Data Center

Revenue in the Data Center market is projected to reach US$603.50m in 2024.
Network Infrastructure dominates the market with a projected market volume of US$359.90m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.09%, resulting in a market volume of US$811.00m 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 the Philippines is experiencing modest growth, influenced by factors such as increasing demand for digital technologies, growing awareness of data management, and the convenience of online services. The market's minimal growth rate could be attributed to factors like economic uncertainties and competition from traditional data management methods.

Customer preferences: As the demand for reliable and efficient data storage and management solutions grows in the Philippines, consumers are showing a preference for cloud-based services and hybrid data centers. This shift is driven by the need for remote accessibility and scalability, as well as concerns over data security and compliance. Additionally, the increasing adoption of digital transformation strategies by businesses is also contributing to the growth of the data center market.

Trends in the market: In the Philippines, the Data Center Market is experiencing a surge in demand for cloud-based services, as businesses increasingly rely on remote work and digital solutions. This trend is expected to continue, with the government investing in infrastructure and promoting digitalization. As a result, there is a growing need for data center facilities to support these services. Additionally, there is a shift towards renewable energy sources for data centers, driven by environmental concerns and cost savings. This presents opportunities for industry stakeholders to invest in sustainable solutions and cater to the evolving needs of the market.

Local special circumstances: In the Philippines, the Data Center market is experiencing significant growth due to the country's strategic location and favorable business environment. The government's support for the IT and BPO industry, coupled with a skilled workforce and English proficiency, has attracted international players to establish their data centers in the country. Additionally, the increasing use of cloud computing and the need for data storage and management in various industries have also contributed to the market's expansion. The country's vulnerability to natural disasters has also resulted in the development of disaster-resilient data centers, making it a preferred location for disaster recovery services.

Underlying macroeconomic factors: The Data Center Market in Philippines is heavily influenced by macroeconomic factors such as government policies, technology adoption, and investment in infrastructure. The country's growing economy and supportive government initiatives have created a favorable environment for the data center market to flourish. Furthermore, the increasing demand for data storage and processing solutions from various industries, coupled with the rising adoption of cloud computing, has also contributed to the growth of the market. Additionally, the country's high internet penetration rate and growing digitalization trends are driving the demand for data center services, making Philippines a promising 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.