As per MRFR analysis, the Japan Cloud Infrastructure Services Market Size was estimated at 3.67 (USD Billion) in 2023.The Japan Cloud Infrastructure Services Market Industry is expected to grow from 4.5(USD Billion) in 2024 to 18.5 (USD Billion) by 2035. The Japan Cloud Infrastructure Services Market CAGR (growth rate) is expected to be around 13.714% during the forecast period (2025 - 2035)
Key Japan Cloud Infrastructure Services Market Trends Highlighted
The Japan Cloud Infrastructure Services Market is currently experiencing substantial trends that are being driven by the growing adoption of digital transformation across a variety of industries, as well as a robust government initiative to promote innovation. In order to lower operational costs, improve scalability, and increase efficiency, Japanese organizations are employing cloud infrastructure. This transition is encouraged by the government's initiatives to cultivate a digital economy, which are exemplified by the "Digital Agency" that was established to expedite the adoption of cloud technologies.
As businesses endeavor to optimize their cloud strategies and navigate the intricacies of data privacy and compliance regulations, the demand for hybrid cloud solutions is ascending. In addition, the market is being influenced by the increasing interest in edge computing, which is indicative of the advanced technological landscape in Japan and the necessity for quicker data processing capabilities in close proximity to the source. Moreover, the necessity for secure and resilient cloud solutions has been exacerbated by the recent global challenges, which have resulted in a rise in remote work. This has changed the way in which organizations approach their IT infrastructure. SMEs in Japan are gradually adopting cloud technologies, which presents a significant opportunity.
This shift in culture toward innovation has created a significant lacuna that cloud service providers must address. Furthermore, the potential for automation and cloud services that are specifically designed for sectors such as healthcare and manufacturing is present as Japan's population ages. Japan is on the brink of significant development in the cloud infrastructure sector, as the market trends emphasize a critical shift toward completely integrated cloud infrastructures.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Japan Cloud Infrastructure Services Market Drivers
Increasing Adoption of Digital Transformation
The acceleration of digital transformation across various sectors in Japan is a major driver for the Japan Cloud Infrastructure Services Market Industry. According to the Ministry of Internal Affairs and Communications, approximately 85 percent of Japanese companies are investing in digital technologies to enhance operational efficiency and customer engagement. This is coupled with Japan's ambitious goal to digitalize 90 percent of its government services by 2025.Established organizations like Fujitsu and NEC are leading these digital transformation efforts, providing comprehensive cloud services that meet specific enterprise needs.
With digital transformation driving the growth of cloud infrastructure services, the projected increase in market demand correlates with the rising investments in cloud solutions, which are expected to reach 4 trillion JPY by 2025 as per Japan's Strategic Council on Artificial Intelligence.The shift towards digitalization is thus creating a vibrant ecosystem for cloud infrastructure services, as companies require scalable and flexible solutions to support their digital initiatives.
Government Initiatives and Support
The Japanese government has been proactive in promoting the adoption of cloud computing through various initiatives. For instance, the 'Society 5.0' initiative aims to integrate technological advancements into everyday life and enhance productivity across industries. In 2021, the government launched a program providing subsidies to small and medium-sized enterprises (SMEs) for cloud computing adoption, making it financially accessible for these businesses to transition to cloud platforms.
The Ministry of Economy, Trade and Industry (METI) has recognized that SMEs' adoption of cloud services can lead to a potential increase in productivity by over 30 percent. With support from established players like Amazon Web Services and Microsoft Azure collaborating with the government to provide cloud solutions, these initiatives are driving substantial growth in the Japan Cloud Infrastructure Services Market.
Rise in Data Generation and Need for Data Storage
With the exponential rise in data generation, driven by the Internet of Things (IoT) and big data analytics, there is an increasing need for reliable data storage and management solutions. A report from the Ministry of Internal Affairs and Communications indicates that data volume in Japan is projected to reach 48.6 million TB by 2025. This surge in data demand is fostering a strong urgency for robust cloud infrastructure services to facilitate data storage, processing, and analytics.
Corporations such as SoftBank and NTT Communications are investing heavily in cloud infrastructure to accommodate this data growth. In this context, the Japan Cloud Infrastructure Services Market Industry stands to benefit significantly as businesses seek scalable solutions to manage their burgeoning data requirements effectively.
Cloud Infrastructure Services Market Service Model Insights
The Japan Cloud Infrastructure Services Market exhibits significant growth driven by the evolving demands for digital transformation across various industries. Within the Service Model segment, distinct models such as Infrastructure as a Service, Platform as a Service, and Software as a Service play pivotal roles in shaping the market dynamics. Infrastructure as a Service provides businesses with scalable and flexible IT resources, enabling them to optimize operational costs while enhancing agility in deployment. This model has gained traction as organizations require rapid deployment capabilities without the burden of managing physical hardware.
Meanwhile, Platform as a Service offers developers a comprehensive environment to build, deploy, and manage applications without dealing with the complexities of the underlying infrastructure. This simplicity fosters innovation and accelerates development cycles, making it an attractive choice for companies focusing on digital solutions. On the other hand, Software as a Service remains critical in driving user adoption across various sectors by allowing easy access to applications through the internet, thus reducing upfront licensing costs and ensuring consistent updates.
