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The data center market size in China is forecast to increase by USD 181.33 billion at a CAGR of 34.28% between 2023 and 2028. The market share's growth is influenced by several factors, notably the increasing demand for hyper-converged data centers. This demand is driven by the need for more efficient and scalable information storage solutions. Additionally, there is a growing need for cloud storage services, as businesses and individuals generate and store more information than ever before. The increasing demand for supercomputing capabilities is also contributing to market growth, as organizations seek to process and analyze large datasets more quickly and efficiently. Overall, these factors are driving a significant expansion of the market share in the data center industry. It also includes an in-depth analysis of drivers, trends, and challenges.
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In the current digital landscape, businesses, particularly large enterprises, are experiencing an expanding user base and the need for business scalability. This growth necessitates increased storage capacity and efficient infrastructure, including computing power. Data storage needs are a critical concern, with regulatory requirements mandating compliance and ensuring data security. The market is responding to these demands with advanced technologies such as hyper scalability, cloud services, edge computing services, and micro data centers. Sustainability is also a priority, with data centers adopting green initiatives like renewable energy sources, solar, wind, and hydroelectric electricity, and energy-efficient solutions. Moreover, the advent of 5G networks and information transmission speeds up to 100 Gbps are revolutionizing operations. Artificial Intelligence and Machine Learning are being integrated into modern business processes, further increasing the demand for services. Automation and the use of advanced technologies are also key trends in the market, ensuring optimal performance and reducing operational costs. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for hyper-converged data centers is notably driving market growth. In the market, organizations in China are increasingly adopting converged and hyper-converged infrastructure solutions due to their efficiency and cost-effectiveness. These advanced technologies, which include automation, virtualization, and the bundling of software and hardware components, are essential for modern business processes and supporting new trends such as remote working and increased internet usage.
Moreover, the integration of Artificial Intelligence (AI) and Machine Learning (ML) in data centers is becoming a priority for businesses to optimize functionality, asset performance management, and maintenance under varying operating conditions. Cloud computing and edge computing are also driving the demand for capacity, as global traffic continues to grow. The Department of Energy and concerns over electricity consumption and green data centers are also influencing the data center landscape. Software testing and information security are critical considerations for corporate data centers, as they house sensitive digital data. Enterprise Engineering Solutions are essential for managing the complexities of data centers, ensuring optimal performance and energy efficiency. Hence, such factors will drive the growth of the market in China during the forecast period.
The use of server disaggregation to improve utilization rates is an emerging trend in the market. In today's digital landscape, they play a crucial role in supporting modern business processes and automation, particularly in the context of advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML). With the rise of cloud computing, Edge computing, and the increasing global traffic driven by remote working and internet usage, their capacity demands continue to escalate. The Department of Energy highlights electricity consumption as a significant concern, as they consume vast amounts of electricity to power their IT infrastructure.
Moreover, to address this challenge, organizations are exploring innovative solutions like server disaggregation to optimize server utilization rates and reduce energy consumption. By enhancing functionality and asset performance management through maintenance and operating conditions monitoring, Enterprise Engineering Solutions enables them to accommodate the increasing demands of digital data while ensuring information security and software testing. Green data centers, which prioritize energy efficiency, are becoming increasingly important in this context. Therefore, these factors will drive the growth of the market in China.
The growing focus on consolidating data centers is a major challenge impeding market growth. In the contemporary business landscape, organizations are increasingly leveraging advanced technologies such as Cloud computing, Artificial Intelligence, and Machine Learning, leading to a surge in global traffic and digital data. Consequently, there is a growing demand for efficient solutions. Automation plays a pivotal role in modernizing business processes, enabling the management of data center capacity and remote working. The Internet, with its ubiquitous presence, has given rise to Edge computing, allowing information processing closer to the source. They are evolving to meet these demands, with a focus on energy efficiency and sustainability. Green data centers, which minimize energy consumption, are gaining popularity.
