Data Center - Indonesia

Indonesia

Revenue in the Data Center market is projected to reach US$3.37bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$2.29bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.95%, resulting in a market volume of US$4.50bn 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

Indonesia's Data Center market is experiencing significant growth and development, driven by various factors shaping the industry landscape in the country.

Customer preferences: Customers in Indonesia are increasingly demanding reliable and secure data storage solutions to support their digital transformation initiatives. This has led to a rise in the adoption of Data Center services that offer high levels of uptime, scalability, and compliance with data security regulations.

Trends in the market: One notable trend in the Indonesian Data Center market is the growing interest in cloud services. Businesses are increasingly turning to cloud-based Data Centers to improve operational efficiency, reduce costs, and enhance flexibility in managing their data infrastructure. This trend is also fueled by the government's efforts to promote digitalization across various sectors.

Local special circumstances: Indonesia's geographical location makes it prone to natural disasters such as earthquakes and tsunamis. As a result, there is a heightened focus on building Data Centers that are resilient to such risks. Data Center providers in Indonesia are investing in robust infrastructure and disaster recovery capabilities to ensure business continuity in the face of potential disruptions.

Underlying macroeconomic factors: The rapid digitalization of Indonesia's economy is a key driver of growth in the Data Center market. As more businesses embrace e-commerce, online banking, and digital services, the demand for Data Center facilities continues to rise. Additionally, government initiatives to improve internet connectivity and data infrastructure are creating opportunities for Data Center providers to expand their operations and cater to the growing needs of the digital economy.

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.