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Japan Data Center Server Market Size (2024 - 2029)

The Japan Data Center Server Market is experiencing significant growth, driven by increasing demand for data centers and hyperscale construction. Factors such as environmental initiatives, government support, and technological advancements are enhancing the market's appeal. The country's advanced internet infrastructure and the government's focus on cloud technologies to reduce carbon emissions further contribute to the market's expansion. The COVID-19 pandemic accelerated digital adoption, highlighting the importance of technology in maintaining business resilience, which continues to shape the market's trajectory.

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Market Size of Japan Data Center Server Industry

Japan Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 22.68 Billion
Market Size (2030) USD 26.33 Billion
CAGR (2024 - 2029) 2.52 %
Market Concentration Low

Major Players

Japan Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Data Center Server Market Analysis

The Japan Data Center Server Market size is estimated at USD 22.68 billion in 2024, and is expected to reach USD 26.33 billion by 2030, growing at a CAGR of 2.52% during the forecast period (2024-2030).

Japan's demand for data centers is proliferating and becoming more attractive as a business market. Environmental initiatives, government support for local data centers, changes in industrial structure, and changing lifestyles due to technological advancements all play a significant role in the Japanese data center market, resulting in major demand for the server market.

  • The major driver for the market growth is the growing demand for hyperscale construction in the Japanese region. Osaka's strength lies in its diverse concentration of industries, encompassing environmental, new energies, pharmaceuticals, and manufacturing sectors. This vibrant ecosystem fosters a unique coaction between hyperscale data centers and industries driving global sustainability and technological advancement. With a population of 8.8 million, Osaka Prefecture has a GDP of USD 360 billion, similar to the size of Norway's economy.
  • Japan is widely regarded as one of the most advanced economies in terms of Internet penetration. As of 2023, Japan's Internet usage rate (individuals) was 82.9%, and the development rate of optical fiber was 99.3%. The number of broadband subscribers was 43.8 million, which includes 36.6 million FTTH subscribers and 6.5 million CATV Internet subscribers, while the number of mobile broadband subscribers (4G and 5G) was 184 million.
  • The energy efficiency of cloud data centers can play a crucial role in reducing Japan's carbon footprint to achieve the Japanese government's goal of net-zero carbon emissions by 2050. 
  • Having recognized the benefits cloud technologies can provide to the country and their positive effect on encouraging innovation and fostering non-conventional business models, the Japanese government has been launching numerous initiatives to promote the cloud as part of the broader plans to digitalize the country further.
  • To build a server, one must buy individual components first. They have to assemble the server and install the necessary software. It is resource-intensive to customize, own, and maintain a server. It is well-suited for long-term projects and knowledge-building within the company.

Japan Data Center Server Industry Segmentation

The Japan data center server market is defined by the revenue accrued from various solutions used across end-user industries.

The Japan data center server market is segmented by form factor (blade server, rack server, and tower server) by 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) for all the above segments.

By Form Factor
Blade Server
Rack Server
Tower Server
By End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End Users
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Japan Data Center Server Market Size Summary

The Japan data center server market is experiencing significant growth, driven by increasing demand for hyperscale construction and advancements in Internet infrastructure. The market is becoming more attractive due to environmental initiatives, government support, and technological advancements that are reshaping industrial structures and lifestyles. Osaka, with its diverse industrial ecosystem, plays a crucial role in this growth, fostering a unique interaction between hyperscale data centers and various sectors such as environmental, new energies, pharmaceuticals, and manufacturing. The Japanese government's focus on digitalization and cloud technologies, aimed at reducing carbon footprints and achieving net-zero emissions by 2050, further propels the market. The COVID-19 pandemic has accelerated the adoption of digital technologies, highlighting the importance of data centers in enhancing business resilience and facilitating digital transactions.

The market is characterized by the presence of major players like Dell Technologies, Hewlett Packard Enterprise, Cisco Systems, Lenovo Group, and Quanta Computer, who are actively engaging in partnerships and acquisitions to strengthen their market position. The development of smart cities and the expansion of 6G technology are key government initiatives that support the growth of the ICT sector, which in turn boosts the server market. The introduction of new data centers and server technologies, such as blade servers, is expected to meet the rising demand for high-performance computing and efficient space utilization. The market's expansion is further supported by strategic ventures and investments in renewable energy to promote sustainability in data center operations.

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Japan Data Center Server Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Industry Value Chain Analysis

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 By End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End Users

Japan Data Center Server Market Size FAQs

The Japan Data Center Server Market size is expected to reach USD 22.68 billion in 2024 and grow at a CAGR of 2.52% to reach USD 26.33 billion by 2030.

In 2024, the Japan Data Center Server Market size is expected to reach USD 22.68 billion.

Japan Data Center Server Market Report Snapshots

Japan Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)