|【英語タイトル】Indonesia Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
The Indonesia Data Center Market was valued at USD 1785.2 million in 2020 and is expected to reach USD 3354.41 million by 2026 at a CAGR of 11.4% over the forecast period 2021 – 2026. Indonesia ranks lower in the competitive index as compared to other Southeast Asian countries. However, the potential commercial upside for data center players is significant. Indonesia is witnessing a growing digital economy, coupled with the rapid growth of startup companies and the ever-growing population, leading to an increase in hyper-scale data centers.
- The latest research from Google and Temasek in their report economy SEA 2019 stated that the growth of the digital economy in Indonesia is expected to reach 133 million USD in the year 2025.
- According to content management service HootSuite and social media marketing agency We Are Social in the report “Digital 2020”, Internet users in Indonesia have reached 175,4 million, with penetration at 64%. This means as much as 64% of the total Indonesian population of 272,1 million, is connected to the Internet. This number has since increased from the year 2019, which was 17%, or approximately 25 million people.
- There is a sudden increase in the use of internet and data services, especially during the holidays, which indicates the seasonality of increased telecom data center utilization in the country. For instance, three telecommunications internet data traffic rose 57% on the first day of Eid al-Fitr 2020, followed by Telkomsel with an increase of 49.8%, and Indosat Ooredoo by 27%.
- Businesses have also started adopting data-intensive applications, such as IoT, data analytics, and artificial intelligence. This translates to the surge of data exchanged and transferred and increased traffic.
- Indonesia is giving a strong competition to Singapore as the hotspot for the data center in Asia. Increased investments by companies, such as Google, Alibaba, and Amazon, reflect a growing interest in Indonesia as an alternative to Singapore, which was traditionally the focus of cloud service investment because of its good fiber connectivity.
- In April 2019, Amazon Web Services (AWS) announced the launch of a new cloud region in Indonesia, based in Greater Jakarta, with the new area set to comprise three availability zones. Last year, Alibaba Cloud launched a second data center in Indonesia just ten months after its first one, to double its local capacity. As it stands, Alibaba Cloud is the only global public cloud platform with regional data centers in Indonesia.
- The principal factors driving the growth of COVID-19 impact on the Indonesia Data Center Market are increasing demand for digital transformation, increased investments in Data Center, growing demand for remote services and location data, and increasing need for real-time information track and monitor the COVID-19 spread.
Key Market Trends
A Surge in Mobile Data and Internet Users, to Boost the Market Growth
- The increasing number of internet and social media users are expected to influence the Indonesia data center market. According to StatCounter, Indonesia booked the fastest growth of the global top-ten smartphone markets in the third quarter of 2019, with shipments up 29% year-on-year. Moreover, according to We Are Social, as of October 2019, around 99% of the population in Indonesia watch videos online. In addition, about 79% of the respondents watch Vlogs too.
- According to Hootsuite, one in three global internet users now use voice interfaces on their mobile phones each month, but these figures are even higher in Asia with 48% of Indonesian internet users say they used a voice interface on their phone in the past month. With a penetration rate of over 88%, Hootsuite indicated that YouTube was the most used social network in Indonesia.
- Indonesia’s current e-commerce market is like China’s online marketplace beginnings, with a large pool of entrepreneurial sellers providing goods purchased mainly based on social media recommendations. Moreover, the country is Asia’s foremost mobile-first nation, with one of the highest mobile-Facebook usage rates. This is also one of the major driving factors for the growth of data centers.
- The government is continuing to improve internet network across the country. This is evident by the completion of the Palapa Ring, which is an ambitious initiative to install a high-speed system with 12,000 kilometers of fiber cable, to serve as the national backbone and overcome the challenges of Indonesia’s dispersed geographical layout.
Increasing Demand for Cloud Computing Fuel the Market
- The deployment of data centers in Indonesia is likely to exceed supply due to the growing demand for cloud-based services, big data analytics, and IoT. Also, Cloud operators have overtaken financial service clients to be the most significant occupiers of data centers. In turn, multimedia content providers and cloud businesses drive strong demand for data center storage and networking in Indonesia.
