Data Center - Australia

Australia

Revenue in the Data Center market is projected to reach US$5.01bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$2.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.85%, resulting in a market volume of US$6.29bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn 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 Australia has been experiencing significant growth in recent years, driven by increasing demand for cloud computing services, the rise of big data analytics, and the expansion of digital transformation initiatives across various industries.

Customer preferences: In Australia, customers are increasingly shifting towards cloud-based solutions and outsourcing their data storage and management needs to third-party data centers. This is primarily driven by the need for scalability, flexibility, and cost-effectiveness. Cloud-based solutions provide businesses with the ability to quickly scale up or down their infrastructure requirements based on demand, without the need for significant upfront investments in hardware and maintenance. Additionally, outsourcing data management to specialized data centers allows businesses to focus on their core competencies and reduce the burden of managing complex IT infrastructure.

Trends in the market: One of the key trends in the Australian Data Center market is the increasing adoption of edge computing. Edge computing involves processing data closer to the source, reducing latency and improving real-time decision-making capabilities. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, edge computing has become crucial for industries such as manufacturing, healthcare, and transportation. Data centers are strategically located closer to the edge to ensure low latency and high-speed connectivity. Another trend in the market is the growing demand for green data centers. As environmental sustainability becomes a priority for businesses, data center operators are focusing on energy-efficient infrastructure and renewable energy sources. Australia, with its abundant solar and wind resources, is well-positioned to embrace green data center initiatives. These initiatives not only reduce carbon emissions but also result in cost savings for data center operators.

Local special circumstances: Australia's geographic location and climate present unique challenges for data center operators. The country is prone to natural disasters such as bushfires and cyclones, which can disrupt power supply and damage infrastructure. To mitigate these risks, data center operators invest in robust disaster recovery and business continuity plans, including redundant power supply, backup generators, and multiple network connections. Additionally, data centers in Australia need to comply with strict regulations and standards for data privacy and security.

Underlying macroeconomic factors: Australia's strong economy, stable political environment, and advanced telecommunications infrastructure make it an attractive market for data center investments. The country has a well-established digital economy, with high internet penetration and a growing number of tech-savvy businesses. Furthermore, the government's focus on promoting innovation and digital transformation initiatives has created a favorable environment for data center growth. In conclusion, the Data Center market in Australia is witnessing significant growth due to increasing customer preferences for cloud-based solutions, the adoption of edge computing, and the demand for green data centers. The country's unique geographic challenges and strict regulatory environment require data center operators to invest in robust infrastructure and comply with stringent standards. Australia's strong economy and supportive government policies further contribute to the growth of the Data Center market in the country.

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.