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Japan Data Center Storage Market Market Size (2024 - 2029)

The Japan Data Center Storage Market is experiencing growth driven by increasing demand for cloud computing, government regulations for local data security, and rising investments from domestic players. This demand is contributing to the expansion of data center storage capacity in the country. The market's expansion is further supported by the development of IT load capacity, raised floor space, and the installation of racks, with Tokyo anticipated to accommodate the majority of these installations. Additionally, the construction of submarine cable systems is enhancing connectivity, which is crucial for the market's growth.

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Market Size of Japan Data Center Storage Industry

Japan Data Center Storage Market Summary
Study Period 2018 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.92 Billion
Market Size (2029) USD 2.27 Billion
CAGR (2024 - 2029) 3.36 %
Market Concentration Medium

Major Players

Japan Data Center Storage Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Data Center Storage Market Analysis

The Japan Data Center Storage Market size is estimated at USD 1.92 billion in 2024, and is expected to reach USD 2.27 billion by 2029, growing at a CAGR of 3.36% 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, leading to a growing need for data center storage equipment.
  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Japan data center market is expected to reach 2,000 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 the Philippines, and many are under construction. One such submarine cable that is 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, to Shima, Japan.

Japan Data Center Storage Industry Segmentation

Data center storage encompasses devices, hardware, networking equipment, and software technologies facilitating the storage of data and applications within data center facilities, used for storing, managing, retrieving, distributing, and backing up digital information within such facilities.

The Japan data center storage market is segmented by storage technology (network attached storage (NAS), storage area network (SAN), direct attached storage (DAS), and other technologies), by storage type (traditional storage, all-flash storage, and hybrid storage), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users).

Market sizes and forecasts are provided in terms of value (USD) for all the segments above.

Storage Technology
Network Attached Storage (NAS)
Storage Area Network (SAN)
Direct Attached Storage (DAS)
Other Technologies
Storage Type
Traditional Storage
All-Flash Storage
Hybrid Storage
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Japan Data Center Storage Market Size Summary

The Japan Data Center Storage Market is experiencing steady growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and significant investments by local players. The market is characterized by a rising need for data center storage equipment, fueled by the expansion of digital services and the growing consumption of data. The government's initiatives to enhance high-speed internet connectivity and the rapid rollout of 5G networks are further propelling the demand for data centers. This growth is also supported by the adoption of hybrid storage solutions, which combine on-premises and cloud storage to meet the diverse needs of businesses, ensuring data integrity and compliance with legal requirements.

The market landscape is moderately fragmented, with key players like Hewlett Packard Enterprise, NetApp Inc., and Huawei Technologies Co. Ltd. holding significant market shares. These companies are actively engaging in strategic collaborations and technological advancements to enhance their offerings and maintain competitiveness. The introduction of advanced storage solutions, such as Kioxia Corporation's PCIe 5.0 SSDs, underscores the ongoing innovation in the sector. As businesses increasingly rely on hybrid infrastructure and cloud capabilities, the demand for data center storage solutions continues to rise, reflecting the market's robust growth trajectory and its critical role in supporting Japan's digital transformation.

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Japan Data Center Storage Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Expansion of IT Infrastructure to Increase Market Growth

      2. 1.2.2 Increased Investments in Hyperscale Data Centers To Increase Market Growth

    3. 1.3 Market Restraints

      1. 1.3.1 High Initial Investment Cost To Hinder Market Growth

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Storage Technology

      1. 2.1.1 Network Attached Storage (NAS)

      2. 2.1.2 Storage Area Network (SAN)

      3. 2.1.3 Direct Attached Storage (DAS)

      4. 2.1.4 Other Technologies

    2. 2.2 Storage Type

      1. 2.2.1 Traditional Storage

      2. 2.2.2 All-Flash Storage

      3. 2.2.3 Hybrid Storage

    3. 2.3 End-User

      1. 2.3.1 IT & Telecommunication

      2. 2.3.2 BFSI

      3. 2.3.3 Government

      4. 2.3.4 Media & Entertainment

      5. 2.3.5 Other End-Users

Japan Data Center Storage Market Market Size FAQs

The Japan Data Center Storage Market size is expected to reach USD 1.92 billion in 2024 and grow at a CAGR of 3.36% to reach USD 2.27 billion by 2029.

In 2024, the Japan Data Center Storage Market size is expected to reach USD 1.92 billion.

Japan Data Center Storage Market Report Snapshots

Japan Data Center Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)