Through the use of a service called data centre colocation, companies can rent out physical space, network capacity, and other computer resources from an existing data centre infrastructure. These data centres usually come in retail and wholesale configurations and are furnished with built-in networking components, information protocols (IP), backup power systems, and cooling mechanisms. Colocation data centres are less expensive than traditional data centres and provide increased dependability, scalability, close proximity to end users, and fewer technical staffing needs.
Japan Data Center Colocation Market Driving Factors and Challenges
The following factors are influencing the expansion of the data centre colocation market in Japan:
- Quick Digitization: Data collection is increasing dramatically in a number of industries, including manufacturing, e-commerce, healthcare, and finance, as a result of the ongoing digital transformation. Strong data processing and storage solutions are required due to the increase of data, and data centre colocation facilities provide these solutions. Businesses in Japan need dependable, high-performance data centres to host their apps and keep important data because of the country's trend towards cloud-based services. Colocation providers give businesses access to the infrastructure required for cloud computing, allowing them to take advantage of the cloud's advantages.
- Increasing Volume of Data: Data-intensive applications like AI, ML, and big data analytics are becoming more and more important to Japanese organisations, necessitating a large amount of processing power and storage. Large amounts of transactional and customer data are produced by Japan's booming e-commerce industry, which makes data centre colocation services essential for effective data management. Furthermore, the proliferation of IoT devices adds to an ongoing data flow that colocation data centres effectively manage.
But there are challenges to the market expansion. The limited amount of space that is available in urban locations, especially in highly crowded cities like Tokyo, makes it difficult to build data centre infrastructure. Due to the high cost of real estate, finding appropriate sites for massive data centres becomes difficult. Furthermore, strong disaster recovery and resilience measures are required because Japan is vulnerable to natural disasters like earthquakes and typhoons, which can raise operational expenses. For those involved in the Japan data centre colocation industry, striking a balance between the necessity for strict security and disaster preparedness measures and the need for cutting-edge services continues to be a difficult task. In order to overcome these obstacles, suppliers must keep innovating, strengthen the resilience of their infrastructure, and cater to the changing needs of companies looking for dependable and secure colocation services in the Japanese market.
Impact of COVID-19 on Japan Data Center Colocation Market
The epidemic brought on by COVID-19 first put a strain on Japan's data centres. The shift to remote work and online learning has resulted in a rapid increase in reliance on the internet and numerous apps, which has an impact on data centre operations. Japan swiftly grew its data centre infrastructure in response to the rising demand for data centres. During the pandemic, initiatives were taken by the public and business sectors to build data centres. As a result, during COVID-19, the Japanese data centre market prospered. Throughout the projection period, a steady growth in the market is also anticipated.
Japan Data Center Colocation Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Arteria Networks Corporation, AirTrunk Operating Pty Ltd., Colt Technology Services, Digital Edge (Singapore) Holdings Pte Ltd., Digital Realty Trust, Inc., Equinix, Inc., IDC Frontier Inc. (SoftBank Group), NEC Corporation, netXDC (SCSK Corporation), NTT Ltd., Zenlayer Inc., Others.
Japan Data Center Colocation Market Segmentation:
By Type: Based on the Type, Japan Data Center Colocation Market is segmented as; Retail Colocation, Wholesale Colocation.
By End User Industry: Based on the End User Industry, Japan Data Center Colocation Market is segmented as; BFSI, Education, Energy, Entertainment and Media, Government, Healthcare, IT and Telecom, Manufacturing, Retail, Others.
By Organization Size: Based on the Organization Size, Japan Data Center Colocation Market is segmented as; Small and Medium Enterprises, Large Enterprises.
By Region: This research also includes data for Central/ Chubu Region, Chugoku Region, Hokkaido Region, Kansai/Kinki Region, Kanto Region, Kyushu-Okinawa Region, Shikoku Region, Tohoku Region.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.