Market Trends of Managed Data Center Services Industry
This section covers the major market trends shaping the Managed Data Center Services Market according to our research experts:
Retail Industry to Dominate the Market
- In the modern world, data centers are essential elements of retail operations since they provide digital services and online customer experiences. When interacting with brands, whether online or in a physical store, consumers now demand a highly tailored and pertinent experience. A lot of data and information are needed to customize a campaign or experience to meet the needs of specific customers.
- E-commerce and online retail are essentially an extension of traditional and physical shopping. Numerous businesses only operate online and digitally, with eBay and Amazon being the two most prominent players. Now that consumers are utilizing smartphones more frequently for in-store comparison shopping, large brick-and-mortar retailers are placing a lot of emphasis on their online experiences and rolling out more mobile shopping apps.
- Personalizing the shopping experience means customers' transaction history is recorded so that the retailer can provide recommendations. Due to the increasing number of shoppers, robust data centers have become mandatory.
- A major area of concentration for implementing new technologies has emerged in retail. With its Amazon Go concept store, which lets customers take items and walk out without a cashier, Amazon has transitioned from an online retailer to a physical store. Sensors on the merchandise and the shopper's mobile app are used to track transactions. The more contemporary or cutting-edge solutions are in addition to some of the usual data center uses in retail that many companies are just beginning to experiment with. Innovative digital signage, like that based on Magic Mirror AR technology, is a prime example.
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Asia-Pacific to Witness the Highest Growth
- The expansion of data centers to handle enormous data volumes can be attributed to it. Additionally, the region's growing use of digital services and wide telecom network are anticipated to support market expansion. In addition, the region's expanding startup and SME population is expected to accelerate the use of data center services. Asia-Pacific is seeing a rise in the amount of data made by digital products and services. This is because the region's population is growing and e-commerce is on the rise.
- There are two significant data center marketplaces in the Asia Pacific region: those that cater to local demand, like those in Hong Kong and Singapore, and those that cater to domestic demand, like those in Tokyo, Shanghai, and Australia. Indonesia and India are interesting Tier II markets because their populations are growing quickly and they need more data center space.
- The market for data centers in Sydney is also still expanding. Despite its remote location, Australia has a strong demand due to its highly digitalized populace. The world's highest cloud use is found in Australia. In Australia, there are numerous international corporations.
- India is home to the second-largest and one of the youngest populations in the world. They must deal with a massive data surge. Many people own multiple cell phones. India only has 252 MW of data center power, but this number will rise dramatically. In India, particularly in Mumbai, there are a lot of buildings for large data centers.
- Cloud technology is slowly gaining momentum in Asia-Pacific. Thus, the demand for managed services is increasing due to speed and agility. It will give a boost to cloud-based deployments.
- Regulators play a crucial role in enabling-or impeding-the growth of managed data center services. While some APAC regulators are clarifying outsourcing rules and guidelines to help firms achieve compliance, regulatory restrictions and cloud adoption blockers still exist.
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