Market Size of Hong Kong Data Center Networking Industry
![Hong Kong Data Center Networking Market Summary](https://s3.mordorintelligence.com/hong-kong-data-center-networking-market/1707125958443_hong-kong-data-center-networking-market_Market_Summary.webp)
Study Period | 2018 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 332.38 Million |
Market Size (2029) | USD 470.99 Million |
CAGR (2024 - 2029) | 7.22 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
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Hong Kong Data Center Networking Market Analysis
The Hong Kong Data Center Networking Market size is estimated at USD 332.38 million in 2024, and is expected to reach USD 470.99 million by 2029, growing at a CAGR of 7.22% 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 upcoming IT load capacity of the Hong Kong data center market is expected to reach 1700 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 6 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 230K units by 2029. NCR Ho Chi Minh City is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 2 submarine cable systems connecting Hong Kong, and we expect a few cables to come in the near future. One such submarine cable that is estimated to start service in 2025 is Asia Cable Link ALC, which stretches over 6,000 Kilometers with landing points from Hong Kong SAR, Mainland China.
- In view of its commitment to reach a carbon dioxide peak by 2030 and be carbon neutral by 2060, Hong Kong is placing energy consumption control at the top of its priorities. Its ongoing “dual control” energy consumption policy is a regulatory effort aiming to control high energy consumption and limit high-emission projects.
- In support of the above policy and to reduce energy consumption, key market players are focusing on transforming DC facilities with efficient power management systems, which is expected to increase market growth.
Hong Kong 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 Hong Kong Data center networking market is segmented by component type (product (Ethernet switches, routers, storage area network (SAN), application delivery controller (ADC), and other networking equipment), services (installation & integration, training & consulting, and support & maintenance)), and by end-user (IT & telecommunication, BFSI, government, and media & entertainment, and other end-user). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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Hong Kong Data Center Networking Market Size Summary
The Hong Kong data center networking market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is experiencing a surge in demand for data centers, fueled by the expansion of hyperscale and wholesale colocation services. The introduction of 5G technology has further accelerated this growth, as it enables high bandwidth speeds that encourage the use of multiple smart devices. This trend is complemented by the rising adoption of smart home automation, streaming services, and financial services, which collectively drive data consumption and necessitate the expansion of data center infrastructure. The ongoing construction of submarine cable systems and the implementation of energy-efficient power management systems align with Hong Kong's commitment to carbon neutrality, supporting the market's expansion.
The market is characterized by a moderate level of consolidation, with key players such as Cisco Systems Inc., Arista Networks Inc., H3C Technologies Co., Ltd., VMware Inc., and Huawei Technologies Co. Ltd. leading the charge. These companies are actively updating their network devices to meet the growing demand, as evidenced by recent product launches and technological advancements. The development of smart city initiatives and the increasing focus on digitalization and e-commerce further bolster the need for robust data center networking solutions. Ethernet switches play a crucial role in this ecosystem, facilitating high-speed data transmission and supporting the infrastructure required for cloud services and financial transactions. As the market continues to evolve, the demand for advanced networking solutions is expected to rise, driven by the ongoing digital transformation and the need for efficient, scalable data center operations.
Hong Kong Data Center Networking Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Adoption of Cloud-Based Services Drives the Market Growth
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1.2.2 Growing Demand for Energy Efficiency and Sustainability in Data Center Facilities
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1.3 Market Restraints
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1.3.1 High Initial Investments
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 By Component
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2.1.1 By Product
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2.1.1.1 Ethernet Switches
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2.1.1.2 Router
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2.1.1.3 Storage Area Network (SAN)
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2.1.1.4 Application Delivery Controller (ADC)
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2.1.1.5 Other Networking Equipment
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2.1.2 By Services
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2.1.2.1 Installation & Integration
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2.1.2.2 Training & Consulting
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2.1.2.3 Support & Maintenance
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-User
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Hong Kong Data Center Networking Market Size FAQs
How big is the Hong Kong Data Center Networking Market?
The Hong Kong Data Center Networking Market size is expected to reach USD 332.38 million in 2024 and grow at a CAGR of 7.22% to reach USD 470.99 million by 2029.
What is the current Hong Kong Data Center Networking Market size?
In 2024, the Hong Kong Data Center Networking Market size is expected to reach USD 332.38 million.