Data Center - APAC

APAC

Revenue in the Data Center market is projected to reach US$154.00bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$101.60bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.98%, resulting in a market volume of US$226.10bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The APAC Data Center market is experiencing mild growth, influenced by factors such as increasing demand for digital technologies, growing awareness about data security, and the convenience of online services. Factors impacting the growth rate include competition, government regulations, and infrastructure challenges.

Customer preferences: The rising adoption of cloud computing and data analytics is driving the demand for data centers in APAC. This trend is fueled by the growing use of digital services and the need for efficient data storage and management. Furthermore, there is a growing preference for green and sustainable data centers, as consumers become more environmentally conscious. This is leading to the emergence of eco-friendly data center solutions, such as renewable energy-powered facilities, in the region.

Trends in the market: In APAC, the Data Center Market is experiencing a surge in demand for cloud services, as businesses adopt a hybrid approach to IT infrastructure. This trend is being driven by the increasing need for scalability and cost-efficiency. As a result, there is a growing adoption of edge computing technologies, with more data centers being built in suburban areas to support the growing demand. This shift towards edge computing has significant implications for industry stakeholders, as it allows for faster data processing and improved user experiences. Additionally, the rise of artificial intelligence and machine learning is also driving the need for more advanced data centers in the region. These trends highlight the need for continuous innovation and investment in the Data Center Market in APAC.

Local special circumstances: In China, the Data Center Market is experiencing rapid growth due to the country's large population and increasing demand for digital services. The government's support for cloud computing and data center development has also contributed to the market's expansion. In Japan, the market is driven by the country's advanced technology and high internet penetration rates. The strict data privacy laws and regulations in Japan have also influenced the market, with a focus on data security and compliance.

Underlying macroeconomic factors: The Data Center Market in APAC is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with favorable regulatory environments and strong investments in data center technologies are experiencing higher market growth compared to regions with regulatory challenges and limited funding. Additionally, the increasing demand for cloud computing, big data, and internet of things (IoT) applications is driving the growth of the data center market in APAC. This is further fueled by the rapid digital transformation and increasing adoption of emerging technologies in the region. As APAC continues to be a fast-growing market with a large population, it presents significant opportunities for data center providers to expand their services and meet the growing demand for digital connectivity.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

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 and the Russia-Ukraine war is considered at a country-specific level.