LONDON--(BUSINESS WIRE)--Technavio analysts forecast the data center market in China to grow at a CAGR of approximately 13% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the data center market in China for 2016-2020. To calculate the market size, the report considers revenue generated from the capital expenditure (CAPEX) of IT infrastructure, power management systems, cooling solutions, general construction, racks, security, and DCIM.
Information and communications technology (ICT) is now the backbone of many government operations. Over the past decade, many government agencies have established data centers for their operations. This trend is spreading in China along with the increase in adoption of cloud-based services, big data analytics, and the IoT.
China supports global enterprises in establishing data centers in the country. Several colocation and managed cloud hosting providers are allocating private spaces in their data centers for government agencies to gain benefits of modern infrastructure, cloud, and big data analytics. The Chinese government is also involved in developing the digital economy of the country and is investing heavily in data center advances across the country.
Technavio ICT analysts highlight the following three factors that are contributing to the growth of the data center market in China market:
- Rise in demand for cloud data centers
- Increased adoption of big data analytics
- Growth of IoT
Rise in demand for cloud data centers
Data centers house the infrastructure to process and store business information, and are the major backbone for cloud operations. Many large enterprises operate cloud data centers for their daily business operations. These include CSPs such as Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba.
Rakesh Kumar Panda, a lead data center research analyst at Technavio, says, “Growing small and medium-sized enterprises prefer to run their business operations through CSPs, colocations, and web hosting cloud data centers because of benefits such as scalability, reliability, and cost reduction. Many cloud data centers are termed as mega data centers, which consume lots of power during peak data intensive operations. There is an increase in innovations over the design and deployment of micro data centers.”
Increased adoption of big data analytics
Most business and consumer-based applications generate huge amounts of structured and unstructured data. They also include sensors that generate massive data within a minute. The architecture for data generated by a single business application involves several sources. These collected data are of high volume, velocity, and variety. Big data analytics helps to understand the data and make business decisions based on them.
“Big data analytics operation among enterprises has boosted sales, increased efficiency, and improved operations, customer service, and risk management. It aids enterprises to gain a competitive advantage in the market. Analytics is suitable for large enterprises such as e-commerce solution providers like Alibaba and SMEs with increasing collection of data. Big data infrastructure spending includes compute, storage, and network and infrastructure software. Data analytics helps in faster analysis with a better utilization of computing resources,” adds Rakesh.
Growth of IoT
An IoT network is formed by the interconnection of sensing and actuating devices that have the ability to share information across platforms. This communication network is formed through large-scale sensing, data analytics, and information representation using ubiquitous sensing and cloud computing technologies. End-users can develop smart environments for the efficient management of resources. In China, many enterprises are implementing projects such as e-health, e-government, e-education, smart energy, and smart transport, which involve the use of the IoT.
In China, advances in technology, such as standardized wireless networks, encourage the use of RFID and sensors. In addition, the significant growth of the manufacturing sector in China, with improved storage systems and computing power, fosters the use of connected devices. In 2015, the Chinese IoT market was valued at USD 104.2 billion and is expected to grow to USD 248.5 billion by 2020 at a CAGR of around 19%.
Key vendors are:
| Alibaba Group |
| China Mobile Limited. |
| China Telecom Corporation Limited. |
| China Unicom |
Source: Technavio
Browse Related Reports:
- Global Data Center Precision Air Conditioning Market 2016-2020
- Global Data Center Microserver Market 2016-2020
- Data Center Cooling Market in MEA 2016-2020
Do you need a report on a market in a specific geographical cluster or country but can’t find what you’re looking for? Don’t worry, Technavio also takes client requests. Please contact enquiry@technavio.com with your requirements and our analysts will be happy to create a customized report just for you.
About Technavio
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at media@technavio.com.
