Data Center - Indonesia

  • Indonesia
  • Revenue in the Data Center market is projected to reach US$2.99bn in 2024.
  • Network Infrastructure dominates the market with a projected market volume of US$2.01bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.80%, resulting in a market volume of US$3.89bn 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

 
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Analyst Opinion

The Data Center market in Indonesia has been experiencing significant growth in recent years.

Customer preferences:
Indonesian customers are increasingly demanding reliable and efficient data center services to support their growing digital needs. They are looking for data centers that can provide high levels of uptime, security, and scalability. Additionally, customers are placing a greater emphasis on sustainability and are seeking data centers that are energy-efficient and environmentally friendly.

Trends in the market:
One of the key trends in the Indonesian Data Center market is the increasing demand for cloud services. As more businesses in Indonesia adopt cloud computing, the need for data centers to host and manage these services is growing. This trend is driven by the benefits of cloud computing, such as cost savings, scalability, and flexibility. Another trend in the market is the rise of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, edge computing has become increasingly important. Edge data centers are being deployed closer to the end-users to reduce latency and improve performance. This trend is driven by the need for faster and more efficient data processing at the edge of the network.

Local special circumstances:
Indonesia is the largest economy in Southeast Asia and has a rapidly growing digital economy. The country has a young and tech-savvy population, with a high rate of smartphone penetration. This has led to an increase in internet usage and a growing demand for digital services, driving the need for data centers. However, Indonesia also faces unique challenges in the Data Center market. The country is made up of thousands of islands, which presents logistical challenges for data center operators. Building and maintaining data centers across the archipelago can be costly and time-consuming.

Underlying macroeconomic factors:
The growth of the Data Center market in Indonesia is supported by several macroeconomic factors. The Indonesian government has been actively promoting digital transformation and has set ambitious targets for the development of the digital economy. This includes the construction of new data centers and the improvement of digital infrastructure. Additionally, foreign investment in the Indonesian Data Center market has been increasing. International data center operators are attracted to the country's large and growing market, as well as its strategic location as a gateway to Southeast Asia. This influx of foreign investment is driving competition and innovation in the market. In conclusion, the Data Center market in Indonesia is experiencing significant growth due to customer preferences for reliable and efficient data center services, as well as the increasing demand for cloud services and edge computing. The country's young and tech-savvy population, along with government support and foreign investment, are driving the development of the market. However, challenges such as the logistical difficulties of operating across an archipelago remain.

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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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