China 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: 06-Nov-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : IC2437
China Data Center Market Overview
The China Data Center Market size was valued at USD 14.47 billion in 2023, and is predicted to reach USD 33.37 billion by 2030, at a CAGR of 12.7% from 2024 to 2030.
The data center market, also referred to as the network infrastructure market, encompasses the complete lifecycle of specialized infrastructure designed for hosting computing systems, spanning from initial planning to construction, operation, and ongoing maintenance. This infrastructure includes diverse components such as servers, storage systems, and networking gear, facilitating services such as cloud computing and connectivity solutions. Presently, the industry witnesses widespread adoption of cloud services, alongside the emergence of edge computing to mitigate latency issues.
Key trends within the sector include a growing emphasis on sustainability, heightened focus on cybersecurity, the integration of hybrid and multi-cloud approaches, and the impact of 5G networks. These trends underscore the industry's adaptation to meet the increasing demand for scalable, efficient, and secure data processing and storage solutions amidst the era of digital transformation. Projections by the United States International Trade Commission anticipate substantial growth in the data processing and storage China data center market, with estimates rising from USD 56 billion in 2020 to USD 90 billion by 2025.
Growing Digital Economy is Significantly Driving the Market Growth
China's dominance in the global data centre arena is indisputable, with a staggering 440 operational facilities sprawled across the nation, as per CloudScene's comprehensive data analysis. This extensive network of the market underscores China's strategic positioning as a frontrunner in the digital revolution. Contributing significantly to this digital prowess is China's remarkable digital economy, a behemoth that accounted for a remarkable 41.5% of its GDP, translating to a staggering 7.25 trillion US dollars in 2022.
This astronomical figure underscores the nation's robust digital infrastructure and its pivotal role in propelling China's modernization agenda forward. This exponential growth in the digital domain is poised to exert a profound influence on the trajectory of the industry within China.
As evidenced by the nation's resolute commitment to digital advancement, exemplified by high-profile events such as the 6th Digital China Summit, it's clear that China is steadfast in its mission to harness the power of technology to fuel its economic growth and societal development agendas.
Innovation in Data Center Solutions by Chinese Firms is Fuelling the China data center Market Growth
Chinese firms' relentless pursuit of innovation in the market domain emerges as a significant driver fuelling market demand. Notably, China achieved a ground-breaking milestone with the construction of the world's inaugural submerged commercial data center off the coast of Hainan Island. This ambitious endeavor, executed in collaboration with Highlander and China Offshore Oil Engineering Co. (COOEC), harnesses underwater cooling technology for enhanced energy efficiency.
However, environmental considerations underscore the need for cautious evaluation amidst this ground-breaking initiative. Furthermore, Guizhou's rapid ascent as a market powerhouse within China signals a new frontier in the industry's expansion.
With ambitious targets of reaching 800,000 racks and 4 million servers by 2025, and already hosting 18 operational centers, including industry giants such as Huawei and Tencent, Guizhou is poised to emerge as a world-class data hub, further propelling the growth of the market in China.
High Initial Investment Hinders Market Growth
The data center industry faces formidable challenges, primarily attributed to the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands significant upfront financial commitments, creating obstacles for smaller enterprises and start-ups seeking entry into the market. Additionally, ongoing compliance with environmental standards mandates continuous investment in energy-efficient technologies hinders the overall China 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 data center market expansion. By minimizing latency and facilitating real-time processing, edge computing empowers applications such as the Internet of Things (IoT) and Augmented Reality (AR), alleviating the burden on centralized cloud data centers while providing scalability and flexibility.
This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, paving the way for diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada signify the escalating interest in edge computing solutions, signalling a concerted effort to address connectivity challenges and bridge the digital divide.
Competitive Landscape
The key players operating in the China data center industry include China Telecom, Equinix, Zenlayer, Amazon Web Services (AWS), EdgeConnex, Microsoft Azure, Telehouse, Rackspace, Apple Inc., Princeton Digital Group (PDG) and others.
China 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 14.47 Billion |
|
Revenue Forecast in 2030 |
USD 33.37 Billion |
|
Growth Rate |
CAGR of 12.7% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (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
-
China Telecom
-
Equinix
-
Zenlayer
-
Amazon Web Services (AWS)
-
EdgeConnex
-
Microsoft Azure
-
Telehouse
-
Rackspace
-
Apple Inc.
-
Princeton Digital Group (PDG)
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