South Korea Data Center Storage Market Size
| Study Period | 2018-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.10 Billion |
| Market Size (2029) | USD 2.13 Billion |
| CAGR (2024 - 2029) | 11.61 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Data Center Storage Market Analysis
The South Korea Data Center Storage Market size is estimated at USD 1.10 billion in 2024, and is expected to reach USD 2.13 billion by 2029, growing at a CAGR of 11.61% 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, leading to a growing need for data center storage equipment.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the South Korean data center market is expected to reach around 2,000 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 270K units by 2029. Greater Seoul is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 10 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Geoje, South Korea.
South Korea Data Center Storage Market Trends
IT & Telecommunication Segment to Hold Major Share in the Market
- Smartphones have always been an integral part of South Korean culture and lifestyle. The country consistently ranks among the populations with the highest smartphone ownership rates. The number of smartphone users is expected to rise from 11.73 million in 2021 to 55.5 million by the end of 2029. The Ministry of ICT and Science reported that approximately 10,000 TB of video content is consumed daily by South Koreans through smartphones and other mobile devices. The increase in data consumption has a positive impact on the growth of data centers in the country. This will increase the need for data storage and data center storage equipment, increasing the market value.
- As of December 2021, South Korea had approximately 48.3 million 4G subscriptions. At that time, the country recorded a total of 72.8 million mobile subscriptions. The number of 2G, 3G, and 4G subscriptions decreased throughout 2021, while the number of 5G subscriptions nearly doubled, rising from around 12 million to 20.92 million. The continued increase in the use of smartphones, with increasing adoption of 5G networks among users and increased data traffic, has given the telecommunications sector its dominance. It will have a positive impact on the growth of data centers in the country. This will increase the need for data storage and, thus, the need for data center storage equipment, thereby increasing market value.
- Data centers are critical to national security, the internet infrastructure, and economic performance. The country is experiencing rapid growth in its data center infrastructure, driven by a growing preference for the cloud and increased consumption and generation of data by increasing numbers of digital users. This increases the usage of data centers and, at the same time, increases the usage of storage devices in data centers, positively impacting the market.
- Data center workloads are also increasing due to the increasing demand for improved application performance, storage requirements, and mobile data usage due to the increasing number of applications and increased internet usage. As a result, more and more businesses around the world are moving to cloud data storage, increasing the demand for data center services. As a result, the use of data center storage is increasing in the country.
- An overwhelming majority of South Korea's population has access to the Internet owing to increases in government infrastructure and educational initiatives. With the government's timely and well-implemented internet policy, the country has gotten a big head start and continues to make progress. New infrastructure-sharing policies have been explicitly designed to reduce the cost of deployment and ensure that wireless competitors operate on an equal playing field. By allowing every wireless company to access fiber infrastructure at fair and reasonable rates, they are guaranteed fiber capacity to connect their 5G towers anywhere in the country. This will increase the number of data centers processing huge amounts of data, thereby increasing the use of data center storage equipment in the country.
Hybrid Storage Expected To Hold Significant Share
- The combination of on-premises and cloud storage solutions is known as data center hybrid storage. This approach takes advantage of the best of both environments and provides the flexibility to store and manage data on-premises and in the cloud.
- Businesses are moving from public cloud to hybrid IT. Digital native businesses and media and gaming companies are major spenders on South Korea's public cloud market. Online gaming, 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 Corp. is using smart analytics and machine learning to gain customer insights that help drive further innovation. It is also observed that a public cloud improves team productivity. The companies are growing businesses and providing adequate customer service, and hence, the requirement of storing and processing intense data creates the need for hybrid storage.
- Businesses are expanding and adapting to meet the growing connectivity needs of various industries and the increasing use of the internet. For instance, as of 2020, only 12.9% of South Korean companies used the cloud, less than half the OECD average of 30.6%. However, during the pandemic, the demand for the cloud increased significantly as many people turned to cloud solutions to continue schooling, working, and doing business as usual. Moreover, businesses increasingly rely on hybrid infrastructure and cloud capabilities as they seek flexibility, scalability, and remote work capabilities. Data traffic is also increasing, and thereby, the need for storage for businesses is increasing in importance, thus increasing the market value for hybrid storage solutions.
