The Asia Pacific colocation services market is set to reach US$9.7 billion by 2024, growing off the back of solid demand for data centres in the region.
This is according to research firm GlobalData, which claimed that the slated success in the colocation services market stems from growing demand for data centres for social media platforms, global cloud providers, media content and video streaming, e-commerce platforms and banking services.
Driving this growth, the research firm said, is the increasing use of social media, penetration of smartphones, a growing internet population, the adoption of hybrid and public cloud services and the need for enterprises to migrate from a server room environment to data centres.
“Digital business continues to redefine the interaction relationships between the service providers and end-users with the engaged entities transacting either constantly or sporadically. Factors like digital innovations and technological advancements are augmenting the growth of data in various industries, said Sunil Jumar Verma, lead ICT analyst at GlobalData.
“The growing demand for storing huge volumes of data, coupled with improving efficiency across business operations, provides growth opportunities to colocation service providers.”
“Digital transformation initiatives across the enterprises are bound to create demand for new IT infrastructure. Additionally, technical requirements to support maximum workload flexibility for provisioning additional IT infrastructure during peak period would further add to the growing demand for colocation services in future.”
Leading the charge for APAC colocation services revenue market share by 2024 is to be China with a predicted 37.4 per cent, followed by Japan with 21.3 per cent.
Examples of the level of colocation services investment in the top two countries within the last 12 months by the research firm include Equinix’s joint venture with Singapore investor GIC for the construction and operation of hyper-scale data centres in a project valued at over US$1 billion, as well as China’s Alibaba Cloud spending ¥200 billion on its data centre infrastructure.
Rounding out the top five was Australia in third place with a predicted 2024 market share of 9 per cent, India in fourth place with 6.1 per cent, and then South Korea with 5.8 per cent.