Data Center - Southeast Asia

Southeast Asia

Revenue in the Data Center market is projected to reach US$9.98bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$6.73bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.00%, resulting in a market volume of US$13.08bn 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 Southeast Asia has been experiencing significant growth in recent years, driven by the increasing demand for digital services and the rapid expansion of cloud computing. Customer preferences in the Data Center market in Southeast Asia are shifting towards more scalable and flexible solutions. Businesses are seeking data centers that can accommodate their growing data storage and processing needs, while also providing the agility to quickly adapt to changing market conditions. As a result, there is a growing demand for modular data centers that can be easily expanded or scaled down as required. Additionally, customers are increasingly looking for data centers that offer high levels of security and reliability, as well as energy-efficient solutions to minimize operational costs. One of the key trends in the Data Center market in Southeast Asia is the increasing adoption of cloud computing. As businesses continue to migrate their operations to the cloud, there is a growing need for data centers to support the storage and processing of large amounts of data. This trend is driven by the benefits of cloud computing, including cost savings, scalability, and improved accessibility. As a result, data center providers in Southeast Asia are expanding their infrastructure to meet the growing demand for cloud services. Another trend in the Data Center market in Southeast Asia is the emergence of edge computing. Edge computing involves processing data closer to the source, reducing latency and improving the performance of applications and services. This trend is driven by the increasing number of devices connected to the internet, such as smartphones and IoT devices, which generate large amounts of data that need to be processed in real-time. As a result, data centers are being deployed closer to the edge, in locations such as urban areas and industrial parks, to enable faster data processing and reduce network congestion. Local special circumstances in the Data Center market in Southeast Asia include the diverse regulatory environment across the region. Each country in Southeast Asia has its own set of regulations governing data privacy and security, which can impact the location and operation of data centers. Data center providers need to navigate these regulatory complexities to ensure compliance and provide a secure environment for their customers' data. Underlying macroeconomic factors driving the growth of the Data Center market in Southeast Asia include the region's strong economic growth and increasing digitalization. Southeast Asia is home to a large and rapidly growing population, with a rising middle class that is driving demand for digital services. This, coupled with the increasing penetration of smartphones and internet connectivity, is fueling the demand for data centers in the region. Additionally, the region's strategic location between major markets such as China and India makes it an attractive location for data center providers looking to serve a global customer base.

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.