Data Center - Australia

Australia

Revenue in the Data Center market is projected to reach US$5.40bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$2.87bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.51%, resulting in a market volume of US$7.06bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center Market in Australia is experiencing minimal growth, influenced by factors such as increasing adoption of digital technologies, rising demand for online services and heightened awareness of health. These factors impact the sub-markets of Servers, Storage and Network Infrastructure, contributing to the overall market growth.

Customer preferences: As the demand for data storage and processing continues to grow, there is a noticeable shift towards green and sustainable data center solutions in Australia. This is driven by increasing awareness and concern for the environment, as well as the rising costs of energy and resources. As a result, there is a growing preference for data centers that utilize renewable energy sources and implement energy-efficient measures. This trend is expected to continue as consumers become more environmentally conscious and prioritize sustainability in their purchasing decisions.

Trends in the market: In Australia, the Data Center Market is experiencing a surge in demand for cloud services, with companies increasingly relying on remote solutions for data storage and management. This trend is expected to continue, driven by the growth of e-commerce, remote work, and the Internet of Things. As a result, data centers are expanding their capabilities, investing in renewable energy sources, and implementing advanced security measures. This shift towards digitalization and sustainability has significant implications for businesses, as they seek to stay competitive and meet evolving consumer expectations. It also presents opportunities for data center providers to innovate and offer more efficient and environmentally-friendly solutions.

Local special circumstances: In Australia, the Data Center Market is influenced by the country's vast and sparsely populated landmass, leading to a focus on energy-efficient and environmentally sustainable data centers. Additionally, the government's strict privacy laws and regulations have played a significant role in shaping the market, with data security being a top priority. The unique blend of Western and Asian cultures in Australia also drives demand for diverse data center services, catering to a multicultural population.

Underlying macroeconomic factors: The Data Center Market in Australia is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in digital infrastructure. With the rise of cloud computing and the increasing demand for data storage and management, Australia's strong investment in digital infrastructure has positioned it as a key player in the global data center market. Additionally, the country's stable economy and supportive regulatory environment have attracted significant investments from both domestic and international players, further driving market growth. Moreover, the growing reliance on digital technologies in various industries and the increasing adoption of IoT devices are expected to further boost the demand for data center services in Australia.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.