Japan WAN Services Market Shares, 2022: Advancement of Multicloud and Evolution of Internet Connections Services for Corporations

This IDC Market Share analyzes vendor shares and vendor trends for the Japan WAN services market in 2022. Looking at the overall market for WAN services, excluding legacy leased lines, revenue in 2022 was flat from that in the previous year. By provider, the top 3 providers in terms of revenue were NTT Communications, KDDI, and SoftBank, with each provider maintaining a similar market share from the previous year. By WAN service type, L2 bandwidth-guaranteed and L3 bandwidth-guaranteed still accounted for the majority of the total revenue, but the number of lines and revenue in both segments remained flat from that in the previous year. Managed internet VPN and Ethernet leased line, on the other hand, outperformed other segments in terms of revenue growth YoY."The shift to multicloud services is changing the way networks connect to public cloud services, creating new business opportunities for providers of multicloud connectivity services. In internet access, examples are beginning to emerge in bandwidth-guaranteed access using Ethernet leased lines and so forth in which connections are made not only from headquarters and datacenters, which has been the norm in the past, but also from individual locations. Systems integrators (SI) and carriers should use these changes as opportunities for their own business," says Yoriyuki Yamashita, research manager, Infrastructure and Devices, IDC Japan.