(MENAFN- Comserve) Shibuya-ku, Tokyo, Japan, Japan, Oct 04, 2021, 05:51 /Comserve / -- Japan Data Center market With Top Countries Data, industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast
The Japan Data Center Market is expected to register a CAGR of 3.7% over the forecast period 2020 to 2025. Japan has a strong presence as a regional Asian data center provider and is a global financial and corporate hub and one of the most active growing digital markets globally. The listing of international businesses into the country drives huge data usage due to the prolonged usage of applications and platforms such as big data, data analytics, and artificial intelligence. Artificial Intelligence (AI) plays a role in IoT application deployments like AI-based security and privacy of IoT devices, edge computing of IoT devices, and more.
- Japan is a data center powerhouse containing many data center clusters offering many colocation opportunities, with 147 data centers, 183 service providers, and four network fabrics throughout the country, according to Cloudscene Inc. The primary colocation markets are Osaka, Tokyo, and Nagoya. According to the Ministry of Internal Affairs and Communications (Japan), the internet penetration rate in Japan reached roughly 90% in 2019. More than 99% of the population aged between 20 and 29 years had to access the internet.
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Key Market Trends
Growing Demand for Cloud Computing is Boosting the Market Growth
- Cloud computing in Japan is well established and has been continuously evolving. Public and private cloud models are both standards in Japan. A current trend within the private cloud model is the growing usage of the 'community cloud,' where a limited number of companies share a private cloud. Japan has more cloud-ready fortune 2000 businesses than any market outside the United States. Japan is the world's second-largest enterprise software market.
- According to a survey by the Ministry of Internal Affairs and Communications (Japan) in 2018, close to 53% of business enterprises in Japan stated that they used cloud computing services for file storage and data sharing and around 33% said that they already implemented cloud computing in all of their departments. More than 50% of the surveyed companies used cloud-based email services during the measured period.
- Nearly all primary hosting and cloud providers globally have built a presence in Japan. To encourage collaboration between the government, industry, and academia in cloud computing services, the MIAC, the Ministry of Economic, Trade, and Industry (METI) and the Ministry of Agriculture, Forestry and Fisheries, have established the Japan Cloud Consortium.
- International cloud computing providers in Japan include Microsoft, Amazon.com, Google, and IBM for both public and private cloud computing services. In Japan, local cloud computing providers include NTT DATA Corporation, NTT Communications Corporation, KDDI Corporation, NEC Corporation, Fujitsu Limited, and Internet Initiative Japan Inc.
BFSI to Have a Dominant Position in the Market
- Data centers are considered the backbone of banking and financial services in Japan. Hyper-converged infrastructures are the reasons for a better approach to building, designing, and managing banking data centers.
- The increasing implementation of regulatory standards, coupled with the rise in the adoption of cloud-based security solutions and increasing modes of online payments due to high internet penetration, is expected to give rise to advanced security solutions in Japan. According to a Cint survey, 72.41% of respondents in Japan stated they are using an internet bank.
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- In December 2019, Development Bank of Japan Inc. (DBJ) had invested in Vertex Master Fund II LP (VMF II), a venture capital fund newly launched by Vertex Venture Holdings Ltd., a Singapore-based venture capital arm of Temasek Holdings.
- The BFSI sector is one of the critical infrastructure segments that suffers several data breaches and cyber-attacks in the region, owing to the large customer base that the industry serves and the financial information that is at stake. According to the National Police Agency (Japan), in 2018, the number of reported online banking fraud cases amounted to 322, down from 425 occurrences in the previous year.
- The financial service institutions have been identified to be four times more susceptible to cyberattacks than other industries, which is expected to drive the demand for Data Center solutions. For instance, according to NPA (Japan), in 2018, approximately 127 thousand cybercrimes were reported to the Japanese police, up from about 78 thousand consultations in 2012.
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. Some of the major players in the market are AT Tokyo Corporation, Caterpillar Inc., Cisco Systems, Inc., Cummins Inc., and Eaton Corporation Inc. among others.
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Penetration of Data Based Decisions Among Enterprises
4.2.2 Incorporation of digital transformation in top-level strategies
4.2.3 Growing Demand for Cloud Computing
4.3 Market Challenges
4.3.1 Datacenter Security Challenges
4.3.2 High construction costs and difficulty securing new sites
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment of Impact of Covid-19 on the Industry
4.6 Industry Value Chain Analysis
5 MARKET SEGMENTATION**
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