Market Trends of Australia Data Center Storage Industry
IT and Telecommunication Segment to Hold Major Share in the Market
- Australia's average mobile phone data usage puts the country in second place in terms of mobile phone usage, following the United States. In 2019, 6.2 million Australians aged 14 and above (32%) owned a prepaid mobile phone, which they recharged every seven weeks on average. About 71% of teenagers spend more than 5 hours on social media a day. The Australian market's preference for smartphones necessitates the expansion of the capabilities of data centers to handle the increase in data. As a result, the increase in the number of data centers ensures that more storage devices are required to meet the growing computing needs.
- Australia has a mobile penetration rate of 130%. On average, there are 104 apps installed on each smartphone device. In 2019, the total value of the Australian mobile commerce market was USD 12.1 billion. This market is expected to increase exponentially in size to over USD 20 billion by 2023. Smartphones generate a lot of data, which necessitates real-time processing and analysis. The data centers must manage the sheer amount of data. This necessitates an increase in the number of data centers. Therefore, more storage devices are required to meet the growing computing needs.
- With the growth of data-intensive technologies, cloud computing, and digital services, businesses are generating and processing larger amounts of data. Data centers must scale their storage infrastructure to accommodate this increased workload. This may include adding flash storage and drives to existing data centers or building new data centers. The increase in the number of data centers is directly related to the demand for storage devices in IT infrastructure. As the number of data centers increases, more storage devices are required to meet the growing computing needs.
- Data centers are critical to national security, internet infrastructure, and economic performance. The country is experiencing rapid growth in its data center infrastructure, driven by a growing preference for the cloud and increased consumption and generation of data by increasing digital users. This increases the usage of data centers and, at the same time, increases the usage of storage devices in data centers, positively impacting the market studied.
- The demand for new data centers is skyrocketing, with hyperscale facilities needed by major internet providers such as Amazon Web Services (AWS), Microsoft, Google Cloud, and Alibaba Cloud to power their clouds. This will promote the domestic data center storage market and increase the market revenue.
Understand The Key Trends Shaping This Market
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Hybrid Storage Expected to Hold Significant Share
- Businesses are moving from public cloud to hybrid IT. The companies are growing businesses and providing adequate customer service. The requirement for storing and processing intense data creates the need for hybrid storage. About 10-15% of data is created and processed outside a centralized data center or cloud, but the number is expected to cross 60-70% by 2025, a global trend that is also reflected in Australia. The COVID-19 pandemic highlighted that Australia has a great need for digital infrastructure to improve connectivity in remote and rural areas. This enables the combination of on-premise and cloud storage solutions, known as data center hybrid storage. This approach takes advantage of the best of both environments and provides the flexibility to store and manage data on-premises and in the cloud, thereby increasing market revenue in the country.
- To ensure data integrity and legal compliance, enterprises can use these hybrids to tailor their storage strategies to specific legal requirements. This incorporates the use of hybrid storage for data centers, thereby increasing the need for data storage in the country.
- Market vendors are rolling out enhanced product offerings curated for the IT end-user industry. For instance, in March 2021, Cisco announced Cisco Plus Hybrid Cloud, which delivers data center networking, computing, and storage technologies through a flexible consumption model. Initial as-a-service offers will be available as a limited release in Australia, Canada, Germany, the Netherlands, the United Kingdom, and the United States, with flexible payment options and order delivery within 14 days. Such services are expected to increase the deployment of data centers in the region, enabling businesses to grow. Data centers are expanding and adapting to meet the growing connectivity needs of various industries and increasing use of internet. Businesses are increasingly relying on hybrid infrastructure and cloud capabilities as they seek flexibility, scalability, and remote work capabilities. The data traffic is also increasing and, thereby, the need for storage for businesses gains importance. This increases the market value for hybrid storage solutions.
- Several service providers are deploying advanced storage solutions to ensure data availability and access in hybrid clouds. The companies are offering optimized hybrid storage systems. For example, HPE GreenLake, an updated app and data product, introduced platform upgrades and new cloud services in 2022. Therefore, this product portfolio is adopted by large enterprises with large data storage capacities. This demands for increased hybrid storage in the country.
