions

  • PUBLISHED ON : March, 2023
  • BASE YEAR : 2022
  • STUDY PERIOD : 2020-2032
  • COMPANIES COVERED : 20
  • COUNTRIES COVERED : 25
  • NO OF PAGES : 194

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