Data Center

Revenue in the Data Center market is projected to reach US$2.35bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.72bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.95%, resulting in a market volume of US$3.00bn 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 Thailand is experiencing minimal growth, impacted by factors such as slow adoption of digital technologies, lack of awareness among consumers, and limited convenience of online services. Despite this, the market is expected to see moderate growth due to increasing demand for servers, storage, and network infrastructure in the country. Factors such as government initiatives and investments in digital infrastructure could potentially drive growth in the future.

Customer preferences: As digital transformation continues to accelerate in Thailand, consumers are also increasingly relying on cloud services and data centers for their personal and professional needs. With the rise of remote work and e-commerce, there is a growing demand for reliable and secure data storage and processing. This trend is further boosted by the country's young and tech-savvy population, as well as the government's push towards a digital economy. As a result, the data center market in Thailand is expected to see significant growth in the coming years.

Trends in the market: In Thailand, the Data Center Market is experiencing a surge in demand for cloud services, with more businesses shifting towards a hybrid cloud approach. This trend is driven by the need for scalability and cost-efficiency, as well as the increasing adoption of digital transformation strategies. As a result, there has been a rise in the number of data centers being built and expanded in the country. This trend is significant for industry stakeholders as it presents opportunities for growth and innovation in the data center market. However, it also poses challenges in terms of competition and infrastructure development. As the demand for data centers continues to grow, stakeholders must keep up with the trajectory of this trend and invest in advanced technologies and sustainable practices to stay competitive in the market.

Local special circumstances: In Thailand, the Data Center Market is experiencing rapid growth due to the country's strategic location and government support for digital infrastructure development. The demand for cloud-based services is increasing as more businesses adopt digital transformation strategies. Additionally, the country's cultural emphasis on hospitality and customer service has led to a strong focus on data security and reliability in the data center industry. This, in turn, has attracted international companies looking for secure and efficient data storage solutions. Furthermore, Thailand's favorable regulatory environment for foreign investment and low operating costs make it a desirable location for data center operations.

Underlying macroeconomic factors: The Data Center Market in Thailand is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in infrastructure. With the increasing adoption of cloud computing and the growing demand for data storage and processing, the Thai government has implemented favorable policies to attract investment in the data center market. Additionally, the country's strong economic growth and stable political climate have created a conducive environment for businesses to thrive, leading to a rise in demand for data center services. Furthermore, the increasing digitalization of businesses and government services is driving the need for secure and reliable data storage, further boosting the growth of the data center market in Thailand.

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.