Data Center - Taiwan

Taiwan

Revenue in the Data Center market is projected to reach US$2.24bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.41bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.78%, resulting in a market volume of US$3.11bn 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 Taiwan is experiencing modest growth, influenced by factors such as increasing demand for digital services, growing data storage needs, and advancements in network infrastructure. However, the subdued growth rate is impacted by challenges like limited resources and governmental regulations.

Customer preferences: The increasing reliance on data and the need for efficient data storage has led to a growing demand for data center solutions in Taiwan. This trend has been driven by the rapid growth of the tech industry, as well as the rising adoption of cloud computing and virtualization. Furthermore, with the rise of remote work and online learning, demand for reliable and secure data centers has only intensified. As a result, data center providers are now focusing on providing flexible and scalable solutions to cater to the diverse needs of businesses and individuals alike.

Trends in the market: In Taiwan, the Data Center Market is seeing an increase in demand for cloud-based solutions, as businesses and organizations prioritize digital transformation and remote work capabilities. This trend is expected to continue, with a projected growth in the use of hybrid cloud solutions. This shift towards cloud computing has significant implications for industry stakeholders, from data center providers to technology companies. It also highlights the need for robust security measures and data privacy regulations, as the amount of sensitive data stored in the cloud increases. Additionally, the rise of cloud computing in Taiwan reinforces the country's position as a regional technology hub, attracting more investment and talent in the data center market.

Local special circumstances: 'In Taiwan, the Data Center Market is expanding rapidly due to the country's strategic location as a regional hub for Asia. Its advanced technological infrastructure, coupled with a skilled workforce and government incentives, make it an attractive destination for foreign investments in data centers. Additionally, Taiwan's cultural emphasis on precision and efficiency drives the development of cutting-edge technologies and solutions within the data center industry. Furthermore, strict data privacy regulations and high standards for data security contribute to the country's strong reputation as a reliable and secure location for data storage and management.

Underlying macroeconomic factors: The Data Center Market in Taiwan is heavily impacted by macroeconomic factors such as global economic trends, national economic health, and fiscal policies. Taiwan's strong economic growth and stable political climate have made it an attractive location for data center investments. Additionally, the government's initiatives to promote Taiwan as a regional data center hub and the country's advanced IT infrastructure have also contributed to the growth of the market. However, external factors such as trade tensions between the US and China may pose challenges for the data center market in Taiwan. Furthermore, the growing demand for data storage and processing due to the rise of digitalization in various industries also fuels the growth of the data center market in Taiwan.

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.