- Google Cloud announced the opening of its new Jakarta region in June 2020, bringing services closer to its Indonesian and Southeast Asian consumers. The newly launched cloud platform marks the first Google region in Indonesia and the ninth in the Asia Pacific. It offers cloud computing services, data analytics, machine learning, and security and management tools for businesses.
- According to a 2019 study by Google Cloud, businesses that adopt public cloud services could add around USD 36 billion to Indonesia’s GDP between 2019 and 2023. They could also generate around 350,000 jobs across several industries. Also, Google Cloud Indonesia plans to roll out 150,000 training labs in Indonesia in 2020 to enable cloud computing training and certification for Indonesians.
- Indonesia is currently home to two data centers from Alibaba Cloud and Google. Meanwhile, Amazon’s cloud subsidiary Amazon Web Services revealed that it would build a data center in 2022.
The Indonesia Data Center Market is moderately competitive and consists of several major players. To sustain the market and retain their clients, companies are employing powerful competitive strategies; thus, intensifying competitive rivalry in the market. Some of the recent developments in the market are:
- In June 2020 – DCI Indonesia launched the third data center building (JK3) and has started its operations this year and is expected to support the development of digital technology in Indonesia
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1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness – Porter’s Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Key Stakeholder Analysis
4.3.1 (Commentary on the Role played by IT Infrastructure Providers, Data Center Construction Contractors and Sub-contractors and Support Infrastructure Providers in the Country)
4.4 Major ICT Indicators Contributing to Growth of Data Center in Indonesia
4.5 Key Indonesia Data Center Construction Statistics
4.5.1 Number of Data Centers in Indonesia
4.5.2 Estimates of Energy Use above 10 kW by Data Centers in Indonesia under Low-Growth Scenario
4.5.3 Estimates of Energy Use above 10 kW by Data Centers in Indonesia under High-Growth Scenario
4.5.4 Comparative Analysis of Critical Megawatt of Data Center in Selected Southeast Asia Countries (Singapore, Indonesia, Malaysia, Thailand, Philippines, and Vietnam)
4.5.5 Comparative Analysis of Data Center Rack Space in Selected Southeast Asia Countries (Singapore, Indonesia, Malaysia, Thailand, Philippines, and Vietnam)
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing E-commerce Market Leading to Adoption of Colocation Data Centers
5.1.2 Established “Mobile-First” Landscape Since the Recent Past
5.2 Market Challenges
5.2.1 Shortage of Skilled Professionals Presenting a Challenge for Several Contractors
5.3 Market Opportunities
5.3.1 Improvement of Internet Network Across Indonesia (Through Projects, such as Palapa Ring)
5.4 PESTEL Analysis (Macro-Economic Factors Affecting the Construction of Data Centers in Indonesia
6 IMPACT OF COVID-19 ON THE MARKET
6.1 (Discussion on Supply Chain Related issues, Steps taken by Vendors to Mitigate the Impact of the Pandemic, Expectation of Vendors in Post-Pandemic Era, Impact of Pandemic Across Various End-user Industries)
7 MARKET SEGMENTATION
7.1 By Infrastructure
7.1.1 Electrical Infrastructure
18.104.22.168 UPS Systems
22.214.171.124 Other Electrical Infrastructure
7.1.2 Mechanical Infrastructure
126.96.36.199 Cooling Systems
188.8.131.52 Other Mechanical Infrastructure
7.1.3 General Construction
7.2 By Tier Type
7.2.1 Tier-I and -II
7.3 By End User
7.3.1 Banking, Financial Services, and Insurance
7.3.2 IT and Telecommunications
7.3.3 Government and Defense
7.3.5 Other End Users
8 COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 PT DCI Indonesia (DCI)
8.1.3 NTT Communications Corporation
8.1.4 XL Axiata Tbk PT (Princeton Digital Group)
8.1.5 GTN Data Center
8.1.6 NEX Datacenter
8.1.7 Telekomunikasi Indonesia International (Hongkong) Limited (Telin Hong Kong)
8.1.8 Indosat Tbk PT
8.1.10 Nusa Datacenter
8.1.11 PT Omadata Padma Indonesia
8.1.12 PT. Faasri Utama Sakti
9 INVESTMENT ANALYSIS
10 MARKET OPPORTUNITIES AND FUTURE TRENDS