Enjoy complimentary customisation on priority with our Enterprise License!
The Japan cloud computing market is projected to reach a value of USD 13.49 billion with a CAGR of 12.54% between 2022 and 2027. The market is thriving, fueled by several key drivers. Market growth is fueled by a rising preference for cloud computing to reduce costs, expanded utilization of containers driving cloud adoption, and increased adoption of cloud services among small and medium-sized enterprises (SMEs). These factors collectively contribute to the market's expansion, reflecting evolving business practices and technological trends. The growing inclination towards cloud computing for cost-cutting underscores businesses' desire for efficient and scalable IT solutions. Simultaneously, the increased use of containers enhances cloud adoption by providing more flexibility and portability for applications. Additionally, the growing adoption of cloud services among SMEs highlights the democratization of cloud technologies and their accessibility to businesses of all sizes. Thus, the convergence of these factors shapes the landscape of the market, presenting opportunities for cloud service providers and businesses embracing cloud-based solutions.
To learn more about this report, View Report Sample
This market report extensively covers market segmentation by Deployment (public cloud and private cloud) and Service (SaaS, IaaS, and PaaS).
The market share growth by the public cloud segment will be significant during the forecast period. In the dynamic landscape of cloud computing, Japan stands as a significant market, particularly in the areas of Edge computing, Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Cloud Storage is a crucial component, with multicloud deployments gaining traction to ensure business continuity and disaster recovery. Digital wallets and LTE networks are driving the adoption of these services in various sectors, including Fintech organizations.
Get a glance at the market contribution of various segments View Free PDF Sample
The public cloud segment was valued at USD 7.44 billion in 2017. Software companies and Managed Service Providers (MSPs) are at the forefront of delivering computing services, offering storage, processing power, and network capabilities. Local servers and personal computers are increasingly being replaced by a network of servers in data centers, enabling scalability, flexibility, and cost-effectiveness. Large Enterprises in manufacturing and other industries are embracing the infrastructure for digital transformation. Hybrid Cloud deployments are popular, with both Private and Public Cloud models being used based on enterprise size and specific requirements. Big data and machine learning are key applications, with Google Cloud leading the charge. The service providers ensure data security, mitigating concerns around data breaches. Eurostat reports indicate a growing trend towards cloud adoption, with the market expected to continue its expansion. The deployment mode of cloud computing is undergoing a shift, with organizations recognizing the benefits of a flexible, scalable, and cost-effective solution. Such factors will increase segment growth during the forecast period.
The Market is experiencing significant growth, driven by the adoption of various cloud service models such as Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Edge computing is also gaining traction in Japan, particularly in industries requiring real-time data processing and low latency. Cloud Storage is another key area of investment, with the increasing use of multicloud deployments to ensure business continuity and disaster recovery. Digital wallets and Large Enterprises are leveraging cloud infrastructure for development and testing, customer-facing web applications, and personalized treatments. The Japanese market is witnessing a shift towards Hybrid Cloud deployments, with organizations opting for a mix of Private and Public Cloud to meet their specific needs. The adoption of Software Defined Networking (SDN) and Machine Learning technologies is further fueling the growth of the market in Japan. The service providers are offering Big Data solutions to help businesses gain insights from their data and make informed decisions. The market is also witnessing an increased focus on security, with organizations investing in Cyberattack prevention measures to protect their infrastructure. Overall, the market in Japan is poised for continued growth, driven by the Digital Transformation initiatives of enterprise size organizations.
The primary catalyst propelling market growth is the increasing adoption of cloud services by SMEs. In Japan, the market is experiencing significant growth due to various factors. Enterprises are shifting towards cloud services to mitigate cybersecurity risks and reduce costs associated with CAPEX and OPEX for data centers. Public cloud solutions are increasingly popular among Small and Medium Enterprises (SMEs) for their flexibility in scaling resources for development and testing, customer-facing web applications, and personalized treatments. However, for critical operational tasks, organizations require dedicated resources. It offers numerous benefits, including faster innovation through economies of scale, flexible resources, and customization. Private clouds provide an additional layer of data protection through access control, data encryption, and monitoring and auditing. High-speed internet and technical expertise are essential for effective cloud integration. The market in Japan is witnessing a deficit analysis in terms of compliance policies and communication security.
