Data Center - Asia

Asia

Revenue in the Data Center market is projected to reach US$155.20bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$102.60bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.00%, resulting in a market volume of US$228.00bn 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 Asia is experiencing rapid growth and development, driven by various factors such as increasing demand for cloud services, digital transformation initiatives, and the rise of e-commerce in the region.

Customer preferences: Customers in Asia are increasingly looking for data centers that offer high levels of reliability, security, and scalability to support their growing digital infrastructure needs. They prefer data centers that are energy-efficient, environmentally friendly, and compliant with data protection regulations to ensure data security and privacy.

Trends in the market: In countries like Singapore, Japan, and China, there is a growing trend towards the construction of hyperscale data centers to cater to the increasing demand for cloud services and big data analytics. These data centers are designed to be highly scalable and energy-efficient, utilizing advanced technologies such as artificial intelligence and Internet of Things to optimize operations and reduce costs.

Local special circumstances: In India, the Data Center market is driven by the government's Digital India initiative, which aims to transform the country into a digitally empowered society and knowledge economy. This has led to an increase in data center investments by both local and international players to support the growing digital infrastructure needs in the country. Additionally, the geographical location of India makes it an attractive destination for disaster recovery and business continuity services, further boosting the Data Center market in the region.

Underlying macroeconomic factors: The rapid urbanization, increasing internet penetration, and growing smartphone adoption rates in Asia are fueling the demand for data center services in the region. As businesses and consumers alike generate and consume more data, the need for robust data center infrastructure to store, process, and manage this data is becoming increasingly critical. Additionally, the shift towards remote working and online collaboration in the wake of the COVID-19 pandemic has further accelerated the demand for data center services in Asia.

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.