As per MRFR analysis, the Japan Software-Defined Infrastructure Market Size was estimated at 1.74 (USD Billion) in 2023.The Japan Software-Defined Infrastructure Market Industry is expected to grow from 2.43(USD Billion) in 2024 to 5.72 (USD Billion) by 2035. The Japan Software-Defined Infrastructure Market CAGR (growth rate) is expected to be around 8.104% during the forecast period (2025 - 2035)
Key Japan Software-Defined Infrastructure Market Trends Highlighted
The Japan Software-Defined Infrastructure Market is undergoing significant trends as a result of the growing demand for operational flexibility and efficient data management. Japan's government-sponsored "Society 5.0" framework is one of the ambitious digital transformation initiatives that aims to incorporate advanced technologies into a variety of sectors, thereby promoting the adoption of software-defined solutions. A fertile environment for software-defined infrastructure has been established as a result of the increase in cloud computing requirements, particularly as businesses transition to hybrid and multi-cloud environments.Â
Furthermore, organizations are being encouraged to implement Software-Defined Networking (SDN) and Software-Defined Storage (SDS) in order to optimize performance and reduce costs. Japan's increasing emphasis on innovation and technology as the foundation for economic expansion is consistent with the opportunities in this market. Solution providers can expand their market share by providing customized solutions that address the unique requirements of individual industries as businesses become more receptive to the implementation of automated and programmable resources. The continuous effort to improve cybersecurity, particularly in response to the proliferation of cyber threats, also presents opportunities for software-defined infrastructure to more seamlessly incorporate security into network operations.Â
In sectors such as manufacturing and smart communities, where real-time data processing is essential, recent trends demonstrate a transition to edge computing. This trend is consistent with Japan's emphasis on smart factory initiatives, which is promoting a greater investment in software-defined technologies that facilitate efficient data analysis and processing at the periphery. These key trends and emerging opportunities are expected to drive the expansion of the Software-Defined Infrastructure Market in Japan, as organizations continue to prioritize agility and innovation.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Japan Software-Defined Infrastructure Market Drivers
Growing Demand for Cloud Computing Solutions
The increasing demand for cloud computing solutions in Japan plays a pivotal role in driving the Japan Software-Defined Infrastructure Market Industry. As more organizations transition their operations to the cloud, the need for flexible and scalable infrastructure becomes crucial. For instance, the Japan external cloud service market was worth approximately USD 12.1 billion in 2022, according to the Ministry of Internal Affairs and Communications.This significant market size reflects the shift towards cloud technologies, thereby necessitating an advanced software-defined infrastructure to support it.Â
Major companies such as Fujitsu and NEC Corporation have been at the forefront of providing cloud solutions and are pushing for innovations within software-defined networking and storage solutions to meet this increasing demand. As a result, the integration of software-defined infrastructure is expected to rise substantially, positioning the market for robust growth in the coming years.
Increased Focus on IT Cost Reduction
Organizations across Japan are increasingly focusing on reducing IT costs and improving operational efficiency, driving the Japan Software-Defined Infrastructure Market Industry. The Software-Defined approach emphasizes automation and resource pooling, which allows companies to minimize expenses related to hardware and maintenance. According to the Ministry of Economy, Trade and Industry (METI), Japanese businesses are projected to decrease their IT infrastructure spending by approximately 15% over the next five years, gravitating towards more flexible and cost-effective software-defined solutions.
Companies like Hitachi and Sony have recognized this trend and are investing heavily in software-defined technologies to cut costs without compromising quality. This strategic pivot exemplifies the compelling shift towards software-defined infrastructures in the pursuit of operational efficiency.
Rising Trends in Digital Transformation
The digital transformation initiatives across various sectors in Japan are significantly bolstering the growth of the Japan Software-Defined Infrastructure Market Industry. As businesses seek to enhance customer experiences and operational processes through technology, software-defined infrastructure becomes an integral component in achieving these goals. Research from the Japan Digital Agency indicates that 70% of companies across different sectors plan to enhance their digital initiatives by investing in advanced IT infrastructure by 2025.
This increasing focus on digital transformation is prompting firms to adopt software-defined solutions that can readily adapt to changing business requirements. Prominent players like Toshiba and Panasonic are harnessing this trend by advancing their software-defined capabilities, ensuring they meet the evolving demands of digital technologies in Japan.
Software-Defined Infrastructure Market Type Insights
The Japan Software-Defined Infrastructure Market is increasingly becoming a critical component of the country's IT strategy, particularly as companies seek greater flexibility and efficiency in their operations through Type-based innovations. This market is segmented into Compute, Storage, and Network components, each playing a fundamental role in the overall infrastructure. In the Compute segment, organizations can optimize resource allocation and manage workloads dynamically, which is essential for businesses that require agility and scalability in their operations. As digital transformation continues to take hold in Japan, the demand for advanced computing solutions is expected to grow, driven by various factors such as the expansion of cloud computing and the adoption of artificial intelligence technologies.
In the Storage segment, the importance of data management cannot be overstated, particularly in a nation like Japan that is at the forefront of technology adoption. With the proliferation of big data, companies are increasingly focusing on robust storage solutions that can manage vast quantities of information while ensuring quick access and data security. This shift underscores the need for advanced storage solutions that are both resilient and scalable.
