Market Overview and Growth Highlights 2018-2027
SaaS (software-as-a-Service) is referred as the software licensing and delivery model which incorporates the delivery of software application via the internet to remote client location. The license of the software is assigned to a user and can be accessed through web browser or internet. The SaaS application runs on the SaaS provider's server, and the third party involved is majorly responsible for performance, security and maintenance of the application on their servers. The Japan SaaS market is thriving on the back of emerging technologies, for instance, artificial intelligence and machine learning among others, coupled with rising use of vertical SaaS solutions and introduction of mobile SaaS in the nation.
Additionally, rising demand for consultative support from IT organizations, growing applications that require specific business requirements, low cost of SaaS solutions, improved internet connectivity in the region, upsurge in the utilization of instant messaging, emergence of social media, emails and video calls among others are some of the factors anticipated to drive the growth of the Japan SaaS market. The market was valued at USD 3870.0 million in the year 2018 and is anticipated to reach a market value of USD 18822.9 million by the end of 2027. Additionally, the market is slated to achieve a CAGR of 19.3% during the forecast period 2019-2027 and a Y-o-Y growth rate of 20.43% in the year 2027 as compared to the previous year. CLICK TO DOWNLOAD SAMPLE REPORT
Market Segmentation Synopsis
By End User
The Japan SaaS market is segmented on the basis of end user into manufacturing, BFSI, retail, healthcare and others, out of which, the BFSI segment is anticipated to hold the largest market share of around 30.4% in the year 2027 on the back of large amount of data generated from BFSI and the swift inclination toward the cloud-based solutions for the analysis and storage of data. The BFSI segment in the Japan SaaS market was valued at USD 1217.9 million in the year 2018 and is anticipated to reach a market value of USD 5718.4 million by the end of 2027.
Market Drivers & Challenges
Increasing Inclination Towards the Deployment of Cloud Technologies
According to the Asia Cloud Computing Association (ACCA), Japan was ranked fourth in the Cloud Readiness Index (CRI) during the year 2018. Additionally, the study report also ranked Japan as the top country for SME cloud investments.
There is a surge in the adoption of cloud services by small and medium enterprises (SMEs) in Japan. Growing investments by the government in ICT infrastructure is helping the SMEs invest more towards the adoption of cloud services. Many multinational companies are increasingly expanding their network in the nation owing to favorable support from the government and excellent ICT infrastructure, which is anticipated to raise the demand for the deployment of cloud services. Moreover, it is anticipated that the country will lose tremendous amount of work force, thereby inducing companies to shift towards automated processes controlled via the cloud on a remote server and reduce labor intensive work approaches. All such factors are anticipated to contribute significantly towards the growth of the Japan SaaS market during the forecast period.
Growing Need for Reducing Operational Expenditure in Organizations
SaaS solution offers a cost-effective process to access data in real-time. With the power of operations being provided in the hand of subscribers of SaaS solutions, companies can outsource their IT infrastructure operations to third-party vendor, which helps to improve efficiency, productivity and provide easy access for business operations. Moreover, SaaS offers businesses the power to access their data in the cloud server from any device and at any time, at their convenience in real-time. The rising need amongst companies to reduce their operational costs and increase employee efficiency, along with the numerous benefits provided by the SaaS model to companies is anticipated to drive the growth of the Japan SaaS market over the forecast period.
Growing occurrences of cyberthreats, data theft and other illegal activities somewhere restrict companies to adopt SaaS solutions. Moreover, internet infrastructure is the backbone of SaaS model. Any downtime in the internet can cost the companies a huge loss during that period. Additionally, other associated technical failures, such as lack of browser-based applications, computer hardware failure, and others, are also anticipated to restrict the growth of the Japan SaaS market during the forecast period.
Some of the affluent industry leaders in the Japan SaaS market are Microsoft Corporation, Alphabet Inc., IBM, Hewlett Packard Enterprise Company, Oracle, Salesforce.com, Inc., Softbank Corp., and Fujitsu.
Companies in the Japan SaaS market are making various efforts to provide excellent services and are continuously focusing towards technical advancements and the expansion of product portfolio so as to maintain their growth and gain competitive edge.
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Variables (Dependent and Independent)
2.2. Multi Factor Based Sensitivity Model
3. Market Dynamics
3.4 Recent Developments
4. Japan SaaS Market Outlook
4.1. Market Size and Forecast, 2018-2027
4.1.1. By Value (USD Million)
4.2. Market Share and Forecast, 2018-2027
4.2.1. By Deployment Model
126.96.36.199. Japan SaaS Market, By Deployment Model (2018-2027F)
188.8.131.52.1. Private, 2018-2027F (USD Million)
184.108.40.206.2. Public, 2018-2027F (USD Million)
220.127.116.11.3. Hybrid, 2018-2027F (USD Million)
4.2.2. By End User
18.104.22.168. Japan SaaS Market, By End User (2018-2027F)
22.214.171.124.1. Manufacturing, 2018-2027F (USD Million)
126.96.36.199.2. BFSI, 2018-2027F (USD Million)
188.8.131.52.3. Retail, 2018-2027F (USD Million)
184.108.40.206.1. Healthcare, 2018-2027F (USD Million)
220.127.116.11.1. Others, 2018-2027F (USD Million)
5. Competitive Landscape
5.1. Company Profiles
18.104.22.168. Company Overview
22.214.171.124. Business Strategy
126.96.36.199.1. Growth Expansion Strategy
188.8.131.52.2. Distribution Channel Strategy
184.108.40.206.3. Product Strategy
220.127.116.11. Key Product Offerings
18.104.22.168. Financial Performance
22.214.171.124. Key Performance Indicators
126.96.36.199. Risk Analysis
188.8.131.52. Recent Development
184.108.40.206. Regional Presence
220.127.116.11. SWOT Analysis
5.1.2. Alphabet Inc.
5.1.4. Hewlett-Packard Company
5.1.6. Salesforce.Com, Inc.
5.1.7. SoftBank Corp.
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