Data Center - Malaysia

Malaysia

Revenue in the Data Center market is projected to reach US$1.20bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.73bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.70%, resulting in a market volume of US$1.51bn 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

Over the past few years, Malaysia has seen a significant growth in its Data Center market, reflecting the increasing demand for digital services and the country's strategic location in the Asia-Pacific region.

Customer preferences: Customers in Malaysia are increasingly seeking secure and reliable data storage solutions, driving the demand for Data Centers with state-of-the-art security measures and high redundancy levels. Additionally, there is a growing preference for Data Centers that are energy-efficient and environmentally friendly, in line with global sustainability trends.

Trends in the market: One of the key trends in the Malaysian Data Center market is the rise of hyperscale Data Centers, catering to the needs of large enterprises and cloud service providers. These hyperscale facilities offer massive scalability and high levels of performance, attracting major players to establish their presence in the country. Moreover, there is a noticeable trend towards edge computing, driven by the growing adoption of Internet of Things (IoT) devices and the need for low-latency data processing.

Local special circumstances: Malaysia's position as a regional hub for technology and business activities has contributed to the growth of its Data Center market. The government's initiatives to promote digital transformation and attract foreign investments have also played a significant role in shaping the market landscape. Furthermore, the country's stable political environment and robust connectivity infrastructure make it an attractive destination for Data Center investments.

Underlying macroeconomic factors: The steady economic growth and increasing digitalization across various industries in Malaysia have created a favorable environment for the development of the Data Center market. As businesses continue to digitize their operations and leverage data analytics for decision-making, the demand for Data Center services is expected to further increase. Additionally, the rise of e-commerce, fintech, and other digital services is driving the need for advanced Data Center solutions to support the growing volume of online transactions and data processing activities.

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.