Dublin, Nov. 15, 2024 (GLOBE NEWSWIRE) — The “Asia Pacific Data Center Colocation Market – Forecasts from 2024 to 2029” report has been added to ResearchAndMarkets.com’s offering.
The Asia Pacific data center colocation market is estimated to reach US$45.176 billion in 2029 from US$24.255 billion in 2024 at 13.25% (CAGR).
The Asia Pacific harbors some of the biggest and fastest-growing economies in the world. These economies are witnessing a significant boom in infrastructure and high adoption of IT solutions. This has augmented the demand for colocation space, thereby driving the colocation market. Strategic collaboration by market players to expand colocation services in Asian nations has further fueled the market expansion.
In addition, as the data requirement keeps growing, so does the rising demand for efficient information technology (IT) infrastructure in the region. The growing data traffic in enterprises, both small and medium and larger, has accelerated the colocation options, owing to which investments in such facilities to maintain troubleshooting issues and bolster data storage and privacy are witnessing positive traction, thereby augmenting the market expansion.
Asia Pacific Data Center Colocation Market Drivers
Growing corporate culture in major APAC economies is augmenting the market growth.
China has witnessed tremendous economic growth over the last decade and has become a major economic superpower globally. The favorable investments in new business establishments to bolster industrial productivity and generate employment have provided a major stepping stone for the colocation facilities establishments in Asia. For instance, according to the State Administration of Market Regulation (SAMR), from January to September 2023, new business establishments experienced 12.7% growth over the preceding time frame, with the strength of new company formation showcasing 15.4% growth.
Additionally, implementing new policies to bolster new business establishments is further acting as an additional driving factor for colocation facilities. These facilities have revolutionized the way data is stored and processed, thereby creating a new path for organizations to create a backup for their data. In November 2022, the Japanese government launched the “Startup Development Five-Year Plan”, which aimed to bolster startup bolster strength in the economy in the next five years.
Asia Pacific Data Center Colocation Market Segmentation Analysis
The retail colocation model is estimated to show the quickest growth.
The Asia Pacific data center colocation market, based on the colocation model, is divided into wholesale and retail. The latter is poised for the quickest growth fueled by its cost-effective nature as it enables organizations to lease space inside data centers, thereby benefiting from interconnection services. Likewise, the wholesale model is expected to account for a considerable market share attributable to its ability to provide robust infrastructure, high-security measures, and power densities, thereby addressing an organization’s data computational needs.
The BFSI sector is poised for a significant expansion.
By industry vertical, the Asia Pacific data center colocation market is analyzed into BFSI, manufacturing, communication and technology, healthcare, energy, government, media and entertainment, and others. The BFSI sector is anticipated to witness significant growth fueled by the growing emphasis on complex data management by major corporate banks and other financial institutions. Additionally, economies are implementing private data security policies, further bolstering the market demand.
The manufacturing, communication, and technology sectors are expected to constitute a remarkable share of the market as major economies, namely China and India, implement strategies to enhance their manufacturing capacity and establish new IT centers.
China, Japan, and India are expected to witness high growth during the projected period
Country-wise, the Asian Pacific data colocation market is analyzed into China, Japan, India, Australia, South Korea, and others. Major regional economies, namely China, Japan, and India, are anticipated to account for considerable market share. They will show remarkable growth fueled by favorable investment in business, which is driving expansion in their corporate culture. For instance, according to the State Administration for Market Regulation (SAMR), from January-September 2023, the number of private firms increased by 15.3% growth, and foreign-funded firms experienced 29.3% compared to the previous year.
Likewise, according to the PIB February 2024 release, as of December 2023, the DPIIT (Department for Promotion of Industry and Internal Trade) recognized startups stood at 1,17,254, which witnessed positive growth due to favorable government efforts & investments. Such positive growth in the corporate culture will bolster the requirement to improve IT infrastructure with modern options that could ease the overall data storage and processing function, making colocation an ideal option. Additionally, the well-established presence of major market players such as Equinix, Verizon, Telehouse, and Rackspace has further propelled the regional market expansion.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 78 |
| Forecast Period | 2024 – 2029 |
| Estimated Market Value (USD) in 2024 | $24.26 Billion |
| Forecasted Market Value (USD) by 2029 | $45.18 Billion |
| Compound Annual Growth Rate | 13.2% |
| Regions Covered | Asia Pacific |
Companies Featured
- Equinix
- Rackspace
- Telehouse
- Verizon
- Colt Technology Services
- Zayo Group
- CenturyLink
- Coresite
- Internap
- Cyxtera
he Asia Pacific Data Center Colocation market is segmented and analyzed as follows:
By Colocation Model
- Retail Colocation
- Wholesale Colocation
By Enterprise Size
By Industry Vertical
- BFSI
- Manufacturing
- Communication and Technology
- Healthcare
- Energy
- Government
- Media and Entertainment
- Others
By Country
- China
- Japan
- India
- Australia
- South Korea
- Others
For more information about this report visit https://www.researchandmarkets.com/r/8wgrua
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- Asian Pacific Data Center Colocation Market
