Servers - South Korea

South Korea

Revenue in the Servers market is projected to reach US$1.44bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.85%, resulting in a market volume of US$2.20bn by 2029.
The average Spend per Employee in the Servers market is projected to reach US$48.03 in 2024.
In global comparison, most revenue will be generated in the United States (US$47,260m in 2024).

Key regions: Japan, India, China, United Kingdom, Europe

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Analyst Opinion

The Servers Market in the Data Center Market of South Korea is facing negligible growth, influenced by factors such as limited investment in infrastructure and slow adoption of advanced technologies. However, increasing demand for data storage and processing capabilities may drive some growth in the near future.

Customer preferences: As South Korea continues to lead in technological advancements, the Servers Market within the Data Center Market is witnessing a shift towards cloud-based solutions. This trend is driven by the growing demand for remote work and virtual services, as well as the need for efficient data management and security. Additionally, the rise of e-commerce and online gaming is also contributing to the increased demand for servers, as consumers seek fast and reliable online experiences.

Trends in the market: In South Korea, the Servers Market within the Data Center Market is seeing a rise in demand for cloud-based services, as more businesses are adopting digital transformation strategies. This trend is driven by the country's high internet penetration rate and government initiatives to promote e-commerce and online services. Additionally, there is a growing trend of edge computing, where data processing is done closer to the end-users, leading to faster response times. These trends are significant as they cater to the increasing demand for data storage and processing capabilities and offer cost-effective solutions for businesses. However, they also pose challenges for industry stakeholders, such as data privacy and security concerns and the need for constant infrastructure upgrades to keep up with technological advancements.

Local special circumstances: In South Korea, the Servers Market within the Data Center Market is heavily influenced by the country's advanced technological infrastructure and strong demand for data storage and processing capabilities. Additionally, the government's investment in 5G technology and initiatives to promote cloud computing have further bolstered the growth of this market. The country's high internet penetration rate and tech-savvy population also contribute to the demand for advanced server solutions. Moreover, strict data privacy laws and regulations have created a favorable environment for data center operators, attracting international players to the market.

Underlying macroeconomic factors: The Servers Market within the Data Center Market in South Korea is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With a strong economy and government support for digital transformation, South Korea is experiencing significant growth in the data center market. Additionally, the increasing demand for cloud-based services and the rise of e-commerce in the country are also driving the demand for servers in the data center market. Furthermore, the country's high internet penetration rate and advanced IT infrastructure create a favorable environment for the growth of the servers market within the data center market.

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.