Market Trends of taiwan data center Industry
Increasing smartphone apps across end users and subsequent adoption of 5G smartphone devices leads to demand for data center
- The total number of smartphone users in the country was 21.34 million in 2022, which is expected to witness a CAGR of 0.6% during the forecast period to reach 22.61 million by 2029.
- It is estimated that by 2027, more than 90% of the Taiwanese population will use smartphones, thus increasing the number of smartphone users in the country.
- In 2022, the smartphone penetration rate in Taiwan was around 89.3%, and the share was expected to grow up to 93.7% by 2027.
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Infrastructural developments and increase in 5G stations is leading to demand for data center with increase in data traffic
- The 2G and 3G data were shut off in 2018 and 2019 and had a stagnant growth during the forecast period. The 4G mobile data speed in the country was 34.9 Mbps in 2022, which is expected to witness a CAGR of 8.54% during the forecast period to reach 62 Mbps by 2029. The 5G mobile data speed in the country was 289.25 Mbps in 2022, which is expected to witness a CAGR of 14.80% during the forecast period to reach 662.0 Mbps by 2029.
- The adoption of these 5G services is projected to be accelerated by the rising need for high-speed data access for cloud and IoT applications, such as smart home energy management. However, as 5G networks offer faster speeds, higher capacity, and lower latency than 4G LTE networks, the number of 5G subscribers is growing at a quicker rate. In Taiwan, the total number of 5G customers has surpassed 1 million in the five months after the introduction of the technology. By the end of 2021, 5G penetration increased to over 30%.
- To support telecommunications operators, the Taiwanese government allocated USD 650 million, which was distributed between 2019 and 2022, to subsidize the installation of 5G in the country.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increase in time spent on online gaming and switch to faster smartphones due to increase in mission critical and real time applications leading to market demand
- Development in fiber connectivity infrastructure by companies such as FiberForce, DE-CIX and Corning leads to the major market demand
- Increasing FTTP users and investment such as Recovery and Resilience Facility (RRF) and the European Regional Development Fund (ERDF) towards broadband inclusion leads to the market growth
