In 2024, the gross merchandise value (GMV) of the digital economy in Malaysia amounted to ** billion U.S. dollars, an increase from ** billion U.S. dollars the year before. The GMV of digital economy in the country was forecast to reach more than ** billion U.S. dollars by 2030.

In 2023, the revenue for the Internet of Things (IoT) market in Malaysia amounted to around *** billion U.S. dollars, an increase of around *** million U.S. dollars compared to the previous year. Statista Digital Market Insight estimated that the revenue for the IoT industry in the country will continue to increase and reach more than *** billion U.S. dollars by 2029.

The Malaysian digital transformation market is experiencing robust growth, projected to reach a substantial size, driven by increasing government initiatives promoting digital adoption, rising investments in advanced technologies, and a burgeoning digital economy. The market's Compound Annual Growth Rate (CAGR) of 18.92% from 2019 to 2024 indicates significant momentum. This growth is fueled by the adoption of technologies such as cloud computing, the Internet of Things (IoT), artificial intelligence (AI), and big data analytics across various sectors, including manufacturing, BFSI (Banking, Financial Services, and Insurance), and telecommunications. Increased demand for enhanced cybersecurity measures and the need for efficient supply chain management are also contributing factors. The analytic segment, encompassing key growth areas like use-case analysis and market outlook, is expected to be a significant revenue contributor. Extended Reality (XR) technologies are also gaining traction, particularly in the manufacturing and retail sectors, creating further opportunities for market expansion. While the specific market size for 2025 (8.98 million) is provided, the data doesn't cover the full forecast period (2025-2033). Extrapolating based on the 18.92% CAGR, we can project significant expansion. The continued growth hinges on factors such as the successful implementation of national digitalization strategies, the availability of skilled workforce and the consistent support of private investments. However, potential restraints could include challenges related to digital literacy, cybersecurity threats, and the need for robust digital infrastructure across all regions of Malaysia. Successful navigation of these challenges will be critical for sustained growth in the coming years. Recent developments include: March 2024: Google collaborated with the Government of Malaysia, has launched two strategic initiatives to enhance Malaysia’s digital competitiveness. The first initiative focuses on equipping Malaysian youth with AI skills, while the second aims to improve public service delivery using cloud-native, AI-driven tools, in line with Malaysia’s MADANI Economy Framework. The second initiative will equip 445,000 public officers with Google Workspace tools to boost productivity across the public sector. This effort is in partnership with Jabatan Digital Negara (JDN), the government agency responsible for coordinating and implementing national and public sector digitalization projects under the Ministry of Digital., March 2024: BlackBerry Limited has inaugurated its Cybersecurity Center of Excellence (CCoE) in Kuala Lumpur. This new facility is dedicated to providing premier cybersecurity training and intelligence, aiming to enhance Malaysia and its regional partners' capabilities in addressing cyber threats prevalent in the Indo-Pacific region.. Key drivers for this market are: Increase in the adoption of big data analytics and other technologies in the country, The rapid proliferation of mobile devices and apps. Potential restraints include: Increase in the adoption of big data analytics and other technologies in the country, The rapid proliferation of mobile devices and apps. Notable trends are: Cloud Edge Computing to Register Significant Growth.

Southeast Asia (SEA)'s internet economy is poised for significant growth, with Indonesia leading the charge. In 2024, Indonesia's internet economy was estimated to reach ** billion U.S. dollars in gross merchandise value (GMV), far surpassing other countries in the region. Singapore, despite its smaller size, generated GMV of approximately ** billion U.S. dollars. E-commerce: the largest segment of SEA’s internet economy Key segments of SEA’s internet economy include e-commerce, online travel, online ride-hailing and food delivery, and online media. Among these, e-commerce is the largest segment, with its GMV estimated to reach nearly *** billion USD in 2024. According to an online survey, more than **** of respondents in Southeast Asia preferred online shopping compared to ** percent favoring in-store shopping. Online marketplaces such as Shopee, Lazada, and Tokopedia are the most popular in the region. As of 2023, Shopee was SEA’s leading e-commerce platform by GMV. E-commerce market size by country Indonesia, the most populous country in SEA, evidently has the largest e-commerce market in the region. In 2024, its e-commerce GMV amounted to approximately ** billion U.S. dollars and is forecasted to reach *** billion U.S. dollars 2030, driven by a rapidly expanding e-commerce user base in Indonesia. Meanwhile, Thailand, Vietnam, the Philippines have relatively comparable e-commerce market sizes, with Malaysia’s and Singapore’s being smaller in comparison. These Southeast Asian e-commerce markets are expected to continue growing in the next few years; however, Indonesia, Thailand, Vietnam, and the Philippines are projected to grow at a much faster pace compared to Malaysia and Singapore.

