Japan Data Center Rack Market Size (2024 - 2029)

The Japan data center rack market is experiencing growth driven by the increasing demand for cloud computing among small and medium enterprises, stringent government regulations for local data security, and rising investments from domestic players. This growth is reflected in the expansion of IT load capacity, raised floor space, and the number of racks planned for installation, particularly in Tokyo. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's expansion.

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Market Size of Japan Data Center Rack Industry

Japan Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 7.30 %
Market Concentration Medium

Major Players

Japan Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Data Center Rack Market Analysis

The Japan Data Center Rack Market size in terms of shipment volume is expected to grow from 0.38 Million units in 2024 to 0.58 Million units by 2030, at a CAGR of 7.30% during the forecast period (2024-2030).

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/region.

  • 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 Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Japan Data Center Rack Market is segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Japan Data Center Rack Market Size Summary

The Japan data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by a shift towards fully equipped data centers to accommodate the rapid expansion of mobile broadband, e-commerce, esports, and big data analytics. The growing popularity of mobile wallets and digital payment solutions further fuels the demand for data center racks, as these technologies require robust infrastructure to support their operations. The market is moderately consolidated, with key players like Eaton Corporation, Black Box Corporation, and Schneider Electric SE focusing on expanding their regional presence and enhancing their product offerings to meet the evolving needs of the industry.

The demand for data center racks in Japan is expected to rise as new construction projects are initiated, including hyperscale facilities that require full rack units. These developments are supported by the increasing IT load capacity and raised floor space, which are anticipated to grow significantly in the coming years. The banking, financial services, and insurance (BFSI) sector is also contributing to this growth by adopting digital solutions and automation to improve operational efficiencies. Major companies are investing heavily in the Tokyo metropolitan region, underscoring the importance of data centers in managing the vast amounts of data generated daily. As a result, the market is poised for continued expansion, driven by technological advancements and the growing need for efficient data management solutions.

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Japan Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 The Rising Dominance of the 5G Network

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

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

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      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 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Japan Data Center Rack Market Size FAQs

The Japan Data Center Rack Market size is expected to reach 0.38 million units in 2024 and grow at a CAGR of 7.30% to reach 0.58 million units by 2030.

In 2024, the Japan Data Center Rack Market size is expected to reach 0.38 million units.

Japan Data Center Rack Market Report Snapshots

Japan Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)