Data Center - Malaysia

Malaysia

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$0.73bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.57%, resulting in a market volume of US$1.62bn 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 Malaysia has been experiencing significant growth in recent years.

Customer preferences: Customers in Malaysia are increasingly demanding reliable and efficient data center services. They expect high levels of uptime and performance, as well as scalable solutions that can accommodate their growing data needs. In addition, there is a growing demand for cloud-based services, as businesses look to leverage the benefits of cloud computing for their operations.

Trends in the market: One of the key trends in the Data Center market in Malaysia is the increasing adoption of colocation services. Many businesses are choosing to outsource their data center infrastructure to colocation providers, as it allows them to focus on their core competencies while benefiting from the expertise and resources of the colocation provider. This trend is driven by factors such as cost savings, scalability, and the need for reliable and secure data storage. Another trend in the market is the growing demand for edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, businesses are looking for data center solutions that are closer to the edge of their networks. This allows for faster data processing and reduces latency, which is critical for applications such as autonomous vehicles, smart cities, and industrial automation.

Local special circumstances: Malaysia is strategically located in Southeast Asia, making it an ideal location for data centers serving the region. The country has a stable political environment, a well-developed telecommunications infrastructure, and a skilled workforce, which are all attractive factors for data center operators. In addition, Malaysia offers competitive electricity rates and has a favorable regulatory environment for data center investments.

Underlying macroeconomic factors: The growth of the Data Center market in Malaysia is also driven by macroeconomic factors. Malaysia has a strong and growing digital economy, with increasing internet penetration and smartphone adoption. This has led to a surge in data generation and consumption, driving the need for data center services. Furthermore, the government of Malaysia has recognized the importance of the digital economy and has implemented initiatives to promote the growth of the sector, including the Digital Free Trade Zone and the National Fiberisation and Connectivity Plan. In conclusion, the Data Center market in Malaysia is experiencing significant growth due to customer preferences for reliable and efficient data center services, the increasing adoption of colocation and edge computing, the country's strategic location and favorable business environment, and the underlying macroeconomic factors driving the growth of the digital economy.

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.