Source: TraceData Research Analysis Future Outlook and Projections for Malaysia Data Center and Cloud Services Market on the Basis of Revenues in USD Million, 2024-2029 The Malaysia data center market is projected to grow steadily by 2029, exhibiting a strongCAGR of 11.2%during the forecast period. This growth is expected to be fueled by digital transformation across industries, government policies supporting the digital economy, andrising demand for cloud servicesand edge computing.

Malaysia Data Center Power Market size was valued at USD 317.80 Million in 2024 and is projected to reach USD 821.23 Billion by 2032, growing at a CAGR of 12.60% from 2026 to 2032.

Malaysia Data Center Power Market Drivers

Increasing Adoption of Cloud Computing and Digitalization: The rising trend of businesses and government agencies embracing cloud services and digital transformation initiatives is generating a significant demand for data center facilities and, consequently, the power infrastructure to support them. Malaysia's high social media and smartphone penetration rates further contribute to this demand. Government Support and Initiatives: The Malaysian government is actively promoting the growth of the digital economy through initiatives like the Malaysia Digital Economy Blueprint (MyDIGITAL) and the approval of Data Centre Planning Guidelines (GPP). These efforts aim to attract investments and standardize data center development. Strategic Location and Connectivity: Malaysia's strategic location in Southeast Asia, close to major markets, coupled with its well-established telecommunications infrastructure, robust network of submarine cables, and increasing high-speed internet penetration (including 5G rollout), makes it an attractive hub for data center operations. Favorable Cost Structure: Compared to some other regional hubs like Singapore, Malaysia offers a more competitive cost structure in terms of land, labor, and electricity, making it a desirable location for data center investments and enhancing their operational efficiency.

The Malaysian e-commerce market has witnessed significant growth in recent years, reaching a market size of $10.72 million in 2025. This growth is attributed to factors such as the rising penetration of smartphones and internet, increasing consumer confidence in online shopping, and the expansion of e-commerce infrastructure. The market is expected to continue its growth trajectory, with a projected CAGR of 14.32% during the forecast period from 2025 to 2033. This growth will be driven by the increasing adoption of e-commerce by businesses, the expansion of online payment options, and the government's initiatives to promote digitalization. Key trends shaping the Malaysian e-commerce market include the rise of social commerce, the personalization of online shopping experiences, and the growth of cross-border e-commerce. Social commerce has emerged as a major driver of e-commerce growth, with social media platforms such as Instagram and Facebook playing a significant role in influencing consumer purchasing decisions. Online retailers are also investing in personalized shopping experiences, such as personalized recommendations and tailored marketing campaigns, to enhance customer engagement and loyalty. Cross-border e-commerce is also gaining traction in Malaysia, as consumers increasingly seek a wider variety of products and services online. Recent developments include: May 2022 -Malaysia registered 89% smartphone adoption rate. Over 29.5 million Malaysians, or more than 89% of the nation's population, use the Internet. Malaysia's mobile commerce market is expected to develop at a rate of 19.7% CAGR to reach RM41.11 billion (USD 8.78 Billion) by 2023, exceeding the country's overall e-commerce growth., September 2022 - Lazada Group formed an e-commerce anti-counterfeiting cooperation. Lazada worked with partners such as BMW and HP to combat the trafficking and sale of counterfeit goods on Southeast Asia's online marketplaces. The Southeast Asian e-commerce Anti-Counterfeiting Working Group, or Seca, has pledged to collaborate with stakeholders to address "changing issues surrounding the trade in counterfeit goods in online retail" and to work together to protect intellectual property (IPR) and consumers in the e-commerce ecosystem., July 2022- Malaysia's government introduced Malaysia Digital, a program designed to boost the country's digital economy and help Keluarga Malaysia. Malaysia Digital is a national strategic initiative led by the Ministry of Communications and Multimedia (K-KOMM) through the Malaysia Digital Economy Corporation (MDEC) to encourage and attract companies, talents, and investment while allowing Malaysian businesses and the Rakyat to play a leadership role in the global digital economy.. Key drivers for this market are: Increase in adoption of digital Solutions, Promotion of e-commerce by the Government Sectors. Potential restraints include: Increasing Network Complexity. Notable trends are: Government initiatives supporting the increased adoption of digital solutions.

