Market Size of Indonesia Data Center Networking Industry
Study Period | 2018 - 2029 |
Base Year For Estimation | 2022 |
Market Size (2024) | USD 338.23 Million |
Market Size (2029) | USD 839.09 Million |
CAGR (2024 - 2029) | 16.35 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Indonesia Data Center Networking Market Analysis
The Indonesia Data Center Networking Market size is estimated at USD 338.23 million in 2024, and is expected to reach USD 839.09 million by 2029, growing at a CAGR of 16.35% 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 in the region is expected to reach over 1,400 MW by 2029 for under construction IT load capacity.
- Under Construction Raised Floor Space: The construction of raised floor area for data centers in the country is expected to reach 4.3 million sq. ft by 2029 for under construction raised floor space.
- Planned Racks: The country's total number of racks to be installed is expected to reach over 218,000 units by 2029.
- Planned Submarine Cables: Currently, 15 submarine cable projects are under construction in the country. One such submarine cable, estimated to start service in 2024, is Apricot, stretching over 11972 kilometers with landing points Batam and Tanjung Pakis for planned submarine cables.
Indonesia 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 Indonesia 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), 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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IT & Telecommunication | |
BFSI | |
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Other End-User |
Indonesia Data Center Networking Market Size Summary
The Indonesia data center networking market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from domestic players. The expansion of digital infrastructure, including the rise in smartphone usage and increased internet penetration, is further fueling the demand for data center networking solutions. The market is characterized by the construction of new data centers and the enhancement of existing ones to accommodate the growing need for data storage and processing capabilities. The development of 4G and 5G services, along with smart city initiatives and the implementation of AI, IoT, and big data workloads, are also contributing to the market's expansion. Ethernet technology, particularly high-bandwidth switches, is playing a crucial role in meeting the connectivity requirements of these data centers.
The market is fragmented, with numerous vendors employing strategies such as mergers, acquisitions, and partnerships to strengthen their presence. Key players like Cisco Systems Inc., Juniper Networks Inc., Huawei Technologies Co. Ltd., NVIDIA, and Dell Inc. are actively involved in the market, offering innovative solutions to enhance data center networking infrastructure. Recent developments include Juniper Networks' collaboration with PT IndoInternetTbk to modernize network infrastructure and Edgecore Networks' launch of an 800G-optimized switch for AI/ML workloads. These advancements underscore the commitment of major companies to support Indonesia's digital transformation and the growing importance of data center networking solutions in the region's technological landscape.
Indonesia Data Center Networking Market 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 Utilization of Cloud Storage is Driving the Market Growth
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1.2.2 Rising Need for Backup and Storage is Expanding the Market Demand
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1.3 Market Restraints
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1.3.1 Lack of Skilled Professionals is Hindering the Market Demand
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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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Indonesia Data Center Networking Market Market Size FAQs
How big is the Indonesia Data Center Networking Market?
The Indonesia Data Center Networking Market size is expected to reach USD 338.23 million in 2024 and grow at a CAGR of 16.35% to reach USD 839.09 million by 2029.
What is the current Indonesia Data Center Networking Market size?
In 2024, the Indonesia Data Center Networking Market size is expected to reach USD 338.23 million.