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Japan Data Center Market Growth, Trends, COVID-19 Impacts, and Forecasts 2021-2026 - ResearchAndMarkets.com

·4 min read

The "Japan Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.

The Japan Data Center Market is expected to register a CAGR of 3.7% over the forecast period 2021 - 2026.

The growing cloud computing (further fueled due to COVID-19), increasing high-speed internet penetration, government regulations for local data security, and growing investment by global players are some of the major factors driving the demand for data centers in the country.

The information and communication technology (ICT) industry is the largest industry sector in Japan, with a market value of USD 1.2 trillion (as of 2011). Japan's Ministry of Internal Affairs and Communications aims to double the market to USD 2.4 trillion by 2020.

The Japanese data center market is unique, as it has traditionally been dominated by systems integrators, like Fujitsu, Hitachi, Mitsubishi Electric, and NEC. These giants exist because Japanese companies prefer a single vendor with a broad portfolio, instead of having to provision each service individually.

A range of global companies invested in data center infrastructure in Japan either by building their own data centers or acquiring large wholesale space within global data center specialist providers. These include global multimedia and content providers, financial services firms, and IT companies.

While local enterprises constitute a significant portion of demand, requirements for cloud services have driven new growth. Cloud players are looking to fulfill this demand quickly via self-builds or deployment via hyperscale operators, usually in locations outside of Metropolitan Tokyo.

Japan has a comprehensive suite of modern laws that support and facilitate the digital economy and cloud computing, including a convention on cybercrime, comprehensive privacy legislation, and intellectual property laws that cover the full range of protections relevant to cloud services.

Equinix is one of the companies that brings a significant percent of Tokyo's colocation revenue, and it is known for building data centers in the city. With a mix of colocation, public cloud, and interconnection services in its facilities, Equinix allows customers to define their needs on a seasonal basis, offering more flexibility than any system integrator could.

The need to store two categories of protected data, i.e., personal information and "special care- required" personal information, is driving the demand for data centers. The first refers to personally identifiable information (PII), such as name, date of birth, email address, or biometric data. Special care- required personal information includes medical history, marital status, race, religious beliefs, and criminal records.

Furthermore, COVID-19 has put high pressure on end-user companies to support remote working, and they are fast-tracking cloud and digitization journeys. There have been several instances where the vendors are keen to occupy a majority share in the market. For instance, the Japanese government has agreed on a deal of more than USD 273 million with Amazon Web Services (AWS) till 2026.

Competitive Landscape

The Japan Data Center Market is moderately competitive and consists of several major players. These key players engage in introducing innovative solutions to gain a competitive edge. The major players are adopting strategies like product and service innovation and mergers and acquisitions.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS

4.1 Market Overview

4.2 Industry Attractiveness - Porter's Five Forces Analysis

5 MARKET DYNAMICS

5.1 Market Drivers

5.1.1 Large Digital and Cloud Based Population

5.1.2 Growing Demand for High Speed Service

5.2 Market Challenges

5.2.1 High Infrastructure Costs

5.3 Market Opportunities

6 COVID-19 IMPACT ON THE JAPANESE CLOUD COMPUTING AND DATA CENTER MARKET

7 MARKET SEGMENTATION

7.1 By IT Infrastructure

7.1.1 Server

7.1.2 Storage

7.1.3 Network

7.2 By Electrical Infrastructure

7.2.1 UPS Systems

7.2.2 Generators

7.2.3 Transfer Switches and Switchgears

7.2.4 Rack PDU

7.2.5 Other Electrical Infrastructure

7.3 By Mechanical Infrastructure

7.3.1 Cooling Systems

7.3.2 Rack

7.3.3 Other Mechanical Infrastructure

7.4 By Type

7.4.1 Enterprise Data Centers

7.4.2 Managed Services Data Centers

7.4.3 Colocation Data Centers

7.4.4 Cloud Data Centers

7.5 By End-user Industry

7.5.1 BFSI

7.5.2 Telecom and IT

7.5.3 Government

7.5.4 Healthcare

7.5.5 Other End -user Industries

8 COMPETITIVE LANDSCAPE

  • Digital Realty Trust Inc.

  • Equinix Inc.

  • Telehouse (KDDI Corporation)

  • Oracle Corporation

  • Arteria Networks Corporation

  • Fujitsu Ltd

  • NTT Communications Corporation

  • Telstra Corporation Limited

  • Cyxtera Technologies Inc.

  • Verizon Japan Ltd

  • Singtel Telecommunications Ltd

  • IBM Corporation

For more information about this report visit https://www.researchandmarkets.com/r/f4mzuk

View source version on businesswire.com: https://www.businesswire.com/news/home/20210525005467/en/

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