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The Malaysia - data center market size is estimated to grow at a CAGR of 16.15% between 2022 and 2027. The market size is forecast to increase by USD 2,908.1 million. The growth of the market depends on several factors, including demand planning and expansion by hyper scalers, digital transformation initiatives and efforts, and the growing demand among small and medium-sized enterprises (SMEs). Data centers are facilities that consist of computing, storage, and networking components, which are used by enterprises to organize, process, store, and distribute large volumes of data. Enterprises rely heavily on applications and data, which are securely stored in data centers. Hence, data centers are a focal point and a critical asset for their day-to-day business operations
This Malaysia data center market report extensively covers market segmentation by end-user (BFSI, cloud, e-commerce, government, and others), type (data center servers, data center storage, data center powering and cooling solutions, and data center networking solutions). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Growing demand among small and medium-sized enterprises (SMEs) is the key factor driving the growth of the market. Malaysia's micro, small, and medium enterprises (MSMEs) are an integral part of the country's economy and are expected to be a key contributor to economic potential through digital transformation. Data collection provides a way to develop a more informed business approach. The use of effective data management and analysis tools offers a powerful opportunity to gain a business advantage through data-centric digital solutions. Cloud solutions provide flexible and cost-effective digital tools for businesses.
In addition, owing to the recent popularity of internet-connected devices and the growing demand for computing, microdata centers are likely to become more common in Malaysia over the projected period. In addition to SMEs, organizations in sectors such as retail, manufacturing, and banking are also expected to adopt these data centers. Therefore, the growing demand for data centers by domestic SMEs will drive the growth of the market during the forecast period.
The emergence of edge facilities is the primary trend in the market. Edge computing refers to the practice of processing data near the networks of the edge where the data is generated. Edge computing enables real-time processing of data generated near the source, allowing insights to be generated quickly. These advantages have led to an increase in the number of advanced IT solutions in Malaysia.
For example, in April 2022, Edge Centers, an Australian edge data center company, closed its Series A funding round and plans to launch facilities in Malaysia and other APAC countries. Hence, the emergence of modern facilities will drive the data center market in Malaysia during the forecast period.
Server workload optimization is a challenge that affects the growth of the market. With the emergence of cutting-edge technologies in Malaysia, such as big data analytics and artificial intelligence, companies have begun to analyze large amounts of detailed data sets. As a result, enterprises and data center service providers need complex, high-performance servers to handle these workloads. Additionally, other areas of concern are power and physical space constraints in the data center as well as the unexpected increase in enterprise server capacity demand, which further exacerbates the complications problems.
However, server market players provide infrastructure management platforms that allow data centers to solve server optimization problems. As a result, a data center server cluster can only function efficiently and meet the current and future IT needs of Malaysian companies if they actively manage it with an infrastructure management platform. This may present a challenge for suppliers and will impede the growth of the market during the forecast period.
The market share growth by the BESI segment will be significant during the forecast period. One of the largest end users in the Malaysian data center market is the BFSI (Banking, Financial Services, and Insurance) industry. Customer information, transaction records, and financial documents are all extremely sensitive financial information handled by the BFSI industry. To ensure data integrity and provide security against online threats, a secure and reliable data center platform is required.
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The BESI segment showed a gradual increase in the market share of USD 639.72 million in 2017. Data centers provide BFSI companies with access to flexible and efficient computing resources. Owing to their flexibility, BFSI organizations can adapt quickly to changing market needs. In addition to enabling secure and efficient operations, they also improve the consumer experience by providing the infrastructure and services needed to handle growing volumes of data. Hence, the growing BFSI sector in Malaysia will drive the growth of the Malaysia - data center market in the BFSI segment during the forecast period.
Data center servers process the data, run the application, and store the data processed by the applications. The different types of servers currently used in data centers are rack servers, blade servers, tower servers, microservers, and Open Computing Project (OCP) servers. SMB accounts for a significant portion of rack server demand. Over the past five years, the data server infrastructure has grown significantly in Malaysia. Due to investments in expansion and new facility construction, the market is expected to grow at a steady rate. In Malaysia, communication and colocation service providers are rapidly expanding their data centers. Major players will launch new data centers in Malaysia, which will drive the growth of the market during the forecast period.
The Malaysia Data Center Market 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 growth strategies.
Malaysia Data Center 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 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 Malaysia data center market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Malaysia Data Center Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 16.15% |
Market growth 2023-2027 |
USD 2,908.1 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.28 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Cisco Systems Inc., Cummins Inc., Cyxtera Technologies Inc., Dell Technologies Inc., DXC Technology Co., Eaton Corp. Plc, Equinix Inc., Fujitsu Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., International Business Machines Corp., Legrand SA, Lenovo Group Ltd., Microsoft Corp., NEC Corp., NetApp Inc., Nippon Telegraph And Telephone Corp., Schneider Electric SE, and Vertiv Holdings Co. |
Market dynamics |
Parent market analysis, 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 forecast period |
Customization purview |
If our 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 End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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