JAPAN DATA CENTER MARKET SIZE & SHARE ANALYSIS – GROWTH TRENDS & FORECASTS (2024

Market Snapshot

The Japan Data Center Market is segmented by hotspot (Osaka, Tokyo), data center size (large, massive, medium, mega, small), tier type (Tier 1 and 2, Tier 3, Tier 4), and absorption (non-utilized, utilized). Key data points observed include IT load capacity for existing and upcoming data centers, current and upcoming hotspots, average mobile data consumption, volume of fiber cable connectivity, existing and upcoming submarine cables, rack space utilization, and number of data centers by tier.

Market Overview

The Japan Data Center Market is experiencing steady growth, driven by the increasing demand for digital services, cloud adoption, and technological advancements. Key hotspots such as Tokyo and Osaka are central to data center development, with significant investments in infrastructure and connectivity. The market is witnessing expansion from both existing players and new entrants, enhancing the overall capacity and services.

Key Market Trends

Rising Smartphone Penetration: The increase in smartphone users and the emergence of new e-commerce platforms are driving the market. The penetration rate among households in Japan is close to 89%, leading to more online activities and data generation.
Expansion of 5G Networks: Major mobile operators and government support are accelerating the rollout of 5G, which is expected to enhance data transmission and processing capabilities. This will boost the demand for data centers to handle the increased data traffic.
Government Initiatives: The Japanese government is investing in digital infrastructure, including national broadband strategy and subsea cable projects, to improve connectivity and decentralize data centers.
Cloud and Hyperscale Adoption: The rise in cloud services and hyperscale facilities is significantly driving market growth, catering to the increasing demand for data storage and processing.

Competitive Landscape

The Japan Data Center Market is moderately consolidated, with key players expanding their facilities and investing in advanced technologies to maintain competitive positions. The market is witnessing significant investments and partnerships aimed at enhancing data center capabilities and services.

Major Players

Digital Realty Trust Inc.: A global data center provider expanding its presence in the Japanese market.
Equinix Inc.: Engaged in the development and management of data center facilities across Japan.
IDC Frontier Inc. (SoftBank Group): Specializes in providing comprehensive data center solutions and services.
NEC Corporation: Focuses on developing and operating large-scale data centers in Japan.
NTT Ltd: A leading player with significant market share, focusing on expanding its data center facilities in Japan.

Recent Developments

November 2022: Equinix announced its 15th international business exchange (IBX) data center in Tokyo, Japan, with an initial investment of USD 115 million. The new data center, TY15, will provide an initial capacity of approximately 1,200 cabinets, and 3,700 cabinets when fully built out.
October 2022: Zenlayer entered into a joint venture with Megaport to strengthen and expand its presence globally, providing enhanced services such as improved network connectivity, real-time provisioning, and on-demand private connectivity.
September 2022: NTT Corporation announced an investment of approximately YEN 40 billion through NTT Global Data Centers Corporation to build the new “Keihanna Data Center” in Kyoto Prefecture, with a total IT load capacity of 30 MW.

