Singapore Data Center Networking Market Size
| Study Period | 2018-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.13 Billion |
| Market Size (2029) | USD 0.15 Billion |
| CAGR (2024 - 2029) | 2.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Singapore Data Center Networking Market Analysis
The Singapore Data Center Networking Market size is estimated at USD 0.13 billion in 2024, and is expected to reach USD 0.15 billion by 2029, growing at a CAGR of 2.20% during the forecast period (2024-2029).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The IT load capacity of the data center market will grow steadily and is expected to reach 1000 MW by 2029.
- Under Construction Raised Floor Space: The total raised floor space in the country is expected to reach 3.3 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach more than 160K units by 2029. East Singapore is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 39 submarine cable systems connecting Singapore, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Bifrost, which stretches over 19,888 Kilometers with landing points from Changi North, Singapore and Changi South, Singapore.
- DC Facilities: There are 46 colocation data center facilities in Singapore. The rising demand for more eco-friendly data processing facilities and revised regulatory norms will oversee a controlled expansion of the market studied.
- An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Additionally, energy represents around 40% of the operational costs of a data center; it is also becoming increasingly important for data centers to focus on energy efficiency. To improve energy efficiency as a cost-saving measure, key players focus on developing a green standard for data centers in Singapore, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.
Singapore Data Center Networking Market Trends
IT & Telecommunication Segment Expected to Hold Major Share in the Market.
- Demand for new data centers is soaring, driven by the escalating need for hyperscale facilities required by major internet providers like Amazon Web Services (AWS), Microsoft, Google Cloud, and Alibaba Cloud to bolster their cloud services. This surge will bolster the domestic data center storage market, resulting in increased market revenue.
- Singtel is intensifying its deployment of 5G standalone (SA) in Singapore by expanding the network and exploring new 5G use cases in partnership with Ericsson. By September 2021, Singtel confirmed that its 5G network covered over two-thirds of Singapore, with additional 5G sites established in densely populated areas such as Choa Chu Kang, Punggol, Sembawang, and Tampines.
- Furthermore, the burgeoning use of smartphones, the rapid adoption of 5G networks, and increased data traffic from mobile phones and computer games have solidified the telecommunications sector's dominance. This will significantly impact the growth of data centers in the country, increasing the demand for data storage, necessitating more data center storage equipment, and, subsequently, boosting market value.
- The country boasts a fully urbanized population with 8.7 million cellular mobile connections, surpassing 147% of its total population. This data suggests that each citizen in the country owns more than one cellular device. The growing application of connected devices and smart homes has amplified the demand for digital data, leading to increased network traffic. Such factors are expected to drive an increase in the country's data center capacity.
- Data centers need to scale their storage infrastructure to accommodate this intensified workload, which may involve integrating flash storage, additional drives into existing data centers, or constructing new ones. The upsurge in data center numbers directly correlates with the demand for storage devices in IT infrastructure. As the number of data centers increases, the need for storage devices to meet the expanding computing needs grows.
- Data centers play a pivotal role in national security, internet infrastructure, and economic performance. The country is witnessing rapid growth in its data center infrastructure, fueled by a growing preference for cloud services and increased data consumption and generation by the expanding digital user base. This amplifies the usage of data centers and concurrently boosts the use of networking devices in data centers, positively impacting the market.
- Increasing internet penetration, the expanding use of social networks, advancements in automation technology, smart city initiatives, and widespread implementation of AI across industries are propelling investments in data centers. As the number of data centers rises, so does the demand for data center networking in the country
Ethernet Switches Holds Largest Market Share
- Data center Ethernet switches serve as crucial network devices within a data center environment, facilitating efficient and rapid data transfer by establishing connections between servers, storage devices, and other network equipment. These switches are specifically designed for high-speed data transmission, supporting gigabit and multigigabit Ethernet, including 10GbE, 25GbE, 40GbE, 100GbE, and beyond.
- Data Centers across Singapore extensively employ Ethernet switches. As businesses in Vietnam expand, the need for increased processing capacity necessitates Scalable Ethernet switches to enable the expansion of data center infrastructure. This scalability is vital to meet the rising demands of digital services.
- In response to the increasing adoption of cloud services by Singaporean businesses, Ethernet switches play a pivotal role in connecting on-premises data centers to cloud resources. This connectivity is crucial for enterprises seeking to leverage both on-premise and cloud infrastructure, particularly in terms of cloud deployment.
