Asia Pacific Hyperscale Data Center Market size valued at USD 4 billion in 2020 and is anticipated to exhibit a CAGR of 18% between 2021 and 2027.
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The expanding BFSI industry adopting technologies, such as online banking and digital payments, will drive the need for hyperscale data centers for data traffic management. To stay up with the competition, the players in the BFSI industry are spending extensively in data center infrastructure and focusing on cloud solutions due to their cost-effectiveness and flexibility. With the increasing use of digital payment systems, there is a significant increase in the demand for high-performance solutions to store the increasing volumes of digital data. The players in the financial industry are consolidating their data centers, enabling financial service providers to minimize costs while improving connectivity and performance, driving the demand for high-quality hyperscale data centers.
The COVID-19 pandemic had a moderate impact on the Asia Pacific hyperscale data center market. In the first half of 2020, supply chain and logistics were disrupted by the delays in shipments and the government restrictions imposed on international travel. The market regained stability in the second half of 2020, as pandemic-related restrictions were gradually relaxed. The resumption of industrial activities along with the increasing penetration of digitalization will drive the demand for hyperscale data centers. The government organizations are now focusing on supporting the use of remote working techniques and online education, boosting the use of smartphones, laptops, and tablets. The increasing data traffic due to the surge in use of digital technologies is boosting the adoption of hyperscale data centers.
Asia Pacific Hyperscale Data Center Market, By Component
The growing industrial sector utilizing modern digital technologies, such as IoT and AI, will boost the demand for hyperscale data centers for effective data management. For instance, in October 2020, the government of Australia launched a modern manufacturing plan and invested USD 1.09 billion to modernize domestic industry, strengthen supply networks, and invest in digital technology. Large scale manufacturing facilities use hyperscale data center software and services. These solutions help to monitor and regulate the performance and functionality of their IT systems. It offers the automation and monitoring of power, security, and environmental controls in the IT room and facility of the manufacturing plant.
Asia Pacific Market, By End-use
The market for hyperscale data center is witnessing growth in Asia Pacific as there is an increasing penetration of cloud computing services used to store, manage, and process critical data. For instance, in November 2021, Oracle Corporation declared the launch of the Oracle Cloud Singapore Region. This will help to meet the rising demand for enterprise cloud services in Southeast Asia, while increasing the company’s worldwide footprint to 33 cloud zones. Leading cloud service providers, including Alibaba Cloud and Tencent Cloud, are also focusing on using hyperscale data centers as they offer scalable computing capability and have technologically advanced hardware & networking components.
Asia Pacific Market, By Application
The expanding IT & telecom sector of Asia Pacific is supporting the hyperscale data center market growth. Telecom operators are focusing on improving the user experience by investing highly in data center expansion. Telecom companies are focusing on delivering reliable & robust networks and providing uninterrupted communication services to customers. This factor will fuel the demand for robust IT infrastructures required to support the smooth functioning of 5G network offered by the service providers.
Competitive Industry Landscape
Major players involved in the Asia Pacific hyperscale data center market include ABB Ltd., Alphabet Inc., Amazon Web Services, Broadcom Ltd., Cisco Systems Inc., Colt Group Holdings Ltd., Corning Incorporated, Dell Inc., Huawei Technologies Co Ltd., IBM Corporation, Intel Corporation, Lenovo Group Ltd., Microsoft Corporation, NVIDIA Corporation, and Schneider Electric SE.