- Hybrid storage helps to effectively utilize storage, reduce the overall storage footprint, and optimize storage management. The growing demand for agile, cost-effective, and flexible computing is driving the demand for hybrid storage.
- Several service providers are deploying advanced storage solutions to ensure data availability and access in hybrid clouds. The companies offer optimized hybrid storage systems. For example, HPE GreenLake, an updated app and data product, also introduced platform upgrades and new cloud services in 2022. Therefore, this product portfolio is adopted by large enterprises with large data storage capacities. This demands hybrid storage in the country.
South Korea Data Center Storage Industry Overview
The South Korean Data Center Storage Market is moderately fragmented. The major players in this market hold the majority of the market share. Some significant players are Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Hitachi Vantara LLC, and Huawei Technologies Co. Ltd. These companies leverage strategic collaborative initiatives to increase their market share and increase their profitability.
In May 2023, NetApp announced several innovative products and programs, including a new modern block storage offering and a guarantee highlighting NetApp’s best-in-class ability to recover from ransomware attacks. The company also rolled out new ASA block storage.
South Korea Data Center Storage Market Leaders
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Dell Inc.
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Hewlett Packard Enterprise
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NetApp Inc.
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Huawei Technologies Co. Ltd.
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Hitachi Vantara LLC
*Disclaimer: Major Players sorted in no particular order
South Korea Data Center Storage Market News
August 2023: Pure Storage Inc. announced a regional innovation hub in Chungcheongbuk-do Province, South Korea, named Chungbuk Technopark to leverage FlashBlade, a unified fast file and object storage platform, and enhance the AI development environment it provides to local businesses by boosting storage data processing performance and significantly improving GPU usage.
October 2023: Equinix partnered with NetApp to drive customer demand for cloud adjacent storage.
South Korea Data Center Storage 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 Expansion of IT Infrastructure to Increase Market Growth
4.2.2 Increased Investments in Hyperscale Data Centers To Increase Market Growth
4.3 Market Restraints
4.3.1 High Initial Investment Cost To Hinder Market Growth
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 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-User
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 NetApp Inc.
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 Hitachi Vantara LLC
6.1.6 Pure Storage Inc.
6.1.7 Lenovo Group Limited
6.1.8 Fujitsu Limited
6.1.9 Oracle Corporation
6.1.10 Seagate Technology LLC
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
South Korea Data Center Storage Industry Segmentation
Data center storage refers to the devices, hardware, networking equipment, and software technologies that enable the storage of data and applications within data center facilities. It is used to store, manage, retrieve, distribute, and back up digital information within data center facilities.
The South Korean Data Center Storage Market is segmented by Storage Technology (Network Attached Storage (NAS), Storage Area Network (SAN), and Direct Attached Storage (DAS)), by Storage Type (Traditional Storage, All-Flash Storage, and Hybrid Storage), by End Users (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.
| Storage Technology | |
| Network Attached Storage (NAS) | |
| Storage Area Network (SAN) | |
| Direct Attached Storage (DAS) | |
| Other Technologies |
| Storage Type | |
| Traditional Storage | |
| All-Flash Storage | |
| Hybrid Storage |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-User |
South Korea Data Center Storage Market Research FAQs
How big is the South Korea Data Center Storage Market?
The South Korea Data Center Storage Market size is expected to reach USD 1.10 billion in 2024 and grow at a CAGR of 11.61% to reach USD 2.13 billion by 2029.
What is the current South Korea Data Center Storage Market size?
In 2024, the South Korea Data Center Storage Market size is expected to reach USD 1.10 billion.
Who are the key players in South Korea Data Center Storage Market?
Dell Inc., Hewlett Packard Enterprise, NetApp Inc., Huawei Technologies Co. Ltd. and Hitachi Vantara LLC are the major companies operating in the South Korea Data Center Storage Market.
What years does this South Korea Data Center Storage Market cover, and what was the market size in 2023?
In 2023, the South Korea Data Center Storage Market size was estimated at USD 0.97 billion. The report covers the South Korea Data Center Storage Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Data Center Storage Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Korea Data Center Storage Industry Report
Statistics for the 2024 South Korea Data Center Storage market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Data Center Storage analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
