Japan Data Center Market Investment Report 2021: Market was Valued at $7 Billion in 2021 and is Expected to Reach $10 Billion by 2026

DUBLIN, June 8, 2021 /PRNewswire/ -- The "Japan Data Center Market - Investment Analysis and Growth Opportunities 2021-2026" report has been added to ResearchAndMarkets.com's offering.

The Japan data center market was valued at USD 7 billion in 2021 and is expected to reach USD 10 billion by 2026, growing at a CAGR of 7% during 2021-2026

This report offers analysis on the Japan Data Center market share and elaborative analysis of the existing and upcoming facilities, datacenter investments in terms of IT, electrical, mechanical infrastructure, general construction, and geography. It discusses market sizing and estimation for different segments with respect to the investment in the facilities.

Japan is a mature data center market in the APAC region and has a strong presence as a corporate hub and global financial center. Other than being economically forward, it is also a leader in technology, robotics, and machine learning. The country hosts over 22 third-party data center service providers operating over 90 facilities. In addition, the country also includes several on-premise or dedicated data centers owned by local enterprises. Japan is one of the major connectivity hubs owing to its strategic location.

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Japan Data Center Market Report

The report considers the present scenario of the Japanese data center market and its market dynamics for the forecast period 2021-2026. It covers a detailed overview of several growth enablers, restraints, and trends in the market. The study includes the demand and supply aspects of the market.

Key Highlights

• Growing investments in start-ups such as FinTech and e-commerce using big data analytics and IoT applications is expected to increase the demand for all flash storage devices.
• The rise in digital transformation and the adoption of cloud computing by enterprises due to because of the COVID-19 pandemic is likely to increase cloud server adoption in Japan.
• The implementation of 5G networks will increase the usage of new class ethernet switches among data centers in Japan.
• The price of lithium-ion batteries has decreased over the years, which have observed high demand for lithium-ion UPS systems.
• The share of diesel generators is expected to decline, with the adoption of gas generators in the market as they are fuel efficient and environment friendly.
• Monitored and metered/switched PDUs will experience strong adoption in the market owing to the growing awareness of end-to-end power monitoring in data centers during the forecast period.
• The Japanese data center market is dominated by direct free cooling solutions that will increase the adoption of duct systems in the facilities.
• Evaporative and water-based economizer solutions support the adoption of pipes and valves in N+N redundancy.
• Greenfield projects will witness an increased investment from local and global data center providers as they aim to expand their presence.
• The DCIM adoption is likely to grow in the future as man-hours are reduced to handle critical data center tasks.
• Infrastructure level monitoring is likely to increase than end-to-end facility management.

Market Insights

• In 2020, Tokyo and Osaka were major data center investment destinations. Other regions such as Kobe, Nagoya, and Yokohama are expected to grow during the forecast period.
• The cloud market in Japan was around USD 10 billion in 2020, including private and public clouds, which is expected to be valued at over USD 16 billion by 2023.
• Sectors such as BFSI, healthcare, education, hospitality, government, and transport have migrated their resources to the cloud platform.
• IoT-enabled devices have witnessed high acceptance in Japan, especially for monitoring and surveillance purposes, especially in the healthcare sector during the outbreak of the pandemic.
• In 2020, Equinix and GIC formed a joint venture to develop xScale data centers in Japan supporting 138 MW on full-build.
• The Japanese government has developed several policies to increase the supply of renewable energy and is expected to reach 24% of the energy mix by 2030.
• The Japan Government is more focused to promote local companies, hence there are several challenges that foreign companies could face while setting up a business.

Vendor Landscape

Japan has a strong presence of regional data center providers. It is one of the fastest-growing digital markets in the world. Japan has evolved into an international data center market driven by global hyperscale cloud providers such as Amazon Web Services (AWS), Google, Microsoft Azure, and IBM, expanding in the Tokyo and Osaka regions. Cisco Systems, Fujitsu, Hewlett Packard Enterprise (HPE), Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, and NetApp are the leading IT infrastructure provider operators in Japan.

