LONDON — With a significant number of companies expanding to serve their global client base, the Asia-Pacific (APAC) region is set to witness a strong growth in terms of data center and hosting services revenue. Against this backdrop, the market is estimated to reach around $32 billion by 2023, behind only to North America, according to GlobalData.
“The data center 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.
Though the North America region will be the largest in terms of overall revenue market share with 34.3% in 2023, APAC will come close with 30%, followed by Western Europe (nearly 24%).
“The APAC region provides the leading vendors with unique benefits in terms of costs, continuous investment in connectivity infrastructure upgrades, and the capability to serve a broader set of customer requirements in their pursuit for digital transformation,” Verma said.
By 2023, China will be the largest APAC market, accounting for about 36% of the overall market opportunity in region, followed by Japan and Australia with 22% and 8.3%, respectively.
“Investment will continue in new data center projects by existing and new entrants with a view to expand their presence in the region and serve additional customers,” Verma said. “Additionally, with the commercial availability of 5G services in the next one to two years, data consumption is expected to grow multiple-folds. This will result in constant connectivity requirements as well as data center supported features for supporting the critical business applications and activities of the enterprises.”