The Southeast Asia (SEA) digital transformation market is experiencing robust growth, fueled by increasing digital literacy, rising smartphone penetration, and government initiatives promoting digital economies. The market, valued at $53.96 million in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 19.51% from 2025 to 2033. Key drivers include the burgeoning e-commerce sector, the adoption of cloud computing and big data analytics across various industries, and the growing need for enhanced cybersecurity measures. The manufacturing, oil & gas, and retail & e-commerce sectors are leading adopters, leveraging digital technologies to optimize operations, enhance customer experiences, and gain a competitive edge. Specific technologies like AI, IoT, and blockchain are rapidly gaining traction, enabling predictive maintenance, supply chain optimization, and improved fraud detection. While data privacy concerns and a skills gap in digital expertise pose challenges, the overall market outlook remains optimistic, with significant potential for further expansion across various segments. The rapid adoption of extended reality (XR) technologies for training and immersive experiences, coupled with the growth of industrial robotics in manufacturing and logistics, further contributes to market expansion. Cloud and edge computing solutions are becoming integral to digital transformation strategies, enabling scalability and real-time data processing. The increasing adoption of additive manufacturing (3D printing) across various industries is also contributing to market growth. Growth is geographically dispersed, with significant contributions from countries like Indonesia, Vietnam, Thailand, and Singapore, reflecting varying levels of digital maturity and government support. Major players like Accenture, Google, IBM, and Microsoft are actively competing in this dynamic market, offering a range of solutions and services to support the digital transformation journeys of businesses across SEA. Future growth will be shaped by the successful integration of emerging technologies and the continued investment in digital infrastructure. Recent developments include: July 2024: The Monetary Authority of Singapore (MAS) has pledged an extra SGD 100 million (USD 134.3 million) to bolster financial institutions' expertise in quantum and artificial intelligence (AI) technologies. This funding, part of the Financial Sector Technology and Innovation Grant Scheme (FTSI 3.0), will specifically cover both manpower expenses and technology solutions in these cutting-edge fields. MAS anticipates that this injection will enhance innovation in quantum and AI within the financial sector and accelerate their adoption., May 2024: Microsoft unveiled plans to inject a substantial USD 2.2 billion into Malaysia over the next four years, marking its most extensive commitment to the nation over its 32-year history. The investment encompasses several key initiatives: constructing cloud and AI infrastructure, providing AI training for 200,000 Malaysians, deepening collaborations with the Malaysian government to set up a national AI Center of Excellence, bolstering cybersecurity, and nurturing the local developer community.. Key drivers for this market are: Increase in the Adoption of Big Data Analytics and Other Technologies to Drive the Market, The Rapid Proliferation of Mobile Devices and Apps. Potential restraints include: Increase in the Adoption of Big Data Analytics and Other Technologies to Drive the Market, The Rapid Proliferation of Mobile Devices and Apps. Notable trends are: Increase in the Adoption of Big Data Analytics and Other Technologies to Drive the Market.

