Asia Pacific Cloud Infrastructure Market to Remain Strong to Reach Valuation of USD 593.7 Billion By 2032 | Astute Analytica

The Asia Pacific cloud infrastructure market is rapidly growing, driven by digital transformation, e-commerce expansion, and emerging markets. Key challenges include ensuring sustainable power, navigating complex IT operations, and addressing cybersecurity concerns. The market presents significant opportunities for investors and operators.

New Delhi, May 29, 2024 (GLOBE NEWSWIRE) — The Asia Pacific cloud infrastructure market to hit the market valuation of US$ 593.7 billion by 2032 from US$ 77.3 billion in 2023 at a CAGR 25.93% during the forecast period 2024–2032.

The Asia-Pacific cloud infrastructure market is experiencing unprecedented growth, driven by significant investments and rapid digital transformation across major countries in the region. China leads the charge with a data center market expected to reach USD 35 billion by 2024. This growth is fueled by the expansion of cloud services and technological advancements, placing China ninth globally in technology. Companies like Apple are investing heavily in building data centers to support their cloud infrastructure, reflecting the robust market potential.

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India is another key player in the Asia-Pacific market, with its economy projected to grow by 6.3% in 2024. This economic boom is closely tied to the adoption of cloud-based contact center solutions, which cater to the increasing demand for scalable and flexible customer service. The rapid expansion of India’s data center market is a testament to the country’s commitment to digitalization and cloud adoption. Apart from this, Indonesia’s cloud infrastructure market is also on an upward trajectory, bolstered by increasing internet penetration and digital transformation. Significant investments in data center infrastructure are being made to meet the growing demand for digital services. Similarly, Japan, with its anticipated economic growth of 2% in 2023, is a forerunner in the Asia-Pacific region. Japan’s market is driven by its leadership in technological innovations.

South Korea, another technologically advanced nation, is rapidly adopting cloud-based solutions to enhance its digital infrastructure. The expanding data center market in South Korea underscores the increasing demand for cloud services and digital transformation. Vietnam, experiencing rapid digital transformation, is witnessing a surge in demand for data center infrastructure. Significant investments are being made to support the growing digital economy and the adoption of scalable IT solutions.

Singapore, recognized as the technological hub of Southeast Asia, plays a pivotal role in the Asia-Pacific cloud infrastructure market. With a score of 40 in technological advancements, Singapore’s data center market is expanding rapidly. Investments in cloud infrastructure are crucial to support the growing demand for digital services in the region.

Key Findings in Asia Pacific Cloud Infrastructure Market

Market Forecast (2032) US$ 593.7 billion
CAGR 25.93%
By Component Hardware (40.9%)
By Type Private (56.1%)
By Application  Enterprise Applications (31.6%)
By Enterprise Large Enterprises (73.2%)
By End Users Banking, Financial Services and Insurance sector (24.3%)
Top Trends
  • Increasing adoption of hybrid and multi-cloud approaches, with businesses running mission-critical workloads on both traditional data centers and private cloud infrastructure
  • Growing demand for advanced technologies like AI and machine learning, driving the need for scalable and flexible cloud solutions
  • Shift towards co-location services by corporates, reflecting the need for adaptable cloud infrastructure to support diverse business requirements
Top Drivers
  • Rapid digital transformation initiatives across industries, necessitating robust cloud services to manage vast amounts of data and ensure seamless operations
  • Expansion of e-commerce, digital payments, and online services, underscoring the importance of cloud infrastructure in supporting the digital economy
  • Improving infrastructure and growing middle class in emerging markets like Indonesia, Malaysia, Thailand, and Vietnam, fueling demand for cloud services
Top Challenges
  • Ensuring reliable and sustainable power sources to support data center operations, while addressing concerns over energy consumption and environmental impact
  • Navigating complex IT operations and meeting evolving business requirements with faster response times, posing significant challenges for CIOs in the region
  • Addressing cybersecurity concerns and adhering to stringent regulatory standards, as the APAC region contributes to a significant portion of worldwide cyber incidents

Private Cloud Infrastructure Takes Charge in Market with Revenue Share of

The Asia Pacific (APAC) cloud infrastructure market is witnessing a remarkable surge in the adoption of private cloud infrastructure, driven by numerous factors. This growth is propelled by annual cloud IT infrastructure spending, which has shown significant increases from 2013 to 2026. Major investments by tech giants like Google, which has poured over USD 2 billion into APAC network infrastructure since 2010, further highlight the region’s prominence. Public cloud revenue in Australia and Oceania is also forecasted to grow substantially from 2018 to 2027. The region’s IaaS revenue is expected to increase significantly by 2027, highlighting the rising demand for cloud infrastructure. Despite a slight slowdown, the year-over-year growth rates for private cloud services in APAC remain robust, with projections of 24.1% in 2023 and 21.4% in 2026. Organizations in the region are increasingly adopting cloud technology to enhance customer experience and achieve better business outcomes, especially in the post-COVID era where new tech-enabled business models are crucial.

APAC holds the largest share (37%) of the world’s cloud data centers, with significant investments aimed at expanding onshore capacity in emerging markets. In India, 27% of infrastructure decision-makers are leveraging private cloud platforms for containers or serverless functions. Wherein, top markets like Singapore and ASEAN economies, including Indonesia and Vietnam, are driving cloud spending growth at a CAGR of 25% by 2024. Despite rapid adoption, cloud penetration in APAC is still at 20%, indicating vast potential for growth. Innovations such as an Australian airline saving US$40 million annually through cloud-based analytics and the rapid introduction of digital services underscore the transformative impact of cloud technology in the region.