Table of Content

1. INTRODUCTION

1.1. Study Assumptions & Market Definition

1.2. Scope of the Study

1.3. Research Methodology

1.3.1. Secondary Research

1.3.2. Primary Research

1.4. Executive Summary & Key Findings Report

1.5. Global Overview

1.5.1. Porter’s Five Forces Framework

1.5.2. Global Value Chain Analysis

1.5.3. Drivers, Restraints, and Opportunities

1.5.4. Technological Advancements

2. MARKET OUTLOOK

2.1. IT Load Capacity

2.2. Raised Floor Space

2.3. Colocation Revenue

2.4. Installed Racks

2.5. Rack Space Utilization

2.6. Submarine Cable

3. KEY INDICATIVE METRICS

3.1. Smartphone Users

3.2. Data Traffic Per Smartphone

3.3. Mobile Data Speed

3.4. Broadband Data Speed

3.5. Fiber Connectivity Network

3.6. Regulatory Framework

3.6.1. Japan

3.7. Value Chain & Distribution Channel Analysis

4. MARKET SEGMENTATION (INCLUDES MARKET SIZE, FORECASTS AND ANALYSIS OF GROWTH PROSPECTS)

4.1. Hotspot

4.1.1. Osaka

4.1.2. Tokyo

4.1.3. Rest of Japan

4.2. Data Center Size

4.2.1. Large

4.2.2. Massive

4.2.3. Medium

4.2.4. Mega

4.2.5. Small

4.3. Tier Type

4.3.1. Tier 1 and 2

4.3.2. Tier 3

4.3.3. Tier 4

4.4. Absorption

4.4.1. Non-Utilized

4.4.2. Utilized

4.4.2.1. By Colocation Type

4.4.2.1.1. Hyperscale

4.4.2.1.2. Retail

4.4.2.1.3. Wholesale

4.4.2.2. By End User

4.4.2.2.1. BFSI

4.4.2.2.2. Cloud

4.4.2.2.3. E-Commerce

4.4.2.2.4. Government

4.4.2.2.5. Manufacturing

4.4.2.2.6. Media & Entertainment

4.4.2.2.7. Telecom

4.4.2.2.8. Other End User

5. COMPETITIVE LANDSCAPE

5.1. Market Share Analysis

5.2. Company Landscape

5.3. Company Profiles

5.3.1. AirTrunk Operating Pty Ltd

5.3.2. Arteria Networks Corporation

5.3.3. Colt Technology Services

5.3.4. Digital Edge (Singapore) Holdings Pte Ltd

5.3.5. Digital Realty Trust Inc.

5.3.6. Equinix Inc.

5.3.7. IDC Frontier Inc. (SoftBank Group)

5.3.8. NEC Corporation

5.3.9. netXDC (SCSK Corporation)

5.3.10. NTT Ltd

5.3.11. Telehouse (KDDI Corporation)

5.3.12. Zenlayer Inc.

5.4. LIST OF COMPANIES STUDIED

6. KEY STRATEGIC QUESTIONS FOR INDUSTRY PROFESSIONALS IN DATA CENTER

7. APPENDIX

Research Methodology

Data Collection and Analysis Methods

Datanumero’s research methodology encompasses a thorough approach aimed at ensuring accuracy and reliability in market estimation and forecasting. Our process begins with preliminary data mining, where we gather raw market data from a diverse range of validated sources. This data undergoes rigorous filtration to ensure authenticity, with inputs also drawn from reputable reports, paid databases, and our repository. Our goal is to map the complete market value chain, gathering insights from raw material suppliers, distributors, and buyers.Additionally, we delve into technical issues and trends through surveys, technical symposia, and trade journals, focusing on intellectual property perspectives such as white space and freedom of movement. Industry dynamics, including drivers, restraints, and pricing trends, are thoroughly examined. This approach ensures that our material is rich in original data, further cross-validated and authenticated with published sources for accuracy.Market estimates and forecasts are derived using sophisticated statistical models tailored to each study. These models incorporate inputs on market dynamics, technology landscapes, application development, and pricing trends. We analyze these factors comparatively, quantifying their impact using correlation, regression, and time series analysis. Our forecasting techniques combine economic tools, technological analysis, industry experience, and domain expertise.Primary validation represents the final step, involving exhaustive interviews with key industry participants. These interviews, conducted globally and across various language barriers, validate our findings and assumptions. Key industry participants include market-leading companies, raw material suppliers, product distributors, and buyers. This primary research not only ensures data accuracy but also provides critical insights into the current market scenario, business landscape, and future expectations, enhancing the quality of our reports.

Industry Analysis Approach

In our analysis, we employ both qualitative and quantitative methodologies. Qualitatively, we delve into the industry landscape, trends, market dynamics, and key issues. We explore the technology landscape and identify market opportunities for our clients. Our approach includes Porter’s analysis and PESTEL analysis to understand the competitive landscape and conduct component benchmarking.On the quantitative front, we provide market revenue estimates and forecasts up to specified timeframes, including breakdowns by technology, application, type, and component. Regional market revenue forecasts are also provided, giving clients a comprehensive view of market dynamics across different geographical areas.By integrating these methodologies, DataNumero ensures a holistic, unbiased, and accurate assessment of market trends, opportunities, and future expectations, positioning us as a professional and reliable market research partner.

JAPAN DATA CENTER MARKET SIZE & SHARE ANALYSIS – GROWTH TRENDS & FORECASTS (2024 – 2030)