The Japan Cloud Infrastructure Services Market segmentation reflects an increasing trend toward adopting cloud solutions, driven by the need for improved collaboration, enhanced data security, and the ability to scale resources efficiently. Factors such as the ongoing digital transformation initiatives by the Japanese government and private sectors, rising cybersecurity needs, and the growing demand for remote work solutions are enabling significant market growth. As businesses continue to seek innovative solutions to remain competitive, the evolvement in each segment of the Service Model will undoubtedly contribute to the overall expansion of the Japan Cloud Infrastructure Services Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Cloud Infrastructure Services Market Deployment Type Insights
The Japan Cloud Infrastructure Services Market focuses on Deployment Type, which plays a crucial role in defining how cloud services are utilized across various sectors. The Public Cloud segment is characterized by shared computing resources over the internet, allowing organizations to scale their operations efficiently while reducing IT overhead costs, thus making it a preferred choice for small and medium-sized enterprises. In contrast, the Private Cloud segment caters to organizations requiring enhanced security and privacy, facilitating compliance with strict regulations.This deployment option is particularly significant in industries such as finance and healthcare, where sensitive data must be handled with care.
Moreover, the Hybrid Cloud segment, which combines elements of both Public and Private Clouds, represents a growing trend as businesses seek flexibility, balancing their operations between sensitive internal workloads and scalable external resources. Japan's Cloud Infrastructure Services Market data reflects an increasing preference for flexible deployment options among organizations looking to optimize costs while ensuring security and compliance, indicating a dynamic market landscape driven by technological advancements and evolving business needs.
Cloud Infrastructure Services Market End User Insights
The Japan Cloud Infrastructure Services Market is significantly shaped by its End User category, which includes Small and Medium Enterprises, Large Enterprises, and Government organizations. Small and Medium Enterprises play a crucial role as they increasingly adopt cloud solutions to enhance operational efficiency and reduce infrastructure costs. Their demand for flexible and scalable services is contributing to the market's growth. Large Enterprises dominate the landscape, leveraging cloud infrastructure to enable digital transformation, streamline operations, and support large-scale data management, which is essential for maintaining competitive advantage in today’s market.
Government entities are increasingly investing in cloud services to improve public service delivery and ensure data security, influenced by Japan's digital government initiatives aimed at enhancing public sector operations. As businesses continue to prioritize agility, cost-effectiveness, and innovation, these segments are expected to drive substantial demand for cloud infrastructure services, demonstrating the vital role that these End Users play in shaping the overall landscape of the Japan Cloud Infrastructure Services Market. The evolving regulatory frameworks and focus on cybersecurity further highlight the significance of cloud adoption among these sectors, indicating robust opportunities for market growth and transformation in Japan.
Cloud Infrastructure Services Market Industry Vertical Insights
The Japan Cloud Infrastructure Services Market is experiencing significant growth, with various industry verticals contributing to its expansion. The IT and Telecommunications sector is a major driver, as companies increasingly adopt cloud solutions to enhance flexibility, scalability, and operational efficiency. This sector is pivotal in supporting digital transformations and facilitating advanced technologies such as 5G and the Internet of Things. Meanwhile, the Healthcare industry is also leveraging cloud infrastructure to improve patient care, streamline operations, and enable remote patient monitoring.This shift towards cloud computing allows healthcare providers to handle large volumes of patient data securely and efficiently.
Additionally, the Retail sector plays a crucial role, as businesses adopt cloud services for better inventory management, personalized customer experiences, and omnichannel strategies. As these industry verticals continue to embrace cloud technology, the overall dynamics of the Japan Cloud Infrastructure Services Market are expected to evolve, driven by innovation and the need for more robust solutions in a digital-first world.This consistent evolution across different sectors is indicative of the growing reliance on cloud services in Japan's economy.
Japan Cloud Infrastructure Services Market Key Players and Competitive Insights
The Japan Cloud Infrastructure Services Market is characterized by a robust landscape influenced by various global and local players, showcasing a competitive environment that is rapidly evolving. With the increasing demand for digital transformation and cloud adoption among enterprises, market participants are constantly innovating to provide superior services and complete solutions tailored to meet the diverse needs of Japanese businesses. This market, recognized for its stringent regulatory frameworks and unique business culture, presents both challenges and opportunities for service providers aiming to establish a strong foothold in the region.
As organizations across Japan embrace cloud technologies for improved scalability, flexibility, and cost-effectiveness, competitive insights reveal trends in technology adoption, service offerings, and strategic partnerships, empowering these companies to position themselves effectively within this dynamic market.Oracle has made significant advancements in the Japan Cloud Infrastructure Services Market through its comprehensive suite of cloud solutions that cater specifically to the localized needs of Japanese enterprises. The company's strengths lie in its prestigious reputation built over decades in the database and software industry, allowing it to leverage its extensive expert knowledge and technological prowess.