The Network segment is equally significant, as modern enterprises require high-speed and reliable network infrastructure to support various applications and services. Japan's emphasis on enhancing telecommunications infrastructure, through initiatives like the development of 5G technology, further highlights the importance of flexible and dynamic networking solutions. As companies become more interconnected and reliant on cloud-based services, the demand for sophisticated network management tools will continue to rise. Collectively, these segments demonstrate a trend towards improved efficiency, adaptability, and integration in the Software-Defined Infrastructure Market, reflecting the ongoing digital transformation across industries in Japan.Â
Overall, the growth outlook for each component is promising, as organizations increasingly recognize the value of leveraging Software-Defined Infrastructure to achieve strategic business objectives and maintain a competitive edge in an ever-evolving landscape. The significant advancements in technology and the increasing need for streamlined operations present numerous opportunities for growth within the Japan Software-Defined Infrastructure Market.
Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review
Software-Defined Infrastructure Market Deployment Model Insights
The Japan Software-Defined Infrastructure Market is witnessing notable shifts within the Deployment Model segment, reflecting the growing demand for flexible IT solutions. The market comprises three primary models: On-Premises, Cloud-Based, and Hybrid, each catering to diverse business needs. On-Premises infrastructure offers organizations complete control over their data and security, often preferred by industries with stringent regulatory requirements. Conversely, Cloud-Based models simplify management and scalability, enabling businesses to adapt swiftly to changing demands, which aligns with Japan's progressive digital transformation initiatives.The Hybrid model is particularly significant, as it combines the advantages of both On-Premises and Cloud-Based solutions, allowing organizations to manage a mixture of workloads more effectively.Â
This adaptability is crucial in Japan, where enterprises are increasingly seeking to optimize their operations amidst evolving market dynamics. The segmentation of the Japan Software-Defined Infrastructure Market emphasizes the importance of these models in enhancing operational efficiency and supporting the country's advanced technological landscape, as businesses strive to remain competitive in the global market.Continued investments in innovative solutions and infrastructure modernization will further drive growth in this segment, reflecting Japan's commitment to harnessing technology.
Software-Defined Infrastructure Market Technology Insights
The Japan Software-Defined Infrastructure Market, particularly within the Technology segment, exhibits noteworthy growth and relevance in today's digital landscape. As organizations increasingly adopt cloud solutions, the need for Virtualization technologies has surged, allowing for optimized resource utilization and cost efficiency. Containers are gaining traction as they provide a lightweight and portable means of deploying applications, promoting innovation and rapid development cycles. Infrastructure Automation plays a vital role in enhancing operational efficiency by automating repetitive tasks, ultimately reducing human error and enhancing productivity.Orchestration solutions are crucial for managing integrated systems and workflows, facilitating seamless coordination among various IT components.Â
The rising demand for agile and flexible IT environments in Japan is driving the advancement of these technologies. Additionally, as companies navigate digital transformation, these solutions enable scalability and improve overall system performance, establishing their significance in the market ecosystem. Thus, the technological advancements and strong focus on these areas continue to shape the landscape of the Japan Software-Defined Infrastructure Market, positioning it for sustained growth and innovation in the years to come.
Software-Defined Infrastructure Market End User Insights
The End User segment of the Japan Software-Defined Infrastructure Market plays a pivotal role in the overall growth and adoption of this innovative technology across various sectors. The IT Telecommunications sector stands out due to its demand for improved network efficiency and scalability, enabling better management of data traffic and customer experiences. The BFSI sector increasingly relies on Software-Defined Infrastructure to enhance security measures and accelerate transaction speeds, which are critical in a highly regulated environment.In Healthcare, the integration of Software-Defined Infrastructure leads to improved data management and patient care, facilitating smooth access to vital information.Â
Retail businesses leverage this technology to optimize their supply chain operations and enhance customer engagement through personalized experiences. Furthermore, the Government sector is also significantly influenced by Software-Defined Infrastructure, as it seeks to improve its IT efficiencies and cybersecurity posture in an evolving digital landscape. Each of these segments, driven by unique challenges and opportunities, showcases the diverse applications and strategic importance of Software-Defined Infrastructure in Japan's market landscape.
Japan Software-Defined Infrastructure Market Key Players and Competitive Insights
The Japan Software-Defined Infrastructure Market is characterized by a dynamic competitive landscape driven by rapid technological advancements and increasing adoption of cloud-based solutions. As organizations in Japan strive for greater operational efficiency and flexibility, the demand for software-defined infrastructure has surged, making it a critical area of investment for key players in the region. Competitive insights reveal a blend of both local and international firms striving to capitalize on this growth, emphasizing the importance of innovation, customer-centric solutions, and strategic partnerships. With a focus on enhancing infrastructure management through virtualization, automation, and scalability, companies in this market are increasingly transitioning from traditional approaches to software-defined methodologies, reshaping their service offerings to address the unique needs of Japanese businesses.