However, the Department of Energy emphasizes the importance of optimizing asset performance management, maintenance, and operating conditions. Enterprise Engineering Solutions provide functionality and security concerns, ensuring data integrity and compliance with software testing regulations. In this context, storage virtualization is crucial for managing data storage and improving access to services. The consolidation of these through Cloud computing reduces the need for individual data centers and lowers operational costs. However, information security remains a significant concern, necessitating robust infrastructure and continuous monitoring. Hence, such factors may hinder the growth of the market in China during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
China Telecom Corp. Ltd. - The company is engaged in the integrated telecommunications business. The key offerings of the company include data centers such as China Telecom Global Data Center.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth by the IT infrastructure segment will be significant during the forecast period. This segment witnessed the highest revenue growth in 2022. The IT infrastructure is further segmented into servers, storage systems, and networking solutions.
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The IT infrastructure segment was valued at USD 15.72 billion in 2017. In the dynamic digital services market, information storage needs continue to grow, driving the expansion of data centers. Regulatory requirements and an increasing user base necessitate business scalability and high storage capacity. To meet these demands, efficient infrastructure and computing power are essential. Sustainability is a key consideration, with green data centers utilizing renewable energy sources such as solar, wind, and hydroelectric electricity. Energy-efficient solutions are also crucial for reducing operational costs.
Segment Overview
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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In the dynamic and expanding market, effective marketing strategies are crucial for success. Data Centers, located in Clouds, serve as essential infrastructure for businesses, providing essential services such as storage, server capacity, and connectivity. Data Centers in the US are in high demand, with cities like Dallas, Atlanta, Chicago, and Seattle being major hubs. These centers offer scalability and capacity, enabling businesses to grow and adapt to changing needs. Effective marketing requires a deep understanding of the customer base. Renewable energy, such as hydroelectric power, is increasingly important to environmentally-conscious clients.
Furthermore, power and cooling are significant considerations, with efficient systems reducing costs and increasing competitiveness. Capacity and connectivity are also key selling points, with high-speed networks and robust infrastructure attracting businesses. Marketing efforts should focus on showcasing the unique features and benefits of each Data Center. This includes its location, power sources, cooling systems, connectivity, and security measures. Engaging with potential clients through targeted digital marketing, industry events, and partnerships can also be effective strategies. Ultimately, a successful marketing campaign will effectively communicate the value and capabilities of the Data Center to potential clients.
Moreover, the demand for energy efficient solutions in the realm of data centers is escalating, driven by the rapid expansion of 5G networks and the need for enhanced data transmission speeds. As a result, micro data centers are gaining prominence, offering portable and compact alternatives to traditional setups. These modularized data centers present solutions to mitigate the high initial cost associated with establishing large-scale facilities, catering to both data center operators and small enterprises alike. The hardware segment encompasses enterprise network equipment and UPS (Uninterruptible Power Supply) systems, while the software segment focuses on optimizing server rack density and Power Usage Efficiency (PUE).
Additionally, Hyperscale data centers and modular data centers cater to the needs of cloud service providers and technology providers, respectively, addressing data center market opportunities and data center capacity concerns. With the rise of working from home trends and Internet of Things (IoT) integration, security concerns are driving the development of green data centers and innovative solutions to safeguard corporate data centers.
Industry Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 34.28% |
Market growth 2024-2028 |
USD 18.13 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
25.64 |
Regional analysis |
China |
Performing market contribution |
APAC at 100% |
Key countries |
China |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alibaba Group Holding Ltd., AT and T Inc., Baidu Inc., Beijing Sinnet technology Co. Ltd., China Mobile Ltd., China Telecom Corp. Ltd., China Unicom Hong Kong Ltd., CICC Data Group Co. Ltd., Digital Realty Trust Inc., Eaton Corp. Plc, Equinix Inc., Fujitsu Ltd., GDS Holdings Ltd., Global Switch Ltd., Shanghai Dataport Co. Ltd., Telstra Corp. Ltd., Tencent Holdings Ltd., VNET Group Inc., Wangsu Science and Technology Co. Ltd., and Zenlayer Inc. |
Market dynamics |
Parent market analysis, Market Forecasting growth, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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