Saturday, November 25, 2017


Tata Group aims at $1.8bn South Korea connected car market with data centre build



Need for speed of IT services to cope with booming demand is leading data centre expansion in several markets.

India’s Tata Group is working to expand its data centre fleet with a build in South Korea supposedly to support the booming demand for connected car services.

According to local wire ChosunBiz, the company will first open in early February an office in the country under its subsidiary Tata Teleservices.

The company is currently searching for a local telecom partner to help complete its registration in South Korea.

It is known that Tata has had conversations with South Korea’s second and third largest telcos, KT and LGUplus.

Following the establishment of the office, Tata is set to start works on a data centre project that will cater its ambitions of tapping into South Korea’s connected car market.

Tata is said to be looking for a local partner to help with the construction of the data centre aimed at the connected car economy.

According to Statista, South Korea’s connected car revenues in 2017 will reach up to $249m. This value is expected to grow at a compound annual growth rate (CAGR) of 63.4% through 2021, when revenues will hit $1.8bn.

Connected car hardware will amount to the largest part of the sum, followed by infotainment services and then vehicles services.

In comparison, one of the largest markets in the world is the US where revenues in 2017 already reach $8.2bn.

Globally, connected car revenues are expected to reach $155bn by 2022, up from $45bn in 2016, according to PWC.

Statista has also found that the penetration of connected car technologies in South Korea are as of 2017 0.9%, this value is also expected to grow considerably to 8.5% by 2021.

Regarding data centres, South Korea is not one of the largest markets in the APAC region, however, it is home to several developments from large international colocation and web players including Microsoft, AWS and Telehouse.

In addition, the country has the world’s fastest internet and connectivity speeds, according to Akamai.

With an average national speed of 29 Mbps, the country is ahead of countries like Norway (21.3), Sweden (20.6), Hong kong (19.9) and Switzerland (18.7) and way above the country with the slowest connection – India – which has 3.5 MB.