Data Center - Taiwan

Taiwan

Revenue in the Data Center market is projected to reach US$1.92bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$1.26bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.41%, resulting in a market volume of US$2.37bn 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 Taiwan has been experiencing significant growth in recent years, driven by various factors such as customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Taiwan, customers have shown a strong preference for reliable and secure data storage solutions. With the increasing digitization of businesses and the growing importance of data-driven decision making, organizations in Taiwan are seeking robust data center infrastructure to ensure the availability and integrity of their data. Additionally, there is a growing demand for cloud services, which require robust data center facilities to support the storage and processing of large amounts of data.

Trends in the market: One of the key trends in the Data Center market in Taiwan is the adoption of advanced technologies such as artificial intelligence (AI) and Internet of Things (IoT). These technologies generate large volumes of data that need to be stored and processed in real-time, driving the demand for data centers with high computational power and low latency. Furthermore, there is a growing focus on energy efficiency and sustainability in the data center industry, with companies implementing innovative cooling and power management solutions to reduce energy consumption and carbon footprint.

Local special circumstances: Taiwan is strategically located in the Asia-Pacific region, making it an attractive location for multinational companies to establish their data center operations. The country has a robust telecommunications infrastructure and is well-connected to major markets in the region, allowing for efficient data transfer and connectivity. Additionally, Taiwan has a favorable business environment and government policies that support the growth of the data center industry, including tax incentives and regulatory frameworks.

Underlying macroeconomic factors: The Data Center market in Taiwan is also influenced by underlying macroeconomic factors. The country has a strong and stable economy, with a highly skilled workforce and a favorable investment climate. Taiwan is known for its advanced semiconductor industry, which drives the demand for data centers to support the storage and processing of semiconductor design and manufacturing data. Furthermore, the government's focus on digital transformation and the development of smart cities is expected to drive the demand for data center services in the coming years. In conclusion, the Data Center market in Taiwan is experiencing significant growth due to customer preferences for reliable and secure data storage solutions, trends in the adoption of advanced technologies, local special circumstances such as strategic location and favorable government policies, and underlying macroeconomic factors such as a strong economy and focus on digital transformation. These factors are expected to continue driving the growth of the data center industry in Taiwan in the foreseeable future.

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.