Data Center - Singapore

Singapore

Revenue in the Data Center market is projected to reach US$1.21bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.77bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.01%, resulting in a market volume of US$1.62bn 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 Singapore is experiencing minimal growth, influenced by factors such as increasing demand for digital technologies, growing awareness of data security, and the convenience of online services. The market's slow growth rate is impacted by competition and the need for constant upgrades to keep up with technological advancements.

Customer preferences: The rise of cloud-based technology and the increasing adoption of Internet of Things (IoT) devices have led to a growing demand for data centers in Singapore. This is driven by the need for reliable and secure storage and processing of vast amounts of data. With the rise of e-commerce and digital banking, there is also a growing demand for data centers to support the rapid growth of online transactions. Additionally, the government's push towards digitalization and smart city initiatives has further fueled the demand for data centers in Singapore.

Trends in the market: In Singapore, the Data Center Market is experiencing a surge in demand for cloud-based services, driven by the increasing adoption of remote work and digitalization. This trend is expected to continue, with the government's push for data localization and the growth of emerging technologies like 5G and Internet of Things. As a result, industry stakeholders are investing in expanding their data center infrastructure and capabilities to meet this demand, while also exploring partnerships and collaborations to stay competitive in the market. This shift towards a more connected and data-driven society has significant implications for businesses, as they need to keep up with evolving technologies and data regulations to stay relevant and compliant.

Local special circumstances: In Singapore, the Data Center Market is heavily influenced by the country's strategic location as a major hub for international business and trade. Its stable political environment and strong infrastructure make it an ideal location for data centers, attracting both local and international players. Additionally, Singapore's strong focus on data privacy and security regulations has led to a highly regulated market, with strict compliance requirements for data center operators. This has contributed to the country's reputation as a trustworthy and secure location for storing and managing sensitive data.

Underlying macroeconomic factors: The Data Center Market in Singapore is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Singapore's strong economy and stable political climate have made it a hub for data center growth, attracting both domestic and international investments. The country's commitment to developing a robust digital economy and its strategic location as a gateway to Southeast Asia have also contributed to the market's growth. Furthermore, the increasing demand for cloud services and the rise of data-driven industries in Singapore are driving the need for more advanced and efficient data center solutions.

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.