Japan Data Center Market - Investment Analysis and Growth Opportunities 2021-2026

JAPAN DATA CENTER MARKET INSIGHTS

The Japan data center market size was valued at USD 6.9 billion in 2021 and is expected to reach USD 10 billion by 2026, growing at a CAGR of 7% during 2021-2026.

• 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 cloud services, 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 enterprises, hence there are several challenges that foreign companies could face while setting up a business.

Japan Data Center Market - Power Capacity by Cities

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 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 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 HIGHLIGHTS OF THE REPORT:

• 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 SIZE BY AREA

JAPANESE DATA CENTER MARKET 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.

REPORT COVERAGE:

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. The segmentation includes:

EXISTING 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)

JAPAN DATA CENTER INVESTMENT COVERAGE

• Infrastructure Type
• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
• IT Infrastructure
• Server
• Storage
• Network
• Electrical Infrastructure
• Uninterruptible Power Supply (UPS)
• Generators
• Transfer Switches and Switchgears
• PDUs
• Other Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Rack Cabinets
• Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chillers
  • Cooling Towers, & Condensers, and Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
• General Construction
• Building Development
• Installation & Commissioning Services
• Building Design
• Physical Security
• DCIM
• Tier Segments
• Tier I & Tier II
• Tier III
• Tier IV
• Geography
• Tokyo
• Osaka
• Others

VENDOR LANDSCAPE

IT Infrastructure Providers – Cisco Systems, Fujitsu, Hewlett Packard Enterprise (HPE), Hitachi Vantara, Huawei Technologies, IBM, Inspur, Lenovo, NEC, and NetApp

Construction Service Providers – Fuji Furukawa Engineering & Construction, Hibiya Engineering, ISG, Kajima Corporation, Keihanshin Building, MARCAI DESIGN, Meiho Facility Works, NTT FACILITIES, Obayashi Corporation, and SHINRYO

Support Infrastructure Providers – ABB, Caterpillar, Cummins, Eaton, Fuji Electric, HITEC Power Protection, Kawasaki Heavy Industries, KOHLER, Legrand, Mitsubishi Electric, Rittal, Rolls-Royce Power Systems, Schneider Electric, and 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, and Qualysite Technologies

TARGET AUDIENCE

• Datacenter Real Estate Investment Trusts (REIT)
• Datacenter Construction Contractors
• Datacenter Infrastructure Providers
• New Entrants
• Consultants/Consultancies/Advisory Firms
• Corporate and Governments Agencies