- The growing focus on digitalization, coupled with high Internet penetration (Singapore reached 5.81 million Internet users with a penetration rate of 96.9% as of January 2023) and a doubling in credit card transactions from 418.39 million in 2017 to 693.41 million in 2021, highlights the increasing need for storage facilities due to expanding E-commerce sales. These trends drive significant demand for data centers and, consequently, an increased need for Ethernet switches within these centers.
- Key market players are actively updating network devices to meet this demand. In January 2023, responding to the evolving needs of today's data center environment, Dell Inc. introduced the Power switch S520ON 25GbE fixed switches, featuring All Technologies' latest disaggregated hardware switching and networking solutions. These switches offer state-of-the-art high-density 25GbE ports and a wide range of functionalities, ensuring optimal flexibility and cost-effectiveness. They cater specifically to Web 2.0, cloud service providers, and enterprises managing demanding compute and storage network traffic environments.
Singapore Data Center Networking Industry Overview
The forthcoming data center (DC) construction projects within the country are expected to escalate demand for Singapore's data center networking market in the upcoming years. The market exhibits moderate consolidation, with several key players, such as Cisco Systems Inc., Juniper Networks Inc., Arista Networks Inc., H3C Holding Limited, and VMware Inc., holding significant market shares. These major players prioritize expanding their regional customer base.
In April 2023, IBM introduced new single-frame and rack-mounting configurations of IBM z16 and IBM LinuxONE 4, aimed at enhancing their capabilities across a wider spectrum of data centers. Leveraging IBM's Telum processor, these new options enable clients to adapt to the digital economy while being designed sustainably for highly efficient data centers.
Singapore Data Center Networking Market Leaders
Cisco Systems Inc.
Juniper Networks Inc.
Arista Networks Inc.
H3C Holding Limited
VMware Inc
*Disclaimer: Major Players sorted in no particular order
Singapore Data Center Networking Market News
- July 2023: Broadcom unveiled a new software-programmable Trident 4-X7 Ethernet switch ASIC designed to meet the escalating demand for 400G connectivity within enterprise data centers. This response comes as the need for higher bandwidth levels continues to grow.
- March 2023: Arista Networks announced the launch of the Arista WAN Routing System. This system amalgamates three new networking offerings: carrier/cloud-neutral internet transit capabilities, enterprise-class routing platforms, and the CloudVision Pathfinder Service. Its objective is to simplify and enhance customer-wide area networks, offering the architecture, features, and media necessary to modernize federated and software-defined wide-area networks.
Singapore Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Increase in the Demand for Energy-Efficient and Cost-Effective Data Centers
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Component
5.1.1 By Product
5.1.1.1 Ethernet Switches
5.1.1.2 Routers
5.1.1.3 Storage Area Network (SAN)
5.1.1.4 Application Delivery Controller (ADC)
5.1.1.5 Other Networking Equipment
5.1.2 By Services
5.1.2.1 Installation & Integration
5.1.2.2 Training & Consulting
5.1.2.3 Support & Maintenance
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Juniper Networks Inc.
6.1.3 Arista Networks Inc.
6.1.4 H3C Holding Limited
6.1.5 VMware Inc
6.1.6 Huawei Technologies Co. Ltd.
6.1.7 Extreme Networks Inc.
6.1.8 NVIDIA Corporation (Cumulus Networks Inc.)
6.1.9 Dell EMC
6.1.10 NEC Corporation
6.1.11 IBM Corporation
6.1.12 HP Development Company, L.P.
6.1.13 Intel Corporation
6.1.14 Broadcom Corp
6.1.15 Schneider Electric
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Singapore Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The Singapore data center networking market is segmented by product (Ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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Singapore Data Center Networking Market Research FAQs
How big is the Singapore Data Center Networking Market?
The Singapore Data Center Networking Market size is expected to reach USD 0.13 billion in 2024 and grow at a CAGR of 2.20% to reach USD 0.15 billion by 2029.
What is the current Singapore Data Center Networking Market size?
In 2024, the Singapore Data Center Networking Market size is expected to reach USD 0.13 billion.
Who are the key players in Singapore Data Center Networking Market?
Cisco Systems Inc., Juniper Networks Inc., Arista Networks Inc., H3C Holding Limited and VMware Inc are the major companies operating in the Singapore Data Center Networking Market.
What years does this Singapore Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Singapore Data Center Networking Market size was estimated at USD 0.13 billion. The report covers the Singapore Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Singapore Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Singapore Data Center Networking Industry Report
Statistics for the 2024 Singapore Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Singapore Data Center Networking analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
