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The Southeast Asia - Data Center Market size is estimated to grow at a CAGR of 6.6% between 2023 and 2024. The market size is forecast to increase by USD 3,694.53 million. The growth of the market depends on several factors, including the rise in the adoption of multi-cloud and network upgrades to support, the increase in the application of IoT, and increasing digital transformation initiatives. 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 Southeast Asia data center market report extensively covers market segmentation by end-user (BFSI, energy, IT, and others) and component (IT infrastructure, electrical construction, mechanical construction, general construction, and security solutions). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 to 2022.
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The rise in adoption of multi-cloud and network upgrades to support is notably driving the market growth. Multi-cloud uses two or more cloud computing services to individually deploy specific application services. Enterprises are embracing multi-cloud architecture to prevent data loss or downtime due to a localized component failure, ensure security compliances, and meet workload requirements. Investments in 5G testing and deployment are driven by increased data traffic, owing to the rising adoption of IoT devices and big data analytics, as well as the growing consumption of online video and audio content.
Moreover, with the implementation of 5G technologies and the consequent increase in speed, the rate at which data is generated, transmitted, and consumed will grow. This will drive the demand to upgrade the existing data center network infrastructure and increase new data centers constructed closer to the data origins to reduce latency. Adopting a multi-cloud strategy and the advent of 5G technology will drive the growth of the data center market in Southeast Asia during the forecast period.
The shift toward large data center facilities is an emerging trend shaping market growth. In Southeast Asia, there is a visible shift toward large, multi-storied data center facilities. Land shortage and the high cost of land acquisition are some of the factors that are prompting service providers to build high-capacity multi-story data center facilities. Colocation service providers and CSPs are looking to build larger data center facilities with higher gross floor areas than that available today. Some service providers are also looking to build multi-storied 150 MW data center facilities in the region. Large data center facilities will have a higher number of storage and computer resources and can serve more clients than small data center facilities.
In addition, the maintenance of such large data centers is also a simpler task for service providers than the management of multiple small data centers. Such large data centers can also help service providers to remain competitive in terms of pricing which will result in the Southeast Asia data center market expansion. Thus, a shift toward large data center facilities will positively impact the growth of the market in focus during the forecast period.
Increasing power consumption by data centers is a significant challenge hindering market growth. An exponential increase in data traffic due to a rise in internet penetration, the growing use of social networking sites, the implementation of automation technologies, smart city initiatives, and the implementation of AI across industries are driving investments in data centers. In a data center, servers and cooling solutions account for a major share of electricity consumption.
Moreover, enterprises are slowly moving toward energy-efficient infrastructure models for the construction of data centers, which will add extra cost to the vendors operating in the Southeast Asia data center market. Thus, the increasing power consumption will negatively impact the growth of the market in focus during the forecast period
The market share growth by the BFSI segment will be significant during the forecast period. One of the most important end-users in the Southeast Asia data center market is the BFSI sector (banking, financial services, and insurance). The massive volumes of data produced by the BFSI sector must be managed and stored, and data centers are essential for this management and storage. Customer information, transaction records, and financial papers are all extremely sensitive financial information that is handled by the BFSI sector.
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The BFSI segment was the largest and was valued at USD 3,372.70 million in 2018. BFSI businesses in Southeast Asia can gain better network performance and connectivity by utilizing data center services. High-speed internet access and low-latency network connections, which are necessary for carrying out real-time transactions and delivering flawless online consumer experiences, are frequently offered by data centers. Overall, data centers are essential to enabling Southeast Asia BFSI industry digital transformation. In addition to enabling secure and effective operations, they also improve consumer experiences by providing the infrastructure and services required to handle the increasing volume of data. Thus, the growing BFSI industry in Southeast Asia will drive the growth of the data center market in Southeast Asia in the BFSI segment during the forecast period.
The IT infrastructure is the most critical component of data center facilities. It addresses the computing and storage needs of enterprises. IT infrastructure is critical for the day-to-day business operations of enterprises. IT infrastructure is further classified into five categories. Datacenter operators usually keep the disaster recovery site at a different location. Therefore, if there is an issue at the primary site, the disaster recovery site helps to ensure business continuity. Resiliency and business continuity are the primary contributors to the growth of backup and recovery solutions in Southeast Asia. This, in turn, will increase the demand for IT infrastructure and thus positively impact the growth of the segment and the Southeast Asia - data center market in focus during the forecast period.
The Southeast Asia 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.
Southeast Asia 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.
ABB Ltd. - The company offers data center solutions such as intelligent grid connection, data center power distribution, and data center power protection.
Cummins Inc. - The company offers data center such as X series transfer switch series, KTA38 series, and C1500D6E centum series generators.
Cisco Systems Inc. - The company offers data centers such as Cisco Nexus 9300 Series switches with flexible configurations, functioning as spine or leaf.
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 Southeast Asia Data Center Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
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Data Center Market In Southeast Asia Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.6% |
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Market Growth 2024-2028 |
USD 3,694.53 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.04 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., Caterpillar Inc., Cisco Systems Inc., Cummins Inc., Cyber Power Systems Inc., Dell Technologies Inc., Delta Electronics Inc., Eaton Corp. Plc, Fuji Electric Co. Ltd., HITEC Power Protection BV, KOHLER Co., Langley Holdings Plc, Legrand SA, Mitsubishi Electric Corp., Modine Manufacturing Co., Rittal GmbH and Co. KG, Schneider Electric SE, STULZ GmbH, Trane Technologies plc, and Vertiv Holdings Co. |
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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, and Market condition analysis for the forecast period. |
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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. |
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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 Component
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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