Data Center - Singapore

Singapore

Revenue in the Data Center market is projected to reach US$1.06bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.82%, resulting in a market volume of US$1.38bn 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 Singapore has been experiencing significant growth in recent years, with a strong demand for data storage and processing capabilities.

Customer preferences: Customers in Singapore are increasingly seeking reliable and secure data center services to support their growing digital infrastructure. They value data centers that offer high-speed connectivity, low latency, and robust security measures to protect their sensitive information. Additionally, customers are looking for data centers that are energy-efficient and environmentally friendly, as sustainability has become an important consideration for businesses in Singapore.

Trends in the market: One major trend in the Data Center market in Singapore is the increasing adoption of cloud computing services. Businesses are realizing the benefits of moving their data and applications to the cloud, such as cost savings, scalability, and flexibility. This has led to a higher demand for data centers that can support cloud-based services and provide the necessary infrastructure for businesses to leverage the power of the cloud. 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, businesses are looking for data centers that are closer to the edge of the network. Edge data centers can provide faster response times and lower latency, which are crucial for applications that require immediate processing and analysis of data.

Local special circumstances: Singapore's strategic location in Southeast Asia makes it an attractive hub for data center operations. The country has a strong telecommunications infrastructure and is well-connected to major global markets. Singapore also has a stable political and regulatory environment, which provides a conducive business environment for data center operators. Furthermore, Singapore has a strong focus on cybersecurity and data protection. The government has implemented strict regulations and guidelines to ensure the security and integrity of data stored in data centers. This has boosted customer confidence and attracted more businesses to choose Singapore as their data center location.

Underlying macroeconomic factors: Singapore's strong economic growth and its position as a global financial hub have contributed to the growth of the Data Center market. The country's robust economy has attracted multinational companies and startups, which require reliable and secure data center services to support their operations. Additionally, Singapore's digital transformation initiatives and investments in technology infrastructure have created a favorable environment for the Data Center market to thrive. The government's push for Smart Nation initiatives and the development of advanced technologies, such as artificial intelligence and Internet of Things, have increased the demand for data center services. In conclusion, the Data Center market in Singapore is experiencing rapid growth due to customer preferences for reliable and secure data storage and processing capabilities. The increasing adoption of cloud computing and edge computing, along with Singapore's strategic location and strong focus on cybersecurity, have contributed to the market's expansion. Furthermore, Singapore's strong economy and digital transformation initiatives have created a favorable environment for the Data Center market to flourish.

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.