ITR predicts Japan's IaaS/PaaS cloud market to reach ¥2.44 trillion in FY2026, about ¥3.7 trillion by FY2029

ITR forecasts Japan's IaaS/PaaS cloud market will exceed ¥2.44 trillion in FY2026 and reach about ¥3.7 trillion by FY2029.

The IaaS market grew 18.6% in FY2024 to ¥1.855 trillion and is seen rising partly due to service fee adjustments linked to energy, inflation, and yen weakness.

Broadcom's partner program changes after acquiring VMware may push some providers to exit, prompting some customers to migrate to hyperscalers like AWS.

PaaS adoption is expanding across industries as AI demand and DX initiatives drive new deployments and upsell opportunities.