Data Center

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 5.99%, resulting in a market volume of US$4.50bn by 2029.
In global comparison, most revenue will be generated United States (US$123.20bn in 2024).

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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Network Infrastructure, such as Cisco Routers and Switches, and Arista Network Ethernet Switches
Infrastructure Firewalls, such as Palo Alto Network Next-Generation Firewall, and Fortinet FortiGate Firewalls
Servers, such as Dell PowerEdge Servers, HPE ProLiant Servers, and IBM Power Systems
Storage, such as Dell EMC Storage Solutions, and NetApp Data Storage Systems

IT Infrastructure for Private Environments, such as VMware vSphere, and Cisco UCS
Software, such as Microsoft Windows Server, and Red Hat Enterprise Linux
Cloud Hosting Services, such as AWS, Microsoft Azure, and GCP
Network Infrastructure Services, such as IT Support Services, and Home Internet Services Providers (ISPs)

The Data Center market in Indonesia is experiencing minimal growth due to factors such as slow adoption of digital technologies, lack of awareness about online health services, and limited investment in Server, Storage, and Network Infrastructure sub-markets. This is impacting the overall market's growth rate.

Customer preferences: The increasing adoption of cloud computing and the rise of e-commerce have led to a growing demand for data center services in Indonesia. This has also sparked a shift towards hybrid and multi-cloud solutions, as businesses seek to optimize their IT infrastructure and enhance their digital capabilities. Additionally, there is a growing preference for green and sustainable data centers, as companies become more conscious of their environmental impact and seek to reduce their carbon footprint.

Trends in the market: In Indonesia, the Data Center Market is experiencing a surge in demand due to the increasing adoption of cloud computing and digital transformation initiatives by businesses. This trend is expected to continue as the country's economy grows, driving the need for reliable and secure data storage and management solutions. Furthermore, with the rise of e-commerce and the Internet of Things (IoT) in Indonesia, the demand for data centers is likely to further increase. This presents a significant opportunity for data center providers and technology companies to expand their presence in the country and cater to the growing market. However, this also poses challenges for stakeholders, such as the need for robust infrastructure and cybersecurity measures to ensure the smooth operation of data centers and protect sensitive data. Overall, the current trend in the Data Center Market in Indonesia highlights the country's increasing digitalization and the importance of data management in the modern business landscape.

Local special circumstances: In Indonesia, the Data Center Market is experiencing significant growth due to the country's rapid digitization and the government's initiatives promoting the use of technology. The archipelago's unique geographical challenges have led to the emergence of innovative data center solutions, such as floating data centers and underground facilities. Additionally, the country's diverse cultural landscape and strict data privacy regulations have influenced the market's demand for secure and localized data storage solutions.

Underlying macroeconomic factors: The Data Center Market in Indonesia is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investments in digital infrastructure. The country's rapidly growing economy and increasing adoption of digital technologies have created a high demand for data center services. Additionally, the government's efforts to promote digitalization and attract foreign investments in the IT sector have further accelerated the growth of the data center market in Indonesia. Furthermore, the country's young and tech-savvy population, coupled with the rising trend of cloud computing, is driving the demand for data center services, making Indonesia a favorable market for data center providers.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Although data centers may not make front page news, they serve a critical role as the infrastructure powering the most exciting developments in tech. While data centers were once known as small rooms housed on-site by business users, they have increasingly become extensive, centralized facilities managed by multinational operators. Many organizations rent data center capacity from a so-called colocation provider such as Equinix or Digital Realty, while others subscribe to cloud subscription services to take care of their storage and compute requirements. The global market was forecast to bring in 344 billion U.S. dollars in 2024, propelled by the adoption data intensive technologies.