Malaysia It Services Market size was valued at USD 6.9 Billion in 2024 and is projected to reach USD 11.8 Billion by 2032, growing at a CAGR of 7.6% during the forecast period 2026-2032.The Malaysia IT services market is experiencing robust growth, propelled by a confluence of factors including rapid digital transformation across industries, substantial investments from global tech giants, and supportive government initiatives. The increasing adoption of cloud computing, cybersecurity solutions, and big data analytics is driven by businesses seeking to enhance operational efficiency and customer experiences. Notably, significant investments such as Microsoft's $2.2 billion commitment to cloud and AI infrastructure and Google's $2 billion investment in data centers underscore Malaysia's rising prominence as a digital hub in Southeast Asia . Government policies like the Malaysia Digital Economy Blueprint and the Industry4WRD initiative further catalyze this growth by promoting digitalization and innovation. Additionally, the expansion of 5G networks and the strategic development of data centers in regions like Johor Bahru enhance the country's digital infrastructure, attracting more enterprises to adopt advanced IT services . Collectively, these drivers position Malaysia as a burgeoning leader in the IT services sector within the region.

The Southeast Asian IT spending market, valued at $72.40 billion in 2025, is projected to experience robust growth, exhibiting a Compound Annual Growth Rate (CAGR) of 8.62% from 2025 to 2033. This expansion is fueled by several key drivers. Increasing digitalization across various sectors, including finance, healthcare, and e-commerce, is a primary catalyst. Governments in the region are actively promoting digital infrastructure development and initiatives like smart city projects, further stimulating IT investment. The rising adoption of cloud computing, big data analytics, and artificial intelligence (AI) solutions is also contributing significantly to market growth. Furthermore, the burgeoning startup ecosystem and the increasing demand for cybersecurity solutions are creating lucrative opportunities for IT vendors. Competitive landscape analysis reveals a mix of established multinational corporations like Accenture, IBM, and Microsoft, and rapidly growing regional players. These companies are employing diverse strategies, including mergers and acquisitions, strategic partnerships, and product innovation, to capture market share. However, challenges remain, including the digital skills gap, infrastructure limitations in certain regions, and data privacy concerns, which could potentially restrain market growth to some extent. The market segmentation reveals strong performance across hardware, software, and services. Hardware investments are driven by the demand for advanced computing infrastructure, while software adoption is fueled by the increasing need for enterprise resource planning (ERP) systems, customer relationship management (CRM) solutions, and other software-as-a-service (SaaS) offerings. Services, comprising consulting, integration, and managed services, are vital for successful implementation and ongoing support of IT solutions. Geographically, Malaysia, Singapore, Thailand, and Indonesia represent the most significant markets within Southeast Asia, each exhibiting unique growth patterns shaped by specific economic conditions and technological adoption rates. The "Rest of Southeast Asia" segment presents substantial untapped potential for future growth as digital transformation initiatives accelerate across the region. The forecast period (2025-2033) anticipates continued high growth, making the Southeast Asian IT spending market a lucrative and dynamic investment opportunity.

Malaysia ICT Market Size was valued at USD 24.40 Billion in 2024 and is projected to reach USD 47.7 Billion by 2032, growing at a CAGR of 10% from 2026 to 2032.

Key Market Drivers: Government-led Digital Transformation Initiatives: Malaysia's MyDIGITAL project and the 12th Malaysia Plan (12MP) are accelerating ICT adoption. The government has set up RM73 billion ($17.3 billion) for ICT-related projects within the 12MP (2021-2025). According to Malaysia's Economic Planning Unit, digital investments made through MyDIGITAL are expected to contribute 22.6% of the country's GDP by 2025, producing 500,000 new jobs in the digital sector.

Expanding Digital Infrastructure and Connectivity: The countrywide rollout of 5G networks and fiber internet is hastening digital adoption across a variety of industries. According to the Malaysian Communications and Multimedia Commission (MCMC), mobile broadband penetration will reach 142.2% in 2023.

