Data Center - Hong Kong

Hong Kong

Revenue in the Data Center market is projected to reach US$1.21bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.76bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.90%, resulting in a market volume of US$1.58bn 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 Hong Kong has experienced significant growth in recent years, driven by customer preferences for reliable and secure data storage and processing solutions.

Customer preferences: Customers in the Data Center market in Hong Kong prioritize reliability and security when selecting a data center provider. They require robust infrastructure and redundant systems to ensure uninterrupted access to their data. Additionally, customers also value scalability and flexibility, as they need to adapt to changing business needs and accommodate future growth.

Trends in the market: One of the key trends in the Data Center market in Hong Kong is the increasing demand for cloud services. As businesses in Hong Kong embrace digital transformation and shift their operations to the cloud, the need for data center facilities to support these services has grown. This trend is driven by the advantages of cloud computing, such as cost savings, scalability, and accessibility. Another trend in the market is the rising adoption of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses in Hong Kong are looking for data centers that can provide low-latency connections and localized computing power. Edge data centers, located closer to the end-users, enable faster data processing and reduce the reliance on centralized data centers.

Local special circumstances: Hong Kong's strategic location as a gateway to China and its strong connectivity infrastructure make it an attractive location for multinational companies looking to expand their presence in the Asia-Pacific region. The city's proximity to mainland China allows businesses to access the Chinese market while enjoying the benefits of Hong Kong's business-friendly environment. This has contributed to the growth of the Data Center market in Hong Kong, as companies seek reliable data center solutions to support their operations in the region.

Underlying macroeconomic factors: The Data Center market in Hong Kong is also influenced by macroeconomic factors such as government policies and regulations, as well as the overall economic environment. The Hong Kong government has been supportive of the development of the technology sector and has implemented initiatives to attract technology companies and promote innovation. This has created a favorable business environment for data center providers and stimulated the growth of the market. Furthermore, Hong Kong's position as a global financial hub and its strong presence in industries such as finance, logistics, and e-commerce have driven the demand for data center services. These industries rely heavily on data processing and storage, making them key customers in the Data Center market in Hong Kong. The city's stable economy and business-friendly environment have also attracted international businesses, further fueling the demand for data center services. In conclusion, the Data Center market in Hong Kong has experienced significant growth due to customer preferences for reliable and secure data storage, the increasing demand for cloud services, and the rising adoption of edge computing. Hong Kong's strategic location, strong connectivity infrastructure, and supportive government policies have also contributed to the growth of the market.

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.