Asia Pacific Data Center Server Market size valued at USD 10 billion in 2020 and is projected to witness 13% growth between 2021 and 2027.
The increasing data traffic will result in a rise in the number of data center construction projects, spurring the demand for high-quality servers for data storage. The rise in the number of consumers using digital technologies, such as video on-demand, contactless payments, and online banking, has resulted in the rising demand for large-scale data centers with robust memory and processing power. There is a rise in the number of hyperscale data center establishments in several countries including South Korea, India, Singapore, and Australia in response to the growing demand for data processing and storage.
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COVID-19 pandemic negatively impacted the data center server market in 2020 due to the stringent lockdown measures imposed by government organizations to stop the spread of the virus. New data center projects were delayed due to disruptions in supply chains. With the relaxations in the lockdowns in 2021, followed by the recommencement of industrial facilities, the market has regained traction in 2021. With corporate organizations and educational institutions employing remote working techniques, the sharp rise in the amounts of digital data will spur the demand for advanced data center servers.
The growing popularity of micro & modular data centers will support the adoption of micro servers that feature a compact size & high processing capability. Micro data center providers are implementing rack systems that can accommodate more servers per unit area, expanding the data processing capacity. This has spurred the demand for compact servers that ensure robust performance.
Players are launching high-performance micro servers to capitalize on the expanding modular data center market. For instance, in February 2020, Dell Technologies Inc. introduced a new compact micro data center that features a streaming analytics engine to analyze data at the edge, a small-footprint server, and an updated tool for secure & remote management. With the launch, the company aims to enhance its product offerings.
The rise in the number of large data center construction projects to cater to the surging amounts of data will propel the Asia Pacific data center server market growth. There will be an increasing demand for servers with robust processing & storage capabilities from large cloud data centers. Multinational companies are establishing large data centers in the Asia Pacific region to enable efficient management of the surging amounts of data. Players such as IBM Corporation and Microsoft Corporation are also expanding their regional presence in several countries in the region.
Major players operating in the Asia Pacific data center server market include Fujitsu Ltd., Huawei Technologies Co. Ltd., Cisco Systems Inc., Dell Technologies Inc., Hitachi Ltd., IBM Corporation, Hewlett Packard Enterprise Co., Lenovo Group Ltd., NEC Corporation, Oracle Corporation, and ATOS SE.
New product launches to strengthen market position and expand product portfolio are the key strategy amongst companies. For instance, in April 2021, Cisco Systems Inc. launched new server solutions supported by 3rd Gen Intel Xeon Scalable processors to bring enhanced security capabilities and performance to customers’ hybrid cloud infrastructure.