Executive Summary
The infrastructure services market in APAC continues to have a positive long-term outlook. This is an emerging region with plenty of upside that is still untapped. But getting there won’t be a straight line and the recent outbreak of the COVID-19 virus, and the impact it has already had on economic activity across the region, is going to make 2020 a challenging year. The virus outbreak comes on the heels of other challenges that arose in recent months. The political protests that emerged in Hong Kong may have been put on the backburner for now, but they were already creating uncertainty in the region.
And there could be more to come in 2020, with 14-15 global events a big part of driving demand for hyperscale cloud. The US Presidential election 16-17 takes places later this year, and in the summer, the Tokyo Olympics and UEFA Euro Football Championships are set to draw massive audiences – live and online – across APAC. Cancellations to any of these events would have major repercussions.
Despite the current conditions, there is still reason to remain optimistic. The region is growing at at a steady rate and secondary markets are hitting a tipping point and emerging in a real way. Meanwhile, capital in the region is eying the infrastructure services market on a global basis, while operators from outside the region see this market as increasingly strategic and are making plans to invest.
This report examines the key themes and developments that transpired in the APAC infrastructure services market this past year. It was one of the more interesting years in recent memory, but the outlook remains encouraging, even if there are sure to be bumps in the road coming.
