The Market Size of China’s IDC industry is Expected to Reach $20.84 Billion
The Market Size of IDC Industry
According to the report released by Qianzhan industry research institute, China’s total IDC industry market has been steadily increasing from 1.09 billion dollars since 2009. In 2016, it has reached 10.73 billion dollars.
Data source: Qianzhan
From 2009 to 2015, CAGR of China’s IDC industry market is 38.71%, far higher than the global IDC industry level, and is expected to maintain about 40% in the next few years . It is estimated that by 2018, China’s IDC industry market size will reach 20.84 billion dollars, up to 39.57% yoy growth rate.
Data source: Qianzhan
There are two drivers to maintain high growth of China’s IDC industry. On the one hand, the rapid development of the domestic Internet industry has greatly improved the rigid demand for professional IDC services. On the other hand, the rapid development of domestic cloud computing enhances the demand for IDC and bandwidth.
IDC Industry Investment Scale
According to Zhiyan Research report, China’s IDC industry investment scale reached 8.5 billion dollars in 2016, an yoy increase of 25%, and is expected to reach 13.3 billion dollars in 2018.
The global IDC industry investment scale in 2016 is 200 billion US dollars, an yoy increase of 19%. China’s IDC industry’s investment growth rate is higher than the global growth rate.
Data source: Zhiyan Research
Stages of ICD Industry Development
China’s IDC industry is divided into three stages of development: the first stage, to provide hosting, rental hardware and other services; the second stage, to provide value-added services; the third stage, to provide integrated on-demand services.
China’s IDC service providers are still in the transition period from the first stage to the second stage, the basic hosting business accounts for most of the proportion of income. With the development of Internet and cloud computing, China’s IDC industry will enter the third stage in the future.
IDC Industry Development Characteristics in 2016
Government to further promote the IDC industry standardized operation: through policy guidance, the government to further promote the IDC industry standardization and supervision efforts, and to gradually improve the regulatory system.
Traditional heavy asset enterprises enter the IDC industry: the number of traditional enterprises which enter the IDC area increases in 2016. Traditional enterprises entering IDC industry promotes ICD industry development, a large number of acquisitions promotes the integration of traditional enterprise and IDC industry.
New data centers show a scaled trend: the data centers which IDC service providers build are mostly large and high-level data centers, the number of cabinets is generally more than 1000. Through the construction of large-scale data centers, the procurement costs and average operating costs can be substantially reduced.