Japan-Cloud Computing Market by Deployment and Service - Forecast and Analysis 2023-2027

Japan Cloud Computing Market Report 2023-2027:

The Japan-cloud computing market is projected to reach a value of USD 30.24 billion in 2027 with a CAGR of 12.54% between 2022 and 2027. The growth of the market depends on several factors, including the growing inclination toward cloud computing for cost-cutting, the increased use of containers boosting cloud adoption, and the growing adoption of cloud among SMEs.

Analysis Period	2017-2027
Market Size (2017) Historic Year	USD 11.71 billion
Market Size (2027) - Forecasted Year	USD 30.24 billion
Historic Opportunity (2017-2021)	USD 3.59 billion
Historic CAGR	6.92 %
Forecasted Opportunity (2023-2027)	USD 13.49 billion
Market Opportunity Transformation Growth	158.26 %
Market Opportunity Capitalization	USD 17.08 billion

 

Cloud computing is a framework in which hardware, application software, servers, storage, and other computing resources are provided as a service over the Internet. Vendors that offer cloud services also provide components and features of software and hardware on a subscription or pay-as-you-go model. Employing the cloud eliminates the requirement for businesses to independently install and run hardware and application software. Cloud, therefore, eliminates the expense of purchasing, provisioning, and maintaining hardware as well as purchasing, installing, and maintaining software licenses.

This cloud computing market in Japan report extensively covers market segmentation by Deployment (public cloud and private cloud) and Service (saas, iaas, and paas) and geography Japan. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Cloud Computing Market In Japan During the Forecast Period?

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Cloud Computing Market in Japan Overview

 Key Japan-cloud Computing Market Driver

The growing adoption of cloud among SMEs is the key factor driving the growth of the Japanese computing market. Cloud computing has become the next technological trend, and the adoption of cloud computing is increasing. SMEs and large enterprises are focusing on reducing their overall CAPEX by adopting new technologies. SMEs are adopting cloud solutions, as this helps them adopt hardware and resources as and when required; on the other hand, running their own data center involves high CAPEX and operational expenditure (OPEX).

Enterprises are adopting cloud platforms, as they provide different benefits such as cost savings, scalability, increased availability and reliability, and enhanced security. Thus, a private cloud not only provides security, full utilization of the resources, and reliability of a normal dedicated server but also ensures that cloud resources are dedicated to a single tenant. Therefore, more SMEs are adopting private cloud solutions. The increasing adoption of cloud computing by SMEs will drive the growth of the market in focus during the forecast period.

Significant Japan-cloud Computing Market Trends

The increase in the use of cloud orchestration and cloud management software is the primary trend in the Japan-cloud computing market growth. Cloud orchestration refers to the use of programming techniques to manage interconnections between the different public and private cloud computing environments. Cloud orchestration is used to provision and deploy equipment, manage networking, and create VMs, among other functions. The cloud orchestration software can work across multiple environments and in different geographical environments with different service providers. This makes cloud orchestration software an ideal solution for hybrid cloud deployments.

Cloud orchestration also helps in bringing multiple tasks, such as scaling and failure recovery, into a single process, and this reduces manual efforts significantly. Besides reducing manual workload, it decreases the likelihood of errors that can occur during provisioning, scaling, or other processes. Cloud orchestration software also provides higher visibility into the utilization of hybrid cloud resources. Several more organizations are expected to utilize cloud orchestration software for the single pane of glass management capabilities that they bring. However, the above-mentioned factors will spur the growth of the cloud computing market in Japan during the forecast period.

Major Japan-cloud Computing Market Restrain

System integration issues associated with cloud computing are a major challenge to the growth of the Japanese computing 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 vendors 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 cloud computing market in Japan during the forecast period.

Cloud Computing Market in Japan Segmentation By Deployment 

The market share growth by the public cloud segment will be significant during the forecast period. The public cloud is a deployment model in cloud computing that offers cloud services to multiple organizations and individuals over the public Internet. This service is provided by third-party service providers who manage and maintain the underlying infrastructure, including servers, storage, networking, and virtualization technologies. 

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The public cloud segment was valued at USD 7,440.96 million in 2017 and continued to grow until 2021. Public cloud services are typically delivered on a pay-as-you-go basis, allowing organizations to scale their resources up or down based on demand. One of the key advantages of the public cloud is its scalability. Organizations can easily scale their computing resources, such as processing power, storage, and bandwidth, to meet their changing needs. This flexibility is particularly beneficial for businesses with fluctuating workloads or those experiencing rapid growth. 

Another significant benefit of the public cloud is its cost-effectiveness. Organizations can avoid upfront capital expenditures on hardware and infrastructure, as they only pay for the resources they consume. The economies of scale achieved by public cloud providers result in lower costs compared with building and maintaining an equivalent on-premises infrastructure.  Such factors will increase segment growth during the forecast period.

Cloud Computing Market in Japan Segmentation By Service 

Bases on SaaS, or Software as a Service, offers internet-based subscription applications, reducing costs and leading the market in 2022 due to its rapid deployment and provider-managed maintenance.

 

Cloud Computing Market In Japan Customer Landscape

The Cloud Computing Market in Japan 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Cloud Computing Market in Japan Customer Landscape

 

Who are the Major Cloud Computing Market in Japan Companies?

Vendors 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 vendors, including:

• Akamai Technologies Inc.
• 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.

Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Segment Overview

Japan computing market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Deployment Outlook (USD Million, 2017 - 2027)
  • Public cloud
  • Private cloud

• Service Outlook (USD Million, 2017 - 2027)
  • SaaS
  • IaaS
  • PaaS

 

Cloud Computing Market In Japan 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 13492.21 million
Market structure	Fragmented
YoY growth 2022-2023(%)	10.5
Regional analysis	Japan
Performing market contribution	APAC at 100%
Key countries	Japan and APAC
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 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 forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Cloud Computing Market In Japan In Country Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market industry across Japan
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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