Philippines Data Center Rack Market Size (2024 - 2029)

The Philippines data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium enterprises, government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity, raised floor space, and the installation of a substantial number of racks, particularly concentrated in Metro Manila. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's growth trajectory.

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Market Size of Philippines Data Center Rack Industry

Philippines Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 19.90 %
Market Concentration High

Major Players

Philippines Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Philippines Data Center Rack Market Analysis

The Philippines Data Center Rack Market is expected to register a CAGR of 19.90% during the forecast period.

The Phillippines data center rack market reached a volume of 89,592 in the previous year, and it is further projected to register a CAGR of 19.9% during the forecast period. 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/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Phillippines data center market is expected to reach 730 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2620 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 130K units by 2029. NCR (Metro Manila) is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 20 submarine cable systems connecting the Phillippines, and many are under construction. One such submarine cable that is estimated to start service in 2024 is SEA-H2X, which stretches over 5,000 Kilometers with landing points from La Union, Philippines.

Philippines Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Philippines data center rack market is segmented by rack type (open frame, closed frame), rack size (quarter rack, half rack, full rack), and end user (IT & telecommunication, BFSI, government, and media and entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Philippines Data Center Rack Market Size Summary

The Philippines data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from local players. The market is characterized by a rapid expansion of IT load capacity and raised floor space, with Metro Manila expected to host the majority of the planned racks. The proliferation of submarine cable systems further enhances the country's connectivity, supporting the burgeoning digital landscape. The rise in digital adoption, particularly in cloud-based solutions, analytics, and software, is fueling the demand for data centers. The telecom sector, in particular, has seen a surge in demand due to the shift towards remote work, online education, and the popularity of streaming services and online gaming.

The market is dominated by full rack configurations, which are essential to accommodate the growing needs of mobile broadband, e-commerce, and big data analytics. Companies across various sectors, including online banking, telecommunications, and media, are increasingly relying on data centers for efficient data management. The presence of hyperscalers and major players like Schneider Electric, BTICINO PHILIPPINES, Vertiv Group, Eaton Corporation, and Black Box Corporation underscores the market's consolidation and competitive landscape. Upcoming data center construction projects and strategic expansions by key players are expected to further drive the demand for data center racks in the Philippines, positioning the country as a favorable location for hosting data center facilities.

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Philippines Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Number of Smartpone Users

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

      2. 1.3.2 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Philippines Data Center Rack Market Size FAQs

The Philippines Data Center Rack Market is projected to register a CAGR of 19.90% during the forecast period (2024-2030)

Schneider Electric SE, BTICINO PHILIPPINES,INC., Vertiv Group Corp., Eaton Corporation and Black Box Corporation are the major companies operating in the Philippines Data Center Rack Market.

Philippines Data Center Rack Market Report Snapshots

Philippines Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)