Taiwan Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: ICT & Media | Publish Date: 16-Jul-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : N/A
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Taiwan Data Center Market Overview
The Taiwan Data Center Market size was valued at USD 643.7 million in 2023, and is predicted to reach USD 1865.9 million by 2030, at a CAGR of 16.4% from 2024 to 2030. The data center market, also known as the network infrastructure market, covers the entire lifecycle of specialized infrastructure for hosting computing systems, from initial planning and construction to ongoing operation and maintenance. This market includes a variety of components such as servers, storage systems, and networking equipment, together provide services such as cloud computing and connectivity solutions.
Currently, the industry is experiencing widespread adoption of cloud services and the rise of edge computing aimed at reducing latency. Key trends shaping the market include a strong emphasis on sustainability, increased cybersecurity concerns, the integration of hybrid and multi-cloud approaches, and the growing influence of 5G networks. These trends highlight the industry's proactive efforts to meet the rising demand for scalable, efficient, and secure data processing and storage solutions amid the ongoing digital transformation. According to projections by the United States International Trade Commission, the data processing and storage market is expected to grow from USD 56 billion in 2020 to USD 90 billion by 2025.
The Presence of Robust Semiconductor Industry Boosts the Taiwan Data Center Market Growth
Taiwan boasts a robust economy, producing 65% of the world's semiconductors and nearly 90% of advanced chips. It serves as a vital connectivity hub and rapidly expanding network infrastructure market in the APAC region.
The industry's growth in Taiwan is propelled by factors such as the adoption of 5G and AI/ML technologies, increasing demand for cloud services, and a rising need for big data and IoT solutions. In March 2023, Taiwan launched the Taiwan AI Center of Excellence (Taiwan AICoE) to boost AI development, leading to increased data traffic and a rising demand for efficient data center infrastructure.
Adoption of Initiatives by Key Players Propels the Taiwan Data Center Market Growth
Moreover, global companies are expanding their businesses into the Taiwan data center industry, creating a favorable environment for the market. Recently, Vantage Data Centers expanded into Taiwan with a USD 16 million data center, TPE1, opening in mid-2024. The 16MW facility caters to rising AI demand and strengthens Vantage's global reach.
Additionally, local Taiwanese company Foxconn partnered with Far EasTone Telecom in Taiwan to launch a new Huyue Cloud network infrastructure while adopting a hybrid multi-cloud structure with VMware technology. Foxconn and Nvidia plan an "AI factory" using Nvidia chips. Singapore's IMDA also introduces a sustainability standard for tropical network infrastructure to optimize energy efficiency.
High Initial Investment Challenges the Market Growth
The data center market faces significant hurdles, primarily due to the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands considerable upfront financial commitments, creating barriers for smaller enterprises and startups attempting to enter the market. Additionally, ongoing compliance with environmental standards necessitates continuous investment in energy-efficient technologies hinders the overall Taiwan data center market growth.
Integration of Edge Computing Presents Lucrative Opportunity for Market Expansion
The integration of edge computing into market operations presents promising prospects for the industry's growth. By minimizing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), reducing the load on centralized cloud network infrastructure market while providing scalability and flexibility.
This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, creating diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada indicate the growing interest in edge computing solutions, signaling a concerted effort to address connectivity challenges and bridge the digital divide.
Competitive Landscape
The key market players operating in the Taiwan data center industry include Amazon.com Inc., IBM Corporation, Microsoft Corporation, Cisco System Inc., Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, NTT Communications Corporation, Equinix Inc., Digital Reality Trust Inc. and others.
Taiwan Data Center Market Key Segments
By Type
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Colocation
-
Hyperscale
-
Edge
-
Others
By Deployment Model
-
On-Premises
-
Cloud
-
Hybrid
By Enterprise Size
-
Large Enterprise
-
Small and Medium Size Enterprise
By End User
-
BFSI
-
IT and Telecom
-
Government
-
Energy and Utilities
-
Other End Users
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 643.7 Million |
|
Revenue Forecast in 2030 |
USD 1865.9 Million |
|
Growth Rate |
CAGR of 16.4% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Million (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
KEY PLAYERS
-
Amazon.com Inc.
-
IBM Corporation
-
Microsoft Corporation
-
Cisco System Inc.
-
Oracle Corporation
-
SAP SE
-
Hewlett Packard Enterprise Company
-
NTT Communications Corporation
-
Equinix Inc.
-
Digital Reality Trust Inc.
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