Dublin, July 30, 2024 (GLOBE NEWSWIRE) -- The "Japan Colocation Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
The Japan colocation market is expected to grow at a CAGR of 7.26%, reaching a market size of US$18.686 billion in 2029 from US$11.467 billion in 2022
Colocation data center facility provides renting space to business companies for servers as well as other computing hardware, thereby enabling them to remove in-house servers or data centers. It provides them access to advanced data center technology which offers security, continuity, and scalability for various applications and data systems. 
Favorable initiative to bolster digital transformation
Significant growth in digital transformation and the establishment of data protection is driving the demand for colocation data centers in Japan for effective data processing and security. For instance, in September 2021, the Japanese government launched its Digital Agency which aims to improve the online services and infrastructure of the country's public sectors.
Also, the amended Act on the Protection of Personal Information law which came into effect in April 2022 in Japan aims to improve personal data privacy and cybersecurity. Such launches will boost the development of colocation infrastructure in Japan as colocation provides higher security for data transmission and processing.
5G establishment is positively impacting the colocation market growth in Japan.
The introduction of 5G has created a boom in the volume of data transmission over the years which has created a demand for more data centers. The colocation data center provides a high level of security and operability to companies during data processing and storage. Japan is actively investing in 5G technologies through various collaborations and launches to provide users with effective connectivity and browsing experience.
For instance, in April 2020, Japanese telecommunication companies KDDI Corporation and Softbank established a joint venture for the development of 5G networks in rural parts of the country. Furthermore, in April 2019, the Government of Japan approved plans for 5G wireless networks over the next five years with an investment of US$14.4 billion. Such rapid development will boost colocation service demand in Japan during the forecast period thereby augmenting the market growth.
Large enterprises will show significant growth
Based on enterprise size, the Japan colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the Japan colocation market, owing to the strategic collaboration and investments undertaken by the companies to boost digital infrastructure in the major sectors such as healthcare.
For instance, in June 2022, Salesforce Japan Co, Ltd and Fujitsu Limited announced their collaboration for the development of a new digital solution for the Japanese healthcare sector which will provide trustful handling of pharmaceutical and medical data
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 114 |
| Forecast Period | 2022 - 2029 |
| Estimated Market Value (USD) in 2022 | $11.47 Billion |
| Forecasted Market Value (USD) by 2029 | $18.69 Billion |
| Compound Annual Growth Rate | 7.2% |
| Regions Covered | Japan |
Company Profiles
- Unitas Global
- Digital Realty
- Cyxtera Technologies Inc.
- KDDI Corporation
- NTT Communication Corporation
- Princeton Digital Group
- Equinix Inc.
- GLBB Japan Co., Ltd
- Japan Exchange Group, Inc.
- AT Tokyo Corporation
By Type
- Retail
- Wholesale
- Hybrid
By Enterprise Size
- Small
- Medium
- Large
By Industry Vertical
- BFSI
- Communication Technology
- Education
- Healthcare
- Media and Entertainment
- Retail & E-Commerce
- Others
For more information about this report visit https://www.researchandmarkets.com/r/mm1vuy
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