Data Center

Revenue in the Data Center market is projected to reach US$10.61bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$6.89bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.30%, resulting in a market volume of US$14.40bn 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 Southern Asia is experiencing slow growth, due to factors such as limited adoption of digital technologies, low health awareness among consumers, and challenges in developing network infrastructure. This has led to minimal growth in the sub-markets of Servers, Storage, and Network Infrastructure. However, with increasing investment and government initiatives, the market is expected to see gradual growth in the coming years.

Customer preferences: As technology adoption and internet penetration continue to rise in Southern Asia, consumers are increasingly turning to digital solutions for their healthcare needs. This has led to a growing demand for telemedicine services, as well as a surge in the use of wearable devices and health tracking apps. This shift towards digital health solutions is driven by the need for convenient and remote healthcare options, as well as a growing awareness and interest in personal health and wellness.

Trends in the market: In Southern Asia, the Data Center Market is experiencing a surge in cloud adoption, driven by the increasing demand for data storage and management solutions. This trend is expected to continue as more businesses embrace digital transformation and rely on cloud-based services for their operations. Additionally, there is a growing focus on sustainability, with data centers implementing green energy solutions and reducing their environmental impact. This trajectory not only benefits businesses by reducing costs and improving efficiency, but also has significant implications for the industry as a whole, promoting a more environmentally conscious and sustainable approach to data management. As a result, industry stakeholders must stay updated and adapt to these evolving trends in order to remain competitive in the market.

Local special circumstances: In Southern Asia, the Data Center Market is on the rise due to the region's growing digital economy and increasing demand for data storage and processing. However, unique local factors such as varying regulatory policies and cultural norms play a significant role in shaping the market dynamics. For instance, in India, the government's push for digitalization and the country's large population has led to a high demand for data centers. On the other hand, in countries like Sri Lanka and Bangladesh, cultural preferences for on-premises data storage and security concerns have slowed down the growth of the data center market. Additionally, the region's geographical diversity and vulnerability to natural disasters also impact the location and design of data centers in the region.

Underlying macroeconomic factors: The Data Center Market in Southern Asia is heavily impacted by macroeconomic factors, such as the region's economic growth, government policies, and investment in infrastructure. Countries with strong economic growth and government support for digital transformation are experiencing significant growth in the data center market, as businesses and organizations seek to modernize their IT infrastructure. Additionally, the increasing adoption of cloud computing and big data analytics, coupled with the rising demand for data storage and processing, is further driving the growth of the data center market in the region. However, challenges such as regulatory barriers and limited access to capital are hindering market growth in some countries. Overall, favorable macroeconomic conditions and government initiatives are expected to continue driving the growth of the data center market in Southern Asia.

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.