Report Overview

Japan Cloud Computing Market- Industry Trends & Forecast Report 2027

Japan is emerging as Asia's leading market for cloud computing. Japan cloud computing market is expected to grow at a CAGR of 21.2% in the forecast period. The growth of the market is attributable to the increasing penetration of smartphones and the growing trend of remote working culture. Furthermore, the high concentration of large MNCs and organizations and growing investments in IT infrastructure are expected to boost the Japan market during the forecast period.

Japan Cloud Computing Market- Overview

Cloud computing refers to a technology that offers real-time and on-demand availability of computer services, such as data storage and computing power, without the need for direct management. Cloud computing proves cost-effective for organizations as they only need to pay for the cloud services they opt for instead of spending on IT infrastructure and operating costs. Cloud computing also offers better productivity as it eliminates the need for assembling, racking, and stacking IT components. Cloud computing in Japan has entered the maturity stage with more and more companies embracing a cloud-first strategy. The use of cloud computing is being expanded beyond IT/business efficiency to incorporate digital transformation.

Japan Cloud Computing Market Forecast and Trends

Growth Drivers

Cloud Computing—a Cost-effective Solution for Enterprises

Cloud computing is particularly beneficial to small and medium-sized businesses. When businesses use cloud computing, they can avoid spending money on expanding their IT infrastructure, which gives them greater flexibility. The service allows businesses to scale cloud capacity via remote servers. Furthermore, cloud computing also offers a high level of data protection and data recovery in case of losses. It also helps small and medium-sized businesses achieve IT security and privacy like large enterprises. These factors are influencing the need for cloud computing in Japan.

Increasing Demand for Improved Connectivity and Accessibility

With the increasing penetration of devices such as smartphones and the growing trend of remote working culture, the need for cloud services is growing at a high rate across Japan. With the advent of 5G networks, which have stronger connectivity, businesses are gradually moving to cloud computing to provide better services. In addition, the growing adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), the Internet of Things (IoT), etc., in various industries is also propelling the growth of cloud computing in Japan.

Restraints

Growing Demand Resulting in Increased Threats to Cloud Services

Privacy and confidentiality are some of the biggest concerns for Japan's cloud computing market. Lack of adoption of data encryption leaves organizations at risk of hacking and data theft. Additionally, embedding advanced security measures proves to be expensive for small and medium-sized companies. Therefore, many companies are reluctant to completely switch their operations to cloud computing, which acts as a major threat to the growth of the market.

Impact of COVID-19 on Japan Cloud Computing Market

The Japan cloud computing market witnessed tremendous growth after the outbreak of the COVID-19 pandemic. The pandemic has changed the way IT investment is managed in the corporate world, encouraging the use of the cloud computing. As the Japanese government-imposed lockdown and social distancing protocols, the operations of several industries were completely halted. This resulted in the rapid switch towards remote working which could only be possible through cloud computing. Thus, the demand for cloud software witnessed a sharp spike after the pandemic as the volume of data increased and the need for its remote access emerged.

Japan Cloud Computing Market - By Service

Based on services, the Japan cloud computing market is segmented into infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS). Among these, the software as a service (SaaS) segment accounts for the largest market share because of its better flexibility and affordability. The SaaS providers provide their services as a monthly or yearly subscription, which can be scaled based on needs and requirements without needing to invest in infrastructure.

Japan Cloud Computing Market - By Deployment

Based on deployment, the Japan cloud computing market is segmented into public, private, and hybrid. The hybrid segment holds the largest share in the Japan cloud computing market as this type of deployment is prominently used in industries like BFSI, healthcare, government, and public sector, etc. A hybrid deployment is much more preferred by the companies as it offers better support for a remote workforce as it offers on-demand access to data that isn’t tied to one central location. Thus, this type of deployment is more common in global companies, which contributes to market growth.

Japan Cloud Computing Market - By Enterprise

Based on the enterprise, the Japan cloud computing market is segmented into large enterprises and small & medium enterprises. The large enterprise segment accounts for the highest share in the Japan cloud computing market because of the high concentration of MNCs and large organizations, such as Fujitsu, Hitachi, NTT Data Corporation, etc., in Japan. However, the small and medium-sized enterprises are expected to witness the highest CAGR during the forecast period with a rapid shift towards cloud computing due to the availability of low-cost cloud services.

Competitive Landscape

The leading players in the Japan cloud computing market are Alibaba Cloud, Fujitsu, Japan Telecom Cloud, AWS Japan, VMware, Inc., DevSamurai, Cloudian Inc., Rikkeisoft, Azure Japan, Salesforce.com, Inc., and other prominent players.

