NEW
YORK, July 24, 2024 /PRNewswire/ -- The data
center market size in China is
estimated to grow by USD 181.33
billion from 2024-2028, according to Technavio. The
market is estimated to grow at a CAGR of 34.28% during the forecast
period. Rising demand for hyper-converged data centers is
driving market growth, with a trend towards use of server
disaggregation to improve utilization rates. However, growing
focus on consolidating data centers poses a challenge. Key market
players include Alibaba Group Holding Ltd., AT and T Inc., Baidu
Inc., Beijing Sinnet technology Co. Ltd., China Mobile Ltd., China
Telecom Corp. Ltd., China Unicom Hong Kong Ltd., CICC Data Group
Co. Ltd., Digital Realty Trust Inc., Eaton Corp. Plc, Equinix Inc.,
Fujitsu Ltd., GDS Holdings Ltd., Global Switch Ltd., Shanghai
Dataport Co. Ltd., Telstra Corp. Ltd., Tencent Holdings Ltd., VNET Group Inc., Wangsu
Science and Technology Co. Ltd., and Zenlayer Inc..
![Technavio has announced its latest market research report titled data center market in china 2024-2028 Technavio has announced its latest market research report titled data center market in china 2024-2028](https://mma.prnewswire.com/media/2467320/Technavio_data_center_market_in_china.jpg)
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Data Center Market
In China Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
34.28%
|
Market growth
2024-2028
|
USD 181335.6
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
25.64
|
Regional
analysis
|
China
|
Performing market
contribution
|
APAC at 100%
|
Key
countries
|
China
|
Key companies
profiled
|
Alibaba Group Holding
Ltd., AT and T Inc., Baidu Inc., Beijing Sinnet technology Co.
Ltd., China Mobile Ltd., China Telecom Corp. Ltd., China Unicom
Hong Kong Ltd., CICC Data Group Co. Ltd., Digital Realty Trust
Inc., Eaton Corp. Plc, Equinix Inc., Fujitsu Ltd., GDS Holdings
Ltd., Global Switch Ltd., Shanghai Dataport Co. Ltd., Telstra Corp.
Ltd., Tencent Holdings Ltd., VNET Group Inc., Wangsu Science and
Technology Co. Ltd., and Zenlayer Inc.
|
Market Driver
Data centers in China are
facing the challenge of increasing power consumption due to the
growing adoption of cloud computing, AI, machine learning, and IoT
workloads. To address this issue, server disaggregation is gaining
popularity as a solution. This approach logically separates server
components into memory and compute subsystems, increasing server
efficiency and reducing power consumption. With server
disaggregation, workloads can utilize exactly the resources they
need, preventing the need for replacing entire servers for just one
component. Vendors are introducing composable server infrastructure
solutions to help data centers in China allocate resources dynamically and
efficiently, driving market growth during the forecast period.
The Data Center market in China
is witnessing significant growth due to increasing digital services
and data storage needs. Regulatory requirements and expanding user
bases drive businesses to prioritize scalability and efficiency in
their infrastructure. This includes increasing storage capacity,
computing power, and adopting green data centers with renewable
energy sources like solar, wind, and hydroelectric electricity.
Energy-efficient solutions and the rollout of 5G networks are also
key trends. Businesses, including large enterprises and cloud
service providers, are investing in data centers for hyper
scalability and modern processes. The market consists of hardware
and software segments, with enterprise network equipment,
virtualization, and professional services playing crucial roles.
Traditional data centers are being replaced by modularized,
compact, and portable options, which offer cost savings and
flexibility. Despite the high initial cost, data center operators
are turning to hyperscale and hyper-dense server racks for advanced
technologies like Artificial Intelligence and Machine Learning.
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Market Challenges
- Infrastructure-as-a-Service (IaaS) is a cloud computing concept
that enables organizations to utilize virtualized computing
resources over the Internet. The adoption of IaaS has resulted in
data center consolidation, which involves reducing data center
sizes or merging facilities. This consolidation leads to cost
savings as organizations shift to common cloud platforms. However,
the transition to virtualized storage requires careful planning for
efficiency and capacity. Virtualization increases I/O streams
through resource pooling, but efficiency can be compromised due to
the high IOPS. Data center consolidation is a complex process
requiring expertise and time, and carries risks. Despite these
challenges, the focus on consolidation is expected to negatively
impact the growth of the data center market in China during the forecast period.
