Data center market in Southeast Asia to witness the emergence of green data centers by 2020

Renewable energy

 

This market research includes a detailed segmentation of the data center market in Southeast Asia by infrastructure (IT equipment, cooling solutions, power management solutions, security, general construction, rack, and DCIM). It also outlines the market shares for leading countries such as Singapore, Malaysia, Indonesia, Thailand, and others. The key vendors are Amazon Web Services (AWS), Digital Realty, Equinix, Google, Microsoft, NTT Communications, SingTel, Moratelindo, and Starhub.

Technavio’s market research analysts estimate the data center market in Southeast Asia, to grow at a CAGR of around 20% between 2016 and 2020. Factors such as the growing adoption of cloud-based services, big data analytics, and Internet-of-Things (IoT) will aid in the growth of this market. By 2020, more than 50% of SMEs in Southeast Asia are expected to operate their businesses by adopting cloud offerings from major CSPs in the market. Singapore is expected to be the largest market for data centers in Southeast Asia owing to expansion of global CSPs, such as Google, Microsoft, and Amazon Web Service, in the region.

The new market research report from Technavio provides a breakdown and analysis of the data center segments by technology.

“The construction of data centers is increasing in Southeast Asia along with the inception of containerized/modular data center solutions. CSPs, colocation service providers, and telecommunication and government agencies are playing a major role in cultivating market growth through the construction of new facilities and the expansion of existing ones. In terms of infrastructure adoption, high-performance computing infrastructure, 42U racks, liquid-based cooling systems, and efficient UPS systems are envisaged to witness rapid adoption in the next few years,” says Rakesh Panda, Lead Analyst, ICT, Technavio Research

The IT equipment segment will be the largest market segment during the forecast period, and is expected to grow at an impressive CAGR of around 20% during the forecast period. Recently, it has been observed that data center operators are increasingly focusing on the adoption of energy efficient IT infrastructures due to their ability to support growing business demands, reduce power consumption, and to ensure the efficient functioning of units in any operating environment. Since the construction of new data centers involves the adoption of IT equipment, an increase in the construction and renovation of data centers in Southeast Asia will result in this market segment’s strong growth during the predicted period

The leading vendors in the data center construction market in Southeast Asia include Amazon Web Services (AWS), Digital Realty, Equinix, Google, Microsoft, NTT Communications, SingTel, Moratelindo, and Starhub. This market is highly fragmented owing to the presence of numerous small and large vendors. The vendors in this market compete on the basis of price, quality, innovation, service, reputation, distribution, and promotion to gain maximum market traction during the forecast period. The high level of vendor competition in this market has led to an increase in the number of M&A, wherein smaller entities are being acquired by, or are being merged with, major players.

A more detailed analysis is available in the Technavio report, Data Center Construction Market in Southeast Asia 2016-2020.

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