Japan Data Center Market Size to Reach Revenues of Over $7 Billion by 2025 - Arizton
CHICAGO, June 18, 2020 /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this japan data center market report.
Japan data center market likely to grow at a CAGR of over 3% during the period 2020-2025.
Key Highlights Offered in the Report:
Equinix and GIC, MC Digital Realty, NTT Communications, AT TOKYO, Internet Initiative Japan, and Colt DCS are some of the prominent investors in the Japan data center market. In 2018, around 30% of organizations in Japan implemented cloud computing infrastructure. In February 2020, the Japanese government agreed to a deal with AWS to help move HR systems and document management tools in the cloud environment by 2025. YouTube is the most active social media platform in Japan, accounting for about 75% share in 2019, followed by Facebook, Line, Twitter, Instagram, and Ameblo. The entry of international businesses into the country is driving high data usage due to the increased usage of applications and platforms such as data analytics, big data, and artificial intelligence. Artificial Intelligence (AI) is playing a role in IoT application deployments like AI-based security and privacy of IoT devices, edge computing of IoT devices, and more. The market in Japan has now evolved with international and global hyperscale cloud providers. Amazon Web Services (AWS), Google, Microsoft Azure, and IBM SoftLayer cloud service providers are expanding their presence in Tokyo and Osaka markets.
Submarine cable projects have been increased in the region to attract more data center operations and investors. In 2020, the submarine cable projects like Southeast Asia-Japan Cable 2 (SJC2), JUPITER, Japan-Guam-Australia North (JGA-N), and Okinawa Cellular Cable would connect Japan with the US, ChinaTaiwan, Hong Kong, Thailand, and Singapore. In Japan, construction projects are not completely halted due to COVID-19. Data center operations in Japan are carried on without any disruption by taking precautionary measures to ensure safety for employees. The impact of operations is expected to range between low and moderate.
The cloud services market in Japan is estimated at around $6 billion in 2020, which is likely to grow at a CAGR of around 15% during the period 2019-2025. Japan attracted a majority of the investment from colocation service providers such as Equinix, MC Digital Realty, NEC, NTT, AT TOKYO and via the Internet Initiative Japan in 2019 and 2020. In 2019, Mitsubishi Corporation and MC Digital Realty reached an agreement to acquire about 20,000 square meter land in Inzai-city to open Tokyo 2 data center facility. Google's new submarine cable project, connecting Japan-Guam-Australia, is a 9,500 km fiber-optic cable project that is likely to be operational by 2020, delivering 36 Tbps of capacity. The country plans to increase its renewable power by 24% by 2030. Solar power plants have contributed more renewable energy generation. In 2020, the Southeast Asia-Japan 2 cable (SJC2) is a major submarine project in the SEA region that connects Singapore, Thailand, Cambodia, Vietnam, Hong Kong, Taiwan, Mainland China, and Korea.
The report considers the present scenario of the data center market in Japan and its market dynamics for the forecast period 2020-2025. It covers a detailed overview of several growth enablers, restraints, and trends in the market. The study includes the demand and supply aspect of the data center market.
This report offers a detailed analysis of the Japan data center investments in terms of infrastructure and geography. It discusses sizing and estimation for different segments with respect to the investment in data centers. The segmentation includes:
Key Market Participants
IT Infrastructure Providers
Construction Service Providers
Support Infrastructure Providers
Data Center Investors
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