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Infrastructure as a Service - Japan

Japan
  • Revenue in the 0 market in Japan is projected to reach US$5.23bn in 2025.
  • In Japan, Infrastructure as a Service market dominates the market with a projected market volume of 0 in 2025.
  • Revenue in this market is expected to show an annual growth rate (CAGR 2025-2029) of 18.87%, resulting in a market volume of US$10.44bn by 2029.
  • In global comparison, most revenue will be generated the United States (US$93.99bn in 2025).
  • Japan's Infrastructure as a Service market is witnessing a surge in demand as enterprises increasingly adopt cloud solutions to enhance operational efficiency and innovation.

Definition:

Infrastructure as a Service (IaaS) refers to the type of public cloud service that provides virtualized computing resources.  IaaS offers on-demand access to virtual machines, storage, and networking components, thus allowing users to build, deploy, and manage IT infrastructure without the need to invest in physical hardware. IaaS offers scalability, flexibility, and cost-efficiency by requiring users to pay only for the resources they consume. The IaaS market includes the companies that provide these types of public cloud resources and services to individuals, businesses, and organizations. A typical example of this type of service is Amazon Web Services (AWS). AWS provides a wide range of virtual machines, storage, and networking resources that users can access on demand to build and manage their IT infrastructures.

Additional Information:

The Infrastructure as a Service (IaaS) market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. 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 of the IaaS market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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In-Scope
  • Server capabilities, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
  • Computing resources, such as Amazon Elastic Compute Cloud (EC2), Azure IaaS, and Google Compute Engine (GCE)
  • Storage resources, such as Amazon Elastic Block Store (EBS), Azure Blob Storage, and Google Cloud
  • Network capabilities, such as Google Cloud Interconnect and Alibaba Cloud Express Connect
Out-Of-Scope
  • Business-Process-as-a-Service (BPaaS), such as payroll management and accounting solutions via ADP Workforce Now, Intuit QuickBooks Online, Workday, and Oracle NetSuite
  • Desktop-as-a-Service (DaaS), such as Amazon WorkSpaces, Microsoft Windows Virtual Desktop, VMware Horizon Cloud, and Citrix Virtual Apps and Desktops
  • Platform-as-a-Service (PaaS), such as Heroku, AWS Elastic Beanstalk, Google App Engine, Microsoft Azure App Service, and IBM Cloud Foundry
  • Software-as-a-Service (SaaS), such as Google Workspace, Microsoft 365, Salesforce, Zoom, and Slack
  • System infrastructure software, such as Microsoft Windows Server, Linux distributions, VMware for virtualization, and Cisco’s networking software
  • Private cloud services, such as IBM Cloud Private, Microsoft Azure Stack HCI, and VMware vCloud Suite
Infrastructure as a Service: market data & analysis  - Cover

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Infrastructure as a Service: market data & analysis
Study Details

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    Most recent update: Jul 2024

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Key Players

    Most recent update: Jan 2025

    Sources: Statista Market Insights, Financial Statements of Key Players

    Analyst Opinion

    The Infrastructure as a Service market in Japan has been steadily growing, driven by factors such as the increasing demand for cloud services, the growing awareness of the benefits of cloud infrastructure, and the convenience of accessing services online. The market is expected to continue growing at an average rate, influenced by the country's strong technological infrastructure and increasing adoption of digital solutions in various industries.

    Customer preferences:
    As the demand for cost-effective and flexible cloud computing solutions continues to rise in Japan, there has been a notable shift towards Infrastructure as a Service (IaaS) within the Public Cloud Market. This can be attributed to the country's aging population and the increasing adoption of digital technologies in various industries. With a strong emphasis on efficiency and productivity, Japanese consumers are gravitating towards IaaS as a way to streamline their operations and reduce infrastructure costs. This trend is also driven by the growing preference for remote work and the need for secure and reliable cloud infrastructure to support it.

    Trends in the market:
    In Japan, the Infrastructure as a Service market within the Public Cloud market is experiencing a shift towards hybrid cloud solutions. This trend is driven by the need for organizations to balance cost efficiency and security, leading to the adoption of a hybrid IT environment. Additionally, there is a growing focus on multi-cloud strategies, allowing businesses to leverage different cloud providers for specific workloads. This trend is significant as it enables greater flexibility and scalability for businesses, but also poses challenges in terms of managing and integrating multiple cloud environments. Industry stakeholders must carefully consider their cloud strategy and partnerships to effectively navigate this trend and capitalize on its potential benefits.

    Local special circumstances:
    In Japan, the Infrastructure as a Service Market within the Public Cloud Market is heavily influenced by the country's advanced technological landscape and high adoption rate of cloud computing. The market is also shaped by strict data privacy laws and regulations, which have led to the development of secure and compliant cloud services. Additionally, Japan's unique cultural values of efficiency and reliability have resulted in a highly competitive market, driving constant innovation and improvements in infrastructure and services.

    Underlying macroeconomic factors:
    The Infrastructure as a Service Market within the Public Cloud Market in Japan is largely influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. With Japan being a world leader in technology and innovation, the country has a strong foundation for the growth of the public cloud market. Additionally, the Japanese government has implemented initiatives to promote the adoption of cloud computing, offering tax incentives and subsidies to businesses. Furthermore, Japan's stable economic health and favorable fiscal policies have created a conducive environment for the growth of the public cloud market. The country's high level of digitalization and the increasing demand for digital solutions in various industries, such as manufacturing and healthcare, are also driving the growth of the Infrastructure as a Service Market within the Public Cloud Market.

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

    Methodology

    Data coverage:

    The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

    Modeling approach / Market size:

    The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

    Forecasts:

    We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

    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 is considered at a country-specific level.

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    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Jan 2025

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    Software as a Service - statistics & facts

    Together with platform as a service (PaaS) and infrastructure as a service (IaaS), software as a service (SaaS) is one of the three primary tiers of cloud computing. It allows businesses to redirect resources away from IT hardware, software, and personnel expenses, and towards other business needs. Currently, the most prominent companies in the SaaS market are Microsoft, Salesforce, Oracle, SAP, and Google.
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