Data Center - Southern Asia

Southern Asia

Revenue in the Data Center market is projected to reach US$9.35bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$5.95bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.99%, resulting in a market volume of US$11.80bn 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Southern Asia is experiencing significant growth and development.

Customer preferences: Customers in Southern Asia are increasingly demanding more data storage and processing capabilities due to the growing digital economy in the region. With the rise of e-commerce, social media, and cloud computing, there is a greater need for reliable and efficient data centers to support these activities. Customers are also seeking data centers that offer high levels of security, scalability, and energy efficiency to ensure the smooth operation of their businesses.

Trends in the market: One of the key trends in the Data Center market in Southern Asia is the increasing adoption of cloud computing. Many businesses are shifting from traditional on-premises data centers to cloud-based solutions, which offer greater flexibility, scalability, and cost-effectiveness. This trend is driving the demand for data centers that can support cloud infrastructure and services. Another trend in the market is the emergence of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, there is a growing demand for data centers located closer to the end-users. Edge data centers enable faster data processing and reduce latency, making them ideal for applications that require immediate responses.

Local special circumstances: Southern Asia is a region with diverse geographical and climatic conditions. This poses unique challenges for data center operators in terms of designing and maintaining the infrastructure. For example, countries like India and Bangladesh are prone to natural disasters such as cyclones and earthquakes. Data centers in these areas need to be built with robust structural designs and disaster recovery plans to ensure uninterrupted operations.

Underlying macroeconomic factors: The rapid economic growth in Southern Asia is a key driver of the Data Center market. Countries like India, Indonesia, and Vietnam are experiencing substantial increases in internet penetration and smartphone adoption, leading to a surge in data consumption. As businesses and individuals generate more data, the demand for data centers to store and process this information is also growing. Furthermore, government initiatives to promote digitalization and attract foreign investments are fueling the growth of the Data Center market in Southern Asia. Many countries in the region are implementing policies and providing incentives to attract data center operators. For example, India has launched the "Digital India" campaign to promote digital infrastructure development, including data centers. In conclusion, the Data Center market in Southern Asia is witnessing significant growth driven by customer preferences for more data storage and processing capabilities, the adoption of cloud computing and edge computing, local special circumstances such as geographical and climatic conditions, and underlying macroeconomic factors including rapid economic growth and government initiatives.

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.