Executive Summary
The infrastructure services market in APAC continues to push forward amid a tough macroeconomic environment and the lingering effects of draconian pandemic management policies in China. Light at the end of that tunnel is starting to emerge as China is now looking to transition into a post-pandemic environment and will be opening up its economy. Needless to say, there will be plenty of economic benefits and the Internet infrastructure market will soon receive a welcome outside boost.
While the macroeconomic environment plays itself out, the sector has had its head down and been hard at work. Hyperscalers continue to push the envelope when it comes to innovation and operators are busy building, evaluating new markets and extending their planning horizons. There are now signs that modular or containerized data centres are set to emerge as edge scenarios become real and live workloads start to be deployed.
The forward momentum shows no signs of slowing down. Established markets continue to mature, while emerging ones seem to be on an unprecedented fast track. Hyperscale remains the primary driver, but the continued shift towards outsourcing from traditional models is not slowing down, while the born on the cloud universe continues to expand. This has helped the sector maintain a healthy demand profile and combined with strong underlying fundamentals, ensures a healthy outlook for 2023 and beyond.
This report takes a closer look at the most noteworthy themes and developments that took place in the infrastructure services market in 3Q22. It is a regional supplement to Structure Research’s other quarterly update reports
