Data Center - China

China

Revenue in the Data Center market is projected to reach US$69.17bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$45.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.68%, resulting in a market volume of US$92.98bn 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 China has experienced significant growth in recent years, driven by various factors such as increasing demand for cloud computing services, the rise of big data analytics, and the rapid expansion of the digital economy.

Customer preferences: Chinese customers are increasingly relying on cloud computing services for their storage and computing needs. This is driven by the convenience and cost-effectiveness of cloud-based solutions, as well as the need for scalability and flexibility in managing data. In addition, the growing adoption of big data analytics in various industries has created a demand for data centers that can handle large volumes of data and provide real-time insights.

Trends in the market: One of the key trends in the Data Center market in China is the shift towards hyperscale data centers. These data centers are designed to handle massive amounts of data and provide high-performance computing capabilities. This trend is driven by the increasing demand for cloud services and the need for data centers to support the digital transformation of businesses. Another trend in the market is the adoption of edge computing. Edge computing brings computing power closer to the source of data generation, reducing latency and improving the performance of applications. This trend is driven by the need for real-time data processing and analysis in industries such as autonomous vehicles, smart cities, and industrial IoT.

Local special circumstances: China has a unique set of circumstances that impact the Data Center market. The country has a large population and a rapidly growing digital economy, which creates a high demand for data storage and processing capabilities. Additionally, China has strict regulations on data sovereignty and cybersecurity, which require companies to store and process data within the country's borders. This has led to the development of a domestic Data Center market that caters to the specific needs of Chinese customers.

Underlying macroeconomic factors: The growth of the Data Center market in China is also influenced by macroeconomic factors. The Chinese government has been promoting the development of the digital economy as part of its broader economic policies. This includes initiatives to upgrade the country's information infrastructure, support the development of cloud computing and big data industries, and attract foreign investment in the Data Center sector. Additionally, China's large population and expanding middle class are driving the growth of e-commerce, digital entertainment, and other online services, which in turn fuels the demand for Data Center services. In conclusion, the Data Center market in China is experiencing significant growth due to increasing customer preferences for cloud computing and big data analytics, as well as the adoption of hyperscale and edge computing. The market is also shaped by local special circumstances such as data sovereignty regulations and cybersecurity requirements. Furthermore, underlying macroeconomic factors such as government support for the digital economy and the growth of the middle class contribute to the expansion of the Data Center market in China.

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.