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 slow growth due to various factors such as limited investments in Servers, Storage, and Network Infrastructure, along with low IT spending and a lack of skilled professionals. However, with increasing adoption of digital technologies and rising demand for cloud services, the market is expected to see a gradual rise in growth in the coming years.

Customer preferences: As the demand for data storage and processing continues to rise in ASEAN, there is a growing trend towards sustainable and eco-friendly data centers. With an increasing focus on reducing carbon footprint and promoting green initiatives, consumers are showing a preference for data centers that utilize renewable energy sources and implement energy efficient practices. This shift is driven by a growing awareness of environmental issues and a desire for more sustainable solutions.

Trends in the market: In ASEAN, the Data Center Market is experiencing a surge in demand for cloud services, with more companies opting for remote data storage and management solutions. This trend is driven by the increasing adoption of digital transformation strategies and the rise of IoT devices in the region. As a result, data center providers are investing in expanding their infrastructure and offering more advanced services, such as edge computing and hybrid cloud solutions. This trajectory is significant as it reflects the growing importance of data in the digital economy and the need for robust data management systems. Industry stakeholders need to adapt to these trends by enhancing their offerings and capabilities to cater to the evolving needs of businesses in the region.

Local special circumstances: In ASEAN, the Data Center market is rapidly expanding due to the region's strategic location and growing digital economy. Countries like Singapore, Malaysia, and Thailand are considered top data center hubs, attracting multinational companies and cloud service providers. However, in Indonesia, the market is driven by the country's large population and increasing internet adoption, resulting in a growing demand for data storage and management solutions. In Vietnam, the market is influenced by the government's initiatives to develop the digital infrastructure and promote the country as a favorable destination for data center investments.

Underlying macroeconomic factors: The Data Center Market in ASEAN is largely influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. Countries with supportive regulatory environments and strong investment in digital technologies are experiencing rapid growth in the market. Additionally, the increasing demand for data storage and management due to the rise of digitalization across industries is driving the growth of the data center market in the region. Furthermore, the growing adoption of cloud computing and the increasing need for efficient data processing and storage solutions are also contributing to the market growth in ASEAN.

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.