Data Center Investments and Cloud Infrastructure Market in Asia Pacific

The Asia-Pacific data center market is undergoing a significant transformation, with investments expected to reach USD $100 billion in the next five years. By 2024, the market size is estimated at 14.27 thousand MW and is projected to grow to 23.2 thousand MW by 2029, with a CAGR of 10.21%. Colocation revenue is also anticipated to increase from USD 27,921.7 Million in 2024 to USD 50,310.9 Million by 2029. This growth is closely linked to the expansion of the cloud infrastructure market in the region, as businesses increasingly rely on cloud services to support their digital transformation initiatives. The hybrid or multi-cloud approach is gaining prominence, with businesses in Asia Pacific expected to run more than 50% of mission-critical workloads on traditional data center infrastructure, systems, and platforms, as well as private cloud infrastructure.

Leading Countries in Asia pacific Cloud Infrastructure Market

China, India, Japan, and South Korea are key revenue generators in the region, with China and Australia holding a majority market share. India is the fastest-growing country, while Indonesia is rapidly emerging as a significant player. Singapore, Hong Kong, Japan, Australia, and India are pivotal markets for hyperscale data center development. These countries are also leading the charge in cloud infrastructure investments, driven by their robust digital economies and high internet penetration rates. For instance, China and India are major players in the e-commerce market, which is heavily reliant on cloud infrastructure to manage vast amounts of data and ensure seamless online transactions.

Hyperscale Data Centers and Cloud Providers

The Asia Pacific cloud infrastructure market is a hotspot for hyperscale data centers, with a CAGR of 36.5% expected from 2024 to 2032. Major cloud service providers like AWS, Microsoft Azure, and Google Cloud are investing heavily in the region. These investments are crucial for supporting the growing demand for cloud services, as businesses seek to leverage the scalability and flexibility offered by hyperscale data centers. The expansion of cloud infrastructure is also driven by the need for efficient data management and seamless mobility of data across different deployment locations, which is essential for achieving digital business goals.

Southeast Asia’s Emerging Cloud Infrastructure Markets

Southeast Asian countries such as Indonesia, Malaysia, Thailand, and Vietnam are seeing increased data center investments due to rising digital adoption and internet penetration. Malaysia’s strategic position with dense network connectivity and power availability is notable. These countries are also experiencing a surge in cloud infrastructure investments, as businesses and governments recognize the importance of digital infrastructure in driving economic growth and competitiveness. The growing middle class and improving infrastructure in these countries further support the expansion of cloud services.

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Investment and Development Challenges

Investors in Asia Pacific cloud infrastructure market may face challenges such as high interest rates, power supply constraints, and the need for robust security and compliance frameworks in developing countries like India, Indonesia, Vietnam and Thailand. Renewable energy is a critical focus for sustainable growth, with innovations in cement production potentially impacting construction practices. These challenges also affect the market, as data centers and cloud service providers need to ensure reliable and sustainable power sources to support their operations. Additionally, the complexity of IT operations and the need for faster response times to evolving business requirements are significant concerns for CIOs in the region.

Companies like EdgeConneX, Aboitiz InfraCapital, and AdaniConneX are making strategic investments in the region. Yondr Group’s partnership to develop data centers in Japan is a notable development. These strategic investments are crucial for expanding cloud infrastructure and meeting the growing demand for cloud services. Partnerships between local and international players help leverage expertise and resources, driving innovation and efficiency in the cloud infrastructure market.

Market Dynamics and Trends Taking Shapes in Asia pacific Cloud Infrastructure Market

There is strong investor demand for data centers in Asia Pacific, with a recovery in investment volume expected in 2024, particularly in Japan. The surge in AI-related demand and the shift towards co-location by corporates are influencing market dynamics. These trends are also shaping the market, as businesses seek to leverage advanced technologies like AI and machine learning to gain a competitive edge. The increasing adoption of co-location services reflects the need for flexible and scalable cloud solutions that can support diverse business requirements.

Future Outlook and Investment Opportunities

The Asia-Pacific market presents numerous opportunities for investors, developers, and operators, with a growing trend of equity investments in established data center platforms. The region’s digital infrastructure is empowering businesses and communities, heralding a new era of digital transformation. The cloud infrastructure market is set to benefit from these investments, as robust and scalable cloud services are essential for supporting the digital economy. The continued growth of e-commerce, digital payments, and online services in the region underscores the importance of cloud infrastructure in driving economic development and innovation.

Asia Pacific Cloud Infrastructure Market Key Players

  • Adobe
  • Alibaba
  • AWS
  • Cisco
  • Dell Inc.
  • Dropbox
  • Google
  • HashiCorp
  • HPE
  • IBM
  • Intel
  • Microsoft
  • Nutanix
  • Oracle
  • OVHcloud
  • Salesforce
  • SAP
  • ServiceNow
  • VMware
  • Workday
  • Other Prominent Players

Key Segmentation:

By Type

  • Public
  • Private
  • Hybrid

 By Component

  • Hardware
  • Software
  • Services
    • Infrastructure as a Service (IaaS)
    • Platform as a Service (PaaS)
    • Software as a Service (SaaS)

By Enterprise Size

  • Large Enterprises
  • SMEs

By Application

  • Enterprise Application
    • Enterprise Resource Planning
    • Customer Relationship Management
  • Data Storage
  • Backup and Recovery
  • Big Data Analysis
  • Testing and Development
  • Others

By End User

  • BFSI
  • Consumer Goods & Retail
  • Telecommunication & ITES
  • Healthcare
  • Energy
  • Government
  • Education & Research
  • Media & Entertainment
  • Manufacturing
  • Business & Consulting Services
  • Others

By Country

  • China
  • India
  • Japan
  • South Korea
  • Australia
    • Thailand
    • Singapore
    • Vietnam
    • Indonesia
    • Malaysia
    • Philippines
    • Rest of ASEAN
  • Rest of Asia Pacific

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