Market Trends of Thailand Data Center Rack Industry
IT & Telecommunication Segment holds the major share.
- In the next five years, Thailand will rapidly adopt hybrid cloud services, with 67% of respondents agreeing to the adoption plan. Digital media, financial services, retail, and manufacturing are the main cloud customers in this country, as Thai businesses planned to set out an effective cloud migration strategy to gain the benefits of digital transformation.
- Further, in the context of investment under new Thai regulations, in May 2022, Alibaba Cloud, the digital technology and intellectual backbone of Alibaba Group, launched its first data center in Thailand to bolster local businesses' digital innovation capabilities.
- The telecommunications sector in Thailand has a customer base of over 60 million, making it the major telecommunications sector in Southeast Asia, according to an industry expert. In addition, Google predicts Thailand to be the second-largest internet economy, worth USD 50 billion by 2025. Rollouts of its network to enhance quality and speed, along with investment in 5G technology, will be key areas of development.
- More than 85% of Thailand's population is expected to have 5G coverage by 2022. This is anticipated to support digital transformation in the economic, social, and government sectors catering to market growth.
Understand The Key Trends Shaping This Market
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Full Rack is Expected to Grow Significantly
- In Thailand, 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, e-commerce, and the increase in Big Data Analytics combined with cloud computing, it is necessary to build a fully rack-equipped data center.
- 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.
- In the last few years, Thailand's businesses and consumers have also started to get into e-commerce. The country is fertile ground for e-commerce to grow as a significant source of the economy, with strong levels of mobile phone penetration, Mobile Banking, and Social Media use.
- 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.
