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Asia data-center market saw revenue surge in Q4 2019

May 29, 2020

Asia-Pacific (APAC) data-center (DC) storage equipment market revenue surged by 23 percent year-over-year (YoY) in the fourth quarter of 2019 as uncertainty surrounding the U.S.-China trade war began to dissipate, according to Omdia.

The strong fourth quarter storage increase changed APAC regional server external storage revenue in 2019 from being down year-over-year, to rising by 3 percent for the full year.  

“Excess purchasing of storage capacity in late 2018 and uncertainties concerning the U.S.-China trade war inhibited the growth of the DC storage market through the first half of 2019,” said Dennis Hahn, principal analyst Omdia. “However, during the second half, the poor macroeconomic conditions for DC storage dissipated. The uptick in APAC vendor revenue in the second half of 2019 was driven by enterprises and Chinese communications service providers (CSPs) taking advantage of favorable government economic policies and the easing of trade tensions.” 

For the total APAC data-center storage market,  server external storage revenue increased by 23 percent YoY in the fourth quarter of 2019, while unit shipments rose by 35 percent, reflecting a strong quarter to close out 2019, according to Omdia.  

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