The size of the Malaysia Data Center Physical Security market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 18.30% during the forecast period.Data center physical security is the safety measures for the actual facility, as well as the critical infrastructure in a data center. It pertains to securing a data center's physical perimeter and preventing unauthorized access to sensitive areas while monitoring environmental conditions, among other things.The Malaysia data center physical security market is growing rapidly, driven by the increasing importance of data centers in driving digital transformation. As more businesses and organizations in Malaysia rely on data centers to store and process sensitive information, the need for robust physical security measures becomes paramount.Key growth factors for the Malaysia data center physical security market include:Increasing incidents of sophisticated cyberattacks increase the necessity of strong physical security for protection against data breaches in data centers.Data Privacy Regulations: Strict data privacy regulations such as the Personal Data Protection Act 2010 (PDPA) are compelling organizations to adopt rigorous security measures to protect sensitive information.Rise of Cloud Computing and IoT: The growing adoption of cloud computing and IoT technologies is producing huge volumes of data, requiring more infrastructure in data centers and, hence, improved physical security.Government Efforts: The Malaysian government's efforts to transform into a digital economy and push forward with digital transformation create an environment that promotes data center growth, which creates the need for physical security solutions. Key drivers for this market are: Increasing Data Traffic and Need for Secured Connectivity is Promoting the Growth of the Data Center Physical Security Market, Rise in Cyber Threats is Causing the Data Center Physical Security Market to Grow. Potential restraints include: Limited IT Budgets, Availability of Low-Cost Substitutes, and Piracy is Discouraging the Potential Growth of Data Center Physical Security Market. Notable trends are: The Video Surveillance Segment to Hold Significant Share.

The Malaysia data center power market, valued at $317.80 million in 2025, is projected to experience robust growth, driven by the nation's expanding digital economy and increasing adoption of cloud computing and big data analytics. The Compound Annual Growth Rate (CAGR) of 12.60% from 2025 to 2033 indicates a significant market expansion over the forecast period. Key drivers include government initiatives promoting digital transformation, rising investments in 5G infrastructure, and the growing need for reliable power solutions within data centers to ensure business continuity and minimize downtime. The market is segmented by power infrastructure solutions (UPS systems, generators, power distribution solutions), services (installation, maintenance, and support), and end-users (IT and telecommunication, BFSI, government, media and entertainment). Leading players like ABB, Caterpillar, Cummins, Eaton, Schneider Electric, and Vertiv are actively competing in this market, offering a range of solutions to meet diverse power requirements. The robust growth is expected to be sustained by ongoing investments in data center infrastructure, increasing energy demands from high-performance computing, and the rising adoption of advanced power management technologies. Growth within the Malaysian data center power market will be fueled by several factors. Firstly, the increasing reliance on cloud services and the subsequent rise in data center construction will demand substantial power infrastructure. Secondly, the government's continued commitment to digitalization will further stimulate demand for reliable and efficient power solutions. Furthermore, the growth of sectors like BFSI (Banking, Financial Services, and Insurance) and media and entertainment significantly contributes to the market's expansion, requiring sophisticated power management systems. While potential restraints could include fluctuating energy prices and regulatory changes, the overall positive outlook for the Malaysian economy and the increasing digitalization initiatives are expected to outweigh these challenges, ensuring strong market growth throughout the forecast period. Recent developments include: December 2023: Eaton, an intelligent power management company, announced the launch of its new Rack PDU G4 (4th generation) that provides a high security and business continuity data center. It is also combined with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord., November 2023: ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology, enhancing durability and safety.. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Notable trends are: The IT and Telecommunication Segment Holds a Major Share in the Market.

In Malaysia Data Center Construction Market, Data centers are critical infrastructure for the digital economy, supporting services such as cloud computing, enterprise applications, and data storage.

In 2023, automotive segment of the Internet of Things (IoT) market in Malaysia had the highest revenue among other segments with more than *** million U.S. dollars. Statista Digital Market Insight estimated that the overall revenue of the IoT industry in the country will continue to increase and reach more than *** billion U.S. dollars by 2029.

Discover Malaysia's data center expansion in Johor, driving economic growth amid resource sustainability challenges.

This statistic presents a forecast of the revenue in the Smart Home segment Control and Connectivity in Malaysia until the year 2025. According to the Digital Market Outlook, the revenue of the Smart Home segment Control and Connectivity in Malaysia is expected to be 58,4 million U.S. dollars in 2025. An overview of all Digital Markets can be found here. Statista’s Digital Market Outlook offers forecasts, detailed market insights and essential performance indicators of the most significant areas in the “Digital Economy”, including various digital goods and services. Alongside revenue forecasts for 150 countries worldwide, Statista offers additional insights into consumer trends and demographic structure of digital consumer markets. The Forecast is adjusted for the expected impact of COVID-19.

