Data Center - Japan

Japan

Revenue in the Data Center market is projected to reach US$20.60bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$13.83bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.45%, resulting in a market volume of US$29.50bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Japan has been experiencing significant growth and development in recent years.

Customer preferences: Customers in Japan are increasingly demanding higher quality and more reliable data center services. They prioritize data security, energy efficiency, and scalability in their data center solutions. This has led to a rise in demand for advanced data center technologies and services that can meet these requirements.

Trends in the market: One prominent trend in the Japanese Data Center market is the increasing adoption of cloud services. Businesses in Japan are moving towards cloud-based solutions to improve flexibility, reduce costs, and enhance overall efficiency. This shift towards cloud services is driving the demand for data centers that can support cloud infrastructure and services. Another trend shaping the Data Center market in Japan is the focus on sustainability and environmental responsibility. With growing concerns about energy consumption and carbon footprint, data center operators in Japan are investing in green technologies and renewable energy sources to power their facilities. This trend towards eco-friendly data centers is not only driven by regulatory requirements but also by customer preferences for environmentally conscious solutions.

Local special circumstances: Japan's geographical location and susceptibility to natural disasters have a significant impact on the Data Center market. The country is prone to earthquakes, typhoons, and tsunamis, which pose a risk to data center infrastructure. As a result, data center operators in Japan have been investing heavily in disaster recovery and business continuity solutions to mitigate the impact of natural disasters on their operations. This focus on disaster preparedness sets the Japanese Data Center market apart from other regions.

Underlying macroeconomic factors: The growing digital economy and increasing data consumption in Japan are key macroeconomic factors driving the expansion of the Data Center market. As businesses digitize their operations and consumers rely more on online services, the demand for data storage and processing capabilities continues to grow. This trend is expected to fuel further investments in data center infrastructure and services in Japan. Additionally, government initiatives to promote digitalization and technological innovation are creating a favorable environment for the Data Center market to thrive in the country.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.