IT Infrastructure Providers

• Cisco Systems
• Fujitsu
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Huawei Technologies
• IBM
• Inspur
• Lenovo
• NEC
• NetApp

Construction Service Providers

• Fuji Furukawa Engineering & Construction
• Hibiya Engineering
• ISG
• Kajima Corporation
• Keihanshin Building
• MARCAI DESIGN
• Meiho Facility Works
• NTT FACILITIES
• Obayashi Corporation
• SHINRYO

Support Infrastructure Providers

• ABB
• Caterpillar
• Cummins
• Eaton
• Fuji Electric
• HITEC Power Protection
• Kawasaki Heavy Industries
• KOHLER
• Legrand
• Mitsubishi Electric Corporation
• Rittal
• Rolls-Royce Power Systems
• Schneider Electric
• Vertiv Group

Data Center Investors

• AT TOKYO
• AirTrunk Operating
• ARTERIA Networks
• Colt Data Centre Services
• CTC
• Cyxtera
• Equinix
• Fujitsu
• IDC Frontier
• Internet Initiative Japan (IIJ)
• MC Digital Realty
• NEC
• NTT Communications
• SCSK Corporation (netXDC)
• Telehouse
• TIS INTEC Group
• Qualysite Technologies

Report Coverage

The segmentation includes:

Exisiting vs. Upcoming Data Centers

• Existing Facilities in the country (Area and Power Capacity)
• Tokyo (No. of facilities: 57)
• Osaka (No. of facilities: 14)
• Other Cities (No. of facilities: 22)
• List of Upcoming Facilities in the region (Area and Power Capacity)

Why Should You Buy This Research?

• Market size available in the area, power capacity, investment, and colocation revenue
• An assessment of the Japan data center investment in the market by colocation, hyperscale, and enterprise operators
• Data center investments in terms of area (square feet) and power capacity (MW) across cities in the country
• A detailed study of the existing Japan data center market landscape, an in-depth industry analysis, and insightful predictions about the Japan data center market size during the forecast period
• Snapshot of existing and upcoming third-party facilities in Japan
• Facilities Covered (Existing): 93
• Facilities Identified (Upcoming): 8
• Coverage: 21 Cities
• Existing vs Upcoming (Data Center Area)
• Existing vs Upcoming (IT Load Capacity)
• Data center colocation market in Japan
• Market Revenue & Forecast (2020-2026)
• Retail Colocation Pricing
• Wholesale Colocation Pricing
• Classification of the Japan data center market investments into multiple segments and sub-segments (IT, power, cooling, and general construction services) with market sizing and forecast
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, and growth restraints, and future prospects for the data center market
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and data center investors operating in the market
• A transparent research methodology and the analysis of the demand and supply aspect of the market

Key Topics Covered:

Chapter 1: Existing & Upcoming Third-Party Data Centers in Japan

• 90+ Unique Data Center Properties
• Data Center IT Load Capacity
• Data Center White Floor Area Space
• Existing vs Upcoming Data Center Capacity by Cities

Chapter 2: Investment Opportunities in Japan

• Market Investment
• Investment by Area
• Investment by Power Capacity

Chapter 3: Data Center Colocation Market in Japan

• Retail vs Wholesale Data Center Colocation
• Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-ons
• Wholesale Colocation Pricing

Chapter 4: Market Dynamics

Chapter 5: Market Segmentation

• IT Infrastructure: Market Size & Forecast
• Electrical Infrastructure: Market Size & Forecast
• Mechanical Infrastructure: Market Size & Forecast
• General Construction Services: Market Size & Forecast

Chapter 6: Tier Standards Investment

• Tier I & II
• Tier III
• Tier IV

Chapter 7: Geography Segmentation

• Tokyo
• Osaka
• Other Cities

Chapter 8: Key Market Participants

• IT Infrastructure Providers
• Construction Contractors
• Support Infrastructure Providers
• Data Center Investors

Chapter 9: Appendix

For more information about this report visit https://www.researchandmarkets.com/r/pju97

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