Data Center - Asia

Asia

Revenue in the Data Center market is projected to reach US$121.60bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$80.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.22%, resulting in a market volume of US$160.70bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn 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 Asia is experiencing rapid growth and development, driven by various factors such as increasing demand for cloud services, digital transformation initiatives, and the expansion of e-commerce and internet-based businesses. Customer preferences in the Data Center market in Asia are shifting towards cloud services and colocation solutions. With the rise of digitalization, businesses are increasingly relying on cloud computing to store and process large amounts of data. This preference for cloud services is driven by the scalability, flexibility, and cost-effectiveness they offer. Colocation solutions are also gaining popularity as they provide businesses with the benefits of owning their own infrastructure while outsourcing the management and maintenance to a third-party provider. Trends in the Data Center market in Asia include the construction of large-scale hyperscale data centers to meet the growing demand for cloud services. These data centers are designed to handle massive amounts of data and provide high-speed connectivity to support the needs of cloud-based applications. Another trend is the establishment of edge data centers, which are located closer to end-users to reduce latency and improve the performance of applications and services. Local special circumstances in the Data Center market in Asia vary across countries. In some countries, such as Singapore and Hong Kong, limited land availability and high real estate prices pose challenges for data center construction. As a result, these countries are focusing on building vertically, with multi-story data centers becoming more common. In other countries, such as India and China, the market is driven by government initiatives to promote digitalization and attract foreign investment. These initiatives include the establishment of special economic zones and the provision of tax incentives for data center operators. Underlying macroeconomic factors driving the development of the Data Center market in Asia include the region's strong economic growth, increasing internet penetration, and the growing adoption of digital technologies. Asia has become a major hub for e-commerce and internet-based businesses, which require robust and reliable data center infrastructure to support their operations. Additionally, the region's large population and rising middle class are driving the demand for online services, further fueling the growth of the Data Center market. In conclusion, the Data Center market in Asia is experiencing significant growth and development, driven by factors such as the increasing demand for cloud services, digital transformation initiatives, and the expansion of e-commerce and internet-based businesses. Customer preferences are shifting towards cloud services and colocation solutions, and trends in the market include the construction of large-scale hyperscale data centers and the establishment of edge data centers. Local special circumstances vary across countries, while underlying macroeconomic factors driving the market include strong economic growth, increasing internet penetration, and the growing adoption of digital technologies.

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.