Data Center

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 6.77%, resulting in a market volume of US$3.11bn 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 Taiwan is experiencing subdued growth, influenced by factors such as increasing competition in the Servers, Storage, and Network Infrastructure sub-markets, as well as rising demand for efficient and cost-effective data storage solutions. This growth is also impacted by the country's push towards renewable energy and stricter regulations on data privacy and security. Despite these challenges, the market is expected to continue growing due to the increasing demand for cloud services and the ongoing digital transformation of businesses in Taiwan.

Customer preferences: The growing reliance on cloud computing services has led to a surge in demand for data centers in Taiwan. This trend is driven by the rapid digitalization of businesses and the need for secure and reliable data storage solutions. Additionally, with the rise of remote work and virtual events, there has been an increased demand for data center services that can support high volumes of internet traffic and provide seamless connectivity. This shift towards digital solutions is also influenced by the country's tech-savvy population and the government's efforts to promote Taiwan as a global technology hub.

Trends in the market: In Taiwan, the Data Center Market is experiencing a surge in demand for cloud computing services, driven by the increasing adoption of digital transformation by businesses. This trend is expected to continue as more companies shift towards a remote or hybrid work model, leading to a higher demand for reliable and secure data storage solutions. Additionally, the government's efforts to promote renewable energy sources are also influencing the market, with data centers incorporating green technologies to reduce their carbon footprint. These developments have significant implications for industry players, who must stay ahead of the curve by investing in advanced technologies and sustainable practices to meet the evolving needs of their clients.

Local special circumstances: In Taiwan, the Data Center Market is heavily influenced by the country's geographic location, situated at the heart of the Asia-Pacific region. This strategic location has attracted major international companies to establish their data centers in Taiwan, creating a highly competitive market. Additionally, Taiwan's strong focus on technology and innovation, as well as its favorable regulatory environment, have led to the development of advanced data center infrastructure. The country's unique blend of Eastern and Western cultural influences also plays a role in shaping the market, with a strong emphasis on efficiency and reliability.

Underlying macroeconomic factors: The Data Center Market in Taiwan is heavily influenced by macroeconomic factors such as government policies, technological advancements, and investment in digital infrastructure. The country's strong economic growth and stable political climate have attracted significant investments in the data center industry. Additionally, the growing demand for cloud-based services and the rise of e-commerce have further boosted the demand for data centers in Taiwan. Moreover, the government's initiatives to promote digital transformation and improve internet connectivity have also contributed to the growth of the data center market in the country. Overall, favorable macroeconomic conditions and supportive government policies are driving the expansion of the data center market in Taiwan.

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.