Japan Data Center Power Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.82 Billion |
| Market Size (2029) | USD 1.19 Billion |
| CAGR (2024 - 2029) | 5.27 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Japan Data Center Power Market Analysis
The Japan Data Center Power Market size is estimated at USD 0.82 billion in 2024, and is expected to reach USD 1.19 billion by 2029, growing at a CAGR of 5.27% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under construction IT load capacity: The upcoming IT load capacity of the Japanese data center market is expected to reach 2000 MW by 2029.
- Under construction raised floor space: The country's construction of raised floor area is expected to increase to 10 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 500K units by 2029. Tokyo is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 30 submarine cable systems connecting Japan, and many are under construction. One such submarine cable that was estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Chikura, Japan, and Shima, Japan.
- An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide, and the rising usage of data centers has increased electricity consumption in the country. As Japan has a low energy self-sufficiency ratio of 13.3% for 2021 compared to other OECD countries, presently, it largely depends on fossil fuels like oil, coal, and LNG, which are imported from overseas.
- Further, in the coming years, Japan has planned to reduce the use of fossil fuels and increase the share of renewable energy. The country’s economy is also becoming less energy-intensive. Moreover, to further reduce energy consumption, key market players are introducing efficient power management systems such as PDUs, busways, and UPS to control unnecessary expenditures in data centers, which is expected to increase the market's growth.
Japan Data Center Power Market Trends
The IT and Telecommunication Segment Holds a Major Share in the Market
- The increasing adoption of cloud-based services is driving the expansion of retail and hyperscale colocation services in Japan, resulting in increased demand for space in data centers and, consequently, the need for more racks within data centers.
- Cloud services are growing in popularity in Japan. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
- Cloud is expected to showcase major growth among all the end users. The Government of Japan’s Digital Agency promotes the utilization of cloud services for both central government and local government offices. In Japan, the business case for enterprises moving to cloud infrastructure is supported by several factors. Cloud infrastructure does not require a large capital investment, and cloud computing can easily be scaled to each company’s IT system. Overall, the growth rate for the cloud is 13.51%.
- Further, in the telecom sector, the government is continuing its push to deploy 5G and other cutting-edge technologies that could transfer data faster than currently available with the long-term evolution of LTE. NTT DOCOMO, KDDI, Softbank, and Rakuten Mobile were each allocated a 5G spectrum by the Ministry of Internal Affairs and Communication (MIC).
- Additionally, Mobile data service revenue in Japan is expected to increase at a growth rate of 6.8% during the forecast period, primarily driven by growing mobile internet subscriptions and the increasing adoption of higher average revenue per user (ARPU)-yielding 5G services. Such developmental aspects are expected to further complement the growth of the data centers in the region and substantiate the growth of servers and power infrastructure in the market.
Monitored PDUs Hold a Significant Share in the Market
- Increasing focus on digitalization, internet penetration (94% by 2022), and e-commerce sales across the country require storage facilities, resulting in huge demand for data centers and a rise in power consumption. The increasing demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Compared to basic and metered PDUs, monitored rack PDUs are essential components in data center and server room infrastructure. They provide real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. Also, it helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. Also, it allows administrators for remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- On the other hand, Japan announced in 2021 that it would aim for a 46 % reduction of greenhouse gas emissions by 2030 from the levels achieved in 2013, with continued efforts to achieve a 50 % reduction. Also, to reach the 2050 carbon-neutral target, the Japanese government introduced measures that include thorough energy efficiency and strengthened measures to expand the introduction of non-fossil energy. Additionally, the Japanese government focused on enhancing the Rational Use of Energy Act enforcement and supporting the development of advanced energy-saving technologies to support the challenge of carbon neutrality.
- Key players are focused on introducing energy-efficient products into the market because of the advancements mentioned with monitored PDUs and the necessity to reduce electricity consumption as per government measures. In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4; these new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives.
- In February 2023, ATEN International, the prominent provider of KVM and AVIT connectivity and management solutions, announced the launch of the PG series of 3-phase ecoPDUs, featuring up to 64 PDU units cascaded via network connections, rack power management is made effective with space, monitoring, cost, and connectivity efficiency. These are ideally suited to server rack installations requiring energy-efficient power distribution to high-density IT applications in server rooms or data centers. Such developments in the segment are predicted to boost regional demand during the forecast period.
Japan Data Center Power Industry Overview
The upcoming DC construction projects in the country is expected to increase the demand in the Japanese data center power market in the coming years. The Japanese data center Power Market is moderately consolidated with some players in the market, including ABB Ltd, Caterpillar Inc., Cummins Inc., Eaton Corporation, and Legrand Group. These major players, with a prominent market share, focus on expanding their regional customer base.
- December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It also includes C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.
- November 2023: ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology while enhancing durability and safety.
Japan Data Center Power Market Leaders
-
ABB Ltd.
-
Caterpillar Inc.
-
Cummins Inc.
-
Eaton Corporation
-
Legrand Group
*Disclaimer: Major Players sorted in no particular order
Japan Data Center Power Market News
- December 2023: Cummins Inc. introduced three new generator models, C1760D5, C1875D5, and C2000D5B, with capacities ranging from 1700 kVA to 2000 kVA. These models are powered by the KTA50 engine series and are designed to meet diverse power needs.
- August 2023: Legrand announced the launch of the new Starline Series-S Track Busway power distribution system, which has an IP54 ingress-protection rating, which indicates that it is splashproof and dust-resistant.
Japan Data Center Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption and Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
4.2.2 Increasing Demand to Reduce Operational Costs
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Infrastructure
5.1.1 Electrical Solution
5.1.1.1 UPS Systems
5.1.1.2 Generators
5.1.1.3 Power Distribution Solutions
5.1.1.3.1 PDU
5.1.1.3.2 Switchgear
5.1.1.3.3 Critical Power Distribution
5.1.1.3.4 Transfer Switches
5.1.1.3.5 Remote Power Panels
5.1.1.3.6 Others
5.1.2 Service
5.2 End User
5.2.1 IT and Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media and Entertainment
5.2.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 ABB Ltd
6.1.2 Caterpillar Inc.
6.1.3 Cummins Inc.
6.1.4 Eaton Corporation
6.1.5 Legrand Group
6.1.6 Rolls-Royce PLC
6.1.7 Vertiv Group Corp.
6.1.8 Schneider Electric SE
6.1.9 Rittal GmbH & Co. KG
6.1.10 Fujitsu Limited
6.1.11 Cisco Systems Inc.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The Japanese data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and Service) and End User (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.
| Power Infrastructure | ||||||||||||
| ||||||||||||
| Service |
| End User | |
| IT and Telecommunication | |
| BFSI | |
| Government | |
| Media and Entertainment | |
| Other End Users |
Japan Data Center Power Market Research Faqs
How big is the Japan Data Center Power Market?
The Japan Data Center Power Market size is expected to reach USD 0.82 billion in 2024 and grow at a CAGR of 5.27% to reach USD 1.19 billion by 2029.
What is the current Japan Data Center Power Market size?
In 2024, the Japan Data Center Power Market size is expected to reach USD 0.82 billion.
Who are the key players in Japan Data Center Power Market?
ABB Ltd., Caterpillar Inc., Cummins Inc., Eaton Corporation and Legrand Group are the major companies operating in the Japan Data Center Power Market.
What years does this Japan Data Center Power Market cover, and what was the market size in 2023?
In 2023, the Japan Data Center Power Market size was estimated at USD 0.78 billion. The report covers the Japan Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Data Center Power Industry Report
Statistics for the 2024 Japan Data Center Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Data Center Power analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
