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 Asia Data Center market is currently experiencing mild growth due to factors such as increasing demand for digital technologies, rising awareness of data center services, and the convenience of online services. The sub-markets of Servers, Storage, and Network Infrastructure also play a significant role in shaping the overall market. However, factors such as government regulations and competition may impact the growth rate.

Customer preferences: The rise of e-commerce and online shopping has led to a growing demand for efficient and reliable data centers in Asia. With the increasing use of smartphones and internet connectivity, consumers are increasingly relying on digital platforms for their daily transactions and activities. This has led to the emergence of new trends such as contactless payments, virtual events and meetings, and online streaming, all of which require robust data center infrastructure. As a result, data center providers are now focusing on enhancing their capabilities and expanding their footprint in Asia to meet the evolving consumer preferences.

Trends in the market: In Asia, the Data Center Market is experiencing a surge in demand for cloud-based services, with more businesses turning to the cloud for storage and computing needs. This trend is expected to continue, driven by the increasing adoption of digital transformation strategies and the need for scalable and cost-effective solutions. As a result, data center providers are expanding their offerings to include hybrid and multi-cloud solutions, catering to the diverse needs of their clients. This trend presents significant opportunities for industry stakeholders, such as cloud providers, data center operators, and network service providers, to capitalize on the growing demand for digital services in the region. Additionally, this trend also highlights the importance of reliable and secure data center infrastructure, as businesses increasingly rely on the cloud to store and process their critical data. As such, data center providers must continuously invest in advanced technologies and security measures to meet the evolving needs of their clients and maintain their competitive edge in the market.

Local special circumstances: In Asia, the Data Center Market is heavily influenced by the region's rapid economic growth and increasing demand for digital infrastructure. Additionally, factors such as government initiatives promoting data localization and strict data privacy regulations have shaped the market dynamics. In countries like China, the market is also impacted by unique cultural factors, such as the emphasis on data security and the dominance of state-owned enterprises. In contrast, countries like Singapore and Hong Kong have become popular data center hubs due to their strategic locations and business-friendly policies.

Underlying macroeconomic factors: The Data Center Market in Asia is heavily impacted by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. Countries with supportive regulatory environments and strong investments in digital technologies are experiencing rapid growth in the market, while those with regulatory challenges and limited funding are facing slower growth. Furthermore, the increasing demand for data storage and processing, driven by the growth of digital technologies and the rise of e-commerce, is also contributing to the growth of the Data Center Market in Asia. This trend is expected to continue as the region's economy continues to grow and become more digitally connected.

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.