Data center and web hosting services revenue in Asia Pacific is estimated to reach $32 billion by 2023 — driven by demand for cloud services and digitization from both enterprises as well as the investors.
North America region will be the largest in terms of revenue market share with 34.3 percent in 2023. Asia Pacific will have market share of nearly 30 percent. Western Europe will have nearly 24 percent share.
By 2023, China will be the largest market accounting for about 36 percent of the market opportunity in APAC, followed by Japan and Australia with 22 percent and 8.3 percent, respectively.
In early 2019, Chayora opened first of its nine data centers in China. Alibaba has opened its second data center in Japan and Indonesia. AWS launched Asia Pacific (Hong Kong) data center region in April 2019. Hyperscale data center provider AirTrunk opened its second data center at Sydney in November 2019.
Investment will continue in new datacenter projects by existing and new entrants with a view to expand their presence in the region and serve additional customers.
“With the commercial availability of 5G services in the next 1-2 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,” Sunil Kumar Verma, Lead ICT Analyst at GlobalData, said.