Oracle has successfully tailored its offerings to comply with Japan's regulatory requirements while ensuring security and performance, establishing it as a preferred partner among businesses pursuing digital transformation. Moreover, its focus on providing integrated infrastructure solutions, combined with well-established customer relationships and localized support, enhances its competitive edge, enabling it to effectively address the complexities faced by organizations transitioning to the cloud in Japan.Google maintains a strong presence in the Japan Cloud Infrastructure Services Market, offering a range of key products and services designed specifically for the needs of local businesses. Google Cloud Platform (GCP) provides a myriad of services from computing to data storage, artificial intelligence, and machine learning, enabling organizations to optimize their operations through innovation.
The combination of advanced technology and user-friendly interfaces has garnered positive feedback from enterprises seeking reliable cloud solutions. Google’s strengths in this market extend to its significant investment in data centers across Japan, enhancing the performance and reliability of its services while addressing the low-latency requirements of Japanese consumers. Through strategic mergers and acquisitions, Google has strengthened its capabilities in analytics and cloud infrastructure, providing an array of innovative solutions tailored for various sectors. This, along with continuous improvement in service offerings, positions Google as a formidable player in facilitating the cloud adoption journey for Japanese enterprises, ultimately driving their digital initiatives effectively.
Key Companies in the Japan Cloud Infrastructure Services Market Include
Japan Cloud Infrastructure Services Market Industry Developments
Fujitsu, Japan's first premium RISE with SAP supplier, announced in September 2023 that it would commence the provision of a new hybrid cloud enterprise solution under its "Fujitsu Uvance" brand. This product offers a comprehensive range of technical services and managed infrastructure to facilitate the migration of mission-critical SAP workloads to the cloud, ensuring enhanced security and hybrid flexibility. A collaboration between Fujitsu and Oracle was established in April 2024 to implement Oracle Alloy in data centers operated by Fujitsu throughout Japan. As part of its Hybrid IT portfolio under Uvance, the partnership broadens Fujitsu's sovereign cloud and AI capabilities. This enables the secure, local delivery of over 100 Oracle Cloud Infrastructure services, including generative AI, while maintaining operational governance.
Oracle announced in April 2024 that it intends to invest more than US $8 billion in Japan over the next decade to broaden its cloud infrastructure footprint. This expansion will enhance Oracle's sovereign AI and cloud operations by scaling data centers, staffing local engineering teams, and addressing data sovereignty needs for public and private sectors. IBM Japan, in partnership with MUFG Bank and IIJ, introduced a "Financial Hybrid Cloud Platform" in June 2024. This platform allows regional financial institutions to share mainframe and distributed-system infrastructure. The solution is essential for the digital transformation of Japan's financial sector, as it provides secure private network connectivity, operational efficiency, and enhanced infrastructure flexibility.
Japan Cloud Infrastructure Services Market Segmentation Insights
Cloud Infrastructure Services Market Service Model Outlook
Cloud Infrastructure Services Market Deployment Type Outlook
Cloud Infrastructure Services Market End User Outlook
Cloud Infrastructure Services Market Industry Vertical Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 3.67(USD Billion) |
| MARKET SIZE 2024 | 4.5(USD Billion) |
| MARKET SIZE 2035 | 18.5(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.714% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Oracle, Google, DigitalOcean, Fujitsu, Salesforce, NTT Communications, IBM, TIS, Alibaba Cloud, Rakuten, Sakura Internet, Microsoft, Mizuho Bank, KDDI, Amazon Web Services |
| SEGMENTS COVERED | Service Model, Deployment Type, End User, Industry Vertical |
| KEY MARKET OPPORTUNITIES | Hybrid cloud adoption surge, Increased demand for AI integration, Growth in data privacy regulations, Expansion of multi-cloud strategies, Rising need for disaster recovery solutions |
| KEY MARKET DYNAMICS | Increased adoption of hybrid cloud, Rising demand for data security, Growing regulatory compliance requirements, Expansion of 5G networks, Emergence of AI and machine learning |
| COUNTRIES COVERED | Japan |
Frequently Asked Questions (FAQ):
The Japan Cloud Infrastructure Services Market is expected to be valued at 4.5 billion USD in 2024.
By 2035, the market is projected to reach a value of 18.5 billion USD.
The expected CAGR for the Japan Cloud Infrastructure Services Market from 2025 to 2035 is 13.714%.
In 2024, the Infrastructure as a Service segment holds the largest value at 1.8 billion USD.
The Platform as a Service segment is projected to be valued at 5.1 billion USD by 2035.
Key players in the market include Oracle, Google, DigitalOcean, Fujitsu, and AWS among others.
The market size for Software as a Service in 2024 is expected to be 1.5 billion USD.
Emerging trends and increasing demand for digital transformation present significant growth opportunities.
The competitive landscape has evolved with major players enhancing their offerings to solidify market presence.
The Japan Cloud Infrastructure Services Market is expected to experience robust growth from 2025 to 2035.
Leading companies partner with us for data-driven Insights.
Kindly complete the form below to receive a free sample of this Report
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
© 2025 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