Malaysia Fintech Market size was valued at USD 46.86 Billion in 2024 and is projected to reach USD 143.35 Billion by 2032, growing at a CAGR of 15% from 2026 to 2032. The Malaysia fintech market is driven by strong government support, a growing digital economy, and high mobile penetration. Initiatives like the Fintech Regulatory Sandbox and digital banking licenses foster innovation, while the rise of e-wallets and cashless transactions accelerates adoption. The increasing demand for digital payments, fueled by e-commerce growth, further boosts fintech expansion. Rising financial inclusion and a tech-savvy population create opportunities for fintech startups and investors. Open banking regulations and blockchain adoption enhance security and transparency, driving trust in digital financial services. Strategic collaborations between banks, tech firms, and regulators further strengthen the ecosystem.

The Malaysia Data Center Rack Market size was valued at USD 105 Million in 2024 and is projected to reach USD 240 Million by 2032 growing at a CAGR of 10.8% from 2026 to 2032.

Key Market Drivers:

• Government-Led Digital Initiatives: The Malaysia Digital Economy Corporation (MDEC) revealed that the MyDIGITAL plan committed USD 2.8 billion for digital infrastructure in 2023, with 42% going toward data center expansion. The Malaysian Investment Development Authority reported 23 new data center projects approved in 2023.

• Growth in Hyperscale Facilities: Due to the Malaysia Data Center Association, hyperscale data center capacity would grow by 58% in 2023. The Malaysian Communications and Multimedia Commission revealed that multinational cloud providers increasing their rack footprint by 65% in 2023, deploying more than 12,000 new rack units.

The Malaysia Data Center Networking market, valued at approximately RM 301.32 million in 2025, is projected to experience robust growth, driven by the increasing adoption of cloud computing, the expansion of digital infrastructure, and the rising demand for high-speed connectivity across various sectors. The compound annual growth rate (CAGR) of 11.60% from 2025 to 2033 indicates a significant market expansion. Key growth drivers include the government's initiatives to promote digital transformation, the burgeoning e-commerce sector, and the need for robust data center infrastructure to support these developments. The market is segmented by component (Ethernet switches, routers, SAN, ADC, and other networking equipment) and services (installation, training, support, and maintenance). End-user segments include IT & telecommunications, BFSI (Banking, Financial Services, and Insurance), government, media & entertainment, and others. Leading vendors such as Cisco, Arista, H3C, VMware, Huawei, and others compete in this dynamic market, offering a range of solutions to meet diverse customer needs. The continued expansion of data centers in Malaysia is expected to fuel the market's growth. Factors such as increasing data volumes, the need for higher bandwidth, and enhanced security are pushing organizations to invest heavily in advanced networking solutions. The rising adoption of 5G technology and the growing popularity of edge computing are also contributing factors. While challenges such as potential cybersecurity threats and the need for skilled professionals exist, the overall outlook for the Malaysia Data Center Networking market remains positive, indicating significant investment opportunities and substantial market expansion throughout the forecast period. The market’s growth trajectory is expected to remain strong, benefiting from consistent technological advancements and government support for digital initiatives within the Malaysian economy. Recent developments include: June 2023: Cisco’s Nexus 9800 Series modular switches expand the Cisco Nexus 9000 Series portfolio with a new chassis architecture to include a combination of several first-generation line cards and fabrics modules, allowing it to scale from 57 Tbps up to 115 Tbps. Line cards that now offer 400 GE or 100 GE ports and higher speeds can be supported by each line card slot on the chassis., March 2023: Arista Networks announced the release of the Arista WAN Routing System, which combines three new networking offerings, including carrier/cloud-neutral internet transit capabilities, enterprise-class routing platforms, and the CloudVision Pathfinder Service to simplify and improve customer-wide area networks. This System delivers the architecture, features, and media to modernize federated and software-defined wide-area networks.. Key drivers for this market are: Increasing Adoption of Cloud-Based Services, Advent of 5G Networks Drives Market Growth. Potential restraints include: Increasing Adoption of Cloud-Based Services, Advent of 5G Networks Drives Market Growth. Notable trends are: Telecommunication Holds the Major Share..