Data Center - ASEAN

ASEAN

Revenue in the Data Center market is projected to reach US$11.16bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$7.57bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.23%, resulting in a market volume of US$14.40bn 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in ASEAN is experiencing minimal growth, impacted by factors such as the adoption of digital technologies, increasing health awareness, and the convenience of online health services. This trend is reflected in the sub-markets of Servers, Storage, and Network Infrastructure.

Customer preferences: As the ASEAN region continues to embrace digital transformation, the demand for secure and efficient data storage solutions has increased in the Data Center Market. This trend is driven by the growing use of cloud-based services, virtualization, and big data analytics. Additionally, the rise of e-commerce and digital banking in ASEAN countries is also leading to a rise in data center demand as businesses seek to keep up with the growing volume of online transactions.

Trends in the market: In ASEAN, the data center market is experiencing a surge in demand due to the increasing adoption of cloud computing and digital transformation initiatives. This trend is expected to continue as businesses strive for cost savings and flexibility in managing their data. Additionally, with the rise of 5G technology and Internet of Things (IoT) devices, there is a growing need for edge data centers to support low latency applications. This presents opportunities for data center providers to expand their services and cater to the evolving needs of their clients. Stakeholders in the industry will need to stay agile and adapt to these trends in order to remain competitive and meet the demands of this rapidly growing market.

Local special circumstances: In the ASEAN region, the Data Center Market market is expanding due to the rapid digital transformation and the increasing adoption of cloud computing. In countries like Singapore and Malaysia, the market is driven by the government's efforts to establish themselves as regional data center hubs. In Indonesia, the market is influenced by the growing demand for data storage and management from the e-commerce and digital services sectors. In contrast, in Vietnam, the market is shaped by the need for secure and reliable data centers to support the country's growing manufacturing and industrial sectors. These local factors play a significant role in shaping the Data Center Market in ASEAN, making it a unique and dynamic market in the global data center industry.

Underlying macroeconomic factors: The Data Center Market in ASEAN is heavily impacted by macroeconomic factors such as government policies, technological advancements, and investments in digital infrastructure. As countries in the region continue to develop and modernize, there is a growing need for reliable and secure data storage and management solutions. Furthermore, the increasing adoption of cloud computing and big data analytics is driving the demand for data centers, as businesses seek to leverage these technologies for improved efficiency and competitive advantage. Additionally, the growth of e-commerce and digital payments in the region is expected to further boost the demand for data centers in ASEAN, as these industries rely heavily on data processing and storage. However, challenges such as regulatory frameworks and limited internet connectivity may hinder the market's growth in certain countries. Overall, the favorable economic outlook and increasing digitalization in ASEAN bode well for the growth of the Data Center Market in the region.

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.