Data Center - Myanmar

Myanmar

Revenue in the Data Center market is projected to reach US$158.80m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$90.62m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.28%, resulting in a market volume of US$225.70m 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

The Data Center market in Myanmar is experiencing subdued growth, influenced by factors such as slow adoption of digital technologies, lower health awareness among consumers, and limited convenience offered by online services. This trend is evident in the sub-markets of Servers, Storage, and Network Infrastructure, with low demand and limited investment in these areas. Despite these challenges, the market is expected to see gradual growth in the coming years, driven by government initiatives to improve digital infrastructure and increasing demand for data storage and processing capabilities in various industries.

Customer preferences: There has been a growing demand for cloud-based solutions in the Data Center Market in Myanmar, driven by the increasing reliance on remote work and digitalization. This trend is further accelerated by the country's young and tech-savvy population, who are more likely to adopt and embrace technology in their daily lives. Additionally, the rise of e-commerce and online services has led to a surge in demand for data storage and processing, making data centers a crucial infrastructure for businesses and organizations.

Trends in the market: In Myanmar, the Data Center Market is experiencing a surge in demand for cloud services, with more businesses adopting digital transformation strategies. This trend is expected to continue, driven by the government's push for a more connected and digitized economy. As a result, there is a growing demand for data centers to support this growth, with major players such as Amazon and Google eyeing the market. This trend signifies the potential for Myanmar to become a key player in the Southeast Asian data center market, providing opportunities for industry stakeholders to capitalize on this growing market.

Local special circumstances: In Myanmar, the Data Center Market is experiencing growth due to the country's rapid economic development and increasing internet penetration. However, the market is also impacted by the government's strict regulations on data localization and censorship, which can pose challenges for foreign companies. Additionally, the country's geographical location and limited infrastructure may present obstacles for data center providers, leading to unique partnerships with local telecom companies. These local factors heavily influence the market dynamics and strategies of companies operating in Myanmar's Data Center Market.

Underlying macroeconomic factors: The Data Center Market in Myanmar is heavily influenced by macroeconomic factors such as government policies, foreign investments, and technological advancements. The country's growing economy, with a GDP growth rate of 6.8% in 2019, has created opportunities for data center providers to expand their operations. Additionally, the government's initiatives to improve digital infrastructure and attract foreign investments have also positively impacted the market. However, challenges such as limited access to reliable power and internet infrastructure remain major barriers to market growth. As such, the development of data centers in Myanmar is closely tied to the country's overall economic health and investment climate.

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.