Asia Pacific Data Center Colocation Market

Market Introduction

The data center colocation market in APAC is segmented into China, India, Japan, Australia, South Korea, and the Rest of APAC. Rise in industrialization, low labor costs, positive economic developments, favorable economic policies, and increase in foreign direct investments (FDIs) make APAC a significant contributor to the region’s economic growth. Governments across the APAC region are establishing initiatives such as Made in China 2025 and Make in India, in order to make the respective countries self-sufficient, which is encouraging the growth of the data center colocation market. Substantial growth in the e-commerce and  IT & telecom industries due to increasing population and rising penetration of the internet is also boosting the construction of data center colocation facilities. Traditional retail and wholesale businesses are investing in digital technologies to accelerate their e-commerce business and cross-border trade activities. This, in turn, is propelling the growth of the e-commerce industry in Asia Pacific. The generation of huge volumes of data has accelerated the demand for data center colocation facilities in the region to gain flexible scalability, better uptime reliability, improved resource allocation, and enhanced security and compliance. Developments in edge computing is the major factor driving the growth of the APAC data center colocation market.

According to the Organization for Economic Co-operation and Development (OECD), the pandemic affected the region's major economies, including China, India, South Korea, and Vietnam. These markets have experienced low industrial growth during the first two quarters of 2020. Banking, security, monetary administrations, telecom divisions, and data innovation are most affected by unfavorable economic conditions. The lockdown imposed by the pandemic flare-up imposed stringent limitations on the modern area's operation, disrupting the manufacturing network. In many countries, manufacturing operations were halted. In the tumultuous situation, a few activities remained fractured. In any case, the global data center colocation market continued booming due to the surge in interest in data collection, storage, and analysis, which is propelling the industry forward. In addition, the region is known for its robust industrialization, and many companies from diverse industries came with significant data storage requirements to run their operations virtually. Hence, the COVID-19 pandemic has positively influenced the data center colocation market as the number of data centers increased in the region.

Market Overview and Dynamics

The data center colocation market in APAC is expected to grow from US$ 15,551.26 million in 2021 to US$ 47,990.75 million by 2028; it is estimated to grow at a CAGR of 17.5% from 2021 to 2028. On-site management of data center infrastructure requires highly skilled IT employees. It also incurs infrastructure maintenance and server management expenditures. Moreover, constructing a new data center facility needs high initial investments that increase the overall CAPEX of enterprises. Thus, enterprises are becoming more considerate of the CAPEX spent on constructing mission-critical data centers and seeking several methods to improve return on investment (ROI) and reduce cost. The growing focus on reducing IT costs encourages business owners to explore innovative IT infrastructure options. As a large number of enterprises are shifting their IT infrastructures to the cloud to attain zero downtime and address the need to reduce IT infrastructure expenses, high-power and physical security requirements serve as major elements driving the colocation market. Today, enterprises are switching to data center colocation providers for bandwidth, space, power, and value-added services (VAS), such as internet solutions, interconnection services, and skilled managed IT services depending upon their size and requirement. This, in turn, supports increasing business potential by reducing operational expenditure, thereby maximizing the ability to concentrate on the core business. The rising demand for cloud-based colocation services with the majority of the workforce shifting to remote working is propelling the growth of the data center colocation market.

Key Market Segments

The APAC data center colocation market is segmented into type, enterprise size, industry, and country. Based on type, the market is segmented into retail and wholesale. The retail segment dominated the market in 2020 and wholesale segment is expected to be the fastest growing during the forecast period. Based on enterprise size, the data center colocation market is divided into SMEs and large enterprises. The large enterprises segment dominated the market in 2020 and SMEs segment is expected to be the fastest growing during the forecast period. Further, based on industry, the market is segmented into IT & Telecom, BFSI, healthcare, retail, and others. The IT & Telecom segment dominated the market in 2020 and BFSI segment is expected to be the fastest growing during the forecast period.

Major Sources and Companies Listed

A few major primary and secondary sources referred to for preparing this report on data center colocation market in APAC are company websites, annual reports, financial reports, national government documents, and statistical database, among others. Major companies listed in the report are AT&T Intellectual Property; CyrusOne, Inc.; Cyxtera Technologies, Inc.; Digital Realty Trust LP; Equinix Inc.; Global Switch; NTT Communications Corporation; Telehouse; and Verizon Partner Solutions. are among others.

Reasons to buy report

• To understand the APAC data center colocation market landscape and identify market segments that are most likely to guarantee a strong return
• Stay ahead of the race by comprehending the ever-changing competitive landscape for APAC data center colocation market
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• Helps to take knowledgeable business decisions from perceptive and comprehensive analysis of market performance of various segment form APAC data center colocation market
• Obtain market revenue forecast for market by various segments from 2021-2028 in APAC region.

APAC Data Center Colocation Market Segmentation

APAC Data Center Colocation Market –By Type

• Retail
• Wholesale

APAC Data Center Colocation Market –By Industry

• IT and Telecom
• BFSI
• Healthcare
• Retail
• Others

APAC Data Center Colocation Market –By Enterprise Size

• SMEs
• Large Enterprises

APAC Data Center Colocation Market -By Country

• Australia
• China
• India
• Japan
• South Korea
• Rest of APAC

APAC Data Center Colocation Market -Company Profiles

• AT&T Intellectual Property
• CyrusOne, Inc.
• Cyxtera Technologies, Inc.
• Digital Realty Trust LP
• Equinix Inc.
• Global Switch
• NTT Communications Corporation
• Telehouse
• Verizon Partner Solutions.

Asia Pacific Data Center Colocation Market Strategic Insights

Asia Pacific Data Center ColocationMarket Report Highlights

Asia Pacific Data Center Colocation Market Country and Regional Insights