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

Singapore's Data Center market is experiencing significant growth and development, driven by various factors shaping the industry landscape in the country.

Customer preferences: Customers in Singapore are increasingly demanding high-quality and reliable data center services to support their digital operations. This includes the need for scalable and flexible solutions to accommodate the growing volume of data generated by businesses. Additionally, there is a rising preference for data centers that prioritize energy efficiency and sustainability initiatives to reduce environmental impact.

Trends in the market: One notable trend in the Singaporean Data Center market is the rapid adoption of cloud services by businesses of all sizes. This trend is fueled by the need for cost-effective and agile IT solutions, driving demand for data center services that can support cloud infrastructure. Moreover, the market is witnessing a shift towards edge computing to enable faster processing of data and support emerging technologies such as Internet of Things (IoT) and artificial intelligence (AI).

Local special circumstances: Singapore's strategic geographical location in the Asia-Pacific region positions it as a key hub for international data center providers looking to expand their presence in the region. The country's robust infrastructure, political stability, and pro-business environment make it an attractive destination for data center investments. Furthermore, Singapore's strong focus on cybersecurity and data protection regulations enhances trust and confidence among customers in the security of data center facilities.

Underlying macroeconomic factors: The continuous digital transformation across industries in Singapore is driving the demand for data center services as businesses seek to enhance their technological capabilities and remain competitive in the digital economy. Additionally, government initiatives to promote innovation and technology adoption further support the growth of the Data Center market in the country. Overall, the combination of customer preferences, market trends, local special circumstances, and macroeconomic factors is shaping the dynamic landscape of the Data Center market in Singapore.

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.