Public Cloud - Japan

Japan

Revenue in the Public Cloud market is projected to reach US$21.32bn in 2024.
Software as a Service dominates the market with a projected market volume of US$9.04bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.76%, resulting in a market volume of US$48.29bn by 2029.
The average spend per employee in the Public Cloud market is projected to reach US$308.20 in 2024.
In global comparison, most revenue will be generated in the United States (US$388.50bn in 2024).

Key regions: United States, Germany, China, Japan, United Kingdom

Definition:

A public cloud is defined as the digital infrastructure and computing resources that are managed by a service provider. Examples of public cloud computing resources include virtual machines, storage, and services, all of which are available for purchase with flexible (e.g., pay as you go and subscription) business models. Such payment options make it possible for customers to access, scale, and utilize resources as needed. Public cloud solutions make it possible for users to save on IT costs, increase their efficiency, and take advantage of advanced technologies without having to invest in long-term IT solutions. Public cloud service providers own and maintain the physical infrastructure, hardware, and software. Users only need to pay for the computing resources that they require. The Public Cloud market refers to the companies that provide these cloud computing resources and services to individuals, businesses, and organizations.

Structure:

The Public Cloud market is structured into five markets based on the type of service models provided by the companies.

The Infrastructure as a Service (IaaS) market covers the resources and services related to the data center infrastructure.
The Platform as a Service (PaaS) market covers the resources and services related to the virtual environments used for software development.
The Software as a Service market (SaaS) market covers the resources and services related to software applications that can be accessed via a web browser.
The Business Process as a Service (BPaaS) market covers the resources and services related to the various business processes such as finance and accounting, human resources, customer service, and supply chain management, all delivered through the cloud.
The Desktop as a Service (DaaS) market covers the resources and services related to virtual desktop environments, which are accessible from any device with an internet connection.

Additional Information:

The public cloud market comprises revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players of the public cloud market include companies such as Amazon (Amazon web services), Microsoft (Azure), Google (Cloud), and IBM (Cloud).

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Market

Region

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Currency

Analyst Opinion

The Public Cloud market in Japan is experiencing mild growth, driven by factors such as increasing adoption of digital technologies, growing awareness of the benefits of online services, and the convenience offered by cloud-based solutions. The sub-markets within this sector also play a role in influencing the overall market growth rate.

Customer preferences: With the rapid growth of the Public Cloud Market in Japan, there has been a noticeable increase in demand for online collaboration and communication tools. This trend is largely driven by the country's strong emphasis on teamwork and group-based decision making. Additionally, the rise of remote work arrangements and virtual meetings due to the COVID-19 pandemic has further accelerated the adoption of these cloud-based solutions. As a result, companies are increasingly investing in Public Cloud Market technologies to enhance collaboration and productivity among their teams.

Trends in the market: In Japan, the Public Cloud Market is experiencing a surge in adoption, with businesses and organizations increasingly turning to cloud-based solutions for their IT needs. This trend is driven by the growing demand for digital transformation and the need for flexible and scalable infrastructure. Additionally, there is a shift towards multi-cloud strategies, where businesses utilize a combination of public and private clouds to meet their unique requirements. This trend is expected to continue as businesses prioritize agility and cost-efficiency. For industry stakeholders, this presents opportunities to offer innovative and specialized cloud services to cater to this evolving market. However, it also poses challenges in terms of competition and regulation, as the government works towards establishing guidelines for data privacy and security in the cloud.

Local special circumstances: In Japan, the Public Cloud Market is heavily influenced by the country's advanced technological infrastructure and strong government support for digital transformation. The market is also shaped by Japan's unique business culture, which values long-term relationships and reliability. Additionally, strict data privacy regulations play a significant role in shaping the market, as Japanese consumers have high expectations for the protection of their personal data. These factors contribute to a highly competitive and innovative market, with a focus on secure and reliable cloud solutions.

Underlying macroeconomic factors: The Public Cloud Market in Japan is impacted by various macroeconomic factors, including the country's economic stability, government policies, and global economic trends. Japan's strong economy and supportive regulatory environment have contributed to the growth of the Public Cloud Market, as businesses are increasingly adopting cloud services to improve efficiency and reduce costs. Moreover, the increasing demand for digital transformation and the rising trend of remote work due to the COVID-19 pandemic have further accelerated the adoption of public cloud solutions in Japan. The country's focus on digitalization and investments in advanced technologies also play a significant role in driving the growth of the Public Cloud Market in Japan.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of telecommunications infrastructure. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.