Platform as a Service - Japan

Japan

Revenue in the Platform as a Service market is projected to reach US$4.04bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.56%, resulting in a market volume of US$9.07bn by 2029.
The average spend per employee in the Platform as a Service market is projected to reach US$58.42 in 2024.
In global comparison, most revenue will be generated in the United States (US$91,020.00m in 2024).

Key regions: United States, Italy, Australia, Netherlands, Japan

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Analyst Opinion

The Platform as a Service market in Japan has been experiencing significant growth in recent years.

Customer preferences: Customers in Japan have shown a strong preference for cloud-based services, including Platform as a Service (PaaS). This preference can be attributed to several factors. Firstly, cloud-based services offer scalability and flexibility, allowing businesses to easily adjust their computing resources based on demand. Secondly, PaaS provides a cost-effective solution for companies, as it eliminates the need for upfront infrastructure investments and reduces maintenance costs. Lastly, PaaS allows for faster application development and deployment, enabling businesses to bring products and services to market more quickly.

Trends in the market: One of the key trends in the PaaS market in Japan is the increasing adoption of containerization technology. Containers provide a lightweight, portable, and scalable environment for application development and deployment. This trend is driven by the need for greater agility and efficiency in software development processes. By using containers, developers can easily package and deploy applications across different environments, reducing the time and effort required for application deployment. Another trend in the market is the growing demand for multi-cloud and hybrid cloud solutions. Many businesses in Japan are adopting a multi-cloud or hybrid cloud strategy to leverage the strengths of different cloud providers and optimize their IT infrastructure. PaaS providers are responding to this trend by offering solutions that support multi-cloud and hybrid cloud environments, allowing businesses to seamlessly integrate their applications and data across different cloud platforms.

Local special circumstances: The PaaS market in Japan is influenced by several local special circumstances. Firstly, the country has a highly developed technology infrastructure, with a strong focus on innovation and digital transformation. This provides a conducive environment for the adoption of PaaS solutions, as businesses are eager to leverage the latest technologies to gain a competitive edge. Secondly, Japan has a large number of small and medium-sized enterprises (SMEs) that are increasingly embracing cloud computing and PaaS. These SMEs often have limited IT resources and budgets, making PaaS an attractive option for them. PaaS allows SMEs to access advanced technology and resources without the need for significant upfront investments, enabling them to compete with larger companies on a level playing field.

Underlying macroeconomic factors: The growth of the PaaS market in Japan is supported by several underlying macroeconomic factors. Firstly, the country has a stable and mature economy, with a strong focus on technology and innovation. This provides a solid foundation for the adoption of PaaS solutions, as businesses are willing to invest in new technologies to drive growth and improve efficiency. Secondly, the Japanese government has been actively promoting digital transformation and cloud adoption as part of its economic growth strategy. This includes initiatives to support the development and adoption of cloud services, such as the promotion of data centers and the establishment of regulatory frameworks for cloud computing. These government efforts have created a favorable environment for the growth of the PaaS market in Japan. In conclusion, the Platform as a Service market in Japan is experiencing significant growth, driven by customer preferences for cloud-based services, trends such as containerization and multi-cloud/hybrid cloud solutions, local special circumstances including a focus on innovation and the presence of many SMEs, and underlying macroeconomic factors such as a stable economy and government support for cloud adoption.

Methodology

Data coverage:

The data encompasses B2B and B2C enterprises. Figures are based on the money spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP and level of telecommunications infrastructure.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.