- The Data Center market in China is experiencing significant growth due
to the increasing demand for digital data from organizations,
driven by remote working and the internet. Hyperscale data
centers and cloud service providers lead this trend, requiring high
server rack density and advanced technologies like Artificial
Intelligence and Machine Learning. Traditional data centers face
challenges in hyper scalability, sustainability, and automation.
Modular data centers offer a solution, but small enterprises may
find the upfront costs prohibitive. Technology providers are
focusing on energy efficiency and green data centers to address
concerns over electricity consumption and sustainability. The
Department of Energy is pushing for modern business processes and
asset performance management to optimize data center capacity and
functionality. Information security is a top concern, with software
testing and enterprise engineering solutions essential for
maintaining operating conditions. Global traffic and internet usage
continue to surge, driving the need for cloud computing and edge
computing. Energy consumption remains a challenge, with electricity
costs a significant expense. Organizations must balance
functionality and cost-effectiveness while ensuring data security.
Overall, the Data Center market in China presents both opportunities and
challenges for businesses and technology providers alike.
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Segment Overview
This data center market in China report extensively covers market
segmentation by
- Component
- 1.1 IT infrastructure
- 1.2 Power management
- 1.3 Mechanical construction
- 1.4 General construction
- 1.5 Others
- End-user
- 2.1 BFSI
- 2.2 Telecom and IT
- 2.3 Government
- 2.4 Energy and utilities
- 2.5 Others
- Geography
1.1 IT infrastructure- The Data Center market in
China continues to grow, with
significant investments from domestic and international companies.
In 2020, the market size was valued at over USD30 billion and is projected to reach
USD60 billion by 2025. Key drivers
include increasing digitalization, cloud adoption, and data
protection regulations. Companies like Alibaba, Tencent, and Huawei are major players, expanding
their data center capacities to meet growing demand. China's favorable business environment and
large population make it an attractive market for data center
investments.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
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reports
The global Data Center Colocation and Managed Hosting Services
Market is experiencing significant growth, driven by increasing
demand for scalable, cost-effective IT solutions. Parallelly, the
global Containerized and Modular Data Center Market is expanding
due to rising adoption of flexible and efficient data center
solutions. Additionally, the global Data Center Infrastructure
Management (DCIM) Solutions Market is thriving as organizations
seek enhanced visibility and control over data center operations.
These markets are pivotal in supporting the evolving needs of
businesses in a rapidly digitizing world.
Research Analysis
The Data Center Market in China
is experiencing significant growth due to the increasing demand for
digital services and expanding user base. Businesses require more
storage capacity and efficient infrastructure to support modern
processes and advanced technologies like Artificial Intelligence
and Machine Learning. Regulatory requirements are also driving the
need for data centers that prioritize sustainability and energy
efficiency. Renewable energy sources, such as solar, wind, and
hydroelectric electricity, are being integrated into data centers
to reduce carbon emissions. Hyper scalability and automation are
essential for business scalability, while energy-efficient
solutions and 5G network enable faster data transmission speeds and
edge computing services. Micro data centers and cloud services are
also gaining popularity among large enterprises for their
cost-effectiveness and flexibility. Overall, the Data Center Market
in China is a dynamic and
innovative space, driven by the demands of the digital economy and
the pursuit of sustainability.
Market Research Overview
The Data Center Market in China
is experiencing significant growth due to the expanding user base
and increasing digital services adoption. Businesses require more
data storage needs to support modern business processes, leading to
a surge in demand for efficient infrastructure with high computing
power. Regulatory requirements for data security and sustainability
are driving the adoption of green data centers, which utilize
renewable energy sources like solar, wind, and hydroelectric
electricity. Energy-efficient solutions are essential for data
center operators to reduce their carbon footprint and lower
operating costs. The market comprises various segments, including
hardware, software, and professional services. The hardware segment
includes server racks, enterprise network equipment, and
virtualization solutions. The software segment offers cloud
services, data transmission services, and edge computing services.
Modularized data centers, micro data centers, and portable data
centers are gaining popularity for their scalability and
flexibility. Despite the high initial cost, large enterprises are
investing in hyperscale data centers for hyper scalability and
advanced technologies like Artificial Intelligence and Machine
Learning. Small enterprises and cloud service providers are also
adopting data centers to support remote working and increasing
internet usage. The market is expected to continue growing, driven
by the global traffic and digital data generated by organizations.
The Department of Energy is also promoting energy efficiency and
sustainability in data centers to address concerns over electricity
consumption and functionality.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Component
-
- IT Infrastructure
- Power Management
- Mechanical Construction
- General Construction
- Others
- End-user
-
- BFSI
- Telecom And IT
- Government
- Energy And Utilities
- Others
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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