Hewlett Packard Enterprise has carved a significant niche within the Japan Software-Defined Infrastructure Market, building a strong presence through its innovative solutions that cater to the specific demands of enterprises. The company's strengths lie in its extensive portfolio, which encompasses high-performance computing, integrated systems, and advanced storage solutions, all tailored for the needs of the Japanese market. Hewlett Packard Enterprise's commitment to research and development allows it to deliver cutting-edge technologies that enhance infrastructure efficiency and agility. Furthermore, its strategic alliances with local technology providers aid in strengthening its market position, ensuring that it remains responsive to the evolving requirements of customers. This dedication to localized service and tailored solutions underlines the company's robustness within this competitive environment.
Fujitsu stands out as a leading player in the Japan Software-Defined Infrastructure Market, leveraging its deep understanding of local business dynamics to deliver a range of tailored solutions. The company offers an array of key products and services, including its integrated software-defined platforms, cloud services, and virtualization technologies, all designed to optimize data center operations for Japanese enterprises. Fujitsu's significant market presence is bolstered by its strong reputation for reliability and performance, which stems from years of experience in the technology sector. The company's competitive strengths include its robust support infrastructure and a commitment to continuous innovation. Additionally, Fujitsu has engaged in strategic mergers and acquisitions to enhance its technological capabilities and expand its service offerings, fueling its growth in the software-defined landscape and reinforcing its position as a trusted partner for businesses in Japan as they transition towards more agile infrastructures.
Key Companies in the Japan Software-Defined Infrastructure Market Include
Japan Software-Defined Infrastructure Market Industry Developments
Fujitsu and Oracle established a strategic partnership in April 2024 to provide Japan with sovereign cloud and AI capabilities. Fujitsu will integrate over 100 OCI services, including generative AI, into its Uvance Hybrid IT portfolio by deploying Oracle's Alloy platform within its local data centers. This partnership allows government and enterprise clients in Japan to capitalize on cloud infrastructure with improved operational governance and data sovereignty.Juniper Networks expanded its partnership with Japan's National Institute of Informatics (NII) in September 2022 by enhancing its SINET6 academic network to 400G connectivity, which accommodates 70 PoPs.Â
Juniper's MX Routers, ACX Cloud Metro Routers, NFV technologies, and DDoS protection were implemented as part of the initiative, which enhanced high-performance networking and virtualization in the research and education sectors.Microsoft announced a historic US $2.9 billion investment in April 2024 to expand its AI and cloud data center infrastructure in Japan over a two-year period. This investment is the largest of its kind in the country to date. This entails the installation of AI semiconductors in two existing data centers, the establishment of an AI and robotics research facility in Tokyo, and the training of three million Japanese workers in AI skills, all while enhancing national cybersecurity.
Furthermore, in October 2024, JATCO, a significant automotive parts manufacturer in Japan, implemented Juniper's AI-native networking platform (enabled by Mist AI, AP43/AP63 access points) to upgrade its Wi-Fi infrastructure. The deployment of SDI allowed for proactive defect resolution, improved user connectivity, reduced costs, and increased productivity throughout its facilities, thereby illustrating the effectiveness of SDI deployment in manufacturing operations.
Japan Software-Defined Infrastructure Market Segmentation Insights
Software-Defined Infrastructure Market Type Outlook
Software-Defined Infrastructure Market Deployment Model Outlook
Software-Defined Infrastructure Market Technology Outlook
Software-Defined Infrastructure Market End User Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 1.74(USD Billion) |
| MARKET SIZE 2024 | 2.43(USD Billion) |
| MARKET SIZE 2035 | 5.72(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 8.104% (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 | Hewlett Packard Enterprise, Fujitsu, Juniper Networks, Nutanix, Dell Technologies, Cisco Systems, Lenovo, Hitachi, Microsoft, Red Hat, AT&T, Oracle, IBM, NEC Corporation, VMware |
| SEGMENTS COVERED | Type, Deployment Model, Technology, End User |
| KEY MARKET OPPORTUNITIES | Cloud migration solutions, Edge computing deployment, IoT integration services, Enhanced data security solutions, AI-driven infrastructure management |
| KEY MARKET DYNAMICS | Cloud adoption acceleration, Cost optimization strategies, Rising enterprise mobility, Enhanced security requirements, Demand for automation solutions |
| COUNTRIES COVERED | Japan |
Frequently Asked Questions (FAQ):
In 2024, the Japan Software-Defined Infrastructure Market is expected to be valued at 2.43 billion USD.
By 2035, the market is projected to reach a value of 5.72 billion USD.
The expected CAGR for the market from 2025 to 2035 is 8.104 percent.
The Compute segment is anticipated to be the largest, valued at 2.01 billion USD by 2035.
The Storage segment is expected to reach a market size of 1.75 billion USD by 2035.
In 2024, the Network segment is valued at 0.84 billion USD.
Major players include Hewlett Packard Enterprise, Fujitsu, Nutanix, and Dell Technologies.
The market faces challenges such as rapid technological changes and the need for skilled workforce.
There are significant opportunities in increasing adoption of cloud services and digital transformation.
Current global scenarios impact the market by influencing supply chain dynamics and investment trends.
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.)
