Cloud service penetration rate among business enterprises Japan 2023

According to a survey conducted in August 2023, more than 50 percent of companies in Japan stated that they had already fully implemented cloud computing services. An additional 27.1 percent of businesses answered that they had implemented cloud services in some offices or departments.

Japan's cloud market

The domestic market size of cloud services in Japan, encompassing infrastructure as a service (IaaS) and platform as a service (PaaS), was estimated at 1.94 trillion yen in 2023. This figure is projected to nearly double by 2027. Notably, cloud services gained considerable traction in the telecommunication, finance, and insurance industries, with the vast majority of companies across these sectors adopting them. A breakdown of the utilization rate of cloud services revealed that larger companies tend to embrace cloud services more readily than their smaller counterparts.

Cloud-AI integration

As generative AI gains traction, cloud vendors are swiftly integrating it into their services, enhancing offerings for user companies. This strategic move not only boosts the appeal of cloud services but also facilitates easier adoption through managed cloud services. Leading cloud providers offer platforms for developing foundation models, while incorporating conversational AI chatbots and other AI aids into their cloud services to effectively assist users. However, a survey in Japan revealed a certain hesitancy among respondents to place too much trust in artificial intelligence, despite acknowledging its utility and potential to alleviate labor shortages.