APAC Data Centre Market Holds Second Place On The Revenue League Table
This is not the first the data centre industry has heard about the strong growth the Asia Pacific region is set to bear witness to following an array of reports released throughout the year.
This time, it has been predicted that the APAC market’s data centre and hosting services revenue is set to hit $32bn by 2023, according to GlobalData.
The data and analytics firm has noted that enterprises are increasingly migrating their existing resources to data centres with the aim of reaping benefits from data.
“The data centre and hosting market growth in APAC will be driven by growing demand for cloud services and digitization from both enterprises as well as the investors,” said Sunil Kumar Verma, Lead ICT Analyst at GlobalData.
“The APAC region provides the leading vendors with unique benefits in terms of costs, continuous investment in connectivity infrastructure upgrades and capability to serve a broader set of customer requirements in their pursuit for digital transformation.”
The North America region will be the largest in terms of overall revenue market share with 34.3% in 2023, APAC will have a market share of nearly 30%, followed by Western Europe (nearly 24%), according to reports.
The firm also revealed that by 2023, China will be the largest market accounting for about 36% of the overall market opportunity in APAC, followed by Japan and Australia with 22% and 8.3%, respectively.
The region is expected to witness increased interest from the leading vendors to leverage the existing opportunity in the region.
At the beginning of 2019, Chayora opened first of its planned nine data centres in China, whereas Alibaba opened its second data centre in Japan and Indonesia.
AWS launched its Asia Pacific (Hong Kong) data centre region in April 2019, and hyperscale data centre provider AirTrunk opened its second data centre in Sydney last month.
“Investment will continue in new data centre projects by existing and new entrants with a view to expand their presence in the region and serve additional customers,” concluded Verma.
“Additionally, with the commercial availability of 5G services in the next 1-2 years, data consumption is expected to grow multiple-folds.
“This will result in constant connectivity requirements as well as data centre supported features, for supporting the critical business applications and activities of the enterprises.”
Industry: Data Centre / Data Center
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