Data Center - Australia & Oceania

Australia & Oceania

Revenue in the Data Center market is projected to reach US$6.16bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$3.39bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.11%, resulting in a market volume of US$7.81bn 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 Australia & Oceania is experiencing significant growth and development.

Customer preferences: Customers in the Data Center market in Australia & Oceania are increasingly demanding high-quality and reliable data storage and management solutions. They are looking for data centers that can provide secure and scalable infrastructure to support their growing digital needs. Additionally, customers are placing a strong emphasis on energy efficiency and sustainability, driving the demand for green data centers that minimize their environmental impact.

Trends in the market: One of the key trends in the Data Center market in Australia & Oceania is the increasing adoption of cloud computing. As businesses in the region continue to embrace digital transformation, they are turning to cloud services for their storage and processing needs. This is driving the demand for data centers that can support the cloud infrastructure and provide the necessary connectivity and security. Another trend in the market is the rise of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses are looking for data centers that can bring computing power closer to the edge of the network. This allows for faster data processing and reduced latency, which is crucial for applications such as autonomous vehicles and smart cities.

Local special circumstances: Australia & Oceania is a geographically diverse region, with countries spread across vast distances. This presents unique challenges in terms of connectivity and latency. To address these challenges, data center providers are investing in building a network of interconnected data centers across the region. This enables businesses to have low-latency access to their data and applications, regardless of their location.

Underlying macroeconomic factors: The growing digital economy in Australia & Oceania, coupled with the increasing adoption of cloud computing and edge computing, is driving the demand for data centers in the region. The region is also witnessing significant investments from both local and international data center providers, who are expanding their presence to cater to the growing demand. Additionally, government initiatives to promote digital infrastructure and connectivity are further fueling the growth of the Data Center market in Australia & Oceania. In conclusion, the Data Center market in Australia & Oceania is experiencing rapid growth and development, driven by customer preferences for high-quality and reliable data storage solutions, the increasing adoption of cloud computing and edge computing, and the unique geographical challenges in the region. With the continued investments and government support, the market is expected to further expand in the coming years.

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.