Japan Cloud Computing Market Size Insights Forecasts to 2032

• The Japan Cloud Computing Market Size was valued at USD 32.68 Billion in 2022.
• The Market Size is Growing at a CAGR of 15.35% from 2022 to 2032.
• The Japan Cloud Computing Market Size is expected to reach USD 136.24 Billion by 2032.
• Japan is expected To Growth the fastest during the forecast period.

The Japan Internet of Things Market Size is expected to reach USD 136.24 Billion by 2032, at a CAGR of 15.35% during the forecast period 2022 to 2032.

Market Overview

The United States Department of Commerce ranks Japan third in the worldwide cloud services market. Japan, as the top cloud market in the Asia Pacific and Japan (APJ) region, is expected to grow further throughout the projected period. Japan's broad range of current regulations, as well as privacy rules, aided in the country's high ranking, as these characteristics encourage and promote the growth of the digital economy and the use of cloud computing. Furthermore, Japan boasts one of the most widespread broadband fiber networks in the world as well as the highest number of fiber consumers. This aspect also influenced Japan's overall ranking place.

Furthermore, Japan's economy and society are benefiting from the fast deployment of cloud computing (hence, cloud). Some Japanese cloud users are applying best practices in order to optimize the positive aspects of cloud deployment. Furthermore, Japan represents one of the major cloud computing marketplaces in the Asia Pacific region, with a large population opting for SaaS and IaaS solutions. Cloud computing in the Japanese market has reached maturity, with an increasing number of businesses adopting a cloud-first approach to their operations. The application of cloud computing is expanding in addition to IT/business efficiency to include digital transformation as well.

Report Coverage

This research report categorizes the market for Japan Cloud Computing Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Cloud Computing Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Cloud Computing Market.

Driving Factors

The growing popularity of smartphones and the widespread acceptance of remote working in Japan are both contributing to the growth of the country's cloud computing market. In addition, an increasing number of major multinational corporations and organizations, as well as increased investments in IT infrastructure, are boosting Japan cloud computing market expansion. Businesses are gradually shifting to cloud computing to deliver better services as 5G networks with higher connectivity become available. Furthermore, the rising popularity of new technologies in different business sectors, such as the use of artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), and furthermore, is fueling the expansion of cloud computing in Japan.

Furthermore, the utilization of cloud computing is especially advantageous to small and medium-sized organizations. Some companies that employ cloud computing save money on extending their IT infrastructure, giving them greater customization. Companies can use the service to increase their cloud capacity by using external servers. Furthermore, the use of cloud computing provides an excellent level of data security and recovery in the event of data loss. Additionally, it assists small and medium-sized firms in achieving the same level of IT confidentiality and safety as major enterprises. These variables are driving Japan's demand for cloud computing, further expanding the market potential.

Market Segment

• In 2022, the software segment accounted for the largest revenue share of more than 36.4% over the forecast period.

On the basis of service, 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 segment is dominating the market with the largest revenue share of 36.4% over the forecast period. SaaS suppliers offer their products and services as a subscription for either a month or a year that may be scaled based on requirements and demands without incurring expenses for infrastructure investment. Rising cloud-based services and consumer preference for cloud-based delivery options are projected to boost SaaS segment growth. This type of payment method in SaaS provides a versatile, dynamic solution as well as web-based contracts for remote usage. Software as a service solution has the ability to reach a huge audience.

• In 2022, the hybrid segment is witnessing significant CAGR growth over the forecast period.

On the basis of deployment, the Japan Cloud Computing Market is segmented into public, private, and hybrid. Among these, the hybrid segment is witnessing significant CAGR growth over the forecasted period. Companies choose hybrid deployments because they provide greater assistance for a remote workforce and provide on-demand access to data that isn't tethered to a single data center. The majority of companies place a premium on establishing hybrid cloud models and smart strategies to help enhance business operations, cost efficiency, resource consumption and utilization, customer service, and application modernity while maximizing advantages. Edge computing is also a crucial reason driving the rising usage of hybrid cloud architectures in enterprises throughout the local market.

• In 2022, the manufacturing segment accounted for the largest revenue share of more than 34.2% over the forecast period.

On the basis of industry, the Japan Cloud Computing Market is segmented into BFSI, telecom & IT, media & entertainment, energy & utilities, manufacturing, e-commerce, government & public sector, healthcare, and others. Manufacturing dominates the market with the biggest revenue share of 34.2% over the projection period, owing to benefits such as integrated storage and retrieval of data and continuous monitoring. The integration of numerous technologies such as sensors, artificial intelligence (AI), machine learning (ML), big data analytics, and the Internet of Things (IoT) will allow cloud service models to dramatically assist manufacturing. Cloud computing services enable the manufacturing sector to better evaluate, availability, and exchange data. Furthermore, cloud services enable opportunities for continued creative thinking, commercial focus, availability, rapid growth, adaptability, and cost reductions, all of which are expected to grow.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the Japan Cloud Computing Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Fujitsu Ltd.
• Japan Telecom Cloud
• VMware, Inc.
• DevSamurai
• Dot Com Development
• Experion Technologies
• NTT DATA Corporation
• Chiptip Technology
• NTT Communications Corporation
• KCT Innovations
• Cloudian Inc.
• KDDI Corporation
• NEC Corporation
• Softbank Group Corporation
• Internet Initiative Japan, Inc.
• Rikkeisoft

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• On March 2023, Boomi^TM, the leader in intelligent connection and automation, has announced a new collaboration with Works Applications Systems, Co., Ltd. ("WAPS"), which provides system development and maintenance, as well as SI services. The firms will collaborate to assist organizations in their modernization initiatives by rapidly and simply integrating data from legacy systems, assets, and software as a service (SaaS) application across a complex IT environment.

• In June 2022, Hitachi has introduced a sovereign cloud service in Japan meant to comply with local data storage and privacy requirements. Customer data is stored in data centers in Japan maintained and administered by Hitachi and intended to meet local privacy and security regulations.

• In October 2022, Fujitsu announced the launch of "Fujitsu Computing as a Service" (hereafter CaaS), a service portfolio designed to provide customers with access to world-class computing technology via the public cloud in the Japanese market. Fujitsu is offering these services as part of its "Hybrid IT" ambition to create a new digital infrastructure for a connected society, which is a Key Focus Area under Fujitsu Uvance, Fujitsu's portfolio of global solutions to achieve a sustainable future.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2021 to 2032. Spherical Insights has segmented the Japan Cloud Computing Market based on the below-mentioned segments:

Japan Cloud Computing Market, By Service

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

Japan Cloud Computing Market, By Deployment

• Public
• Private
• Hybrid

Japan Cloud Computing Market, By Enterprise Size

• Large Enterprises
• Small & Medium Enterprises

Japan Cloud Computing Market, By Industry

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