The increase in the use of cloud orchestration and cloud management software is the primary trend in the market growth. In Japan, the cloud computing market has experienced significant growth due to the increasing demand for flexible resources, faster innovation, and economies of scale. This trend is driven by various factors, including the need for personalized treatments in customer-facing web applications, development and testing in remote working environments, and data protection in private clouds. Cyberattacks have become a major concern for businesses in Japan, leading to an increased focus on data encryption, access control, and cloud integration. The use of these enables seamless management of networking, databases, servers, and intelligence across multiple environments and geographical locations.
The adoption of cloud computing in Japan is also driven by the need to address the deficit analysis in traditional IT infrastructure. Cloud software provides a data bridge between different systems, enabling better communication security and monitoring and auditing capabilities. Technical expertise and high-speed internet are essential for the successful implementation of these solutions in Japan. Compliance policies and emerging revenue opportunities are also key factors influencing the market. Competitors in the market include various service providers offering customized solutions for different industries and use cases. Cloud orchestration software plays a crucial role in managing cybersecurity risks, ensuring data protection, and providing customization options for businesses in Japan. The use of these enables businesses to leverage intelligent technologies and flexible resources, leading to more efficient operations and improved customer experiences. However, the above-mentioned factors will spur the growth of the market during the forecast period.
System integration issues associated with cloud computing are a major challenge to the growth of the market. Various enterprises are adopting cloud computing services, such as IaaS, PaaS, and SaaS solutions, as they are cost-effective and an alternative to traditional IT deployments. These solutions eliminate the need for enterprises to design, purchase, and build their own IT infrastructure or employ dedicated IT teams to maintain the infrastructure. However, there are challenges when implementing cloud services at an enterprise scale to ensure smooth integration of the new systems with the existing infrastructure of the enterprises.
Some significant issues associated with system integration are such as connecting to monolithic systems, different business units viewing data differently and choosing the right tool for integration. Many Companies promise to deliver the best integration experience to enterprises. In modern connectivity and IT infrastructure, an integration tool must support hybrid integration, which allows on-premise applications to seamlessly integrate with cloud-based applications. Therefore, enterprises find it challenging to choose the right tool. Hence, the issues associated with system integration can hinder the growth of the market during the forecast period.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alibaba Group Holding Ltd.: The company offers cloud computing services such as Alibaba Cloud, Alibaba Cloud Elastic Compute Service, Alibaba Cloud Object Storage Service, and Alibaba Cloud Relational Database Service.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market in Japan has been experiencing significant growth due to the increasing adoption of digital technologies and the need for data security and storage solutions. The market is driven by various factors such as the growing number of businesses opting for cloud services, the government's initiatives to promote cloud adoption, and the availability of advanced technologies like Artificial Intelligence and Machine Learning. The market is segmented into Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Cloud Storage. Major players in the market include Cloudd, SoftWare, Technology, Provider, Company, Microsoft, Amazon, Google, IBM, and Oracle. The market is expected to continue its growth trajectory in the coming years, driven by the increasing demand for cloud services and the continuous innovation in cloud technologies. Cloud Computing Market, Japan, Growth, Adoption, SaaS, PaaS, IaaS, Cloud Storage, Companies, Microsoft, Amazon, Google, IBM, Oracle.
Market Scope |
|
Report Coverage |
Details |
Page number |
141 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.54% |
Market growth 2023-2027 |
USD 13.49 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.5 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akamai Technologies Inc., Alibaba Group Holding Ltd., Alphabet Inc., Amazon.com Inc., Coupa Software Inc., Dell Technologies Inc., DevSamurai Inc., DS Solution Inc., Fujitsu Ltd., Huawei Technologies Co. Ltd., International Business Machines Corp., Internet Initiative Japan Inc., Microsoft Corp., NEC Corp., Nutanix Inc., Oracle Corp., Rikkeisoft Corp., Salesforce Inc., The Constant Co. LLC, and VMware Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
If our market growth and forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Service
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.