Growth opportunity in Japan's private cloud market

「The domestic cloud market was ¥9,708.4 billion in 2024, up 29.2% year on year, based on sales. The market's CAGR from 2024 to 2029 is forecast at 14.6%, and the 2029 market is expected to reach ¥19,196.5 billion, approximately 2.0 times its 2024 size (Source: IDC Japan Co., Ltd., "Domestic Cloud Market Forecast," press release dated 18 August 2025), making it a market with ample growth potential.」

「In the information and communications industry, demand for resilience, meaning systems for protecting and recovering information systems, continues to expand as system failures that disrupt social infrastructure and cyberattacks such as ransomware increase.」

「The domestic private cloud market alone was worth ¥2,053.3 billion in 2023, up 27.3% year on year. The compound annual growth rate (CAGR) for 2023 to 2028 is forecast at 15.4%, and the market is projected to reach ¥4,212.6 billion in 2028, double its 2023 size,」

「According to the Bank of Japan's September 2023 Tankan survey, the software investment plan for fiscal 2023, covering all company sizes and industries, showed strong growth of 15.3% year on year.」

「In the information and communications industry to which we belong, demand for cloud and SaaS services as a platform for generative AI, in addition to traditional demand such as government-led DX initiatives and measures to address the 2025 Digital Cliff, is increasing further.」

「Against a backdrop of government-led DX (digital transformation) initiatives, growing demand for greater operational efficiency due to labor shortages, and the use of IoT and AI by companies, the trend toward expanding the use of SaaS and cloud services continues across society.」

「Corporate investment in DX continues to be strong, providing tailwinds for corporate IT demand and cloud infrastructure investment by SaaS providers.」

「Japan's private cloud market alone was valued at ¥1.2163 trillion in 2021, up 32.3% year on year. The compound annual growth rate (CAGR) for 2021-2026 was forecast at 20.4%, with the 2026 market size expected to reach ¥3.0711 trillion, 2.5 times the 2021 level.」

「According to the Bank of Japan's June 2022 Tankan survey, companies' software investment plans for fiscal 2022 were up 13.8% year on year at large companies and 27.4% at mid-sized companies, highlighting the proactive IT investment stance among mid-sized companies, the company's core customer base.」

「The metaverse, currently attracting attention, is expected to expand business opportunities associated with corporate DX for the company, which has long built 3D virtual spaces and cloud IT infrastructure for companies and local governments.」

「According to the Bank of Japan's December 2021 Tankan survey, planned software investment for fiscal 2021 was up 13.5% year on year for all industries on average. IT investment to support corporate digital transformation promoted as a national policy, along with the replacement of legacy systems to address the 2025 Digital Cliff, remains active.」

「Japan's private cloud market was forecast to reach ¥1.2216 trillion in 2021, up 35.8% year on year, and ¥2.7815 trillion in 2025, 3.1 times the 2020 level.」

「Business opportunities are expanding in the company's business areas, driven by the establishment of telework as a standard practice in response to the spread of SDGs, including support for diverse working styles, and the development of systems to protect and restore business systems following cyberattacks and disasters, or resilience.」

「Demand is growing for the company's business areas, including building cloud and SaaS infrastructure underpinning digitalization and developing resilience, or systems for recovering from cyberattacks.」

「A series of developments, including the establishment of the Digital Agency and national policies promoting DX, created additional business opportunities for building the cloud infrastructure underpinning digitalization.」

「Japan's private cloud market was valued at ¥874.7 billion in 2020, up 19.9% year on year, and was forecast to reach ¥2.5658 trillion in 2024, 3.5 times the 2019 level.」

「In addition to sustained capital investment appetite, particularly among mid-sized companies, to transform business structures and strengthen competitiveness, the expansion phase of IT investment continues, driven by the full-scale emergence of telework demand in anticipation of the post-pandemic new normal, growing momentum toward paperless operations, increased corporate cloud use and the launch of domestic services for fifth-generation mobile communications systems (5G).」

「The domestic information and communications industry in which the company operates is expected to see further market expansion, driven by continued capital investment by domestic companies to transform their business structures and strengthen competitiveness, a sharp increase in momentum for companies to adopt telework as a business-continuity measure following the spread of COVID-19, and the launch of domestic services for fifth-generation mobile communications systems (5G).」

「This is expected to generate strong demand for cloud migration of core systems and DX to address the 2025 Digital Cliff.」

「Japan's private cloud market was valued at ¥576.4 billion in 2018, up 38.6% year on year, and was forecast to reach ¥2.7194 trillion in 2023, 4.7 times the 2018 level.」