Market Trends of hong kong data center Industry
Surge in sales of high-end specification smartphones at an affordable cost drives the market demand
- There were 7 million smartphone users in Hong Kong in 2022, which may grow from 7.2 million to 8.4 million during the forecast period, with a CAGR of 2.5%.
- Due to technological evolution, close proximity to China, and easy accessibility to high-end specification smartphones at an affordable cost led to an increase in smartphone users in the country. This increase has led to stiff competition with foreign smartphone competitor companies. For instance, SmarTone is offering 110 GB 5G mobile data, unlimited video call data for Zoom/Teams, a free HKD 2,000 (USD 257) handset, and an accessories voucher for HKD 398 (USD 51.1) per month.
- The usage of mobile devices and social media has increased among the elderly aged 65 years or above. However, about 3 in 5 of them had smartphones in 2018, compared to only 2 in 5 in 2016.
- People in Hong Kong are shifting to digital wallets because of their convenience, especially amid the COVID-19 pandemic, which has led to a rise in smartphone users. For instance, Hong Kong’s use of digital wallets for online payments is expected to overtake credit cards by 2025. Alipay, WeChat Pay, Tap & Go, and Octopus collectively attracted more than 4.7 million new users and 96,000 new merchants in Hong Kong by the end of 2021. The above instances suggest the growth of smartphone users across Hong Kong.
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Increasing demand for smart devices coupled with expansion of 5G in the country drives the market demand
- Mobile data speeds in Hong Kong are expected to grow proportionally with the implementation of 5G and existing 4G services. However, the 2G segment has a lower share of consumers due to outdated technology, which would impart low speeds in Hong Kong, hence discouraging the consumers for the 2G segment.
- The availability of varying smart devices has led consumers to transition to 4G services, which has led to the decline of 3G services over the years in Hong Kong.
- Increasing demand for smart devices, such as smartphones and tablets, to use varying services such as streaming, browsing, and playing games has led to consumers opting for 4G services, thus diminishing the 3G service market over the years. The implementation of 5G is expected to further increase the data speed with the evolving technology over the years, which is expected to cater to the demand as more industries adopt automation in their companies in the manufacturing sector.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Lucrative internet services offers such as unlimited video call, 100 GB data permonth boosted the data centers demand in Hong Kong
- Minister of Posts and Telecommunications rising projects to increase fiber connectivity network would drive the market
- Rising fiber optic internet services and affordable broadband services by local players boost the data centers demand in the country
