Philippines Data Center Server Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.70 Billion |
| Market Size (2030) | USD 8.02 Billion |
| CAGR (2024 - 2030) | 19.90 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Philippines Data Center Server Market Analysis
The Philippines Data Center Server Market size is estimated at USD 2.70 billion in 2024, and is expected to reach USD 8.02 billion by 2030, growing at a CAGR of 19.90% during the forecast period (2024-2030).
The Philippines data center server market reached a value of USD 1.2 Billion in the previous years, and it is further projected to register a CAGR of 19.9% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (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/region.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Philippines data center market is expected to reach 954.2 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.3 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 266.4 K units by 2029. Metro Manila is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 23 submarine cable systems connecting the Philippines, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Apricot, which stretches over 11,972 Kilometers with landing points from Baler and Davao in the Philippines.
Philippines Data Center Server Market Trends
IT and Telecom to Hold Significant Growth
- The demand for data center servers in the IT and telecom industry is rising with increasing network traffic. Telecom data centers are responsible for managing network resources, such as vRAN and 5G packet core, while IT data centers are responsible for the IT applications used by the telecom service.
- Digital transformation is being led by local telecom firms and emerging broadband companies, and these efforts are contributing to strong telecommunications industry growth, leading to major data center demand. The three major telco players have estimated combined capital expenditures of USD 15 billion being spent on the rollout of their services over the next three years. The emerging broadband providers embark on 5G, mobile services infrastructure, and satellite connectivity projects.
- Filipino telco Globe is recognized as the fastest 5G mobile network in several areas of the Philippines. Globe launched 66 new 5G sites, spanning 74 cities and towns across the Philippines. This expansion has extended its 5G outdoor coverage to 97.21 percent in the National Capital Region and 90.28 percent in key cities in Visayas and Mindanao.
- The Philippines currently has only 22,405 combined cell towers operated by the three major telecom companies. The introduction of the common tower policy is expected to improve the rollout of mobile networks. In addition to the Government's efforts, DICT and the Bases and Conversion Development Authority (BCDA) tendered the first phase of its National Broadband Plan valued at USD 20 million, which is the rollout of a bypass cable and fiber-optic network.
- Overall, with increasing 5G deployment and fiber connectivity, the demand for data center construction is expected to increase, leading to a major demand for data center servers.
Rack Server to Hold Significant Share
- Rack servers are compact and efficient devices that can handle a variety of computing tasks and are commonly used in data center environments, where space is at a premium. In the Philippines, various end-users prefer rack server as it is more cost-effective than blade servers, especially for organizations that don't require the high density and modularity of blade server solutions.
- With cloud technologies viewed as an enabler of digital transformations, 16% of Philippine businesses said they are now more supportive of using cloud-based IT solutions to grow their businesses than they were prior to COVID-19.
- Given the increasing digital adoption, Alibaba Cloud Intelligence intends to invest more in the Philippines after opening a data center. The company was considering expanding the capacity of its data center to accommodate the growing use of digital platforms. Around 88% of the companies use cloud-based solutions in the Philippines, which has a majority of the demand consumption for rack servers.
- In 2022, there were over a million micro, small, and medium enterprise (MSME) businesses in the Philippines, reflecting a slight increase from the previous year's total. The enterprises in fintech and IT are increasing under the SME category. Filipinos are embracing digital banking at an unprecedented rate. According to the study by the BSP (Bangko Sentral ng Pilipinas), 51.2% of Filipino adults now own a bank account, and 25.2% of these accounts are digital. Overall, it is expected that increasing SMEs under the above end users shall lead to the demand for rack servers after data center construction.
Philippines Data Center Server Industry Overview
The Philippines data center server market is consolidated among the players and has gained a competitive edge in recent years. A few major players are Hewlett Packard Enterprise, Dell Inc., IBM Corporation, and others. These major players with a prominent market share focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
In July 2023, Supermicro, Inc. announced several new servers to its already broad application-optimized product line. These new servers incorporate the new AmpereOne CPU, with up to 192 single-threaded cores and up to 4 TB of memory capacity. Applications such as databases, telco edge, web servers, caching services, media encoding, and video gaming streaming will benefit from increased cores, faster memory access, higher performance per watt, scalable power management, and the new cloud security features.
Philippines Data Center Server Market Leaders
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HP Enterprise
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Dell Inc.
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IBM Corporation
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Fujitsu Limited
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Super Micro Computer, Inc.
*Disclaimer: Major Players sorted in no particular order
Philippines Data Center Server Market News
- August 2023 - Hewlett Packard Enterprise announced that phoenixNAP is expanding its Bare Metal Cloud platform with cloud-native HPE ProLiant RL300 Gen11 servers, using energy-efficient processors from AmpereComputing. The expanded services support AI inferencing, cloud gaming, and other cloud-native workloads with improved performance and energy efficiency.
- June 2023 - Kingston Technology announced the release of its 32 GB and 16 GB Server Premier DDR5 5600 MT/s and 5200 MT/s ECC Unbuffered DIMMs and ECC SODIMMs. Server Premier is Kingston's industry-standard server class memory solution sold by the specification for use in white-box systems and is the Intel platform validated and qualified by leading motherboard/system manufacturers.
Philippines Data Center Server Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Government Rollout Towards Fiber Connectivity and 5G Deployment
4.2.2 Demand for Cloud Computing Among Enterprises
4.3 Market Restraints
4.3.1 High CapEx for Building Data Center Along With Security Challenges
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Form Factor
5.1.1 Blade Server
5.1.2 Rack Server
5.1.3 Tower Server
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-User
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 HP Enterprise
6.1.2 Dell Inc.
6.1.3 IBM Corporation
6.1.4 Fujitsu Limited
6.1.5 Super Micro Computer, Inc.
6.1.6 Lenovo Group Limited
6.1.7 Kingston Technology Corporation
6.1.8 Hitachi Asia Ltd.
6.1.9 Oracle Corporation
6.1.10 Huawei Technologies Co., Ltd.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Philippines Data Center Server Industry Segmentation
A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.
The Philippines data center server market is segmented by form factor (blade server, rack server, and tower server) and by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Form Factor | |
| Blade Server | |
| Rack Server | |
| Tower Server |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-User |
Philippines Data Center Server Market Research Faqs
How big is the Philippines Data Center Server Market?
The Philippines Data Center Server Market size is expected to reach USD 2.70 billion in 2024 and grow at a CAGR of 19.90% to reach USD 8.02 billion by 2030.
What is the current Philippines Data Center Server Market size?
In 2024, the Philippines Data Center Server Market size is expected to reach USD 2.70 billion.
Who are the key players in Philippines Data Center Server Market?
HP Enterprise, Dell Inc., IBM Corporation, Fujitsu Limited and Super Micro Computer, Inc. are the major companies operating in the Philippines Data Center Server Market.
What years does this Philippines Data Center Server Market cover, and what was the market size in 2023?
In 2023, the Philippines Data Center Server Market size was estimated at USD 2.16 billion. The report covers the Philippines Data Center Server Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Data Center Server Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Philippines Data Center Server Industry Report
Statistics for the 2024 Philippines Data Center Server market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines Data Center Server analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
