Hong Kong Data Center Storage Market Trends

Statistics for the 2023 & 2024 Hong Kong Data Center Storage market trends, created by Mordor Intelligence™ Industry Reports. Hong Kong Data Center Storage trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Hong Kong Data Center Storage Industry

IT & Telecommunication Segment to Hold Major Share in the Market

  • Due to technological evolution, proximity to China, and the easy accessibility of high-end specification smartphones at an affordable cost, there has been a significant increase in smartphone users in the country. The continuous surge in smartphone usage, coupled with the growing adoption of 5G networks, has resulted in increased data traffic, establishing the telecommunications sector's dominance. This, in turn, is anticipated to have a positive impact on the growth of data centers in the country as the demand for data storage rises, consequently driving the market value of data center storage equipment.
  • The introduction of 5G in the country has brought about high bandwidth speeds, leading users to opt for multiple smart devices, including smart wearables, tablets, security systems, smart lighting, and more. This trend has catalyzed the demand for these devices, with approximately 96% of the population in Hong Kong currently using smartphones to access the internet on a daily basis. Furthermore, the increasing internet penetration, heightened use of social networks, improved automation, and the widespread implementation of AI across industries are key drivers for investments in data centers. As the number of data centers grows, so does the need for data center storage in the country.
  • The escalating demand for improved application performance, increased storage requirements, and higher mobile data usage due to the proliferation of applications and enhanced internet usage are contributing to the rise in data center workloads. Consequently, businesses worldwide are increasingly adopting cloud data storage, intensifying the demand for data center services and consequently boosting the utilization of data center storage in the country.
  • Hong Kong's broadband subscribers witnessed a 0.7% growth to reach 2.95 million in the first eight months of 2022. Fiber-to-the-Home/Building (FTTH/B) penetration reached 84.6%, with 87.1% subscribing to packages featuring maximum download speeds of 100 Mbps or higher. The country is experiencing rapid growth in its IT infrastructure, driven by a growing preference for the cloud and the escalating consumption and generation of data by an expanding digital user base. This surge in IT infrastructure development is amplifying the utilization of data centers, concurrently increasing the demand for storage devices within these centers and thereby positively impacting the market.
Hong Kong Data Center Storage Market: Number of Smartphone Users, in Million, Hong Kong, 2021-2028*

Hybrid Storage Expected To Hold Significant Share

  • Businesses in Hong Kong are increasingly adopting cloud-based services, with 75% of them embracing cloud solutions for their flexibility and cost-effectiveness. As part of the smart city blueprint program, government departments have been utilizing cloud platforms since 2020. Notably, the Hong Kong government shows a preference for private cloud facilities over outsourced ones. Consequently, a strategic combination of on-premises and cloud storage solutions has become essential, leveraging the strengths of both environments and enhancing flexibility in storing and managing data. This trend contributes to the overall increase in the market value of data center storage in the country.
  • Service providers are actively deploying advanced storage solutions to ensure data availability and access in hybrid clouds. Noteworthy examples include HPE GreenLake, an updated app and data product that introduced platform upgrades and new cloud services in 2022. Large enterprises, particularly those with substantial data storage needs, are adopting such product portfolios, further driving the demand for hybrid storage in the country.
  • To address data integrity and legal compliance concerns, enterprises can tailor their storage strategies to specific legal requirements using hybrid solutions. This includes the use of hybrid storage in data centers, leading to an increased need for data storage in the country.
  • As businesses continue to grow, data centers are expanding and evolving to meet the increasing connectivity demands across various industries and the rising reliance on the internet. Businesses are increasingly turning to hybrid infrastructure and cloud capabilities to gain flexibility, scalability, and support remote work. The surge in data traffic underscores the importance of storage for businesses, consequently boosting the market value of hybrid storage solutions.
  • The proliferation of cloud storage and audio conferencing services has facilitated the widespread adoption of remote work among companies. This shift has, in turn, led to the emergence of data centers utilizing hybrid storage solutions. The integration of hybrid storage, combining the functionalities of hard drives and SSDs, ensures optimal performance by using a cache for frequently accessed data. This approach capitalizes on the fast access capabilities of SSDs and the greater storage capacity of hard drives.
Hong Kong Data Center Storage Market: Internet Penetration Rate, in Percentage (%), Hong Kong, 2021-2027*

Hong Kong Data Center Storage Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)