Market Trends of South Korea Data Center Rack Industry
IT & Telecommunication holds the major share.
- Digital native businesses are major spenders in South Korea's public cloud market, as are media and gaming companies. Online gaming, Online storage, e-commerce, and other fully digitized businesses that need to deliver the best possible online experience are seeing unprecedented demand, along with experimental games and features using augmented and virtual reality. For example, mobile game maker Netmarble is using smart analytics and machine learning to gain customer insights that help drive further innovation and also found public cloud improves team productivity.
- As the Government has recently decided to lower the barrier to entry to the cloud computing services in the country. With this rule in effect, Foreign tech giants like Amazon, Microsoft, etc., are expected to pose a threat to domestic companies.
- Despite growing concerns among KT, Naver, NHN, and other domestic cloud service providers over the possibility of foreign firms gaining dominance in the local market, tech firms from the US and China have welcomed the proposed easing of regulations and are starting to look for experts in cloud computing services for the public sector. Such developments are driving the need for data centers for the cloud end-user segment in the country.
- South Korea is second only to Hong Kong in the world rankings of telecom market maturity. South Korea is also on the leading edge of the latest telecom technology developments, including around 6G. It enjoys a highly competitive but stable market, with strong central government support that helps drive the rollout of advanced infrastructure in both the fixed and mobile arenas. South Korea is also on the leading edge of the latest telecom technology developments, including around 6G. And it is host to two of the world's top equipment manufacturers, Samsung and LG.
Understand The Key Trends Shaping This Market
Download PDF
Full Rack is Expected to Grow Significantly
- In South Korea, due to growing space scarcity between various companies, the full rack has a majority of the market share. In order to cope with increasing rack capacity due to the rapid growth of mobile broadband and the increase in Big Data Analytics combined with cloud computing, it is necessary to build a fully rack-equipped data center.
- The Ministry of ICT and Science revealed that around 10,000 TB of video content is consumed daily by South Koreans through smartphones and other mobile devices. Such developments are only adding up to the demand for more racks in the country.
- Companies increasingly rely on data centers for efficient management of their databases and storage, as they generate significant amounts of data every day. The main driving factor for data center rack usage is, therefore, the increased deployment of fully configured data centers. Also, the growth of the market is being influenced by the growing demand for IT services and investments made by large companies.
- At first, there was a limited focus on rack space in data centers; only size and cost were taken into account during deployment. Nevertheless, there is an opportunity for increased use of rack space in the data center as more and more users from different sectors, such as online banking, telecommunications, media and entertainment, and others, are adopting applications with higher density.