The market is highly concentrated, with the presence of technology giants such as Alibaba, Fujitsu, etc. Yet, it is still welcoming new entrants who provide advanced cloud services and higher security. AI and machine learning (ML) are major technologies that companies focus and invest in to improve their services. Furthermore, partnerships, mergers, acquisitions, joint ventures, etc., are prominent strategies in this market.

Recent Developments

• In October 2021, Hewlett Packard Enterprise (HPE) announced that the Japan-based credit card payment service provider CARDNET had selected its edge-to-cloud platform, GreenLake, for growing digital payments and settlement services.
• In May 2021, Seven-Eleven Japan announced it would be advancing its digital transformation strategy with Seven Central, its data cloud platform built on Google Cloud.

Scope of the Report

By Service

• Infrastructure as a Service (IaaS)
• Platform as a Service (PaaS)
• Software as a Service (SaaS)

By Deployment

• Public
• Private
• Hybrid

By Enterprise

• Large Enterprises
• Small & Medium Enterprises

By End-User

• BFSI
• Telecom and IT
• Media and Entertainment
• Energy and Utilities
• Manufacturing
• E-Commerce
• Government & Public Sector
• Healthcare
• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Growing Preference for Hybrid Cloud Computing Services
         2. Cost Benefits of Cloud Computing
      2. Market Restraints
         1. High Risk on Cybersecurity And Chances Of Data Loss
      3. Market Challenges
         1. Lack of Regulatory Framework
      4. Market Opportunity
         1. Increasing Construction of Data Centers
         2. Growing Adoption of AI and Machine Learning
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. Japan Cloud Computing Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Service
         1. Infrastructure as a Service (IaaS)
         2. Platform as a Service (PaaS)
         3. Software as a Service (SaaS)
      2. By Deployment
         1. Public
         2. Private
         3. Hybrid
      3. By Enterprise
         1. Large Enterprises
         2. Small & Medium Enterprises
      4. By End User
         1. BFSI
         2. Telecom and IT
         3. Media and Entertainment
         4. Energy and Utilities
         5. Manufacturing
         6. E-Commerce
         7. Government & Public Sector
         8. Healthcare
         9. Others
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on Japan Cloud Computing Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Alibaba Cloud
   2. Fujistu
   3. Japan Telecom Cloud
   4. AWS Japan
   5. VMware, Inc.
   6. DevSamurai
   7. Cloudian Inc.
   8. Rikkeisoft
   9. Azure Japan
   10. Salesforce.com, Inc.
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: Japan Cloud Computing Market Segmentation

Figure 2: Japan Cloud Computing Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: Japan Cloud Computing Market Size, By Value (USD Million), 2017-2027

Figure 5: Japan Cloud Computing Market Share (%), By Service, By Value, 2017-2027

Figure 6: Japan Cloud Computing Market Share (%), By Deployment, By Value, 2017-2027

Figure 7: Japan Cloud Computing Market Share (%), By Enterprise, By Value, 2017-2027

Figure 8: Japan Cloud Computing Market Share (%), By End User, By Value, 2017-2027

List of Tables

Table 1: Japan Cloud Computing Market Size, By Service, By Value, 2017-2027

Table 2: Japan Cloud Computing Market Size, By Deployment, By Value (USD Million), 2017-2027

Table 3: Japan Cloud Computing Market Size, By Enterprise, By Value (USD Million), 2017-2027

Table 4: Japan Cloud Computing Market Size, By End User, By Value (USD Million), 2017-2027

Table 5: Alibaba Cloud Financial Analysis

Table 6: Alibaba Cloud Business Overview

Table 7: Fujistu Financial Analysis

Table 8: Fujistu Business Overview

Table 9: Japan Telecom Cloud Financial Analysis

Table 10: Japan Telecom Cloud Business Overview

Table 11: AWS Japan Financial Analysis

Table 12: AWS Japan Business Overview

Table 13: VMware, Inc. Financial Analysis

Table 14: VMware, Inc. Business Overview

Table 15: DevSamurai Financial Analysis

Table 16: DevSamurai Business Overview

Table 17: Cloudian Inc. Financial Analysis

Table 18: Cloudian Inc. Business Overview

Table 19: Rikkeisoft Financial Analysis

Table 20: Rikkeisoft Business Overview

Table 21: Azure Japan Financial Analysis

Table 22: Azure Japan Business Overview

Table 23: Salesforce.com, Inc. Financial Analysis

Table 24: Salesforce.com, Inc. Business Overview